Introduction

The Renters Reform Bill 2025 is set to transform the private rental sector in the UK. This legislation provides increased security for tenants while also defining clear rules for landlords. Understanding these changes is crucial for property investors, landlords, and tenants alike.

1. Abolition of Section 21

Section 21, the “no-fault” eviction policy, will be abolished. Landlords must now provide valid reasons to regain possession of their property, protecting tenants from unexpected evictions.

2. Periodic Tenancies

• All existing assured shorthold tenancies become periodic.
• Tenants and landlords must provide a two-month notice period, with landlords needing a valid reason for termination.

3. Section 8: Grounds for Possession

Landlords must meet strict criteria to regain possession under Section 8:

• Tenant engaging in antisocial behavior.
• Landlord wanting to sell or move into the property.
• Breach of tenancy terms.

Organized record-keeping is essential for landlords to prove grounds for possession.

4. New Landlord Property Portal

A new portal will register all rental properties, logging key documents like gas certificates, EICRs, and EPCs. Tenants can report issues easily, increasing accountability and weeding out bad landlords.

5. Rent Increase Rules

• Landlords must submit a Section 13 form to increase rent.
• Tenants can challenge increases through a tribunal at no cost.
• Judges cannot enforce rent higher than the landlord’s proposed rent.
• Bidding wars or discrimination based on children/pets are prohibited.

6. Fines & Compliance

Failure to comply can result in fines:

• First offense: up to £7,000
• Repeat offense: up to £40,000

Landlords must stay organized and maintain records to avoid penalties.

Summary & Key Takeaways

• Tenants gain greater protection and security.
• Landlords must adhere strictly to documentation and legal requirements.
• Non-compliance can lead to heavy fines.
• Staying informed is essential for both tenants and landlords in the private rental sector.