Legal warning highlights bigger risk than Renters Rights Act for agents
A legal expert has warned that lettings agents and landlords may be focusing too much on the Renters Rights Act, overlooking the greater compliance threat posed by the Digital Markets, Competition and Consumers Act 2024 (DMCCA), which carries more severe enforcement powers.
Edward Romain, founder and CEO of Blind Justice UK, has highlighted that while much legal advice in the rental sector has concentrated on tenancy reforms such as the abolition of section 21 and changes to periodic tenancies, the DMCCA represents a more significant risk to agents and landlords due to its direct enforcement model and potential for substantial penalties.
The DMCCA’s consumer protection provisions, effective since April 2025, allow the Competition and Markets Authority (CMA) to impose fines up to 10% of a business’s global turnover without needing to secure a court ruling first. This contrasts with the Renters Rights Act, which is enforced mainly through individual tenant court cases, making it slower and less impactful on large-scale operators.
DMCCA enforcement poses new challenges for lettings agents
Romain explains that the Renters Rights Act’s enforcement is largely reactive and tenant-initiated, meaning breaches typically affect individual tenants and are resolved through the courts. For landlords or agents managing thousands of properties, this results in relatively modest practical risk from any single breach.
In contrast, the DMCCA empowers the CMA to act proactively and impose significant penalties if it identifies breaches of consumer protection law, such as non-compliant pricing or misleading information on rental listings. These breaches can affect every listing on a platform and are visible externally, enabling regulators to intervene without tenant complaints.
This direct enforcement approach means lettings agents and landlords must be vigilant not only about tenancy law but also about consumer protection compliance, including advertising practices, pricing transparency and contract terms.
Context of legal advice and sector focus
The Renters Rights Act has dominated recent legal guidance for the private rented sector, with emphasis on tenancy structure, notice periods and the end of fixed term tenancies. This focus has been understandable given the Act’s wide-ranging reforms and impact on eviction processes.
However, Romain’s warning suggests that legal advisers concentrating solely on these tenancy reforms may be underestimating the broader regulatory environment. The DMCCA introduces a new layer of risk that is less visible but potentially far more damaging financially due to the scale of penalties and the CMA’s ability to act independently of court proceedings.
For lettings agents, this means that compliance strategies need to extend beyond tenancy law to include consumer protection regulations, such as those governing fair trading, advertising standards and pricing transparency under the DMCCA.
Practical implications for landlords and agents
In practice, lettings agents and landlords should review their compliance frameworks to ensure adherence not only to tenancy legislation but also to consumer protection requirements under the DMCCA. This includes scrutinising how rental prices are presented, the accuracy of property descriptions, and the clarity of contract terms.
Agents operating online platforms or managing large portfolios are especially exposed, as the CMA can investigate and penalise systemic issues affecting multiple listings or tenants without needing individual complaints. This contrasts with the slower, case-by-case enforcement typical of tenancy law breaches.
Legal advisers should broaden their guidance to clients by incorporating DMCCA compliance checks and risk assessments. Landlords and agents may also need to invest in training and systems to monitor advertising and pricing practices to avoid inadvertent breaches that could trigger costly penalties.
Uncertainties and ongoing developments
While the DMCCA’s enforcement powers are clear, how the CMA will prioritise investigations in the rental sector remains to be seen. The Act’s application to lettings agents and landlords is relatively new, and sector-specific guidance is still evolving.
There is also uncertainty about how the DMCCA will interact with other rental reforms, including the Renters Rights Act, and whether future amendments might clarify or alter compliance obligations. Landlords and agents should keep abreast of regulatory updates and official guidance to ensure ongoing compliance.
Additionally, the extent to which legal advisers and compliance professionals incorporate DMCCA risks into their standard advice will influence how well the sector adapts to these changes.
Considerations for landlords and letting agents now
Landlords and agents should conduct a thorough review of their tenancy agreements, advertising practices and pricing disclosures to identify potential consumer protection risks under the DMCCA. This includes checking that all rental listings are accurate, transparent and comply with advertising standards.
They should also engage with legal advisers who understand both tenancy law and consumer protection regulations to receive comprehensive compliance advice. Training staff on the implications of the DMCCA and updating internal procedures to monitor compliance can reduce the risk of enforcement action.
Monitoring the CMA’s guidance and enforcement activity will be important to anticipate emerging risks. Agents should also consider how digital platforms and letting software handle pricing and advertising to ensure these tools support compliance.
Keeping compliance risks in perspective for lettings professionals
Membership of The Landlord Association (TLA) offers access to practical compliance resources that address both tenancy law and consumer protection obligations relevant to lettings agents and landlords. TLA’s developing property management platform, ORBIT, currently in BETA testing, is designed to help members organise property records, manage rental documents and monitor compliance activities efficiently.
ORBIT’s features include tools to record key actions such as inspections, repairs and communications, which can support evidence of compliance under various regulations. Members can also access up-to-date guidance on legislative changes, including the DMCCA and Renters Rights Act, helping them stay informed about evolving risks.
Exploring TLA membership and ORBIT BETA access can provide landlords and agents with structured support to navigate the increasing complexity of rental sector regulation and reduce exposure to enforcement penalties.
Looking ahead, lettings agents and landlords must broaden their compliance focus beyond tenancy reforms to encompass consumer protection law under the DMCCA. This shift requires updated legal advice, enhanced operational controls and ongoing vigilance to avoid costly regulatory breaches.
Sources: Letting Agent Today
TLA - The Landlord Association