After three and a half years of political back-and-forth, the Renters’ Rights Bill passed its final Commons stage and is now heading for Royal Assent. Once the King signs it—expected within days—it becomes law.
The legislation is the most significant reform of the private rented sector in England in decades, affecting 11 million renters and 2.8 million landlords.
What are the main changes?
Section 21 no-fault evictions are banned • Fixed-term tenancies are scrapped in favour of open-ended contracts • Rent increases become limited. Bidding wars are prohibited • The Decent Homes Standard applies to private rentals for the first time • A database of rented properties and a new ombudsman to handle tenant complaints both arrive.
The Bill also bans rent paid in advance beyond one month and introduces provisions to help tenants with pets, although landlords can still refuse pets on reasonable grounds.
When will they happen?
Matthew Pennycook, the Bill’s main sponsor, has refused to provide specific implementation dates. He’s promised clarity “soon” and committed to a “smooth transition,” particularly for the new rental contract system.
Industry expectations suggest the core changes—abolition of Section 21 and the shift to periodic tenancies—will likely take effect somewhere between April and June 2026.
Other elements have vaguer timelines. The Decent Homes Standard, in particular, remains uncertain. While the Bill establishes the principle, the exact requirements and implementation dates aren’t yet confirmed. This matters because it’s potentially the most expensive change for landlords with older properties. Without knowing what standards apply and when, budgeting for compliance becomes guesswork. For older portfolios, it could mean significant capital expenditure on upgrades: heating systems, insulation, windows and electrical work. For newer builds, the costs should be minimal.
The Ombudsman setup also lacks a clear schedule, though this has less immediate financial impact for most landlords.
Managing the new risks
The removal of Section 21 makes tenant selection even more critical. Landlords have tools to manage this, though. Insurance providers are adapting policies to soften the impact, with enhanced rent protection and legal expenses cover now addressing longer eviction timescales and increased legal costs.
Providers such as Goodlord have introduced first month’s rent guarantees, quadrupled property damage cover, and Section 13 protection covering rent increases disputed by tenants.
Professional letting agents are also adapting their services to support landlords through the transition. Their expertise in tenant referencing becomes more valuable when Section 21 no longer provides a safety net, and their understanding of grounds-based eviction procedures helps navigate the more complex possession process. Agents can also advise on which Decent Homes improvements deliver the best return on investment while meeting regulatory requirements—once those requirements are actually defined.
Open-ended tenancies are a mixed blessing. They remove the predictability of fixed terms, but some landlords prefer this if it encourages reliable long-term tenants to stay put. Others will find the lack of natural break points constraining, although agent expertise in contract management can help maximise flexibility within the new framework.
Investment decisions
For existing portfolios, this means reviewing how properties would fare under grounds-based possession rules and whether they’ll meet Decent Homes Standard—although without knowing the exact standards, that will not be easy.
For those considering expanding their portfolios, the new framework needs factoring into yield calculations and risk assessments. The timing uncertainty around Decent Homes makes this trickier. Do you assume worst-case compliance costs? Best-case? The answer affects whether marginal acquisitions make financial sense.
The rental market
Rental demand remains strong. Average UK rents rose 5.5% to £1,354 in the year to September—well above the 3.8% inflation rate over the same period. Strong rental yields continue, with 5.5% annual rent growth substantially outpacing inflation.
If landlords react to the changes by selling up, supply levels will fall, exerting yet more upward pressure on rents and generating consistently high levels of demand.
In conclusion
For buy-to-let investors, the question isn’t whether these changes arrive—Royal Assent settles that—but whether their portfolio strategy and property selection can adapt to the new framework.
The Bill was first proposed in the Conservatives’ 2019 manifesto and introduced as legislation in 2023, only to fall when the July 2024 election was called. Its return under Labour, largely unaltered, suggests these changes have cross-party backing and won’t be easily reversed.
