Rental reforms soon to receive Royal Assent

When will the Bill become law?

Exact timelines are still unknown, but during the debate, Housing Minister Matthew Pennycook, MP, confirmed that the UK Government would introduce periodic tenancies for the private rented sector in one stage, possibly as soon as three months after the Bill receives Royal Assent. The new tenancy system will apply to all private tenancies: existing tenancies will convert to the new system, and any new tenancies signed on or after the implementation date will be governed by the new rules.

While the broad direction of reform is now clear, important questions remain around student lets, supply pressures, and the practicalities of enforcement. Propertymark will keep members informed as further details emerge and continue to campaign for a balanced approach that protects tenants while supporting agents and landlords.

Specifically, we will continue to press the UK Government for:

• Certainty and clarity for letting agents on how the new rules will operate in practice.
• Robust but workable enforcement that targets rogue operators without burdening professional agents and landlords.
• Solutions for student housing and short-let markets to ensure the new system reflects the diversity of the private rented sector.

Updates on key parts of the Renters’ Rights Bill

Right to keep a pet

Possibly the most significant change to the Bill is that, as well as rejecting the amendment to allow a pet deposit, the UK Government has also removed the original clause which would have made it possible for landlords to require tenants to take out pet damage insurance.

This means that the enhanced right to ask to keep a pet – which the landlord cannot unreasonably refuse – remains, but the Bill will contain no additional protections for landlords.

Housing Minister Matthew Pennycook, MP, explained that the UK Government is satisfied that the existing maximum deposit of 5 weeks’ rent is sufficient to cover any risk of damage. If damages did exceed the deposit, landlords can apply to the small claims court to recover the balance.

However, Pennycook also noted that powers already exist under the Tenant Fees Act 2019 to allow Ministers to introduce higher deposits for tenancies with pets in the future if there is evidence that it is needed.

A report commissioned by Battersea Dogs and Cats Home found that the average total reported cost of pet-related damage was £300 per tenancy, compared to £775 for non-pet-related damage caused by non-pet-owning tenants.

Student housing

The Housing Minister stated that the UK Government does not believe that Ground 4a should be available for student tenancies in one- and two-bedroom (non-HMO) properties, as these are more often occupied by non-typical students, such as older people with families, who should get the full benefits of the new tenancy system.  

MPs overwhelmingly voted to disagree with Lords amendment 53, which would have extended the ground to all student tenancies, regardless of the type of property.

No re-letting period

The legislation prevents landlords who evict tenants from selling the property or moving into it themselves, putting the property up for rent again within 12 months. This aims to deter landlords from evicting tenants under false pretences for the sole purpose of finding a new tenant or to let at a higher rent.

The Lords' amendment seeking to reduce the ‘no re-letting’ period to 6 months was not agreed by the Commons.

Backdating rent adjudications

The UK Government has recognised industry concern and uncertainty over the number of challenges to rent increases that will be brought under the new system, so to safeguard against lengthy delays, a new delegated power will allow backdating of rent increases following a decision by the tribunal. However, the Minister made clear that this power will only be used if the First Tier Tribunal system becomes overwhelmed.  

Pennycook also announced plans for an alternative body or mechanism to make initial rent determinations, citing ‘compelling evidence’ that it is needed. A final viability assessment will be undertaken before more details are announced.  

Enforcement and redress

The Bill significantly enhances enforcement in the private rented sector, giving local authorities much stronger powers and introducing a more robust penalties framework. Councils will be empowered to investigate suspected breaches, demand documentation—even from intermediaries like prop-tech firms, banks, and building contractors—and issue civil penalties.

A key issue raised during the Lords’ report stage was whether local authorities should be required to prove ‘beyond a reasonable doubt’ – instead of ‘on the balance of probabilities’ - that an agent or landlord had carried out rental discrimination or rental bidding breaches.

The proposal was rejected by MPs on the basis that it would be impractical and hamper local authorities in carrying out effective enforcement. 

Agricultural tenancies

A new amendment was agreed by the Commons that will narrowly expand Ground 5a to allow agricultural landlords to evict assured tenants to house employees and non-employed (i.e. self-employed) workers engaged in agriculture.

Supporting members

Propertymark is supporting property agents to adapt through the transition. We have created resources as the Bill makes its way through the parliamentary process and are providing regular updates as the details become clearer.

Members should check their communication preferences to ensure they receive ‘newsletters and legislation’ updates to stay informed every step of the way.