Update on the progress of the Renters’ Rights Bill, which represents the most significant reform to private renting in over 30 years.
The Bill is unlikely to return to Parliament until after the party conferences in mid-October. Once it completes the “ping pong” process between the Commons and the Lords, Royal Assent could be granted by the end of October. If that happens, we are expecting the reforms, including the end of Section 21 notices and the removal of ASTs and fixed-term contracts, to come into effect in the spring of 2026. Should the Bill be delayed until late spring (May). If this is the case then 2025/26 academic year will continue much as normal. Fingers Crossed.
One area we are monitoring closely is the proposed Ground 4A, which may give landlords the ability to regain possession of non-HMO properties let to full-time students. This is still under debate in the Lords, so its final form remains uncertain. This will be welcoming news to landlords with 1 and 2 bedrooms properties.
For student rentals, the main impact will be flexibility. From the 2026/27 academic year, students will be able to end their tenancy at any point by giving two months’ notice, which could mean many choosing to leave after exams in May or June? If this is the case, this is likely to reduce tenancy lengths to around 9 - 10 months. If they don’t give notice, with the new Ground 4a you will be able to give them notice. This is so important when it comes to the marketing period, knowing that you will be have possession. As always there is a risk of tenants not moving out, however this is no different to what we experience at the moment.
HOW IS 2027/28, going to look. We anticipate contracts commencing, July or example to help maintain an 11-month cycle.
Mid Tenancy, it is important to be aware that if one tenant leaves, the group will be required to find a replacement, renegotiate rent, or in some cases all give notice together. Keeping properties well-maintained and dealing promptly with any issues will be more important than ever in order to retain tenants.
This reform will bring challenges, particularly around planning for shorter tenancy periods and potential income gaps, but also opportunities to adapt to a new rental landscape. Monitoring the situation closely through Propertymark, Landlords Association, legal advisors and other industry updates will keep us informed as soon as a clear timetable is announced.
This Bill represents the biggest reform to private renting in over 30 years. Alongside tenancy reform, several other elements are likely to increase operating costs for both landlords and agents. Careful planning will be required to adapt business models and ensure financial stability. Adapting will be key, this reform will reshape the rental market.
But we should remember that Tenants need Accommodation.
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