The Renters’ Rights Bill – Where are we now and what do we know?

Following three days of debate in the House of Lords and the third reading on 21 July, the Renters’ Rights Bill has now returned to the House of Commons for consideration of the Lords’ amendments, with a view to reaching agreement on the final text.

The Commons debate is scheduled for 8 September 2025, and it is anticipated that Royal Assent will follow in due course.

It is now clear that the Bill will not be enacted prior to the Parliamentary summer recess. However, several key areas remain where further clarification is awaited by all stakeholders.

The Lords Amendments

Given the increasing number of concerns raised as the Bill has progressed through Parliament, it is notable that a number of amendments have been proposed by the House of Lords.

These amendments include those tabled by Labour peers in alignment with the Government’s stated intentions, which are likely to be approved, as well as amendments from opposition peers, the fate of which is less certain.

The principal amendments are as follows:

1. Clarity on pre-existing arrangements for rent in advance. A Government backed amendment provides that existing agreements in place for advance rent (such as payment at yearly intervals) will not be affected following commencement of the provisions limiting rent payments to monthly intervals. This amendment is likely to be welcomed by landlords and no doubt there will be a flurry of new tenancies entered into prior to commencement on these more favourable terms.
    
2. Backdating rent increases. While this Labour amendment does not go so far as many have hoped for in granting the Tribunal the immediate power to backdate rent increases, it does simplify the legal process for the Secretary of State to do so in the future if, like anticipated, there is a flood of rent challenges due to inability to award back dated rent.
    
3. PBSAs and Student Accommodation. Several positive changes have been proposed in this area, which are addressed in further detail below.
    
4. Pet insurance and pet deposits. An unexpected amendment was put forward by a Labour Lord to backtrack on the previously proposed position and remove the ability for a landlord to take out pet insurance to cover damage caused by pets. In response, a Conservative amendment was passed allowing a landlord to ask for an additional three weeks rent by way of a ‘pet deposit’
    
5. Possession Ground 1A. A new ground for possession, allowing landlords to seek possession if they wish to sell the property, was originally accompanied by a prohibition on re-letting an unsold property for 12 months. A Conservative amendment seeks to reduce this period to six months.

It remains to be seen which of these amendments will be included in the final version of the Bill. However, many of the proposed changes are landlord-friendly and address concerns raised by landlords during the legislative process.

Purpose Built Student Accommodation (“PBSAs”) and the Transition Period

As has been the case for every stage of the Bill (and its predecessor Bill), the position regarding students and which PBSA providers will be affected by the Bill, has continued to evolve.

The Government’s intention has been clear from the outset that PBSA providers would be exempt from the Bill. Until recently however, it has not been possible to definitively confirm whether a landlord would constitute a PBSA for the purpose of the Bill and therefore satisfy this exemption.

Furthermore, our previous article (here) sets out the risk of there being a transition period for PBSAs in which pre-existing assured shorthold tenancies would be affected by the Bill but that, subject to compliance with the PBSA exemption, future tenancies would not.

That slight uncertainty continues but some further guidance has now been provided:

1. Extension of the PBSA Exemption. The scope of the anticipated PBSA exemption, i.e. the criteria which, if satisfied, will mean that a landlord will not be affected by the Bill, has been widened. The exemption, which is contingent on membership of a Government-approved code of practice (currently ANUK/Unipol and UUK), will now apply where either the landlord is a member of the code or has appointed a managing agent who is a member. This extension potentially allows smaller, non-member landlords to benefit from the exemption by appointing a qualifying managing agent.
    
2. Transition period for existing PBSA tenancies. It is now almost certain that there will be a transition period during which assured shorthold tenancies which have already been granted by PBSA providers prior to commencement of the Bill will be affected by these changes. The Lords recognised the concerns with the transition period but considered that applying the exemption retrospectively would carry significant risk and might leave students with fewer rights than those in their tenancy agreements . PBSA providers should therefore plan for this transition period and note the ability of relevant tenants to, amongst other things, be able to terminate their tenancy on two months’ notice.
    
3. Extension of possession ground 4A for PBSA providers. In recognition of PBSA’s concerns and needs to guarantee vacant possession, the new ground for possession is being extended so as to:
   1. Apply to all properties, not just HMOs;
   2. Remove the limitations on when this ground can be used by removing the July to September time frame; and
   3. Remove the prohibition on using the ground where the tenancy was signed more than six months prior to commencement. 

These changes are of particular significance to the student accommodation sector and should be closely monitored as the Bill approaches its final form and further details regarding the exemption and transition period are confirmed.

Timings

The Government had previously indicated a strong desire to finalise the Bill before the summer recess on 22 July.

This has not been achieved, but it is expected that, upon Parliament’s return, the Government will seek to progress the Bill as quickly as it can. The timetable will depend however on the Government’s response to the Lords’ amendments and the extent of any further negotiation.

We expect there likewise to be a strong push for the Bill to receive Royal Assent before the Labour Party conference on 28 September 2025 given the political nature of the Bill.

The timing of implementation remains uncertain. Although an implementation period has been promised, no definitive timeframe has been provided. We believe it would be reasonable for the Government to allow  a six month implementation period, which would result in the majority of provisions taking effect from Spring 2026.

However, these timings are uncertain. Furthermore, the Government retains the power to vary the implementation period for different parts of the Bill.  For example, we consider there to be a likelihood that the Government will seek to abolish Section 21 Notices at the earliest opportunity which may be some time before full implementation of the Bill.

For now, it remains more important than ever to monitor and prepare for the Bill as it reaches its final stages.

This article was co-written by Warren Gordon and Sarah Moore