Majority of renters consider relocating prior to the passage of the Renters Rights Bill
The Renters' Rights Bill, which passed its final reading in the House of Commons on 14th January and is set to appear in the House of Lords on 4th February, represents a significant shift in the balance of power between landlords and tenants in England.
The bill, due to become law in spring, aims to address issues within tenants' homes, particularly concerning damp and mould, within a strict timeframe once it receives Royal Assent. The bill introduces several major reforms expected to reshape the UK rental market.
One of the most significant changes is the abolition of Section 21 "no-fault" evictions. From now on, landlords will no longer be able to evict tenants without a specific, proven reason, instead having to rely on statutory grounds for possession. This is widely anticipated to increase security for tenants but could also lead to longer court delays, as landlords must now pursue possession through the courts—a system already burdened by post-pandemic backlogs.
Another key provision is the conversion of Fixed-Term to Periodic Tenancies. All assured shorthold tenancies (ASTs) will become periodic tenancies by default, offering tenants more flexibility and stability.
Tenants will also gain the right to challenge both initial rents and any subsequent rent increases, potentially curbing above-market rent hikes. The bill introduces a landlord database and a new ombudsman service to handle disputes, increasing accountability for landlords. The Decent Homes Standard will be extended to a broader range of accommodations.
While increased tenant protections are the clear objective, the practical effects—court backlogs, potential supply reductions, and adaptation challenges for landlords—are likely to shape the rental market for years to come. The exact timeline and ultimate impact will depend on the final text of the bill and the effectiveness of its implementation.
According to new research, the majority of tenants planning to move this year wish to do so within the next six months. Given the lack of stock to meet rental demand, moving before the Bill comes into effect could help tenants find a suitable rental property without complications.
The number of rental properties available in the UK has decreased by 31% since 2019, and the demand for rental properties is high and is expected to increase further. A survey by Tlyfe, created by OpenBrix, shows that 57% of UK tenants plan to move out of their current homes this year. However, Adam Pigott, CEO of OpenBrix, commented on the findings, stating that most tenants aren't 'rent ready'. Being 'rent ready' involves having documentation in order, being proactive in contacting agents, and having a deposit accumulated.
Other reasons tenants flagged for wanting to move include upgrading the size of their house, an inability to afford their current rent, relocation for personal reasons, and the end of their tenancy spurring a fresh start.
While the government originally aimed for implementation by summer 2025, neither Royal Assent nor enactment will occur before the Parliamentary summer recess due to delays in debate scheduling. The bill is not expected to become law until autumn 2025 at the earliest, with Royal Assent likely to follow a Commons debate in September. Some provisions—especially those requiring new infrastructure, such as a landlord database and ombudsman service—may take longer to implement, potentially pushing full operationalization into early 2026.
The Renters' Rights Bill, with its comprehensive reforms, promises to bring about a new era in the UK rental market. While challenges lie ahead, the bill's ultimate success will depend on its ability to balance the needs of both tenants and landlords, ensuring fairness, stability, and growth for all.
- To ensure a smoother transition with the new Renters' Rights Bill, some renters may wish to find a new property before the bill's implementation, as the decrease in rental properties available and the subsequent increase in demand could complicate the process.
- The Renters' Rights Bill, once fully operationalized, is expected to reshape the UK real-estate business, particularly the rental market, by introducing changes such as the abolition of Section 21 evictions, the conversion of Fixed-Term to Periodic Tenancies, and the creation of a landlord database and ombudsman service for dispute resolution, all of which will impact both the finance and investing sectors.
