Renters’ Rights Bill 2025 changes
What is the Renters’ Rights Bill?
The Renters’ Rights Bill 2025 is a landmark reform of England’s private rental sector, set to significantly impact both rent price and insurance for landlords and tenants. The bill aims to improve the current system for both the 11 million private renters and 2.3 million landlords in England.
The key changes of the Renters’ Right Bill are:
Abolition of Section 21 ‘No-Fault’ Evictions
Landlords will no longer be able to evict tenants without a valid legal reason, and evictions must now follow Section 8 grounds (e.g. rent arrears, anti-social behavior, selling the property)
All tenancies become periodic, rather than fixed term
Fixed term tenancies will be replaced by rolling monthly contracts. Tenants can give 2 months’ notice, however landlords must give 4 months’ notice and they cannot evict tenants within the first 12 months of the tenancy.
Rent increase controls
Rent can only be increased once per year and increases must reflect market rates which tenants can challenge via First-tier Tribunal. Bidding wars will be banned.
New legal framework for possession
All possession cases will require a court hearing and landlords must provide evidence for eviction grounds.
Decent Homes Standard and Pet Policies
Minimum housing standards will apply to all rental properties. Tenants can request pets and landlords must consider them reasonably.
What does this mean for you?
The hope is that these changes will lead to greater stability in rent prices and reduce sudden or exploitative hikes, however there will be challenges for landlords which will have a knock on effect to how their insurance policies react.
There is expected to be court delays, as the court system is already overburdened, and eviction claims under section 8 can take 6-12 months leading to lost income and prolonged disputes. With section 21 abolished, landlords must rely on section 8 which requires proof and court hearings, which adds time, cost, and uncertainty to an already stressful eviction process.
Rent & Legal insurance can cover costs related to eviction proceedings, property damage, or rent recovery. It is even more important to ensure landlords have a comprehensive insurance policy that will assist them when they need it the most, especially where legal advice will be necessary.
What to look for in a Rent & Legal policy:
Limit of coverage
How much of the rent is covered and how long for?
As court delays are expected landlords need to ensure they protect their rental income during the entire eviction process.
Claim Notification Period
How long do you have to notify your insurer of a claim?
It may take some time before a landlord becomes aware of arrears, or they may wish to give the tenant some time to catch up, so it’s important to be aware of the point at which a claim could be rejected.
Rent After Repossession
Is there cover after a tenant is evicted?
Loss of rent doesn’t just end which a tenant is evicted, there is still a period where one tenant leaves and a new tenant moves in and there is no rental income.
Legal Advice Helpline
Does the policy provide legal advice?
The legal process of evicting a tenant can be long and complicated, and having specialist legal advice can be invaluable to assist with tenant issues, tax, and property law.
Conditions that Prevent a Claim
Is there anything within the policy wording that could prevent a successful claim?
Landlords must ensure they understand how their policy works and avoid doing anything or missing a key step that could result in a claim being rejected.
When will the Renters’ Rights Bill come into legislation?
The bill received Royal Assent this week, with full implementation likely in 2026 and some measures phased in gradually.
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