Since our last blog on 28 January 2025 (What are the main changes The Renter’s Rights Bill will bring in?), the Renters Rights bill has been intensely debated in both Houses of Parliament. The Renters Rights Bill is now approaching final stages and is expected to receive Royal Assent soon. The House of Lords made a number of amendments intended to refine protections for tenants while addressing concerns raised by landlords and the student housing sector.
This blog explores the proposed provisions to change residential tenancies and the amendments suggested by the House of Lords but it is worth noting at the outset that we do not expect many (if any) of the proposed changes to be adopted although government has in some instances attempted to respond to these suggestions. We will know more once the report stage has concluded.
Abolition of Section 21 Notices (“no-fault evictions”)
Original proposed provision: Section 21 notices, which allow landlords to evict tenants without needing to give a reason, will be abolished. Evictions will instead require specific grounds under Section 8.
House of Lords amendment: While the abolition remains intact, peers raised concerns about court readiness and delays in possession proceedings.
House of Lords response: The government has said it is committed to a phased implementation, tied to court reform progress, to prevent delays in possession cases.
Implication: The ban on no-fault evictions will not take immediate effect until the court system is deemed ready, likely pushing implementation to late 2025 or early 2026, but we query whether this will in fact be sufficient time.
Changes to rent arrears grounds
Original proposed provision: Mandatory possession for rent arrears will only be possible where the tenant is in three months of arrears, rather than two.
House of Lords amendments:
- New Ground for Repeated Arrears: Landlords can evict under a new mandatory ground if the tenant has been two months in arrears on three separate occasions within three years, even if arrears are cleared by the hearing.
- Debate on Threshold: Some peers pushed to retain the two-month threshold due to concerns about landlords carrying arrears for too long, but this was not adopted.
House of Lords response: The Lords intends to support tenant security while giving landlords an additional, fair mechanism to address ongoing rent issues. Currently, if a tenant reduces rent arrears by even a penny below 8 weeks’ worth of arrears, they will defeat a ground 8 claim on the day of the hearing. This proposal overcomes this issue.
Implication: The three-month threshold still applies, but landlords now have a fallback with the repeated arrears provision, offering protection against persistently late-paying tenants.
Limitations on advance rent payments
Original proposed provision: Landlords can only request one month’s rent in advance, regardless of tenant circumstances.
House of Lords response: The Lords agree that there should be limits on advanced rent payments to prevent exploitation of tenants, however, they also want the regulations to be practical for landlords renting to international students without guarantors and tenants without poor credit ratings.
Current status:
- The one-month cap stands.
- Possible exemptions for students or high-risk tenants may follow in secondary legislation, but are not in the primary Renters Rights Bill.
Implication: Letting agents and landlords must avoid demanding more than one month’s rent upfront. A civil penalty of up to £5,000 can be imposed for breaches. However, tenants may choose to pay more voluntarily.
Student tenancies – special provisions
New amendments introduced:
- Time Limit on Pre-letting: The possession ground for student landlords is only available if the tenancy was agreed no more than 6 months in advance of the start date.
- Exemption for PBSA (Purpose-Built Student Accommodation): Registered PBSAs are exempt from the requirement to convert to periodic tenancies. They can still offer fixed-term contracts.
House of Lords response: The Lords acknowledge that the student housing market should be treated differently to the private residential letting market whilst still ensuring protection for both type of tenants.
Implication: The government has recognised the unique cycle of student lettings and adjusted the Renters Rights Bill to reflect these needs. Traditional landlords letting to students may face some restrictions, but PBSAs are largely unaffected.
New private rented sector landlord Ombudsman
Original proposed provision: All private landlords must join a newly created ombudsman scheme for tenant complaints.
House of Lords update:
- Tenants can go directly to the ombudsman – no need for internal resolution first.
- Ombudsman decisions will be binding, with powers to award up to £25,000 in compensation.
- Funded by landlord registration fees under the national database scheme.
House of Lords response: The Lords intent is to give tenants an accessible route with meaningful redress through the ombudsman. By professionalising landlords, they hope to encourage better service to tenants and more responsible management of tenancies from landlords.
Implication: A strong new enforcement mechanism giving tenants meaningful, cost-free recourse. Landlords will face reputational and financial risks if found at fault.
National landlord and property database
Original proposed provision: A mandatory national database for landlords and rented properties, detailing compliance status.
Further details via amendments:
- Database will also include rent levels, compliance with repairs and standards, and whether the landlord has a history of enforcement actions.
- Local authorities can impose penalties of up to £40,000 for serious or repeat non-compliance.
