Renters’ Rights Bill 2025: How the End of Section 21 Will Transform Your Landlord Strategy

Critical Action Points for Landlords:

Immediate: Review and update tenancy agreements before implementation

Q4 2025: Prepare properties for Decent Homes Standard compliance

Early 2026: Adapt to new Section 8 possession procedures

Ongoing: Implement robust record-keeping systems for all tenant interactions

Key Timeline: Royal Assent expected September-October 2025, with core provisions taking effect in early 2026, likely January-March. The government has committed to providing at least six months’ notice before major changes like the Section 21 ban.

The End of an Era

After years of political promises and delays, the Renters’ Rights Bill 2025 is finally approaching the statute books. The legislation successfully passed its second reading in the House of Lords on February 4th, 2025, and cleared the House of Commons on January 15th, signaling that fundamental change is imminent for England’s 2.3 million landlords and 11 million private renters.

Section 21 evictions reached a record high in 2023, with 32,387 households taken to court by their landlords—a nearly 49% increase compared to the previous year. This stark statistic underscores why the government views reform as urgently needed, but it also highlights the scale of change landlords must navigate.

The National Residential Landlords Association (NRLA) describes this as “the most significant changes to the private rented sector in nearly four decades”, establishing reforms that will fundamentally alter how landlords operate, from tenant selection to property maintenance and possession procedures.

Critical Timeline: What Landlords Must Know

Royal Assent and Implementation Schedule

The Renters’ Rights Bill completed its passage through the House of Commons in January and is nearing the end of its passage through the House of Lords. It’s likely to receive Royal Assent in September or October 2025. However, Royal Assent is just the beginning—the real impact comes with implementation.

Phase 1 (Early 2026): Core Tenancy Reforms

• Abolition of Section 21 “no-fault” evictions
• Conversion of all assured tenancies to periodic tenancies
• Enhanced Section 8 possession grounds
• Annual rent increase limitations

Phase 2 (Mid-2026 onwards): Regulatory Framework

• Decent Homes Standard and database requirements probably not until 2026/27
• Private Rental Sector database registration
• Ombudsman service launch
• Full enforcement powers for local authorities
  
  

The Transition Period Challenge

Landlords who serve Section 21 or Section 8 notices before the Bill becomes law will have a three-month transition period to apply to court. However, this creates a significant risk: busy courts would find it almost impossible to process applications within the time allowed, meaning landlords could have their cases thrown out through no fault of their own.

Recent government amendments have addressed this concern, ensuring that landlords can use a valid Section 21 or Section 8 notice to apply to court at any time during the transition window.

Areas That Could Catch Landlords Out

1. The Section 21 Cliff Edge

The most immediate risk for landlords is the complete abolition of Section 21 evictions. Upon the commencement date, the new tenancy system will apply to all private tenancies – existing tenancies will convert to the new system. This means:

Immediate Impact:

• No new Section 21 notices can be served after implementation
• All evictions must use reformed Section 8 grounds with evidence
• Every eviction will require a Section 8 notice that states one or more valid grounds, and if a tenant refuses to leave, a possession claim will have to be made through the courts with a hearing

Critical Preparation: Landlords should immediately audit their current tenancies and identify any potential issues that might require possession action. Document everything meticulously—landlords must document breaches (rent records, communications, warnings) as court procedures will be reworked to handle possession claims under the new framework.

2. Periodic Tenancy Conversion Shock

All fixed-term assured shorthold tenancies (ASTs) will convert to periodic tenancies overnight. This seemingly simple change has profound implications:

Lost Certainty: A three-year tenancy signed in December 2025 would instantly become periodic if the Renters’ Rights Bill became effective in February 2026, replacing the fixed term. This removes landlords’ certainty about tenancy duration and rental income.

Notice Period Asymmetry: Tenants will need to give two months’ notice to end their tenancy, while landlords face much longer notice requirements under the new Section 8 grounds—often four months or more depending on the ground used.

3. Enhanced Section 8 Requirements

The new Section 8 system places significantly higher evidential burdens on landlords:

Mandatory vs. Discretionary Grounds: The bill makes provision to make all grounds for repossession discretionary for the court, meaning even previously mandatory grounds may require judicial discretion. This could significantly extend possession timelines.

Rent Arrears Complications: Private landlords are not allowed to be notified when a tenant is claiming benefits, meaning they will not know if rent arrears are due to benefit payment delays unless a possession case goes to court. This creates particular challenges for Ground 8 (mandatory possession for rent arrears).

