Renters’ Reform – What It Means for Landlords in 2025
The UK rental landscape is shifting – and fast. With the Renters’ Reform Bill back in Parliament in 2025, landlords are bracing for what could be the biggest shake-up in decades.
While the headlines often frame the bill as pro-tenant, the reality is more nuanced. It aims to create stability in the rental market – but not without serious implications for landlords. Here’s what you need to know.
What Is the Renters’ Reform Bill Proposing?
The key proposed changes include:
- ❌ Abolition of Section 21 (‘no fault’ evictions) – Landlords will no longer be able to evict tenants without a valid reason.
- 🛠️ Reform of Section 8 – A more robust legal framework for eviction based on specific grounds (e.g. rent arrears, anti-social behaviour).
- 🏠 All tenancies to become periodic – Fixed-term tenancies will be replaced by open-ended agreements.
- 🐕 Tenants allowed pets by default – Landlords must have a reasonable objection to deny this.
- 💷 Greater regulation of rent increases – With strengthened routes for tenants to challenge rises.
- 📅 When Will It Happen? The bill is expected to receive Royal Assent by summer 2025, with full implementation likely by October 2025.
⚖️ When Can a Landlord Legally End a Tenancy?
1 Mandatory grounds – The court must grant possession if the landlord proves the ground.
Examples include:
- Tenant is in serious rent arrears (usually 2+ months)
- Landlord is selling the property
- Landlord or close family needs to move into the property
2 Discretionary grounds – The court will decide based on reasonableness.
Examples include:
- Tenant has caused anti-social behaviour
- Tenant has breached tenancy terms (e.g. subletting, not maintaining the property)
The list of grounds is being expanded and updated to make the process more fit-for-purpose.
📌 All eviction claims must go through court and be supported by evidence. This includes providing proof of intent when claiming a property is needed for personal use or sale.
🔍 Is ‘moving in’ a loophole? While landlords can claim they or a close family member need to move into the property, this must be genuine. Evidence may be required—such as notices ending a landlord’s current lease or a statement of intent to occupy. If a landlord then re-lets the property shortly afterward, it may be considered misuse of the system. In some cases, tenants could challenge this in court or via local authority, potentially leading to penalties or restrictions on using this ground in the future.
💡 Strategic Tip: If you are planning to sell, it may be beneficial to start that process before the new law takes effect—especially if the tenant may contest the reason.
What Does This Mean for Landlords?
✅ Pros:
- Reduced churn (ironically) – Tenants who feel secure are more likely to stay longer. If handled well, this could reduce voids and turnover costs.
- Stronger relationships – A more transparent process can create better long-term tenant-landlord dynamics.
- Clarity around evictions – Section 8 gives clearer (albeit stricter) grounds for reclaiming possession.
⚠️ Cons:
- Loss of Section 21 safety net – Landlords will now need a clear reason and supporting evidence to evict.
- More legal and administrative burden – Evictions could become lengthier and more complex.
- Potential for increased disputes – Especially around rent increases, pets, or undefined tenancy lengths.
🔁 Rent Increases Under Periodic Tenancies
Landlords will still be able to raise rents—but with more regulation:
- Rent increases can occur only once per year
- Landlords must give at least two months’ notice
- Increases must be reasonable and reflect market value
- Tenants will have the right to challenge increases through a tribunal
While the mechanism still exists, landlords may need to be more cautious: overly aggressive increases could backfire if tenants leave with short notice under the new flexible regime.
🐾 What Counts as a 'Pet' – And Why It Matters
The bill gives tenants the right to request a pet—and landlords must have a reasonable objection to refuse. But what exactly qualifies?
The law doesn’t strictly define a “pet,” but it’s understood to cover:
- Dogs (13.5M in the UK) – Owned by 36% of households
- Cats (12.5M) – Owned by 29% of households
- Indoor birds (1.5M), rabbits (1M), guinea pigs (700K) and more
This means most common household pets are fair game. Landlords concerned about damage, allergies, or noise should prepare in advance with clear clauses and consider insurance requirements.
Who Does This Affect – and Who’s Exempt?
- ✅ Private residential tenancies – The bill applies to most assured shorthold tenancies in England.
- 🚫 PBSA (Purpose-Built Student Accommodation) – Exempt, as these do not fall under AST rules when registered under government-backed codes.
- ⚠️ PRS student landlords (e.g. HMOs) – Not exempt. Private landlords renting to students will be affected.
- 🚫 Commercial leases – Completely unaffected by the legislation.
⚠️ Student Market Concerns
One challenge for private student landlords is the move to periodic tenancies. Under current fixed-term models, students commit to full academic-year contracts—typically from July/August through to June the following year.
