Renters (Reform) Bill Nears the Finish Line: What the Latest Changes Mean

The government’s flagship Renters (Reform) Bill is in its final stages in Parliament this week — representing the most significant overhaul of England’s private rented sector in more than 30 years.

Returning to the House of Lords on 14 October 2025 for consideration of Commons amendments, the Bill is in the “ping-pong” phase before receiving Royal Assent, expected in late October or early November. Once enacted, it will reshape how tenancies are structured, managed, and ended across England.

The Core Objective

The Renters (Reform) Bill aims to rebalance power between landlords and tenants by increasing security of tenure, simplifying tenancy types, and strengthening enforcement of housing standards.

At its heart is the abolition of Section 21 “no-fault” evictions, meaning landlords will no longer be able to end tenancies without a reason. Instead, all evictions must rely on one of several revised Section 8 grounds, including:

• Persistent rent arrears (now requiring at least three months’ unpaid rent)

• Property sale or landlord/family occupation

• Serious anti-social behaviour

• Breach of tenancy terms

The Bill also replaces fixed-term assured shorthold tenancies with a single, open-ended periodic tenancy model, giving renters the right to remain until a valid ground for possession arises.

The New Rent Arrears Threshold

One of the key late-stage amendments increases the mandatory rent arrears threshold for eviction from two months to three months. This means landlords must now wait longer before starting possession proceedings for non-payment.

Supporters argue this provides breathing space for tenants facing short-term financial pressure. Critics warn it could leave landlords vulnerable to extended losses — particularly those relying on rental income to meet mortgage payments.

Letting agents and landlords are being urged to adopt stricter arrears monitoring and clear communication procedures to reduce disputes under the new framework.

Other Key Reforms Confirmed

1. Decent Homes Standard extended to the private sector
For the first time, all privately rented properties must meet the Decent Homes Standard, long applied to social housing. This includes requirements on safety, freedom from damp, and effective heating.

2. Rent payments and bidding limits
The Bill caps rent in advance at one month and bans bidding wars, preventing landlords or agents from inviting tenants to offer above the advertised rent.

3. Pets and deposits
While tenants will have an explicit right to request a pet, the government has rejected the proposal for a separate pet deposit, citing affordability. Landlords can instead require proof of pet insurance.

4. Enforcement and council resources
Local councils will be responsible for investigating illegal evictions, unsafe housing, and rent-repayment orders. The Chartered Institute of Environmental Health and other bodies have warned that extra funding is essential to support enforcement teams once the law takes effect.

Implementation Timeline

The government has confirmed a phased rollout over approximately 12–18 months following Royal Assent:

• Stage 1: Applies to all new tenancies created after commencement (expected early 2026).

• Stage 2: Extends to existing tenancies once initial systems and training are in place.

• Stage 3: Full enforcement and penalties for non-compliance, alongside updated court processes.

Further detail will be set out through secondary legislation later this year.

Market Reaction

Industry response remains divided.

• Tenant groups have welcomed the reforms as a long-overdue protection against arbitrary eviction and poor housing conditions.

• Landlord associations remain cautious, warning that higher compliance costs and longer eviction timelines could drive some landlords to exit the market. Recent surveys suggest around one-third of landlords have already sold or plan to sell at least one rental property in anticipation of the new regime.

Analysts expect short-term supply pressures to persist, but many believe the reforms could ultimately deliver a more stable and professionalised rental sector.

What’s Next

With the Bill now entering its final review, all eyes are on the House of Lords’ approval and the forthcoming secondary legislation that will define the start date.

Landlords, agents, and tenants should begin familiarising themselves with the confirmed provisions — especially the end of fixed terms, new eviction grounds, and extended arrears thresholds.

Once Royal Assent is granted, the Renters (Reform) Bill will mark a historic shift in England’s rental landscape, establishing a new legal framework that prioritises long-term stability, transparency, and housing quality.

Sources:
https://www.parliament.uk/business/news/2025/sept-2025/renters-rights-bill-house-of-lords-consideration-of-commons-amendments/
https://www.willsandsmerdon.co.uk/articles/the-renters-rights-bill-explained-key-updates-and-timeline-for-2025-implementation
https://www.property118.com/peers-to-debate-final-amendments-to-renters-rights-bill-tomorrow/
https://www.propertywire.com/news/agents-urged-to-act-on-arrears-before-renters-reform-bill-passes/
https://www.landlordtoday.co.uk/breaking-news/2025/10/council-officers-want-more-cash-to-enforce-renters-rights-bill
https://www.propertyreporter.co.uk/renters-rights-bill-could-cut-agency-income-by-25-new-survey-shows.html
https://www.balloonlets.co.uk/the-renters-rights-bill-where-we-are-nowoctober-2025-update

All information in this article is correct at the time of publication. It is provided for general information only and does not constitute legal or financial advice. Readers should seek professional guidance before making decisions based on this content. Woodhead & Co accepts no responsibility for any actions taken or not taken as a result of reading this article.