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Renters Reform Bill Update: Now set for late 2025

The Renters Reform Bill, one of the biggest overhauls of the private rental sector in decades, is likely to become effective in late 2025. With phased implementation now underway, it’s vital that landlords stay informed and prepared. This bill brings significant changes to how tenancies are managed – affecting everything from eviction processes to property registration.

In this update, we break down what’s happening in 2025, what it means for landlords, and how to stay one step ahead.

What is the Renters Reform Bill?

The Renters Reform Bill was introduced by the UK Government to create a fairer, more secure and better-regulated private rented sector in England.

Its main aims are to:

  • Give tenants greater security and more rights.

  • Improve standards across the sector.

  • Make it easier for responsible landlords to manage their properties fairly.

The bill affects most landlords and tenants, particularly those with Assured Shorthold Tenancies (ASTs) – the most common type of rental agreement.

When will the Renters Reform Bill become law?

The Renters (Reform) Bill is currently expected to receive Royal Assent before Parliament’s summer recess in July 2025. However, the changes won’t come into effect right away. The commencement date is expected to be at least two months after Royal Assent, which means the Bill is likely to start being implemented between October and December 2025.

The Bill was initially expected to pass shortly after Easter, but a delay to the committee stage pushed the timeline back. While the Government remains eager to roll out major reforms — such as abolishing Section 21 and moving all tenancies to a rolling (periodic) model — other elements of the Bill may be staggered or delayed, depending on parliamentary scrutiny and amendments made along the way.

What happened during the third reading in the House of Commons?

During the third reading of the Bill on 14 January 2025, several key amendments were introduced by the Government, including:

  • Limit on rent in advance: Landlords will be prohibited from charging more than one month’s rent upfront.

  • Ombudsman funding model: Landlords will contribute to a national database, and the fees collected will directly fund the new ombudsman scheme.

  • Private Rented Sector (PRS) database updates: The database will include the names, addresses, and contact details of landlords and managing agents, along with any enforcement action taken against them and previous eviction notices served to tenants.

  • Restrictions on advance rental agreements for students: Landlords will no longer be allowed to lock students into tenancy agreements more than six months in advance.

  • Protection for bereaved guarantors: Guarantors will no longer be liable for rent payments if the tenant they supported passes away.

What was discussed in the second reading in the House of Lords?

The second reading in the House of Lords serves to debate the key principles of the Bill and highlight areas of concern or those that may require amendment. During this session, several issues drew particular attention from Peers, including:

  • Student tenancies and how the Bill may affect the academic rental market

  • Rental supply and demand in an already stretched private rented sector

  • Tenants’ rights to keep pets and how this will be managed in practice

  • Legal enforcement and the need for proper funding and capacity to uphold the new rules

What’s changing in 2025?

Although the bill is still making its way through Parliament, some of the proposed reforms are already beginning to roll out, with others expected to follow later in the year or in 2026.

Here’s what’s on the horizon:

1. Abolition of Section 21 ‘no-fault’ evictions (phased introduction)

One of the most talked-about changes, Section 21 evictions – where landlords can ask tenants to leave without giving a reason – will be scrapped.

Instead, landlords will need to rely on revised Section 8 grounds, which require valid reasons for regaining possession of a property.

2. Stronger section 8 grounds for possession

The grounds for eviction under Section 8 will be updated and strengthened.

For example, if you plan to sell the property or move in yourself, these will now be considered acceptable reasons for eviction – provided proper notice is given.

3. All tenancies becoming periodic

Fixed-term tenancies will be replaced with rolling, month-to-month periodic tenancies.

This gives tenants more flexibility and allows them to leave with two months’ notice – but also means landlords will need to be more responsive.

4. Mandatory landlord ombudsman scheme

All private landlords will be required to join a government-approved redress scheme.

This gives tenants a route to raise complaints without needing to go to court and encourages landlords to resolve issues fairly and promptly.

5. A new digital property portal

A centralised portal is being developed where landlords must register their properties and demonstrate compliance with safety and legal standards.

This will make it easier for tenants to check whether a property is properly managed.

What should landlords be doing now?

While the reforms are not yet fully in force, preparation is key. Here are some steps you can take:

  • Stay up to date. The details and timelines are still evolving, so make sure you’re getting updates from trusted sources (like Letio!).

  • Review your current tenancy agreements. If you rely on Section 21 notices, you’ll need to rethink your approach once they’re removed.

  • Keep thorough records. Clear documentation will be essential in the new system, especially if disputes arise.

  • Get professional support. The team at Letio are experts in property compliance and can help ensure you’re ready for whatever comes next.

Looking ahead

It’s clear that change is coming – and while some landlords may find these reforms challenging, they also represent an opportunity to modernise and improve the rental experience for everyone involved.

Navigating legal updates, shifting tenancy structures and new requirements like the Property Portal can feel overwhelming – especially if you’re managing properties on your own. That’s why partnering with a professional letting agent is more valuable than ever.

An experienced agent can help you:

  • Understand exactly how the new rules affect your properties.

  • Ensure your tenancy agreements, processes and documentation are up to date.

  • Handle compliance, communication, and property management on your behalf.

With the right support, you can stay compliant, reduce risk, and continue to thrive as a landlord – without the added stress.

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