What Landlords Need to Know as the Renters’ Reform Bill Nears Royal Assent
After years of consultations, political debate, and uncertainty, the Renters’ Reform Bill is finally moving towards becoming law. This week, the House of Lords rejected several last-minute amendments and sent the Bill back to the House of Commons for final approval. Once MPs give it the green light, Royal Assent will follow — and the biggest shake-up of the private rented sector in a generation will begin.
For landlords, this isn’t just another policy announcement. It represents a fundamental change in how you manage your properties, your tenancies, and your legal obligations. If you’re not already preparing, now is the time.
Key Lords Amendments Rejected — and Why That Matters
Several proposed changes that could have benefited landlords were debated in the Lords but ultimately voted down:
- Student lets – An amendment to extend the student possession ground to one- and two-bedroom properties was rejected. This means the student ground will remain restricted, limiting flexibility for landlords with smaller student units.
- Reletting period – A proposal to reduce the period in which a property can’t be re-let after a sale from 12 months to six was also turned down. This keeps the restriction in place for a full year.
- Pet deposit scheme – A separate, refundable pet deposit was strongly debated but ultimately not included. While the Government hinted it may revisit the issue later through changes to the Tenant Fees Act 2019, there’s no immediate relief for landlords concerned about pet-related damage.
- Carer possession ground – An amendment that would have allowed landlords to reclaim a property to house a carer was also defeated.
These rejections bring to an end the process of parliamentary “ping-pong.” The Government has secured the final shape of the Bill — and landlords now have clarity on what’s coming.
“The Rubber Is Truly About to Hit the Road”
William Reeve, CEO at Goodlord, summed up the situation:
“Despite rumours that they would dig their heels in, the House of Lords has clearly run out of steam. Once again, demand amongst the Lords for both a pet deposit scheme and changes to Ground 4A sparked much debate, but ultimately the Government won out.”
For landlords, the message is simple: this is happening. Years of speculation, delays, and false starts are over.
Yet according to Goodlord’s research, most letting agents and landlords still aren’t fully ready:
- Just 4% of sole operators feel “very prepared.”
- Only around 25% of small agencies (2–10 staff) are confident.
- Less than half of larger agencies say they’re fully ready.
With Royal Assent likely within weeks and full implementation expected by spring 2026, landlords need to act now — not wait for more political wrangling.
The Pet Deposit Defeat: A Risk Shift for Landlords
The rejection of a dedicated pet deposit is particularly significant. As a landlord, this means you can’t require a separate deposit to cover pet-related damage beyond the existing five-week cap on standard deposits.
David Smith, property litigation partner at Spector Constant & Williams, called the decision “disappointing but unsurprising”:
“The original Lords amendment recognised a genuine gap in protection for landlords that has now been left unaddressed.”
The Government’s drive to make renting more pet-friendly means landlords will have fewer financial safeguards. Instead, you’ll need to rely on:
- Clear tenancy agreements that set out pet responsibilities
- Robust referencing to vet tenants and their animals carefully
- Regular inspections to identify and address issues early
- Comprehensive inventories and check-in/check-out documentation
While this shift is intended to support tenants, it places more risk on landlords. A separate, modest, refundable deposit would have offered a balanced solution — but for now, that’s off the table.
Political Posturing Is Over — Preparation Begins
Greg Tsuman, Managing Director of Lettings at Martyn Gerrard Estate Agents, said the Lords’ debates were more about political messaging than practical outcomes:
“Whatever was debated in the Lords was little more than political posturing and will not deliver meaningful change to the Bill given the overwhelming Commons majority. By delaying the inevitable, the Lords know they are helping no one.”
With the legislative process nearly complete, Tsuman believes the sector must now focus on practical preparation:
“While the Bill undoubtedly falls short of striking a fair balance and will likely make life harder for tenants through unintended – or perhaps otherwise – consequences, we must now pivot to preparation.”
For landlords, that means understanding the new rules, reviewing your portfolio strategy, and ensuring your paperwork and processes are up to date.
The Risk of Landlord Exodus — and What It Means
One of the major concerns now is how landlords will respond once the Bill is law. Many already feel stretched by rising mortgage costs, tax changes, and increased regulatory demands. Tsuman warns of the risk of landlords selling up, which would reduce supply and push rents even higher:
“The key challenge will be preventing landlords from selling en masse, a scenario which could trigger unprecedented upward pressure on already record-high rents.”
Managing rental property is no longer a “hands-off” investment. With more compliance requirements coming in, many landlords will either:
- Professionalise their operation — tightening procedures and improving tenant management, or
- Partner with a qualified letting agent to ensure full compliance, or
- Exit the sector entirely, potentially at scale.
This is where preparation matters most. Landlords who adapt early can protect their investments and avoid being forced out by tightening rules.
The Bigger Picture: Legislation Won’t Fix the Supply Crisis
Tsuman also points to a deeper issue: the Renters’ Reform Bill is not solving the root problem in the housing market.
“The government appears to be attempting to legislate its way out of a chronic housing demand crisis, rather than addressing the root cause.”
The only real solution is increasing housing supply — particularly in the Build-to-Rent sector. While measures under the Planning and Infrastructure Bill aim to make development easier, many remain sceptical that they’ll deliver enough new homes to ease pressure on the rental market.
Meanwhile, calls to unfreeze Local Housing Allowance rates could ease pressure on low-income renters, but may also increase strain on public finances.
For landlords, this means the market environment may remain challenging, even after the reforms settle. Understanding these external pressures — and planning accordingly — will be critical.
What Landlords Should Do Now
With Royal Assent approaching and secondary legislation to follow, landlords should not wait for formal guidance before preparing. Here are key steps to take:
- Review tenancy agreements
Make sure your agreements align with the upcoming changes — particularly around security of tenure, notice periods, and pets. - Understand the end of Section 21
The Bill will remove Section 21 “no-fault” evictions. Familiarise yourself with the new possession grounds and how to use them properly. - Strengthen tenant referencing and property management
This is especially important if you decide to allow pets or longer tenancies. - Get professional support
If you self-manage, consider working with a letting agent or legal professional to stay compliant. - Think strategically
Decide whether to expand, hold, or exit parts of your portfolio based on the new regulatory environment. - Stay informed
Secondary legislation will fill in many of the details — keep up to date with industry news and professional guidance.
A New Era for Landlords
The Renters’ Reform Bill marks a significant shift in the balance between landlord and tenant rights. While some of these changes will undoubtedly create new challenges, informed and well-prepared landlords can navigate the transition successfully.
This is not the time to wait and see. It’s time to act — to protect your investment, update your processes, and position yourself for the realities of the post-reform rental market.