The Government confirmed details of its much-anticipated Renters’ Rights Bill yesterday, confirming the end of Section 21 notices and bans on rental bidding wars.

While abolishing no-fault evictions, the Bill also increases the mandatory threshold for eviction from two to three months’ arrears and increases the notice period from two weeks to four.

The bill includes strengthened rights for landlords to reclaim properties when it’s necessary, for example to sell or move in.

Tenants will benefit from a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property. Landlords will need to provide four months’ notice when using these grounds, giving tenants more time to find a new home, and reducing the risk of homelessness.

The Renters’ Rights Bill also removes fixed-term assured tenancies and tenants will instead be able to end the tenancy by giving two months’ notice.

Here is how the agency and property sector has reacted.

Oli Sherlock, managing director of insurance at Goodlord, said: “The stuttering, broken-record loop the industry has been stuck in over this legislation may finally be coming to an end from today. It won’t necessarily all be music to the sector’s ears, but we will at least have some clarity. 

“The biggest change between the previous Renters (Reform) Bill and the new Renters Rights Bill will be around Section 21. The Conservative Government offered the industry something of a fudge around the scrapping of no fault evictions, with vague promises to introduce it once the courts were ‘ready’. Whilst we agreed with the sentiment of this, there was no timeline or action plan announced alongside. In contrast, it looks like the Labour Government will scrap S21 outright and the courts will need to find a way to cope.”

Lauren Hughes, head of customer success at Vouch, said: “At first glance, this Bill will look very similar to the previous legislation, but once you scratch the surface critical differences will emerge. Labour has already indicated that they will go further around rent increases – including ending bidding wars and challenging unfair rent increases.

“However, in a way that has become familiar over the years, we have thus far been given little detail about how they will achieve this. Likewise, the Government has decided to take the standard of private housing further by integrating the Decent Homes Standards and Awaab’s Law. And, most crucially, it appears that S21 will be scrapped as soon as the Bill passes into law. It’s a seismic piece of legislation. The industry will cope with the changes – it always does – but that doesn’t mean it will be a smooth or painless transition.”

Timothy Douglas, head of policy and campaigns at Propertymark, said: “Having met with the Housing Minister, it is clear his intention is for these reforms to overhaul private renting in England. They are a long-held manifesto commitment from Labour, with the new government at Westminster using their mandate for reform.

“Whilst Propertymark acknowledges the drive towards improved standards, the UK Government must fully understand and recognise the impact that these changes will have with agents up and down the country left wondering how this legislation will help meet the much-needed demand for homes for people to rent.

“With such significant changes to the current tenancy regime there must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose. Furthermore, without an enhanced, effective and well-resourced enforcement regime from local authorities it is unlikely that any benefits from the reforms will be realised.

“Propertymark will continue to make the case for evidenced based policies that support a flexible and fair private rented sector for all.”

Paul Shamplina, founder of Landlord Action, said: “With the abolition of Section 21 now certain and timeframes clearer, landlords and tenants should prepare for the impact. In the next six months, many landlords will rush to serve Section 21 notices before the ban takes effect.

“While I support changes such as improvements to property conditions, my main concern is the broken court system. Good landlords will benefit from clearer regulations, but promises of robust eviction grounds mean little if the courts remain overwhelmed. We already have cases where landlords are owed two years of rent but can’t reclaim their properties, with one of our cases dragging on for 19 months without a hearing date yet.

“Landlords aren’t banks, and many rely on rent to cover mortgages or fund retirement. Nearly a fifth of properties for sale are from landlords leaving the market, forcing tenants to find homes in an already tight market.

“Without landlords, the private rental sector collapses. As more landlords exit, rents will rise, and housing will become scarcer, ultimately harming tenants. Protecting tenants is crucial, but without fixing the court system, the entire rental market faces chaos.”