The Renters’ Rights Bill 2025 is set to be the most significant reform to the Private Rental Sector (PRS) since the Housing Act 1988. The Bill has many implications for landlords, tenants, and letting agents alike. In this walk and talk we discuss the key amendments that are being made to the original bill which was first announced in September 2024.

The amendment on rent in advance went through the latest reading unchallenged. This was also debated at length when the Tenant Fees Act came into force in 2019 but under this Act, there will be penalties if anything other than the holding deposit of 1 weeks rent is taken before the tenancy agreement is signed and executed. Not only this, upfront payments will become prohibited payments. In many scenarios, if a tenant is unable to pass referencing for whatever reason (self employed and not enough income records, between jobs, relocating etc) they can still proceed with the tenancy on the condition rent is paid upfront for the period of the fixed term tenancy. With fixed term tenancies being abolished, there is no set period (e.g 6month, 12 month tenancy) to collect it for as tenancies run monthly, which is likely why they have introduced this amendment. What they have however failed to consider is how this marginalises those tenants who would otherwise be highly suitable but can't prove their affordability. As a result, landlords will have no option but to chose the tenants who can pass referencing in the traditional way. We hope the impact of this will be reconsidered as it passes through parliament.

If we have already taken money on an existing tenancy it is still unlcear if that has to be repaid then asked back on a monthly basis. It is unusual for legislation to be retrospective in that manner but we can’t take any more upfront once that period ends. As tenancies are moving to monthly Statutory Periodic Tenancies (SPT), if it all becomes monthly then taking more than that 1m will be unlawful.

A caveat has been added to the new student tenancy ground meaning landlords can evict between June & September if the agreement includes the notice from the start and there are more than 3 unrelated tenants who are students. They ultimately want tenancies signed up to much closer to the actual start date rather than months in advance (when students haven't had much time to get to know each other). So the new ground can only be used if the tenancy was signed less than 6m before the occupation date (not the tenancy start date) as some tenancies start in July with key collection from September.

Another (slightly odd) amendment, is that a guarantor can no longer be liable for the rent in situations where the tenant passes away. In principle this seems logical, unless there is a scenario where it takes a long time for personal items to be cleared from the property and the landlord to regain vacant possession. We understand it will be a difficult time for anyone involved in this scenario, however for a landlord, their ability to pursue rent is likely to be an incentive for anyone close to the occupier (i.e. the guarantor) to help facilitate vacant possession as soon as practically and emotionally possible. We will look out for more updates on the practicalities of this. 

We maintain with confidence that the majority of landlords who are already adhering to best practice are likely to be unaffected by the Bill. Those who appoint a reputable agent to keep on top of compliance, advertise the properties accurately, reference thoroughly with the most reputable providers, react quickly to maintenance (keeping a full audit trail too), inspect the property regularly, are proactive with credit control and the tenants choose to leave of their own accord for all the typical reasons (upsizing, downsizing, work relocation, family etc) will feel like very little has changed.

Most landlords are seeking good tenants for the long term capital growth and property remains a very good investment. Some landlords will be concerned and exit the market so for those who are left, a shortage of supply and continued high demand for rental properties will likely be reflected in increased rents. We assume this was not the intention of the Bill, but some ill considered decisions being made by the Government mean that is one of the more predictable consequences.

In our previous walk and talk video we summarise the main changes proposed under the Renters Rights Bill:

Industry professionals are advising anyone likely to be impacted by the Bill to share their feedback with their local MP. Click here to find out who your local MP is and write to them detailing who you are, your concerns, any examples relevant to you, potential solutions and ask them to escalate your opinions to Matthew Pennycook MP, Minister for Housing and Planning.