The Renters’ Rights Bill:

What Landlords Need to Know (Including Deposits & Rent-in-Advance)

As many of you will by now be aware, sweeping reform is coming for the private rented sector in England via the Renters’ Rights Bill. These changes will affect how landlords can regain possession of properties, what notice they must give, how tenancies are structured, and how landlords can take payments from tenants both at the start and during the tenancy. At Norman Galloway, we want our landlord clients to be fully prepared. Below, I set out my latest understanding of the Bill: the abolition of Section 21 “no-fault” evictions; what landlords must rely on instead; and the new rules on security/holding deposits and taking rent in advance.

Key Changes Affecting Landlords (Diane’s Recap + New Additions)

Below are the main reforms landlords should be aware of, especially in relation to:

• Section 21 and eviction procedure,
• Tenancy types and notice periods,
• And deposits + rent in advance rules, which are newly clarified.

	What Was/Works Now	What the Renters Rights Bill proposes / will change
Section 21 (No fault eviction)	Landlords can issue a Section 21 notice without giving a specific reason (once certain legal and procedural prerequisites are met), to evict a tenant after fixed term or in a periodic tenancy. (Assured shorthold tenancies etc.)	Section 21 will be abolished. Landlords will no longer be able to evict tenants without cause under this route. They must rely on Section 8 grounds (see below).
Tenancy type & fixed term vs periodic	Fixed-term ASTs are common; sometimes becoming periodic tenancies after fixed term ends.	Fixed-term ASTs will be removed. All tenancies will become  periodic assured tenancies under the Bill once it is in force.
Eviction / possession process	Section 8 grounds are used when there is a legal reason (e.g. rent arrears, breach). Section 21 could be used without needing specific grounds (once notice period met). Notice periods vary.	With Section 21 gone, Section 8 will be the route. Some existing grounds will be expanded/modified. Notice periods for many non-fault evictions (sale, landlord or family moving in) will be longer (for example 4 months notice). There is also a protected period of 12 months during which non-fault eviction grounds can’t generally be used.
Deposits / Holding deposits	Under Tenant Fees Act 2019, holding deposits (to reserve a property) are capped (usually one week‘s rent), security deposits must be protected, etc. Many of the rules under TFA 2019 remain, but are being reinforced. There is more clarity needed and stronger compliance expectations. (See below.)	Many of the rules under TFA 2019 remain, but are being reinforced. There is more clarity needed and stronger compliance expectations. (See below.)
Rent Increases	Cannot increase rent during fixed term (AST). Increase > 1 x per  year. Can take to first tier tribunal.	All tenancies will be treated as periodic and only one rent   increase per year. Stronger protections for tenants.

Abolition of Section 21: What It Means

• Once the Bill becomes law, landlords will no longer be able to use Section 21 to evict tenants without cause.  Often called a no fault notice. 
• All tenancies (including existing fixed-term and existing periodic ones) will move to the new periodic tenancy model on a “commencement date” under the Bill. Existing fixed-term ASTs will convert.  
• There is a “protected period” of 12 months from the start of a tenancy during which landlords will not be able to use eviction grounds that are non-fault (for example because they want to sell or move into the property) under the new system.  
• Notice periods for those non-fault grounds will typically be longer: e.g. 4 months’ notice for eviction when selling or moving in, replacing what has been 2 months under Section 21.  

Section 8: The Route Forward for Eviction

Since Section 21 is being abolished, what landlords will be able to rely on instead:

• Section 8 grounds for possession: These are specific legal reasons (“grounds”) under the Housing Act which must be proved in court. Examples include: rent arrears, anti-social behaviour, breach of tenancy obligations, or landlord needing property back to sell or move in.  
• Some grounds are mandatory, others discretionary. If a ground is mandatory, the court must grant possession if the ground is proved; if discretionary, the court considers reasonableness. The Bill updates many of these.  
• For serious rent arrears, the threshold is being increased: tenants will generally need to owe three months’ arrears rather than two before possession can be sought under relevant grounds. Also notice periods are longer in some cases.  
• Possession for non-tenant fault grounds (like landlord selling, or landlord moving in) will have stricter requirements (evidence of intention, non-marketing for rent/licence for a set period, etc.). There are also restrictions about letting the property again shortly after eviction.  