House of Lords response: The Lords intention with the National Landlord and Property Database is to introduce a system that promotes transparency, accountability and enforcement across the private rental sector. The Lords want to go further and make it a regulatory and public information tool.
Rent Increases
Original proposed provision:
- Only one rent increase per year, using a Section 13 notice.
- Must be market-aligned, and tenants receive 2 months’ notice.
- Rent increases cannot be backdated.
Amendments:
- First-Tier Tribunal can only reduce or maintain rent — not increase it.
- Tenants can now challenge increases through the new Ombudsman as well.
House of Lords response: The Lords intention with the rent increase proposal is to prevent unfair and opportunistic rent hikes by landlords while ensuring that rents can still be increased to market rate levels.
Implication: Tenants are better protected from arbitrary or unfair rent hikes. Landlords must provide evidence to prove that the proposed rent increase is based on market rates.
Ban on rental bidding and overpricing
Original proposed provision: Landlords and agents cannot solicit or accept offers above the advertised rent.
House of Lords amendments:
- Fines up to £7,000 for each breach.
- Repeat breaches can lead to further penalties and referral to the database with enforcement follow-up.
House of Lords response: The Lords intention is to end the silent auction culture particularly in areas of high demand which leads to unfair inflation of the rental market. In order to deter this behaviour there will be financial and reputational consequences.
Implication: The aim is to end bidding wars and gazumping in the rental market. Listings must reflect true asking prices.
Decent homes standard & Awaab’s Law
Original proposed provision: There will be a legal obligation to meet a standard of housing that is “fit to rent” which is modelled on the Decent Homes Standard and Awaab’s Law.
House of Lords amendments:
- There will be strict timeframes for addressing hazards like mould or damp.
- Landlords can be penalised if they fail to act within set response and remedy periods.
- Enforcement will be by Ombudsman and local councils.
The House of Lords response: The Lords intention with the Decent Home Standard and Awaab’s Law provisions is to ensure that health and safety standards are enforceable in the private rented sector. They want every rental home to be safe and habitable. Landlords must act quickly when hazards arise.
Implication: Landlords must proactively maintain safe homes. Delays in handling issues like mould could have legal and financial consequences. There will be an expectation for landlords to carry out regular inspections to adopt preventative housing management.
Discrimination protections
Original Proposed provision: Discrimination based on benefits status, children, or disability is explicitly banned.
The House of Lords did not offer major amendment here, but cross-party support reinforced these protections.
Implication: Landlords and agents must ensure tenant selection processes comply with equality laws. Enforcement via local councils and ombudsman.
Guarantor liability post-death
New amendment: Landlords can no longer recover rent from a guarantor after the death of the tenant.
House of Lords response: The Lords intention is to protect guarantors from rent recovery demands after a tenant has passed away. The Lords wish to close a loophole that could result in hardship for guarantors who are also likely to be grieving relatives after the passing of the tenant.
Implication: Guarantors are protected from unexpected obligations. Tenancy agreements will need to be amended to reflect this position if this aspect is incorporated into the Act.
Penalties and enforcement
Original Proposed provision:
- Rent repayment orders doubled to 24 months.
- Fines up to £40,000 for persistent non-compliance.
- Local councils must enforce and report.
House of Lords response: The intention is to target repeat offenders and give councils more funding and powers for enforcement.
Implication: Stronger deterrents. Poorly behaved landlords risk being barred from using eviction grounds or operating in the sector.
Final thoughts and sector impact of the Renters Rights Bill
The Renters’ Rights Bill (See the bill here) represents a significant change to the private rental market. While welcomed by tenant advocacy groups, it has also sparked concern among landlords, particularly around increased regulation, restrictions on possession, and added costs. The House of Lords amendments aimed to moderate some of the more controversial areas, especially around student housing and rent arrears, while maintaining core protections for tenants. What we can see from the Committee debates and market chatter though is that it is unlikely that many (if any) of these changes will be adopted into the draft legislation and it is likely to go for Royal Assent in much the same form as it was.
On that assumption, as the Renters Rights Bill moves toward Royal Assent, landlords should begin preparing by:
- Reviewing their assets/portfolios and considering what if any steps they might want to take whether specifically on tenancies or broader sales;
- Serving s21 notices where appropriate before the Bill is passed
- Reviewing current tenancy agreements to consider what changes might be imposed/effected by the legislation;
- Ensuring they meet decent home standards;
- Planning for compliance with the new national database;
- Evaluating rent increase practices; and
- Avoiding upfront rent requests that breach the new limits.
Despite uncertainty ahead, landlords who manage their properties responsibly should find the transition manageable — and tenants will gain greater clarity, security, and recourse in the rental process.
