The Renters’ Rights Act has come into force across England, marking the most significant reform of the private rented sector in over four decades. This legislation abolishes Section 21 no-fault evictions and replaces fixed-term tenancies with a fully periodic tenancy system, introducing new protections for tenants and responsibilities for landlords and letting agents.

Key changes introduced by the Renters’ Rights Act

From today, landlords can no longer evict tenants without a valid legal reason. Rent increases are limited to once per year, and tenants have the right to challenge any rent rise they consider unreasonable. Additionally, upfront rent demands are capped at one month’s rent, and bidding wars are prohibited, preventing landlords and agents from accepting offers above the advertised rent.

Tenants now have the right to end their tenancy with no more than two months’ notice. The Act also makes it unlawful to discriminate against prospective tenants on the basis of receiving benefits or having children, and landlords must consider pet requests reasonably.

Government and sector reactions

Prime Minister Keir Starmer welcomed the Act, stating: “For too long, families have lived with the constant fear of eviction, while young people have been outbid for the homes they need to start their lives. Today we are putting that right. We promised to fix a broken rental system and we’re delivering.” Housing Secretary Steve Reed added that the changes mark the beginning of a new era for private renters, ending the power of rogue landlords to evict tenants unfairly.

Financial penalties and enforcement

Landlords face significant penalties for non-compliance, with fines of up to £40,000 for breaches of the new rules. Local councils have been granted stronger powers to investigate and take action against criminal operators, signalling a tougher regulatory environment.

Industry perspectives and concerns

Ben Beadle, chief executive of the National Residential Landlords Association, described the Act as the biggest shake-up to the private rented sector in nearly 40 years. He emphasised the importance of the reforms working for both landlords and tenants, warning that the success of the legislation will depend on whether responsible landlords continue to provide homes and whether criminal operators are effectively removed from the sector.

Beadle also highlighted the need for courts to handle possession claims efficiently and fairly, particularly those related to rent arrears and anti-social behaviour, to maintain investor confidence. “On all three tests, the jury is very firmly out,” he said, adding that the association will monitor the Act’s practical impact closely.

Landlord and agent preparedness

William Reeve, chief executive of Goodlord, noted that despite months of preparation, uncertainty remains about how the changes will operate in practice. Research from Goodlord indicates that over 80% of landlords are concerned about the legislation’s impact, while fewer than 20% of tenants feel confident about their new rights.

Nathan Emerson, chief executive of Propertymark, urged agents to fully comply with the new legal framework from day one. He described the removal of Section 21 and the shift to periodic tenancies as one of the most significant structural changes the industry has faced, stressing that it is now time for implementation rather than preparation.

Implications for tenant screening and risk management

The Act alters the financial risk landscape for landlords, with a greater focus expected on referencing, affordability checks, and guarantors. Sam Reynolds, chief executive of Zero Deposit, explained that the abolition of no-fault evictions and restrictions on upfront rent will make recovering losses from problem tenancies slower and more complex. Consequently, the sector is likely to emphasise upfront risk assessment more heavily than relying on remedies after arrears occur.

Tenant groups’ response

Tenant organisations have welcomed the reforms, particularly the abolition of Section 21 and limits on upfront payments. Ben Twomey, chief executive of Generation Rent, described the Act as a vital step towards rebalancing power between renters and landlords, ending decades of fear caused by no-fault evictions.

Clara Collingwood, director at the Renters’ Reform Coalition, praised the ban on Section 21 evictions as a significant victory after years of campaigning, bringing renters closer to securing decent and secure homes.

Student renters benefit from new protections

The Act also introduces immediate improvements for students, including greater flexibility to end tenancies and protection from large upfront rent demands. Amira Campbell, president of the National Union of Students, called the legislation transformative, providing students with the security needed to feel safe in their housing and preventing exploitative conditions.

What this means for landlords

Landlords must now adapt to a fully periodic tenancy system and comply with new restrictions on eviction grounds, rent increases, and upfront payments. The risk of substantial financial penalties for breaches means that landlords and agents must ensure their processes and communications are fully compliant from the outset.

With the courts expected to handle possession claims efficiently to maintain confidence, landlords should prepare for potentially slower recovery of arrears and increased emphasis on tenant referencing and risk assessment. Staying informed about forthcoming reforms, such as the Decent Homes Standard and the private rented sector Ombudsman, will be essential to maintaining compliance.

Future reforms to watch

Additional measures are planned, including the introduction of a Decent Homes Standard, a private rented sector Ombudsman, and a landlord database. Ben Beadle emphasised the importance of landlords keeping abreast of these forthcoming changes to ensure ongoing compliance with their legal obligations.

Source: Based on reporting from Property118

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TLA update

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