The Renters’ Rights Act comes into force on Friday 1 May, marking a significant shift in the regulation of England’s private rented sector. The new legislation abolishes Section 21 ‘no-fault’ evictions and replaces fixed-term tenancy agreements with periodic tenancies, fundamentally altering how landlords regain possession of their properties.

Key changes introduced by the Renters’ Rights Act

Under the Act, landlords must now rely on revised Section 8 grounds to regain possession, including situations where the property is to be sold or occupied by family members. Notice periods have been extended, providing tenants with greater security and time to respond. Additionally, tenants will have the right to challenge rent increases they consider excessive, introducing a new layer of tenant protection.

The legislation also establishes a Private Rented Sector Ombudsman to handle tenant complaints and a national landlord database to outline legal obligations clearly, enhancing transparency and accountability within the sector.

Expanded enforcement powers for local authorities

Local councils will receive increased enforcement powers, including higher civil penalties and new investigatory duties, alongside a statutory requirement to report on their enforcement activities. Rent repayment orders will be extended to cover superior landlords, with the maximum penalty doubled to strengthen compliance incentives.

Further measures prohibit landlords and agents from accepting offers above the advertised rent and ban discrimination against tenants with children or those receiving benefits, promoting fairness and equality in letting practices.

Enhanced property standards and tenant rights

The Act tightens property standards by extending the Decent Homes Standard to the private rented sector. It also introduces Awaab’s Law, which sets defined timeframes for landlords to address hazards such as damp and mould, responding to long-standing concerns about housing conditions.

Industry perspectives on the new legislation

Marc von Grundherr, director of Benham and Reeves, described the Act as part of a broader pattern of government intervention that has increased the cost and complexity of private renting. He noted, “For many landlords, it will be viewed less as an isolated reform and more as part of a long-running pattern of policy accumulation.” Despite this, he observed that buy-to-let remains a viable investment, with landlords adapting to ongoing regulatory changes rather than exiting the market.

Sam Humphreys, head of M&A at Dwelly, highlighted the expected rise in administrative and compliance burdens for landlords and letting agents. He explained, “The Renters’ Rights Act is expected to significantly increase the administrative and compliance workload… As regulation becomes more detailed, the operational demands of managing even a standard tenancy are likely to rise.”

Roma Sharma, managing director of Rushbrook & Rathbone, commented that the Act will accelerate the professionalisation of property management, intensifying competition and margin pressures while increasing the need for clear differentiation among operators.

Concerns over court system capacity

Legal professionals have expressed concern about the impact on the already stretched court system. Sarah Taylor, partner at Excello Law, questioned how courts will handle the increased volume of Section 8 possession claims, particularly those relying on mandatory grounds. She noted discussions around potentially dealing with mandatory possession claims on paper but raised concerns about whether this would allow tenants adequate opportunity to defend themselves.

Harry Angelides of The Barrister Group Chambers reflected on the removal of Section 21, stating, “There was always a myth about landlord and tenant law in England… The Act has done is remove even the illusion of that control.” This highlights the increased evidential burden on landlords seeking possession.

What this means for landlords

Landlords must prepare for a more regulated environment with extended notice periods and stricter grounds for possession. The abolition of Section 21 means possession proceedings will require thorough evidence and adherence to revised legal criteria. Enhanced enforcement and penalties underscore the importance of compliance with property standards and fair letting practices.

The increased administrative workload and operational demands suggest that landlords and agents may need to adopt more structured, documentation-led processes. Professionalisation of property management is likely to accelerate, with landlords encouraged to engage with qualified agents and stay informed of evolving legal obligations.

Source: Based on reporting from Property118

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