The Renter's Reform Bill - Concerned?

By Matthew Ryder MARLA, Chief Operating Officer, RG Property England & Wales

Two weeks until the next reading at the house of lords.

Right then, let’s get into it. The Renters’ Rights Bill is moving through Parliament, and if you’re a landlord, tenant, or work in lettings, this is one to watch. It’s set to bring in some of the biggest changes we’ve seen in years, and while some bits make sense, others are already causing concern. Here’s a quick breakdown of what’s coming and what was debated in the House of Lords on 4th February 2025—along with our take on what it really means for landlords.

One of the biggest talking points is the abolition of Section 21 ‘no-fault’ evictions. Landlords will no longer be able to evict tenants without giving a valid reason. There’s been a lot of concern that this will make it harder to remove tenants, but from our experience operating in both England and Wales, this isn’t something landlords need to panic about. In Wales, we’ve already adapted to a similar system where landlords must give valid grounds for eviction, and it’s still relatively straightforward to remove tenants for non-payment of rent. We expect England to follow a similar route, and if anything, courts will likely become stricter on tenants who breach tenancy agreements—which is a positive step for responsible landlords.

At the reading, Baroness Taylor said that "private purpose-built student accommodation will be removed from the Assured Tenancy System".

Another major change is the shift to all tenancies becoming periodic, meaning tenants can leave with two months’ notice whenever they like. This gives tenants more flexibility, but as a business, we already focus on tenant security by offering free tenancy renewals, encouraging landlords to re-contract tenants and give them the stability they need. This means the lack of renewal fees will not affect our business, unlike other high street agents - this will lead to an increase in agency fees from corporate agents, we've seen the prices hikes already in Jan 2025 with the countries largest estate agency provider increasing agreement fees by a further 10% already.

PRO referencing, by Goodlord.

We use many tools to our advantage to find you the right tenant, not the first one. Including direct to HMRC Checks with PRO referencing with ALL of our services. This should mean longer tenancies and less risk. Landlords on our Collect & Protect services also benefit from £100,000 of rent and legal protection, paying legal and court fees should the need arise.

When it comes to rent increases, they will now be limited to once a year, and landlords will need to justify any rise to align with market rates. In reality, most professional landlords already operate this way, so we don’t expect this to have a huge impact. The ban on rental bidding wars means landlords and agents will have to list a clear asking rent and cannot accept offers above that amount. While this prevents aggressive bidding situations, landlords will likely start setting rents higher from the outset to compensate. No mention of set rent caps at this reading, but a similar system to Scotland has been discussed, at RG we agree with fair rents which is why we ensure the rent is reviewed in line with inflation each year, for free, meaning steady and fair increases for landlord and tenant in line with the market.

Pets in lets!

One of the more controversial parts of the Bill is the right to request pets. Tenants will now have a legal right to ask for a pet, and landlords can only refuse with a valid reason. While we support the idea of responsible pet ownership, there’s still no clear pet damage insurance policy, which is an issue landlords need to be aware of and something that needs to be addressed at the next reading. 60% of the UK Population own a pet of some nature, so this is a popular policy - we just hope the risk to landlords can be fairly mitigated.

The Decent Homes Standard is also being extended to private rentals, meaning landlords will need to meet minimum property standards, just like social housing. While this is great for tenants, some landlords—especially those with older properties—may face expensive upgrade costs. Similarly, new anti-discrimination rules mean landlords won’t be allowed to refuse tenants simply because they’re on benefits or have children. We already follow this principle at RG Property, as we focus on affordability and suitability rather than income source.

Upfront payment set to be banned in last minute additional by Angela Rayner MP.

Another change that could have unintended consequences is the restriction on upfront rent payments. The Bill aims to stop tenants from paying months in advance to secure a property, which could disproportionately affect self-employed and international tenants, who often use upfront payments when they fail affordability checks. This is a popular option in busy city centre areas like Bristol and Cardiff, both cities are hugely popular attracting international talent in the form of students to the BS1, and CF10 areas. We anticipate that this will de-incentivise students from coming to these cities in the wake of not being able to prove income from a UK based guarantor, we welcome the idea of new guarantor schemes that can be as affective as a friend or relative.

There are many tenants in self-employment, that will now struggle to finding housing in the Private Rental sector and would push a new demographic to social housing, which we all know to be a serious existing problem. Buying is not an option for the many.

Moving forward.

In the House of Lords debate on 4th February, these issues were heavily discussed. Peers generally supported the Bill but raised concerns about how it will impact landlords. Student tenancies were a key point, with some calling for exemptions for private landlords renting to students as well. Supply and demand was another big topic—some argued landlords will leave the market, reducing available rental stock, while others insisted these concerns were overblown.

One of the biggest concerns remains court enforcement. While the Government claims it’s working with the Ministry of Justice to prepare for the abolition of Section 21, many Peers fear the court system isn’t ready. However, as we’ve seen in Wales, the process of removing problem tenants is still possible under a more structured system. In fact, we expect courts in England will become stricter on tenants who breach tenancies, rather than making things harder for landlords.

There are also fears around the cost of the Decent Homes Standard, as many landlords may struggle to fund property improvements, which could lead to higher rents. Similarly, some Peers said the Bill makes it harder to evict problem tenants, putting smaller landlords at greater risk.

The Bill now moves to the committee stage, where Peers will go through it line by line and suggest amendments. Some elements could still change, but it’s likely to pass in some form by Spring 2025.

At RG Property, we’re keeping a close eye on this and will update you on what it means for landlords. If you’ve got any questions or concerns, drop us a message on whatsapp—we’re happy to chat.

Matthew Ryder MARLA

Chief Operating Officer

R&G Property England & Wales

www.rgproperty.co.uk

01174625777