The Renters Reform Bill: What Landlords Need to Know 

The government’s Renters (Reform) Bill is currently progressing through Parliament, with the potential to transform the private rental sector across England. Touted as the most significant reform in a generation, the bill promises greater security for tenants and more responsibilities for landlords.

But what exactly is changing? When will it happen? And how might it affect landlords’ ability to manage their property portfolio or make a return on their investments?

What Is the Renters Reform Bill and When Will It Happen?

The Renters (Reform) Bill is expected to receive Royal Assent and become law later this year.5, It will apply to all privately rented properties in England and the government has confirmed a phased roll-out of the changes, with implementation starting in 2026.The changes will apply to new tenancies first and existing tenancies will follow at a later date.

Key measures include:

• Abolition of Section 21 “no-fault” evictions
• Replacement of fixed-term tenancies with periodic tenancies only
• Creation of a mandatory property portal for landlords
• Requirement for landlords to join a redress scheme
• Greater rights for tenants to keep pets
• Tightened rules on rent increases

Why Is This Happening?

The rental market has changed dramatically over the past 20 years, and the government says the current legal framework is no longer fit for purpose.

With over 11 million private renters in England, ministers say reforms are needed to:

• Improve stability and predictability for tenants
• Crack down on poor landlord practices
• Ensure housing meets minimum standards and regulations
  

At the same time, the reforms aim to retain a functioning rental market by ensuring landlords still have legitimate routes to regain possession.

How Will the Changes Impact Landlords?

1. Evictions Will Become More Regulated

Section 21, which currently allows landlords to evict tenants without providing a reason (after the fixed term), will be abolished.

Under the new system:

• Landlords must rely on Section 8 grounds for eviction, which include rent arrears, anti-social behaviour, and wishing to sell or occupy the property themselves
• Some grounds will be strengthened (e.g., repeat rent arrears), but all evictions will now require landlords to prove a valid reason

This could lead to longer possession processes, especially if tenants challenge claims.

2. Fixed-Term Tenancies Will Be Scrapped

All new tenancies will become periodic — rolling from month to month — meaning:

• Tenants can leave with two months’ notice at any time
• Landlords must provide at least two months’ notice when ending a tenancy (with valid grounds)

This adds flexibility for tenants — but less predictability for landlords managing voids or planning property sales.

3. Rent Increases Will Be Capped and Challengeable

• Rents can only be increased once per year
• Landlords must provide two months’ notice of any increase
• Tenants will have the right to challenge “unfair” increases via a First-tier Tribunal

This could limit landlords’ ability to keep pace with inflation or rising costs, especially in high-demand areas.

A Growing Compliance Burden for Landlords

The Renters Reform Bill is only the latest in a series of changes that have made it more complex and costly to be a private landlord:

Policy	Impact
Landlord licensing schemes	Increasingly common across local councils
Wear and tear allowance abolished	Must now claim actual costs
Mortgage interest tax relief removed	Replaced with basic rate credit
Stamp duty surcharge	Increased from 3% to 5% for additional properties in 2024
Capital gains and reporting changes	Shorter deadlines and lower allowances

The result? Shrinking margins and growing paperwork — especially for individual and small scale landlords.

Are Landlords Being Demonised?

As the Renters Reform Bill moves forward, a growing concern among landlords is that it’s framing all landlords as problematic, even though the majority are small-scale, responsible providers of much-needed housing.

In a recent Guardian report, Steven, a Manchester-based landlord, voiced these frustrations:

“It seems to have been forgotten: they are our properties, we own them, they are our assets, and unfortunately the government seems to be trying to turn us into social landlords… If we don’t believe we can retain possession of our properties, we will evict and we will sell.”

He goes on to explain that while he sympathises with tenants, the loss of Section 21 rights could force him—and others—to exit the market, potentially reducing the number of homes available.

This sentiment echoes the view of landlord associations like the NRLA, which has warned that tightening eviction rules might push landlords to sell, further shrinking rental supply and driving up rents for tenants.

What Could This Mean for Rents and House Prices?

With landlords leaving the market, we could see:

• A reduction in rental housing supply
• Higher rents, driven by scarcity and regulatory risk
• Increased pressure on house prices, especially if small landlords sell or reduce leverage
  

Many expect this to widen the divide between institutional investors (who can absorb regulatory burdens) and small scale private landlords.

---

Housemartin takes the hassle out of residential property ownership

At Housemartin, we invest in carefully managed, fully compliant properties with secure long-term leases.

That means you can:

• Avoid the red tape of evictions, licensing, and rent controls
• Earn inflation-linked income
• Make a positive social impact by providing housing for people requiring support
• Enjoy peace of mind knowing we manage the risks and administrative burdens for you

Join thousands of investors who prefer hands-off, hassle-free residential property-backed investing.

Explore our residential investment properties ➝

---

Coming Next: What the Decent Homes Standard Means for Private Landlords

One of the major changes proposed under the Renters (Reform) Bill is the extension of the Decent Homes Standard to the private rented sector — a framework previously applied only to social housing.

In our next article, we’ll explain exactly what the Decent Homes Standard requires, when it might apply, and what it means for property investors.