Final stages of Renters’ Rights Bill: What landlords need to know

With Royal Assent imminent for the Renters' Rights Bill, and major changes coming soon for the private rented sector, the CLA's Harry Flanagan provides a key update for rural landlords
Gate by property

At the time of writing, the Renters’ Rights Bill (RRB) is back in the House of Commons for the final time, and with Royal Assent imminent, it's a key time for residential landlords to keep up to date on this legislative overhaul and prepare for what it means.

Amendments and proposals

The consideration of amendments stage – known as ‘ping pong’ – has just finished, and could more accurately be described as the ‘rejection of amendments’ stage as nearly all amendments were either rejected without votes or defeated following voting.

However, some amendments have been agreed that will effectively expand the ambit of the ‘agricultural worker’ ground to those who are not ‘employees’. This is explained in more detail below.

Controversially, the amendment to allow landlords to take a pet deposit was defeated. Although the potential compromise is a promise by the UK Government to keep the issue 'under review’ and that the Tenant Fees Act could be modified if there is ‘clear evidence’ to warrant it.

Sadly, the amendment proposing a new possession ground that would allow landlords to recover a property to house a carer was also rejected.

Proposals to extend the student possession ground to one and two-bedroom properties were also rejected, as was the amendment that sought to reduce the ban on reletting (where landlords have repossessed using the sale ground) from twelve to six months.

The shape of things to come

Essentially then, the RRB remains in the same shape as when we delivered a webinar for CLA members back in May - available to watch here.

Refreshed guidance will of course be published once Royal Assent takes place and the government finally confirms the date for commencement of the new law, but in the meantime, an overview of the main changes and the key provisions can be read on page 17 of May 2025’s Land & Business magazine. Available to read for CLA members here.

We are also planning another webinar for members at the end of November (available to book onto here) – when the Renters’ Rights Act will be expected to be on the statute books. We will then be able to advise property owners on implementation timescales.

As previously expressed, even when the commencement date for the RRB is announced, it will only be some changes that kick in right away as much of the bill will be brought in at various later stages. The government has been extremely tight-lipped about implementation but, as already reported, it has always promised ‘sufficient time’ for the sector to prepare and adjust.

The truth is that, given the enormous amount of work that needs to be done by governing bodies, it is just as much the case that the government needs time to prepare as those operating in the sector. This work includes secondary legislation, new standard forms and notices, a suite of guidance, a publicity campaign, consultation on the decent home standard, the building of a national database and the setting up of a Private Rented Sector (PRS) Ombudsman.

We do know that first up will be the transition from fixed term Assured Shorthold Tenancies (ASTs) to fully assured periodic tenancies, as well as the replacement of Section 21 with the new and expanded grounds for possession under Section 8.

Key CLA wins

Fighting for amendments to this bill since the change of government has proved extremely difficult. So, the CLA is pleased to see work to ensure that:

  1. There was a way for landlords to regain possession of their properties where there was a need to house an agricultural employee (New Ground 5A), which is now set to be broadened in its application (read below).
  2. The housing of such employees could still be done in a way that permanent security of tenure could be avoided – i.e. ensuring there will be a new ‘opt out mechanism’ (echoing the current Form 9 plus AST procedure). This means that such employer-landlords will still be able to get their properties back from former employees once the job is over (using old Ground 16 – now New Ground 5C).
  3. This Ground 5C that enables such landlords to get properties back from employees has been upgraded from discretionary to mandatory – so possession must be granted where the ground is fulfilled i.e. the job for which the employee is housed is over.

It has been very disappointing, however, that the government resolutely refused to see this ground for possession (5A) broadened to other types of (non- agricultural) employees that are often needed to be housed, especially in rural businesses – such as those in equine industries.

Repossession ground for all qualifying agricultural workers - not just employees

There has however been an important widening of Ground 5A, such that it will now be enough for the person intended to be housed to be a ‘qualifying agricultural worker’. This new definition effectively broadens the type of worker a landlord can use to trigger this ground – so it is wider than just an employee.

The Ground 5A will be made out where the person will be “employed in agriculture as a seasonal or permanent employee under a contract of employment with the landlord”, and now in addition to that they could also be:

  1. Employed in agriculture under a contract of employment, where the employer under that contract is not the landlord or,
  2. Working in agriculture under a contract that is not a contract of employment but they are nonetheless working ‘wholly or mainly’ for the landlord, and the landlord who is seeking possession of the property intends that employment or work to continue for at least six months after the relevant date.

This is an important concession to the increasingly common farming arrangements where houses are needed to accommodate full time agricultural workers, say as part of contract farming agreements, but there is not a direct employer-employee relationship in the traditional sense.

Next steps

The CLA will, of course, advise when the RRB gets Royal Assent and as soon as the government reveals the implementation timeline. In the meantime, the main changes will be as set out above and one hopes that comprehensive government guidance will be published in good time so that landlords will finally know what paperwork will need to be served on whom and by when.

Debate rages on as to when this is all likely to come into force, but everything is pointing towards the first half of 2026. Our repeated plea to the UK Government has been that the sector will need at least six months’ notice before the changes come in – let’s hope they were listening to our expertise.

Key contact:

Harry Flanagan
Harry Flanagan Senior Legal Adviser, London