If tenants are allowed to give notice mid-term (e.g. after exams or if dropping out), landlords risk vacant rooms with no obligation for the tenant to find a replacement.
It remains unclear whether landlords will be able to contractually guarantee occupancy across the academic period or if tribunal-approved clauses will be needed. Until clarified, this could create real uncertainty in the student HMO market.
🔍 Can Landlords Use ‘Opt-Out’ Clauses to Circumvent the Rules?
This is a question many landlords are asking – and unfortunately, the answer is likely no.
Under the proposed Renters’ Reform legislation, tenants cannot waive their rights to periodic tenancies—even if they agree in writing. All new tenancies will automatically be periodic by default.
This means:
- Landlords cannot enforce a minimum stay by inserting custom clauses into tenancy agreements.
- Any attempt to have tenants “opt out” of their new rights would likely be deemed unenforceable.
This presents a particular challenge for the student rental market, where landlords have traditionally relied on fixed-term academic contracts to ensure year-round occupancy.
Until further clarification is provided, it appears that any such “workarounds” will not be legally supported—adding more uncertainty for student HMO investors.
🏘️ What About Short-Term Lets?
One area notably unaffected by the Renters’ Reform Bill is the short-term let market (e.g. Airbnb, serviced accommodation).
Because these arrangements are not structured as assured shorthold tenancies, they do not fall under the scope of the new rules.
That means:
- Landlords using short-term lets retain full control over occupancy and duration
- Section 21 and tenancy reform don’t apply to these agreements
- Flexibility remains high, and tenant rights are governed by contract law, not AST protections
In fact, some landlords may now see short-term lets as a more attractive option, particularly in cities with strong tourism or contractor demand. However, this may be counterbalanced by local authority licensing, planning restrictions, and the need for active management.
⚠️ A knock-on effect? As more landlords pivot to Airbnb-style lets to avoid tenancy reform red tape, the number of long-term rental properties could shrink further—tightening supply and driving rents even higher.
🕒 What About Existing Tenancy Agreements?
A key question many landlords are asking is: do these changes affect existing ASTs?
The answer is – not immediately, but they will eventually.
- When the bill becomes law, only new tenancies will be subject to the new rules from day one.
- Existing tenancies will continue under current rules for a limited grace period – expected to be 6 to 12 months after the bill is implemented.
- After that period, all tenancies will be transitioned to the new system, regardless of when they were signed.
⚠️ Strategic Tip for Landlords:
There may be a short-term advantage in securing new fixed-term contracts before the changes come into force – particularly in:
- Student rentals (to secure full academic-year occupancy)
- Properties planned for refinancing or disposal
But this window is short-lived. Even new agreements will be converted once the transitional period ends, so use this time strategically, not as a long-term workaround.
🚨 Unintended Consequences Landlords Should Expect
While the reforms aim to create fairness and stability for tenants, they may also trigger unintended market shifts:
- ✅ Stricter tenant referencing – Landlords may become more selective about who they rent to, favouring tenants with stronger income and credit history.
- 💷 Front-loaded rent increases – With eviction harder, landlords may price in risk from the outset.
- 🏚️ Exit from the sector – Smaller landlords or those nearing retirement may sell up, further reducing rental supply.
- 📉 Tighter supply = higher rents – A reduced pool of rental stock could push up prices, especially in high-demand areas.
- 🏘️ Airbnb pivot – More landlords may turn to short-term lets, reducing long-term rental availability.
Ironically, reforms meant to protect tenants could end up pricing out the most vulnerable.
Rental Market Context in 2025
- 📊 Only 2.5% of private rental homes in England were affordable to those on housing benefit in 2024, down from 12% in 2021–22.
- 📈 Zoopla forecasts a 3–4% increase in rents in 2025, with higher growth in affordable regions like the North West.
What Should Landlords Do Now?
- 🔍 Review tenancy agreements to ensure they’re compliant and flexible for upcoming changes.
- 🔄 Understand Section 8 grounds and build robust documentation habits.
- 📊 Budget for potential delays in possession processes.
- 💼 Seek legal or letting agent support to stay compliant and protected.
- 🏙️ Consider high-yield, low-void areas – locations like Liverpool or student-heavy cities with strong tenant demand can help offset added friction.
Final Thoughts
The Renters’ Reform Bill is shaking up the rules of engagement between landlords and tenants. While it will mean more scrutiny and less unilateral control for landlords, it also brings an opportunity: to build more stable, long-term income streams from better tenant relationships.
The game is changing – but the winners will be those who adapt early.
📩 Want help reviewing your tenancy contracts and staying compliant? Get in touch with our team today.
