Live Webinar: Realities of the Renters’ Rights Bill

The UK property landscape faces one of its most significant legislative shifts in a generation with the introduction of the Renters’ Rights Bill. The majority of current housing legislation has been in place since the late 1980s, so this update is long overdue. While headlines may have stirred alarm, it’s important for landlords and property investors to be able to distil fact from myth and take a moment to understand the reality of the proposed changes.  

At Settio, we’re committed to providing clarity and confidence to our clients and being your trusted source of truth and innovation in the face of change.

The Purpose Behind the Bill

The Renters’ Rights Bill, now making its way through the final stages of Parliament, aims to reform parts of the sector that have allowed an imbalance between the rights of tenants and landlords. Its primary goals are to: 

• Enhance property standards in the private rental sector. 
• Improve security of tenure for good tenants.
• Offer fairer, more transparent processes for ending tenancies.

While some are interpreting these changes as limiting landlords’ control, the reality is far more measured. In truth, the bill seeks to modernise a system that has long been due for reform without stripping landlords (and their agents) of their ability to manage their investments efficiently and fairly. 

Dispelling the Noise: Three Key Changes Explained

1. Removal of Fixed-Term Tenancies

Under the new bill, Assured Shorthold Tenancies (ASTs) will be replaced by a single system of Assured Periodic Tenancies (APTs). This means: 

• Fixed term tenancies, typically of 6, 12 or 18 months, will no longer exist. 
• Tenancies will roll on a month-by-month basis with no fixed end date. 
• Tenants can give notice to leave at any time but must provide a minimum of 2 months’ notice. 
• Landlords can also regain possession anytime but must provide fair and legitimate grounds (see below).  

2. Section 13: Annual Rent Increases

Section 13 notices (part of the original 1988 Housing Act) will become the only mechanism for rent increases in periodic tenancies.  

• Rent increases will be permitted once per year. 
• A minimum of two months’ notice must be given. 
• Tenants can challenge increases through a first-tier tribunal if they believe the new rent is excessive. 
• Any challenge will be reviewed by the court, and a new fair rent will be ruled upon based solely on market data. 

3. Abolishment of Advance Rent Payments

The bill will prevent landlords from collecting rent in advance for more than one month. It will also put a ban on accepting a rent amount over the advertised price of a property. This is designed to: 

• Protect affordability and accessibility to property for all suitable tenants. 
• Avoid those with greater wealth being able to outcompete people who are just as able to afford the property on a monthly basis.  

Understanding Section 8 Notices and Regaining Possession

With all tenancies running month to month, there will be no natural break point at which to end one. Instead, a landlord will be able to instigate the ending of a tenancy by serving a Section 8 Notice. The Renters’ Rights Bill will expand and strengthen the grounds under Section 8 and includes a large range of fair reasons for possession, including: 

• Landlords moving into the property themselves.  
• Persistent rent arrears.  
• Landlords planning to sell the property. 
• Antisocial behaviour by a tenant. 

The government has committed to modernising the court process to reduce delays and make it easier for landlords to enforce legitimate possession claims when necessary.  

Timeline and Possible Amendments

As of April 2025, the bill is still progressing through Parliament. It is expected to receive Royal Assent in July of this year, with implementation likely in quarter three. 

Settio is closely monitoring developments and will provide updates as the situation evolves. Current discussion with policy makers and industry leaders suggests that although no major alterations are likely, we may see the following: 

• Ringfencing of students to allow fixed term tenancies that can be paid in advance for them.
• Backdating of successful Section 13 rent increase rulings to the date of application. 
• Court reforms to ensure quick and effective management of Section 13 tribunals and Section 8 enforcement.

Time for Poise, Not Panic

 While the Renters’ Rights Bill will result in significant change to process, it is a positive step forward to raise standards in our industry.  

Bad landlords, bad property and bad agencies may be driven out of the market, but owners of good quality property, treating their tenants fairly, have no reason for concern. The fundamentals of the UK rental market remain strong – demand continues to outstrip supply, and the private rented sector is one of the most buoyant globally. 

This is a time for adaptation, not anxiety. Settio is made up of a team of industry-leading experts, and our clients are in good hands. 

For more details, we recommend watching our webinar recording, and if you have questions or would like advice on how the Renters’ Rights Bill could affect your property portfolio, please don’t hesitate to get in touch.