Rent Increases: Current Rules vs Renters' Rights Bill

	Current Rules	Renters' Rights Bill (Future)
Frequency	Possible > 1/year (esp. periodic)	Max 1/year
Notice Period	1 month (periodic)	2 months
Automatic Clauses	Allowed if in tenancy agreement	Banned (must use statutory process)
Tenant Challenge	Can challenge at Tribunal (market rent test)	Still challengeable, stronger protections

Timing & Implementation

• The exact commencement date (when the new rules apply) is not yet fixed. Experts expect that the new system may come into force spring 2026 or thereabouts.  
• Until the commencement date, existing rules (including Section 21) are still valid, but landlords should be aware that any notice periods or serving of notices done before commencement may be subject to transitional schedules.  

Practical Steps for Landlords

To prepare for these changes, landlords should consider doing the following now:

1. Review your tenancy agreements
   Make sure they comply with current law, but also begin thinking ahead: terms that may rely on fixed-terms, or use of Section 21, will no longer be relevant after commencement.
2. Keep excellent records
   For any tenancy, especially any issues (rent arrears, breaches, inspections, communications). Under the new system, landlords will need to provide more robust evidence if relying on Section 8 grounds.
3. Budget for longer timelines & court-costs
   Because Section 21 evictions are within themselves quicker, switching to possession via Section 8 means possible delays, more procedural burden, perhaps more legal costs.
4. Prepare for the 12-month protected period
   If you wish to sell the property or move in, you’ll need to respect that you cannot use non-fault eviction grounds during the first 12 months of any new tenancy. Plan ahead.
5. Check what “selling” or “moving in” means in practice
   The Bill requires evidence of motive, intention, and has restrictions (for example, the property may not be marketed for rent/licence for a period after notice). Understand what is legally required.
6. Stay updated on court procedure changes
   Forms, notice prescriptions, evidence standards etc are likely to be updated once the Bill is passed.
7. Ensure compliance with other reforms.
   The Bill also brings changes to rent increases, deposits, pets, discrimination, landlord registers etc. Landlords should audit all their practices to ensure compliance.  

What This Means Long-Term

Tenants are likely to have greater security and stability, which many will welcome.

• Landlords will lose some flexibility, especially the ability to regain possession quickly via Section 21, but in return the grounds under Section 8 are being expanded or clarified.
• The private rented sector may see some landlords exit, especially small landlords who feel the new regulatory burden is too high. There may also be cost implications (legal, administrative) and possibly upward pressure on rents in certain markets, as risk and compliance costs rise.

Summary

The abolition of Section 21 is a major shift. If you are a landlord, the Renters’ Rights Bill as I understand it means:

• No more “no-fault” evictions under Section 21 once commencement begins.
• All tenancies will be periodic.
• You’ll need good, legally valid grounds (Section 8) to evict, with supporting evidence.
• Notice periods will generally be longer for many non-fault grounds, especially during the first 12 months.
• No more taking more than one month’s rent in advance and not before the tenancy has been executed
• You cannot mandate pet insurance and you cannot take a higher deposit. It is under discussion as to whether landlords will be able to charge a pet rent. You will not be able to refuse a pet without good reason. 
• Landlords will have to respond to reports of damp and mould within a specific guideline - AWAAB‘s Law. 
• Landlords will need to reasonably assess tenants for affordability and will not be able to discriminate against those on benefits or with children etc. 
• The courts will play a central role.

Wow! That all sounds like a lot, and it is. Norman Galloway have been working within many of the above guidelines for some time and feel confident in our approach.  Whilst none of us are absolutely sure what the final law will look like, the above gives us a head start. 

Norman Galloway can help you audit your portfolio, revise tenancy agreements, manage notice-serving under the new rules, and ensure you’re fully compliant when the Bill becomes law. Contact us for more details Always happy to have a chat. 

Diane Bialek - Diane’s Nottinghamshire Property Blog

Disclaimer: the above are my views and understanding only, please ensure that you keep yourself up to date will all legal changes as they become due.