Renters Reform Bill Update – Second Reading in the House of Lords

/ Maplewood Property & Investments Ltd/

The Renters Reform Bill is progressing through Parliament, with its second reading in the House of Lords scheduled for tomorrow, 4th February 2025. While the legislation outlines the government’s intent, its practical application will only become fully clear once tested in court, as is often the case under the UK’s Common Law system.

Anticipated Timeline

If the Bill continues on schedule, it could be enacted before the Easter Recess (9–21 April) and receive Royal Assent in late April or early May. However, the exact commencement date remains uncertain and this could come into effect in the summer, autumn or towards the end of the year, all of which, would allow the industry a little extra time to prepare for the changes.

What Are Those Likely Key Changes for Landlords and Tenants?

One of the most significant reforms is the shift of all existing tenancies from Assured Shorthold Tenancies (ASTs) to Assured Tenancies upon the Bill’s commencement date. This will have a range of implications:

  • Fixed Terms Will No Longer Apply – Any tenancy with a set term (e.g. 12 months) will automatically convert to a periodic tenancy. Tenants will then be able to serve two months’ notice to leave at any time, rather than waiting until the end of a fixed term.

  • Section 21 Notices Will Be Abolished – Landlords will no longer be able to issue a no-fault eviction under Section 21. Instead, they must serve a Section 8 notice, citing specific grounds such as selling the property or needing it for a family member.

  • It is not yet clear what will happen to existing Section 21 notices already filed with the courts before the commencement date, with a backlog clarity will be needed on dates.

  • No More Tenancy Renewals – As tenancies will automatically become periodic, there will be no need for renewal agreements going forward.

Additionally, some aspects of the Bill, such as the new private landlord register, may have phased implementation, but details on this are still pending.

What Happens Next?

The next key milestone is the House of Lords second reading this week on the 4th February 2025. We will continue to monitor developments closely and provide further updates as more details emerge regarding implementation and transitional arrangements.

If you’re a landlord or tenant with questions about how these changes might affect you, feel free to contact us for guidance.