New Procedural Safeguards: Recent amendments require landlords to provide two years’ protection against eviction under possession grounds 1 (occupation by landlord or family) and 1A (selling the property), increased from one year.

4. Rent Control Through the Back Door

While not imposing explicit rent controls, the Bill creates significant constraints on rent increases:

Annual Limitation: All rent increases will be limited to once per year with two months’ notice required, and rent increases will have to be in line with market rates (the price that the property would be advertised for if it was empty).

Tribunal Challenge Rights: Tenants will have the right to challenge unfair increases at a tribunal, and unsuccessful rent increase challenges at First Tier Tribunals can now be backdated to the original Section 13 notice.

No Advance Rent: Landlords will be banned from charging more than one month’s rent upfront, which combined with frozen housing benefit rates and insufficient rental housing will make it almost impossible for those with poor or no credit histories to prove their ability to sustain tenancies.

5. Decent Homes Standard Compliance Gap

The Bill will allow regulations to be made setting out Decent Homes Standard requirements for private rented sector homes and provide local councils with effective and proportionate enforcement powers. This represents a significant compliance challenge:

Current Social Housing Standard: The Decent Homes Standard currently requires properties to be:

• In reasonable repair
• Reasonably modern in facilities and services
• Provide reasonable degree of thermal comfort
• Meet current statutory minimum standards for housing

Enforcement Powers: Local councils will have powers to impose civil penalties on landlords up to £7,000 for breaches, with multiple penalties possible for continued and repeat breaches.

6. Awaab’s Law Implementation

Following the Awaab Ishak tragedy, statutory timeframes for responding to serious hazards (mould, damp) are being introduced for social landlords from October 2025, with proposals to extend to private landlords.

Immediate Risks: Properties with existing damp or mould issues must be addressed urgently. Landlords should survey for mould/damp, heating, smoke/CO alarms and fire safety, prioritising repairs flagged by tenants.

7. Pet Policy Revolution

Landlords cannot unreasonably refuse tenants with pets, but the framework creates complex new obligations:

28-Day Response Requirement: Landlords must give or refuse consent in writing within 28 days of a tenant’s pet request.

Pet Deposits: An amendment enables landlords to take an additional ‘pet deposit’ of three weeks’ rent where a pet request is accepted, but the government confirmed that landlords will not be able to require tenants to obtain pet insurance.

8. Discrimination Enforcement

The Bill will address both overt discriminatory practices, such as ‘No DSS’ adverts, and situations where landlords use other indirect practices to prevent someone entering into a tenancy. This creates significant legal risks for landlords who fail to adapt their practices.

Benefits to Landlords: The Silver Lining

Despite widespread industry concerns, the Renters’ Rights Bill does offer several advantages for responsible landlords:

Professionalisation of the Sector

The majority of landlords provide a good service, and most tenants are happy with their landlord’s services, intend to stay long-term, and pay their rent regularly. The reforms will help distinguish professional landlords from rogues operators:

Market Differentiation: Higher standards and compliance requirements will drive out poor landlords, potentially reducing competition and supporting rental values for compliant operators.

Quality Premium: Quality properties will attract the best renters, allowing professional landlords to command premium rents from stable, long-term tenants.

Reduced Tenant Turnover

The shift to periodic tenancies, while removing certainty, may actually reduce void periods:

Stability Incentive: The new tenancy system will provide tenants with greater security and stability and empower them to challenge bad practice without fear of retaliatory eviction. More secure tenants are likely to stay longer.

Reduced Moving Friction: Lifetime deposit schemes will make it easier for tenants to move between properties without needing large upfront payments, but this also means good tenants can more easily move to better properties, incentivising landlord improvements.

Enhanced Legal Protections

Stronger Eviction Grounds: The Bill ensures possession grounds are fair to both parties, giving tenants more security while ensuring landlords can recover their property when reasonable.

Clearer Framework: Landlords will benefit from more straightforward regulation and clearer and expanded possession grounds.

Dispute Resolution Improvements

The Bill introduces a new private rented sector ombudsman, offering a fair and impartial resolution service to settle disputes without court involvement. This should reduce legal costs and provide faster resolution of tenant disputes.

Market Confidence

With demand high and rents continuing to rise, the reasons for being a landlord remain strong in most areas of the country. The reforms may actually strengthen the rental market by:

Increased Supply Demand: As homeownership becomes increasingly difficult for young people, rental demand continues to grow.

