The day is drawing closer. The Renters’ Rights Bill seems to be rapidly progressing through Parliament, with the House of Lords having completed its ‘Committee Stage’ on 15 May, and the Report Stage scheduled on 1 July 2025.
There will (we hope – as you will see below) be a little more to-and-fro after that, but it won’t be long before the Renters’ Rights ‘Bill’ will proceed to ‘Royal Assent’ – and then become The Renters’ Rights Act (or something similar) – which is to say: the law.
The trouble we have though is that the draft Bill, in its current form, is causing plenty of concern amongst landlords and letting agents; and tenants should be worried about it too, in fact – much as the story is that it is intended to help tenants in general.
Why do we say this? Let’s pause a moment before we go into that, to recap on what it looks like currently, what we still feel needs to change, and how it may affect the property market in Edgware (and beyond) if it proceeds as is without further amendment.
Today’s article breaks these things down – but also breaks open why this might not be a ‘lettings market’ issue alone…
How Far Through the Process has the Renters’ Rights Bill Progressed?
Let’s start by briefly summarising the process itself and where we are right now.
To have reached the Report stage, the bill has been through the House of Commons and is now at almost the last stage with The Lords, before it passes back to the Commons. That means full readings of the bill have been made in both Houses (three readings in the Commons, two in the Lords (but the third due shortly)); debates have been had and amendments tabled; and those proposed amendments have now been debated and either withdrawn, rejected or agreed by committees – first in the Commons and then in the Lords.
That committee stage in the Lords was completed on May 15.
To keep things short, it means that whatever shape the Bill is now in, that is what will be reported to the House of Lords on July 1. In fact, only agreed amendments will be discussed at that stage.
After that, the Bill will move to its Third Reading in the House of Lords, a final ‘tidying up’ phase before returning to the Commons for consideration of any Lords’ amendments.
The final text of the Bill must be agreed by both Houses, so if any further disagreements are had and amendments proposed and made, it will go back and forth – a process they call ‘ping-ponging’, believe it or not…
Eventually the final text will be approved by both Houses and then the Bill will pass to receive Royal Assent and become legislation.
We aren’t quite there, but we are getting increasingly close… and as mentioned, from our point of view there still seem to be a few sticky areas in need of consideration.
What Concerns Should We Have?
At Petermans Estate Agents, we know that change can be unsettling. That said, we have navigated plenty of legislative overhauls before, and experience tells us that the property market has always adapted.
People will always need somewhere to live, and the private rented sector (PRS) plays a crucial role in meeting a large proportion of that need.
Nevertheless, many landlords have real concerns about what is coming, and anecdotally it does feel like more landlords than normal are selling up – or are at least actively thinking of doing so.
A recent survey by Simply Business reported that 1 in 4 landlords were planning to sell a rental property in the next 12 months, with half citing new legislation as the reason behind it.
As yet, that sort of scenario has not played out. But imagine it did! Data from London councils from October 2024 recorded 1.1 million privately rented homes across the city. If a quarter of those properties were to be sold, it could reduce the number of rentable homes in London by a quite staggering 275,000 properties.
In the past, we might have expected such sales to appeal to other landlords, who would keep on the existing tenant in a frictionless way, or who would fill the vacant property with new tenants.
The worry is that other landlords might not be so willing to step in, as things stand, given current concerns about the future of lettings.
Key Concerns Raised by Edgware Landlords:
From our conversations with local landlords, there tend to be eight key issues in the Renters’ Rights Bill that are causing them most concern:
1. Abolition of Fixed-Term Tenancies
The Bill proposes replacing fixed-term tenancies with rolling, periodic agreements.
Why it matters:
Landlords may have to re-let properties more frequently, increasing costs and hassle.
Student lets – which usually run on fixed academic calendars – could become problematic.
Short-term renters (e.g. professionals on contracts, people between moves) might take advantage of the system by posing as long-term tenants, only to leave early.
The risk:
Landlords could become more cautious about letting to students or to tenants without a clear long-term plan, reducing options for legitimate renters.
2. Limitations on Advance Rent Payments
The Bill would restrict landlords from asking for more than one month’s rent upfront.
Why it matters:
International students or tenants with no UK credit history often offer several months’ rent in advance.
Tenants with poor credit but sufficient savings may be locked out unfairly.
The risk:
Landlords might feel they can’t safely accept some otherwise reliable tenants – reducing access to housing for groups already at a disadvantage.
3. Abolition of Section 21 ‘No-Fault’ Evictions
Section 21 – which allows landlords to regain possession without stating a reason – would be scrapped.
Why it matters:
Landlords would need to rely on Section 8 grounds, which require a valid reason and a court order.
Court backlogs are already severe.
One amendment (not yet confirmed) proposes raising the rent arrears threshold from two to three months before action can be taken – and arrears must be present both at the start and at the time of court proceedings.
