04/02/2026
Big Changes Ahead: How the Renters’ Reform Bill Will Transform the UK Rental Market
The Renters’ Reform Bill will soon receive royal assent and will result in significant changes to the private rental sector. Whether you are a landlord or tenant, you need to understand what changes are on the horizon.
The biggest change, which most landlords are expected to be aware of as well, is that “no fault” evictions, started by issuing a Section 21 Notice, will be abolished. This is not a “doom and gloom” scenario for Landlords, as they will still be able to rely on Section 8 grounds such as for rent arrears, property damage, anti-social behaviour, wanting to move in or sell the property, and so on, and s.8 is being updated to give more grounds for possession, to ensure fairness between landlords and tenants. However, the notice period for most grounds has increased, despite the timescales to enforce possession being longer in practice.
The Bill is expected to not affect any eviction notices that are validly served before the date the Renters’ Reform Bill becomes law, and there will be a period of grace. For any notices issued after the bill becomes law, most tenants, will have enhanced security of tenure. If you are a Landlord with a problematic tenant, you will no longer have a “no-questions-asked” eviction and will instead have to prove you are entitled to evict under one ground of the amended s.8, as well as follow the Court’s procedure.
All tenancies will become periodic rather than being of fixed term. As regards rent increases, the position remains relatively unchanged. Landlords can propose rent increases once per year and the increase must be done in line with market rent. Increases beyond reasonable market rates will likely be treated as “backdoor” attempts to evict and it is more important than ever to obtain a valuation before increasing rent. However, landlords should not feel like they cannot claim market rent which they are rightfully entitled to.
What will no longer be allowed is having tenants engage in “rental bidding” above the rent already advertised by a landlord. It is also expected that Landlords will no longer be able to demand multiple months of rent upfront.
Furthermore, the regulatory obligations on landlords will increase, alongside Councils’ enforcement powers. They can fine landlords up to £7,000 per individual sanction or £40,000 for repeat non-compliance. They will also have the power to criminally prosecute non-compliant landlords, who will also need to consider that the Government is introducing a Decent Homes Standard and a private rented sector ombudsman and “Awaab’s law” which will allow tenants to issue Court proceedings if Landlords do not rectify serious hazards within a specified time period.
The government will require landlords to register to the landlords’ database, and if they do not, they will not be able to gain possession on most grounds. The same applies if a Landlord fails to protect a deposit. While the government suggests that Landlords can rectify non-compliance at any time, it is expected that in practice the Courts will not allow rectification if it is done in the eleventh hour, solely to enable an eviction. The maximum period over which rent repayment orders can be made will also double from 12 months to 24 months.
For tenants, this helpfully offers stronger recourse when living in substandard homes. Landlords will also not be able to refuse to offer a tenancy to tenants who are on benefits or who have children, where the government seeks to ensure fairness towards all tenants and protect vulnerable homes.
For landlords, non-compliance could become costly, requiring more proactive maintenance, record keeping, and vigilance. If a Landlord has a problematic tenant who complains repeatedly, it will still be important to treat any allegations seriously and document any inaccuracies in the same, or any issues with the property caused by the tenants.
Landlords must not unreasonably refuse a tenant’s request to keep a pet, however, after the most recent debates between the Peers unless any last-minute changes are made, a landlord will not be able to demand either that the tenant have pet insurance in place or demand an additional deposit for any pet related damage.
Turning back to the Ombudsman, it has the power to require apologies, remedial actions or compensation. While this will free up some of the Court’s capacity, Landlords will have to consider the Ombudsman’s guidance and any decisions where the Ombudsman may view things differently than a judge.
What this points to for everyone is that both landlords and tenants need to consider their current tenancy arrangements, and enter updated contracts which account for the new law. Landlords will also need to ensure that their properties meet the government’s Decent Homes Standard and any standards set by the future ombudsman. Landlords may also want to budget for upcoming compliance costs, be clearer on rent increases and more rigorously screen tenants, as well as consider insurance, should a tenant cause damage to a property and not have the financial ability to put it right.
https://tierneyandco.co.uk/big-changes-ahead-how-the-renters-reform-bill-will-transform-the-uk-rental-market/
