The Renters’ Rights Bill is now “in touching distance of becoming law,” according to Housing Minister Matthew Pennycook, after MPs approved the final version in the Commons. The Bill, which will abolish Section 21 evictions and make tenancies open-ended, is expected to receive Royal Assent within weeks, setting the stage for the biggest overhaul of the private rented sector in a generation.
Section 21 ban to begin immediately after Royal Assent
Under the new legislation, landlords will lose the ability to evict tenants without reason under Section 21, while all fixed-term agreements will convert automatically to periodic tenancies. The Bill also prevents landlords from unreasonably refusing pets, caps rent increases, and extends Awaab’s Law to private rentals, enforcing stricter timeframes for tackling damp and mould.
Pennycook said the new framework “will not have a destabilising effect on the rental market” and promised a “smooth transition” to give landlords time to adapt. Implementation is expected in one stage, applying both to new and existing tenancies.
However, Shadow Housing Secretary James Cleverley warned that the Bill could backfire:
“The government’s own impact assessment suggests this legislation may drive landlords out of the market. Tenants’ rights are all well and good, but if accommodation doesn’t exist, they are no better off.”
Cleverley also called for urgent court reform to handle possession cases efficiently, arguing that landlords must retain the ability to regain properties swiftly in legitimate circumstances.
Landlords warn reforms risk reducing rental supply
The Government insists the Bill won’t damage supply, but sector analysts remain sceptical. Years of uncertainty and rising costs have already forced many landlords to reassess portfolios. The new 12-month re-letting restriction — which prevents landlords from re-renting a property within a year if a sale falls through — remains particularly contentious.
While shared ownership properties will be exempt, private landlords remain bound by the rule. Pennycook said this was necessary “to prevent bad-faith evictions,” though industry bodies argue it penalises responsible landlords trying to adjust to market conditions.
William Reeve, CEO of Goodlord, said the Bill is now effectively on its way to the statute books:
“After too many false starts, the deed is done. The Bill will receive Royal Assent shortly, and elements like Section 21 abolition and periodic tenancies could take effect between April and June 2026. This gives agents and landlords only a small window to get their house in order.”
Industry calls for clarity
Nathan Emerson, CEO of Propertymark, described the Bill’s passage as “another clear step forward” but stressed that clarity and workable guidance are now critical:
“It’s beyond doubt that major change is coming. Letting agents and landlords must begin preparing now. Delaying action risks being left behind when the legislation takes effect.”
Emerson urged the Government to provide realistic timelines and clear communication to avoid confusion. For many landlords, that means reviewing tenancy agreements, updating compliance processes, and budgeting for possible legal and administrative costs as the new system comes into force.
The transition to open-ended tenancies may also reshape landlord strategies, prompting a focus on tenant retention, long-term maintenance, and financing flexibility as mortgage rates stabilise.
With Royal Assent now imminent, the Renters’ Rights Bill marks a seismic shift in how landlords operate. While the reforms will test smaller investors, they also reward professionalism and long-term planning. Those who adapt early — through compliance, efficiency, and quality management — are most likely to thrive in this new regulatory era. The next challenge lies not in policy, but in implementation.