The risk:
Possession claims could take many months, leaving landlords significantly out of pocket while still responsible for costs like mortgages and repairs.
4. Restrictions on Reletting After a Failed Sale
Under the new rules, if a landlord regains possession in order to sell – but doesn’t succeed – they can’t re-let the property for 12 months.
Why it matters:
Genuine landlords with failed sales could be left with empty homes they can’t legally rent out.
This could be financially devastating, especially if a buy-to-let mortgage is involved.
The risk:
Landlords may feel trapped or punished even when acting in good faith.
5. Landlords Responsible for Maintaining Property Condition
The Bill puts greater emphasis on Landlords to maintain properties in a good condition, placing clear duties on landlords to act – something that at Petermans we already urge our landlords to stay on top of.
- Why it matters:
Neglecting repairs could quickly spiral into legal and financial consequences. Landlords who fail to stay on top of property standards may find themselves facing compensation claims or enforcement measures. - The risk:
Landlords worry that ‘good condition’ is subjective, and tenants may take action against over issues that shouldn’t qualify – leading to unnecessary and unjustified costs and stress.
6. Awaab’s Law: Damp and Mould
We support Awaab’s Law, which would be rolled into the new Act to cover all tenancies from October. It will demand that damp and mould issues are resolved quickly and thoroughly.
- Why it matters:
It strengthens tenant protections and gives councils greater power to intervene. At Petermans we already monitor our properties, and address these problems with our landlords in good time in any case. - The risk:
Many tenants do not know the difference between mould, mildew and condensation caused by their own poor ventilation – so again, tenants may push for action to be taken when all they really need to do is open some windows and stop drying clothes indoors on their radiators.
7. Advertising and Rent Cap
The Bill will prevent landlords from letting a property for more than the rent they advertised.
- Why it matters:
Landlords must be sure of their figures before marketing a property, to avoid feeling they are losing money if above asking price offers get made (that they simply won’t be able to accept) - The risk:
This risk is straightforward. If a landlord tries to negotiate a higher rent after advertising, they could fall foul of the law, opening themselves up to fines or claims from tenants. We could see rental prices jump in order to protect Landlords’ financial interests, pushing average rents up faster than they otherwise might.
8. Pets
The Bill aims to support tenants having pets as part of a normal home life by preventing landlords from refusing a tenant due to having one, or from getting one after becoming tenants.
- Why it matters:
Many landlords worry about the risk of damage pets can cause (and the money it can cost to put right when they leave), and in some cases pets can cause a problem for other residents in the area – particularly in flats. - The risk:
There had been some mitigation proposed, that would allow landlords to request a tenant take out pet insurance to reduce the risk to them – but within the last few days it looks like this might be dropped from the Bill.
These are eight issues which our landlords are talking to us about, which seem to have most potential to drive them away from the sector.
However, it is not just the lettings market that could be affected …
Potential Impact on the Property Market – Sales and Lettings:
If a significant number of landlords choose to exit the market due to these changes, London could face a real shortage of rental properties. Such a scarcity would inevitably lead to increased rents and force tenants to seek housing further afield, impacting the local economy and community cohesion here in Edgware.
As for the sales market, an influx of perhaps tens of thousands of property listings for sale across London would almost certainly have a damaging effect – even if spread evenly through the year. At present, according to Rightmove data there are just under 60,000 properties for sale in the capital. A sudden increase in numbers – especially at the level suggested by the Simply Business survey – would mean far more properties being available than there would be active buyers out there.
That would mean many left unsold – and typically, we would expect that to lead to property prices falling, thereby destabilising the sales market.
It is not something we predict will happen, but it is why we add our voice to the many in our industry putting pressure on the government to rethink the bill as it currently looks, as we enter these crucial latter stages.
To Conclude:
The Renters’ Rights Bill aims to provide greater security for tenants – and realistically, we do agree that reforms are needed in some areas.
Nevertheless, noble as its ambitions are, it is essential to consider the potential unintended consequences for landlords and the broader property market – both the lettings market and the sales market, and both here in the capital as well as across the country.
We hope that the Lords will carefully evaluate these concerns during the Report Stage and may propose further changes and provisions to the amendments that have been agreed.
We also urge peers, ministers and members of parliament to think hard when it reaches the ‘ping pong’ phase – because that is the last opportunity to tidy this bill up to the extent we feel is necessary to ensure a balanced approach that protects tenants without discouraging landlords from the Private Rented Sector.
At Petermans, we remain committed to supporting our landlords and tenants through these changes, providing guidance and expertise to navigate the evolving landscape. As we say, whatever the outcome and whatever the period of turbulence that follows, great or small, the market will survive and the lettings industry built around it will continue to rumble on.
Challenging waters; so let us hope the sailing is as plain as possible.