To further regulate the UK’s private rental market, the Labour government has proposed the 2025 Tenant Rights Bill. This bill, which still requires approval from both the House of Commons and the House of Lords, could take effect by the summer of 2025. For tenants and landlords concerned about potential impacts on their interests, understanding this bill’s key points now will help prepare for the upcoming changes.
Key Provisions of the New Bill
1.Abolition of “No-Fault” Evictions under Section 21
Landlords will no longer be able to evict tenants without valid reasons, addressing the risk of sudden displacement. This change will apply to both existing and new tenancies once it takes effect.
However, landlords can still initiate evictions under Section 8 by providing justifiable reasons (e.g., reclaiming the property for personal use) and by giving tenants four months’ advance notice (note: notice periods may vary by reason).
2.Limits on Rent Increases During Tenancy
Under the new rules, landlords will be allowed only one rent increase per year, which must align with current market rates. Landlords and agents must also provide written evidence to substantiate the increase in line with market trends.
3.Ban on Rent Bidding
In cases where multiple tenants are interested in a property, landlords will not be permitted to encourage competitive rent bidding. The final rental price must not exceed the initial asking price, maintaining affordability for all applicants.
4.Tenants’ Right to Keep Pets
This provision benefits pet owners by prohibiting landlords from refusing pet requests without a valid reason. Landlords may, however, require tenants to purchase pet insurance to safeguard against potential property damage.
5.Upgraded Living Standards for Rental Properties
The bill raises standards from a basic “habitable” requirement to a “Decent Home Standard,” mandating higher living conditions for rental properties.
While these provisions largely enhance tenant rights, they may lead to more selective tenant vetting by landlords. Ultimately, the bill aims to mark a new phase in the UK rental market. We will have to wait for the market's response once the bill takes effect next summer.
