Renters’ Reform Update: What Landlords Need to Know in June 2025
The Renters’ Reform Bill has been one of the most talked-about pieces of housing legislation in recent years — but after months of headlines and speculation, where do we actually stand? Here’s a clear, no-fluff update for landlords and property investors who want to stay ahead of the curve.
📜 Quick Recap: What Is the Renters’ Reform Bill?
Originally proposed in 2022 and reintroduced in 2023, the Bill aims to overhaul the private rental sector. Core proposals include:
- Abolishing Section 21 ‘no-fault’ evictions
- Ending fixed-term tenancies in favour of periodic agreements
- Creating a new Property Portal for landlord registration
- Improved dispute resolution via an Ombudsman
- Easier routes for tenants to request pets (landlords must have a valid reason to say no)
Some of these changes have been watered down or delayed — others are still being debated. So where are we now?
🔎 June 2025: What’s the Current Status?
As of June 2025:
- The Renters’ Reform Bill is in its final stages in Parliament and expected to pass into law by Autumn 2025.
- Section 21 is expected to be scrapped shortly after enactment, likely with a transitional window.
- Periodic tenancies will become the default — but with clear grounds for possession (e.g., selling, moving back in, serious breach).
- Student lettings (PBSA and HMO student properties) will be given a tailored framework, with likely exemptions to protect the annual rental cycle.
🧠 What Landlords Should Do Now
- Review your tenancy agreements:
- Ensure you’re using the latest version of an AST.
- Remove clauses that might conflict with a rolling tenancy setup.
- Add clear, fair rent review terms and notice periods.
- Secure longer-term tenants where appropriate:
- You can still issue fixed-term agreements now — use this window to protect income stability.
- Plan for compliance:
- Check you’re registered with a deposit scheme, providing How to Rent guides, and preparing for property portal requirements.
- Strengthen tenant referencing:
- Periodic tenancies make it harder to regain possession — get it right from the start.
- Consider your strategy:
- If you’ve got a tenant you’re not happy with — or plan to sell — now might be the time to act before Section 21 is abolished.
- Take professional advice:
- Especially if you own HMOs, student property, or are using older tenancy contracts.
⏳ Fixed Terms: What Happens Now vs Later?
- Existing fixed-term contracts will continue to be honoured — they won’t be torn up.
- Once the fixed term ends, tenancies will automatically convert to rolling periodic agreements.
- After the law comes into effect, landlords will not be allowed to issue new fixed-term tenancies — only periodic ones.
📅 When tenancy is signed |
🧷 Fixed term valid? |
🔁 Converts to periodic? |
|---|---|---|
Before Bill becomes law
|
✅ Yes
|
On expiry of fixed term
|
After Bill becomes law
|
❌ No
|
Begins as periodic tenancy
|
🧠 Landlord strategy tip: Locking in tenants now under 12–24 month terms could offer greater rent certainty and flexibility before the new rules remove that option.
⚖️ What About Enforcement?
While Section 21 is going, landlords can still regain possession under “reasonable grounds.” These include:
- Selling the property
- Moving in or housing a close relative
- Serious rent arrears or anti-social behaviour
- Repeated late rent payments
⚠️ But note: falsely claiming you intend to sell or move in — and then relisting — may be challenged and carry penalties.
🏨 Do the Reforms Affect Short-Term Lets (Airbnb, Serviced Accommodation)?
In short: no — the Renters’ Reform Bill does not apply to serviced accommodation or short-term lets, provided they fall outside the definition of Assured Shorthold Tenancies (ASTs).
Most short lets operate under:
- Licence agreements
- Excluded occupier arrangements, or
- Stays of less than 6 months with no intent to use as a primary residence
As a result, landlords operating genuine short-term lets are not impacted by the Section 21 ban, the new rules on fixed terms, or the pet requirements.
⚠️ But other risks do apply:
- Planning restrictions: London’s 90-day cap still applies unless you have permission. Councils elsewhere are introducing Article 4 restrictions.
- Licensing/registration: A national register for short lets is being proposed and may arrive by 2026.
- Mortgage and insurance issues: Many BTL mortgage products prohibit short lets. Insurance policies must explicitly cover guest stays.
📌 So while short-term lets dodge the Renters’ Reform bullet, they’re under increasing pressure from other fronts.
🎓 Are Student Lets and PBSA Exempt?
Student housing is a major segment of the rental market — and the Renters’ Reform Bill has different implications depending on the type:
✅ Purpose-Built Student Accommodation (PBSA)
- PBSA providers are expected to be exempt from the periodic tenancy requirement.
- These properties typically operate on fixed-term contracts aligned to academic years, which the government recognises as necessary.
- PBSA operators will likely be allowed to retain fixed-term agreements, even after the new rules come into force.
⚠️ Private Landlords of Student HMOs
- If you rent to students in HMOs (shared houses), the situation is less clear.
- Current drafting may not automatically exempt private landlords — meaning your tenancy could become a periodic one by default.
- This poses a risk: tenants may leave mid-academic year without needing to find replacements, potentially causing voids.
🔍 The government has signalled it will create a “bespoke model” for students, but details are still pending.
🧠 Advice: If you’re a student landlord, monitor the legislation closely. Use agents or schemes affiliated with universities, and avoid signing agreements that could unintentionally fall under the new periodic system.
📉 What Could Go Wrong?
- Landlords become more selective — making it harder for some tenants to find homes
- Rent increases to mitigate perceived risk
- Some landlords leave the market entirely — reducing supply
- Student HMOs become harder to manage if the academic cycle isn’t protected
We’ve already seen examples of landlords tightening up their referencing and raising rents in anticipation.
💬 Final Thought
The goal of a fairer rental sector is admirable — but the reforms are complex and carry real implications for small landlords.
✅ Review your contracts
✅ Stay alert to changes (they’re still coming)
✅ Consider how this fits with other pressures like EPC targets and licensing schemes
✅ Take advantage of the current ability to issue fixed-term tenancies while you still can
✅ If you plan to sell or change tenants, act before the law changes — the window is closing.
📩 We’ll keep you updated. Subscribe to get notified as the reforms pass into law — and how to respond smartly.
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