Solicitor Shabnam Shekarian explores the Renters’ Rights Bill, explaining its significance in the changing regulatory environment and offering guidance to landlords on how to respond, in FT Adviser.
Shabnam’s article was published in FT Adviser, 7 August, and can be found here.
If there is one area in which the Labour party’s 2024 general election manifesto demonstrated particular clarity, it was in its stated intention to recalibrate the relationship between residential landlords and private renters.
This policy shift represents a pivotal moment in housing regulation, reflecting the government’s recognition of the vital role landlords play in ensuring a stable and functional rental market.
By elevating housing security to a matter of public interest, the approach seeks to foster a more transparent and accountable framework; one that supports responsible landlords in providing quality accommodation, while promoting fairness and long-term stability for all parties involved.
More than a year since the launch of their manifesto, section 21 of the Housing Act 1988 remains in force.
However, as is often the case, the legislative process has proven more complex than anticipated, delayed in part due to amendments introduced in the House of Lords prior to the summer recess.
As matters currently stand, the House of Commons is due to debate the proposed amendments on September 8 2025, with Royal Assent expected thereafter.
Some political observers suggest that the government may seek to finalise the legislation ahead of the Labour party annual conference later that month.
A six-month lead time is anticipated, meaning the principal provisions may not take effect until spring 2026.
That said, some elements — most notably the abolition of section 21 — could be brought into force more rapidly for political effect, potentially as early as the end of September 2025.
This could create uncertainty for landlords, who may be required to adjust their practices at short notice and face differing compliance timelines depending on when specific provisions come into force.
It is important to note that the abolition of no-fault evictions forms just one part of a broader legislative package.
Additional measures include enhanced rights for tenants, such as the right to keep pets, each of which will have operational and compliance implications for landlords.
The bill also introduces new enforcement mechanisms, including increased funding for local authorities to regulate landlord conduct more proactively.
Penalties for non-compliance with basic tenancy requirements are expected to increase, alongside new registration and database obligations designed to improve transparency across the sector.
Moreover, the government is expected to issue accompanying guidance to clarify how courts should interpret certain discretionary grounds, with the aim of promoting consistency in possession claims.
Another area of potential complexity lies in how transitional provisions will be applied to existing tenancies.
The government has suggested that all assured shorthold tenancies will eventually be converted into the new periodic model, however, it has yet to confirm whether this will occur automatically or via legislative triggers.
As such, both legal practitioners and landlords will need to monitor closely how and when these transitions are implemented.
Expanding compliance and dispute resolution
Further, the role of dispute resolution mechanisms is likely to expand as a result of these reforms.
In addition to formal court proceedings, it is expected that alternative dispute resolution schemes will be promoted to resolve disagreements over rent increases, repairs, or possession notices.
This reflects a wider governmental aim to reduce pressure on the court system while offering tenants and landlords a less adversarial path to resolution.
For letting agents, the bill is also set to introduce new compliance duties, particularly around the provision of prescribed information and oversight of tenancy documentation.
Failure to meet these standards could expose agencies to regulatory sanction or litigation.
As a result of this, industry bodies have already begun to urge their members to begin reviewing internal processes in anticipation of the new legal regime.
In practical terms, once the legislation is in force, landlords will face a more restrictive and procedurally burdensome process in seeking possession from tenants.
Those wishing to rely on the current regime should take proactive steps without delay.
Section 21: What landlords should do as a matter of urgency
With time running out for taking advantage of this legislation before it is abolished, landlords considering possession proceedings under section 21 should do so as a matter of urgency.
Although still technically in force, use of this procedure requires strict compliance with regulatory requirements.
As the government notes: “You must follow strict procedures if you want your tenants to leave your property.”
This guidance focuses on England, as housing law diverges across the UK’s devolved administrations.
Under current rules, a section 21 notice may be served either:
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at the end of a fixed-term tenancy (where a written agreement exists); or
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during a statutory periodic tenancy (where no fixed term is in place).
Where the tenant has breached the tenancy terms, landlords should instead rely on section eight of the Housing Act 1988.
However, a section 21 notice will only be valid if specific conditions have been satisfied, including:
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The tenancy must be at least four months old.
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The landlord must have protected the tenant’s deposit in an approved scheme (for post-April 2007 tenancies).
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The local authority must not have served an improvement or emergency works notice within the preceding six months.
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No unlawful fees or deposits must remain unpaid.
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Where required, the property must hold an appropriate HMO licence.
Landlords must also prepare for heightened evidential standards under the new regime.
Courts are likely to scrutinise applications closely, particularly where discretionary grounds are cited and thorough record-keeping, including photographs, correspondence, and inspection reports, could prove critical in demonstrating that possession is justified.
The reforms also introduce further controls on landlord conduct, including:
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A cap of one month’s rent in advance.
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A prohibition on rent increases more than once per year.
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A requirement for two months’ notice prior to any rent increase.
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The right for tenants to challenge increases deemed unreasonable.
Importantly, the tribunal process for challenging rent increases will be streamlined, with First-tier Tribunals expected to play a larger role.
This will introduce new litigation risk for landlords seeking to push rents to market levels.
The government has stated that this will prevent landlords from using excessive rent rises as a de facto eviction strategy, while still allowing adjustments in line with market conditions.
Tenants, under the new periodic regime, will have the right to terminate the tenancy at any time, subject to a minimum of two months’ notice.
The renters’ rights bill represents the most significant reform to the residential rental sector in a generation.
While its intent is to redress perceived imbalances in tenant protection, it will have far-reaching operational consequences for landlords and letting agents.
Professionals advising landlord clients should ensure that they are aware of both the short-term opportunities to act under the existing framework, and the longer-term procedural and evidential requirements that will arise once the new regime comes into effect.
The transition will demand not only technical legal compliance, but also a strategic re-evaluation of portfolio management practices, tenancy structuring, and dispute resolution protocols.
Particularly for institutional landlords and build-to-rent operators, advance planning will be essential to ensure readiness for the evolving regulatory environment.
Failure to prepare could lead not only to delayed possession proceedings and rent loss, but also reputational damage, particularly for larger landlords subject to public scrutiny or investor expectations around compliance.
However, ultimately, success in navigating these reforms will depend on early engagement, robust legal advice, and a willingness to adapt.
As the regulatory landscape continues to evolve, careful compliance and anticipatory legal planning will be critical, and the role of advisers will only become more vital for private landlords and agents looking to navigate these shifting tides.