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It will offer protection to tenants who face eviction with no warning when their landlord's property is repossessed.
Shelter, Crisis, Citizens Advice and the Chartered Institute of Housing have been jointly lobbying for the change to the law for over a year.
The Act will offer valuable protection to private tenants who face eviction with little or no warning, and through no fault of their own, because their landlord has defaulted on mortgage payments and the lender has taken possession of the property.
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The change in the law will give the courts the power to delay possession for up to two months to allow tenants time to find a new home.
Shelter Chief Executive Campbell Robb said: "This Act ends a clear injustice whereby private tenants who have paid their rent on time can be evicted without notice if their landlord is repossessed.
"We are extremely grateful to all political parties for offering this vital legislation cross party support, and especially to Brian Iddon MP and Lord Best for their commitment to protecting vulnerable private tenants."
(CD/GK)
