The UK rental industry has been reformed due to the rental reform bill. The main motive of this bill is to create a balance in the market. The reform addresses the increasing anxiety of millions of private tenants and landlords to transform the provisions of renting in England. Be it as a tenant seeking the security of housing or a landlord dealing with rental properties, this bill is a must to understand. Well, this article by Proptino.co.uk will guide you on what the Renters Reform Bill is, why it is important, and what it means to you.

What is the Rental Reform Bill?

The Renters Reform Bill is a proposed law put forward by the UK government to change English laws in regard to the matters of private renting. It had been previously proposed in the Queen's Speech 2019 and then introduced in Parliament 2023. Following a couple of delays and political reforms, the bill still has been making its way through the Parliament in 2025. Its focus is to enhance the rights of tenants and at the same time allow landlords to manage their properties realistically and reasonably.

Also read this article: Landlord and Rent Insurance-Based Solution.

Key Features of the Rental Reform Bill 

The Renters Reform Bill introduces significant reforms that make the already rented market more equitable and secure. Its major characteristics are made to shield tenants and provide landlords with clear regulations.

Abolition of Section 21

The Renters Reform Bill will abolish fixed-term or tenancy agreements and instead provide the option of open-ended periodic tenancies with greater flexibility on both sides, be it tenants or landlords. Tenants may vacate any time within 2 months' notice and landlords need to have a substantial reason to terminate tenancy in the form of some legal reason. The move will hopefully decrease the number of tenants that turn to increase housing stability.

New Rules on Tenancy Agreement 

The Renters Reform Bill also involves a change from fixed-term tenancy to an indefinite periodic tenancy, which is more flexible and just. The tenant has the freedom to terminate tenancy at any time with two months notice, whereas the landlord can only evict on valid legal grounds. This will lower the rate of tenant turnover and enable long-term security in housing.

Regulation of Rent Increases 

In the new rules, the landlords are allowed to increase rent after at least one year, and they have to provide tenants with a two-month notice. A tenant is aware that in case he considers an increase to be excessive, it is possible to dispute it in a tribunal. The purpose of this change is to prevent immoderate, unreasonable raises in the rent on the one hand and be considerate in the situation with renters on the other hand.

Also read this article: How much a landlord can raise the tax. 

Private Renters’ Ombudsman

The Renters Reform Bill brings in a national Private Renters Ombudsman, which sets the aim of giving decisions to cases on disputes between tenants and landlords, providing early dispute resolution by resolving the problem through free, binding rulings that discourage further legal proceedings. Together with this, a digital property portal will be established to enhance transparency and enable landlords and tenants to know their rights and corresponding duties.

Support for Pet Owners in Rental Homes 

The Renters Reform Bill will escalate the ability of tenants to own pets. Tenants have the right to seek authorisation, and the landlords are limited to proving grounds or even providing justifiable causes to deny. Any damage may need pet insurance. This evolution has to do with the rising awareness of pets as a new aspect of contemporary family life.

Read this also: Best listing websites for rental properties in the UK. 

Bottom Lines 

The Renters Reform Bill is one way of achieving reforms towards fairness and stability in the rental market. It grants the tenant greater rights as well as imposes accountability on the landlords through the end of the no-fault evictions, restrictions on rent increasing rates, and development of an improved dispute resolution method. Moreover, Proptino.co.uk is offering property management-related services that assist both landlord and tenant in listing and moving into other properties. 

External Sources  

https://www.gov.uk/guidance/guide-to-the-renters-reform-bill

https://en.wikipedia.org/wiki/Renters_%28Reform%29_Bill_2023

https://www.thesun.co.uk/money/33509944/housing-changes-renters/

https://adviceforrenters.org/news/queensspeech0521

Frequently Asked Questions (FAQs)

1. What is the Renters Reform Bill?

The Renters Reform Bill is potential UK legislation to make the rental market more fair, stable, and transparent to all, tenants and landlords included.

2. Why is Section 21 being abolished? What is Section 21?

Section 21 enables the landlords to evict their tenants without stating a cause. This is abolished by the bill so as to give renters more security and protection against unwarranted evictions.

3. Are fixed-term tenancies still permitted?

No, it substitutes fixed-term tenancy with periodic tenancy with indeterminate purchases, which makes tenants more capable of departing and constrains landlords from pursuing illegitimate evictions.

4. How many times can landlords raise rent under the new rules?

Landlords may only increase rent once a year, with no less than 2 months' notice.

5. Do renters have a right to oppose rent hikes?

Yes, tenants are going to be allowed to appeal against unreasonable rent hikes to a tribunal.

6. Who is the Private Renters Ombudsman?

The ombudsman will resolve conflicts involving tenants and housing providers and provide free and binding settlements without recourse to court.