The day is drawing closer. The Renters’ Rights Bill seems to be rapidly progressing through Parliament, with the House of Lords completing its Committee Stage on 15 May, and the Report Stage now underway in The Lords since 1 July, 2025.
There will (we hope – as you’ll see below) be a little more to-and-fro after that, but it won’t be long before the Renters’ Rights ‘Bill’ becomes the Renters’ Rights Act – which is to say: the law.
The trouble we have is that the draft Bill, in its current form, is causing plenty of concern – not just amongst landlords and letting agents, but also amongst some tenants.
Despite its best intentions, the Renters’ Rights Bill could have unintended consequences for renters as well as landlords.
Let’s break down what’s in the Bill, what we feel still needs to change, and why HMO landlords in Ipswich might want to keep an especially close eye on its progress.
How Far Through the Process is the Bill?
To have reached the Report Stage, the Bill has already been through extensive readings, debates, and amendments in both the House of Commons and the House of Lords. The next step will be its Third Reading in the Lords before it returns to the Commons for consideration of any final changes – a process known as ‘ping-ponging’, believe it or not!
Once both Houses agree on the final wording, it will pass to receive Royal Assent and become law.
We aren’t quite there yet, but we are getting increasingly close – even if it drags through the summer into the Autumn, we’re close.
And from our point of view, there are still a few sticky areas that need further thought and consideration.
What Concerns Should Landlords – Especially HMO Landlords – Have Regarding The Renters’ Rights Bill?
At LEA Property Solutions, we’ve seen our fair share of reforms in the lettings world over the years. The market always adapts, but it’s fair to say the Renters’ Rights Bill, as currently drafted, is causing concern – particularly for landlords of shared houses and HMOs.
Here are the four areas of the Renters’ Rights Bill raising the biggest questions:
- Abolition of Fixed-Term Tenancies
The Bill proposes replacing fixed-term tenancies with rolling, periodic agreements.
Why it matters to HMO landlords:
- Many shared houses in Ipswich are let on 6- or 12-month agreements to students, professionals or key workers.
- Without a fixed end date, tenant turnover could become harder to manage and void periods more frequent.
- Coordinating multiple tenancies in a single property becomes far more complex.
The risk: Landlords might shy away from letting to students or shorter-term tenants if the exit routes aren’t as predictable.
- Limitations on Advance Rent Payments
The Bill would prevent landlords from requesting more than one month’s rent in advance.
Why it matters to HMO landlords:
- HMO tenants often include international students or professionals without UK credit history.
- Many have relied on paying several months up front to secure a room.
The risk: Landlords might feel they can’t safely accept some reliable tenants, and those tenants could struggle to find accommodation.
- Abolition of Section 21 ‘No-Fault’ Evictions
Section 21, which allows landlords to regain possession without stating a reason, would be removed.
Why it matters:
- In HMOs, even one disruptive tenant can affect the wellbeing of others.
- Without Section 21, landlords will need to rely on Section 8 – a process that requires a specific legal reason and a court order.
- The court system is already stretched.
The risk: Possession claims could take months, leaving landlords out of pocket and other tenants in a difficult living environment.
- Restrictions on Reletting After a Failed Sale
If a landlord gains possession to sell, but the sale doesn’t go ahead, they won’t be able to re-let the property for 12 months.
Why it matters:
- This could be devastating for landlords with HMOs who genuinely need to sell, but later change plans or have their best-laid plans to sell thwarted through no fault of their own.
The risk: Empty properties with no rental income, especially a problem where mortgages, council tax and utility bills still need to be paid.
- When it comes to HMO, individual Tenants Will Be Able To Leave At Will
If one tenant wants to leave, they may all be allowed to do so.
Why it matters:
- If a new tenant is brought in to plug the gap, it means a new 12 month tenancy is created.
The risk: If a landlord were to wish to sell the property at any time, they will be unable to do so within 12 months of a new tenancy being created. Landlords knowingly and purposely playing a long game might not be concerned. Those who think they may wish to sell in the next couple of years might choose to abandon the HMO market to avoid this scenario playing out.
NOTE:- this risk can be mitigated, but agents and landlords need to plan ahead.
At LEA Property Solutions, all our tenancies are ‘by the room’ rather than ‘whole of house’ which protects our landlords and reduces the risk associated with this issue.
The HMO Angle: A Missing Piece in the Legislation
The Bill in its current form treats all tenancies the same, whether you’re letting to a single family or five unrelated individuals in a shared house.
That lack of nuance is a major worry. HMOs operate differently, carry different responsibilities, and in many ways cater for different requirements, requiring require different management approaches. A one-size-fits-all approach might work on paper, but in practice it could make managing shared homes significantly more difficult.
I am personally a member of an Action Group set up specifically to speak up for HMO landlords.
We believe that HMOs need to be specifically catered for in the bill; for example, a tenant’s rights to pets, to be brought in with this legislation… well, surely not in shared houses!? They could become like a zoo!
It is areas like this, full of issues which do not seem to have been fully thought through, or drafted without regard for a sector that makes up around 10% of most urban marketplaces, that greatly worries our group.
This is why we demand greater clarity (and to learn more about our Action Group, follow this link here.)
What Could Happen in the Ipswich HMO Market?
If HMO landlords start to exit the market in response to the added burdens and financial pressures that these changes bring, we could see a real shortage of affordable rooms for local workers, students, and people needing flexible accommodation.
And let’s not forget, if multiple landlords sell up at the same time, property values in general could dip and properties may well sit unsold. That could put pressure on the wider Ipswich housing market – especially as so many perfectly suitable rental properties would be forced to sit empty, as described above.
At LEA Property Solutions, we’re keeping a close watch and continuing to support our landlords as things evolve. While reform is needed, it’s vital that legislation considers the full diversity of the rental market – especially HMOs, which provide a valuable housing option for many.
To Conclude my thoughts on the Renters Rights Bill:
The Renters’ Rights Bill aims to protect tenants and rebalance the rental sector – but we must avoid creating a system that pushes good landlords out or makes shared housing harder to manage.
We hope that peers and MPs will take these concerns seriously during the final stages of the Bill’s journey.
As always, we’ll keep our landlords informed. And no matter what lies ahead, we’ll be here to help you navigate the changes.
If you’re an HMO landlord in Ipswich and want to talk through what this might mean for you, get in touch with Lucy and the team at LEA Property Solutions. Let’s weather this together.