How the Renters Reform Bill will make an impact

Posted on October 28, 2025

One of the biggest legal shake ups in the rented accommodation market came into effect at the end of October and for landlords and tenants it’s a significant change and something all parties need to be aware of, or they could end up in court.

The Renters' Rights Act

The landmark Renters' Rights Act became law on October 27, 2025, and represents the most significant reform of the private rented sector in over 30 years, with major legal and financial consequences.

“Landlords should take steps now to protect their position and be proactive,” advised Leigh Sunter, Litigation lawyer at Pearson.

“Ensuring compliance is crucial and of course many landlords will be considering whether property portfolios are worth it in the long term given the red tape and compliance issues,” she said.

“There is a fear that the bill will make more landlords leave the market, push rents up and not help the tenants at all, however a chat with your legal advisers should make sure you are legally compliant, and all is above board

“I could see a case where landlords could face long and costly delays in getting possession but on the other hand good tenants will feel more secure in their home which will benefit both the landlord and the tenant and rogue landlords could be forced out of the market,” she added.

Advice for landlords

Speak to your solicitors about the practical implications of the new rules to ensure legal compliance and be aware of all the following:

Eviction process: With the removal of Section 21 solicitors can guide landlords through the new, expanded Section 8 process, which requires proving specific, legitimate grounds for possession, such as serious rent arrears or moving a family member in.
Decent Homes Standard: Legal advice is centred on auditing properties and planning for renovations to meet the Decent Homes Standard, which has now been extended to the private rented sector. Non-compliance can lead to substantial fines.
Pet requests: Legal professionals are clarifying the rules around pet requests, including the landlord's obligation not to unreasonably refuse a tenant's request. Landlords can require pet damage insurance from tenants.
Rent increases: Your solicitor can explain the new rules on rent increases, which limit them to once per year with two months' notice. They will also advise on the First-tier Tribunal process for tenants challenging increases.
New obligations: Landlords are being advised on their legal duty to register themselves and their properties on the Private Rented Sector Database and membership of the Landlord Ombudsman will be mandatory, with annual fees payable for both. Failure to comply will not only risk significant financial penalties but could also prevent landlords from enforcing possession claims.

“The abolition of the Section 21 No Fault Eviction procedure means that the Section 8 procedure will be the only way of obtaining a possession order however the Section 8 procedure will not be available until the landlord has properly protected the tenant’s deposit or registered their deposit on the new private rented sector database,” said Leigh.

“This will likely have a negative financial impact on landlords. Tenants will be allowed to fall behind on three months’ rent rather than the previous two months’ rent before the landlord can start eviction proceedings for rent arrears and once the landlord has given notice to the tenant the tenant will have four months to leave the property before the court’s involvement.

“It also means that landlords will not be able to sell their property within 12 months of a new tenant moving in and once the first year is up, they landlord will have to give four months’ notice for the tenant to leave. In a nutshell the landlord will have to wait longer before taking steps to evict a tenant for rent arrears thus impacting the landlord financially. Landlords also face restrictions on increasing the rent with the tenant having an enhanced rights to appeal which again could have a negative impact on finances.

Support for tenants

The act also brings to the fore significant changes for tenants including:

Challenging evictions: Solicitors will help tenants challenge an eviction notice if they believe the landlord's stated grounds are false or retaliatory.
Poor housing conditions: New legal protections under the Decent Homes Standard and the expanded Awaab's Law will force landlords to address serious hazards like damp and mould.
Dispute resolution: Legal experts will advise tenants on using the new ombudsman service to resolve disputes with their landlords outside of court, such as those regarding maintenance issues or rent increases.

Leigh comments:

“On the other hand, tenants are afforded much more protection when facing financial difficulties in paying the rent and will be protected generally for the first year of the tenancy. This will afford them more time to pay the arrears without the landlord evicting them. It will also force landlords to deal with disrepair issues as a tenant can no longer be evicted for complaining about disrepair issues,” said Leigh

“The introduction of periodic or rolling contracts in place of the old fixed 6, 12, or 24-month contracts essentially means that tenants can remain in the property for as long as they want as long as they do not breach the terms of the contract.”

“There is uncertainty and confusion as to how the changes will pan out and as with all legal changes it is a case of waiting until it all takes effect and how landlords and tenants adjust to complex new rules.”

“We await to see how these changes affect the courts as capacity could become an issue with an increase in contested Section 8 possession hearings which would lead to even longer delays and backlogs.”

The Renters' Rights Bill - now known as the Renters' Rights Act - applies to England. Scotland has had periodic agreements for tenancies since 2017, but Wales and Northern Ireland still allow fixed term contracts.

Contact Us

For advice on all landlord and tenant issues please call us on 0161 785 3500 or enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.