The UK’s private rented sector is on the cusp of its most significant transformation in a generation with the impending Renters Rights Bill, but not everyone is confident about what the future holds.

A Bleak Forecast from the Redress Industry

Sean Hooker, head of redress at Property Redress, is sounding a warning, predicting a rise in “creative criminal practices” once the new legislation comes into force. He suggests that as regulations tighten, “the worst offenders simply find new ways to bypass them.” His concerns follow a recent BBC investigation that exposed a widespread black market of illegal, unsafe, and overcrowded Houses in Multiple Occupation (HMOs) in London. The investigation found that in some areas, there could be as many as three times more unlicensed HMOs than legal ones, with tenants enduring unsanitary and dangerous living conditions.

Hooker argues that until there is a clear distinction between a well-regulated sector and the rogue elements, “the rogue element will continue to operate in the shadows, endangering tenants and destroying the reputation of those who play by the book.”

Key Changes Coming with the Renters Rights Bill

The Renters Rights Bill is currently in the “ping pong” stage between the House of Commons and the House of Lords and is expected to receive Royal Assent in late 2025. The key changes are likely to be implemented in early to mid-2026. This landmark legislation aims to rebalance the relationship between landlords and tenants with the following major reforms:

• Abolition of Section 21 “no-fault” evictions. This is the headline change, meaning landlords will no longer be able to evict tenants without a reason. All evictions will require a valid reason, or “ground for possession,” under an expanded Section 8 of the Housing Act 1988.
• Abolition of fixed-term tenancies. The new law will convert all tenancies into “periodic tenancies,” which are rolling contracts with no fixed end date. This provides tenants with greater security and flexibility.
• The introduction of a new Private Rented Sector Database. This digital database will require all rental properties to be registered, a measure intended to help enforce standards and crack down on illegal landlords.
• Application of the Decent Homes Standard to the private rented sector for the first time.
• New rules on rent increases, limiting them to once per year and banning in-tenancy rent review clauses.
• Protection against discrimination. The bill will make it illegal for landlords to have blanket bans on tenants with children or those receiving benefits.

While these reforms are intended to provide greater security for tenants and improve housing standards, they also introduce new complexities for landlords. The success of the bill will depend on the government’s ability to effectively enforce the new regulations and support a court system that can handle an expected increase in eviction cases.