The Renters’ Rights Bill 2025, or Renters’ Reform Bill, represents one of the most significant overhauls of the private rented sector (PRS) in decades. Expected to pass into law by the summer of 2025, this bill represents a dramatic shift in the landlord-tenant dynamic. It aims to create a fairer and more balanced rental market by providing greater security and flexibility for tenants, while also introducing new responsibilities and limitations for landlords.

It is essential that, as a landlord, you understand what the core principles and changes proposed in this bill actually are. The end of Assured Shorthold Tenancies (ASTs), the abolition of Section 21 “no-fault” evictions, and the introduction of a single system of periodic tenancies all mark a turning point in how rental agreements will function going forward.

Here’s a breakdown of what landlords need to know:

Renters' Rights Bill 2025 – What You as a Landlord Need to Know

End of Assured Shorthold Tenancies (ASTs)

For years, ASTs have been the default tenancy agreement in the private rental sector. They provided landlords with a structured framework and a fixed-term commitment, usually lasting 6 or 12 months. Once that period ended, landlords could regain possession of their property relatively easily using a Section 21 notice, without needing to provide a specific reason.

The Renters’ Rights Bill brings an end to ASTs entirely. In their place, all tenancies will become periodic by default. This means:

  1. There is no fixed term; tenancies will automatically renew each month.
  2. Tenants can leave with just two months’ notice.
  3. Landlords will have to provide a legal reason to evict a tenant.

This move is intended to provide greater flexibility and security for renters, many of whom feel trapped or uncertain with fixed-term contracts. However, it also means landlords can no longer count on an easy exit strategy once a tenancy begins.

For you as a landlord, this means a paradigm shift in how you manage your properties. Long-term planning becomes more important, especially regarding tenant screening and understanding how to handle tenancies that no longer have a natural end date.

Abolition of Section 21 – The End of “No-Fault” Evictions

One of the most controversial and high-impact changes in the bill is the abolition of Section 21 notices, also known as “no-fault” evictions. This mechanism allowed landlords to evict tenants without stating a reason once the fixed term had expired.

Under the new legislation:

  1. Landlords cannot evict a tenant without a valid reason.
  2. All evictions must be done via Section 8, which requires landlords to cite specific grounds, such as rent arrears, antisocial behaviour, or the landlord wanting to sell the property or move in themselves.
  3. The government also plans to streamline the court process to ensure legitimate evictions don’t face undue delays.

While this change boosts tenant security, it also places greater emphasis on landlords being organised and compliant. Landlords will need to be thorough with documentation, keep clear records of tenant behaviour, and potentially deal with more complex legal proceedings when seeking possession of their property.

Moreover, some critics argue this could lead to a “chilling effect” where landlords may become more selective, potentially disadvantaging tenants who are perceived as higher risk.

Introduction of a Single System of Periodic Tenancies

The replacement of ASTs with a uniform periodic tenancy model simplifies the tenancy system but adds layers of complexity in other ways. Here’s how the new system works:

  1. All new and existing tenancies will eventually convert to periodic status, meaning they continue indefinitely on a rolling basis.
  2. Tenants can end the tenancy at any time by providing two months’ notice, giving them more mobility and control.
  3. Landlords can only end the tenancy using approved grounds under Section 8.

This reform is seen as a major win for renters who face uncertain housing situations due to short fixed-term tenancies. But for landlords, it means less predictability, especially regarding tenant turnover and planning for property sales or redevelopment.

As a landlord, you’ll need to rethink your letting strategies, budget for longer potential tenancy periods, and stay informed about new legal grounds for repossession. The shift may also require updating tenancy agreements, revising how you vet tenants, and possibly seeking professional legal advice more often than before.