Investment Certainty: Clear regulatory framework provides greater certainty than the current patchwork of rules and frequent legislative threats.

Preparation Strategies for Smart Landlords

Immediate Actions (August-December 2025)

1. Tenancy Agreement Audit Review tenancy agreements – one of the biggest changes will be the move from fixed term to periodic tenancies. Most landlords will need to make changes to their standard tenancy agreements.

2. Property Standards Assessment Assess the standard of your property – the extension of the Decent Homes Standard and new rules on pets mean it’ll be crucial for landlords to ensure their property is up to scratch.

3. Record-Keeping Systems Keep clear logs of rent payments, repair requests and inspections – these will be crucial if possession relies on fault grounds.

4. Financial Planning The Bill does increase costs and financial risk to landlords in several ways, including higher risk of void periods, delays in seeking possession, and constraints on rent collection. Budget accordingly.

Medium-Term Preparation (January-June 2026)

1. Section 8 Expertise Develop expertise in the new Section 8 grounds and ensure robust documentation systems support potential possession claims.

2. Court Process Adaptation We are working to digitise the possession process so that court action is more efficient and easier for landlords and tenants to understand. Stay informed about new digital procedures.

3. Compliance Infrastructure Prepare for registration requirements and ombudsman membership as the regulatory framework develops.

Long-Term Strategic Planning

1. Portfolio Optimisation Focus on long-term tenants for steady income and consider whether all properties in your portfolio meet the new higher standards.

2. Professional Development The new rules are complex, and landlords must learn a lot to remain compliant. Invest in training and professional development.

3. Market Positioning Position yourself as a premium, compliant operator who can offer the security and standards that tenants increasingly demand.

The Implementation Challenge: Court Capacity and Timing

One of the most significant concerns surrounding the Bill is court capacity. Despite pledging last year to ensure the courts were “ready” for the impact of reforms, the government has not explained what this means in practice, particularly regarding how long courts will take to consider legitimate possession claims.

This is a significant source of concern for landlords given already considerable delays in the system. However, the government expects rental reforms to reduce demand on courts because only cases where there is a clear, well-evidenced ground for possession will be able to proceed.

Industry Response and Ongoing Concerns

The NRLA and other industry bodies continue to raise concerns about implementation. The NRLA is pleased that the government will undertake and publish a review of the Bill’s impact two and five years after implementation.

Key ongoing concerns include:

• Limiting rent in advance, combined with frozen housing benefit rates, will make it almost impossible for those with poor credit histories to prove their ability to sustain tenancies
• Higher risk of void periods, particularly in houses in multiple occupation (HMOs) and for student tenancies
• Changes to possession grounds and removal of Section 21 will increase delays in seeking possession
  
  

Conclusion: Adaptation is Survival

The Renters’ Rights Bill 2025 represents the most significant transformation of the private rental sector in a generation. While the challenges are substantial—from the abolition of Section 21 to enhanced property standards and complex new procedures—the legislation also offers opportunities for professional landlords willing to adapt.

With rental market recovery remaining fragile and landlord confidence in the UK economy at rock bottom, the forthcoming implementation requires careful management. However, change is significant, but with clear records and the right systems, landlords can adapt and protect yield while offering better, longer-lasting tenancies.

The key to success lies in preparation. Landlords who invest now in understanding the new requirements, upgrading their properties and systems, and positioning themselves as professional operators will be best placed to thrive in the post-Section 21 world. Those who fail to adapt risk finding themselves excluded from an increasingly regulated and professionalised market.

The transformation is coming whether landlords are ready or not. The government is planning a “far-reaching communications campaign” to landlords after Royal Assent, and again around implementation, but smart landlords won’t wait for government guidance—they’ll start preparing now.

As the Bill moves toward Royal Assent in autumn 2025 and implementation in early 2026, one thing is certain: the private rental sector will never be the same again. The question is not whether change is coming, but whether landlords will be ready for it.

Key Sources:

• Government Guide to the Renters’ Rights Bill, GOV.UK, January 2025
• National Residential Landlords Association (NRLA) Policy Updates, 2025
• House of Commons Library Research Briefings, 2025
• Landlord Today Industry Analysis, 2025
• Shelter England Professional Resources, 2025
  
  

This analysis is based on the latest available information as of 26th August 2025. Landlords should consult legal professionals and continue monitoring government guidance as implementation approaches.