The recently introduced Renters’ Rights Act has sparked debate among landlords and housing professionals. Housing Minister Matthew Pennycook has sought to reassure landlords about the new legislation, but concerns remain that the Act may impose greater challenges than anticipated.

Background on Renters’ Rights Act and Housing Minister’s Position

Matthew Pennycook, the housing minister, has publicly stated that the Renters’ Rights Act will not unduly burden landlords. However, some experts argue that the reality for landlords may be more complex and problematic. The Act replaces Section 21 no-fault evictions with a system that may increase the risk and difficulty of evicting tenants who fall behind on rent payments.

Historical Context of Social Housing and Rent Payments

Historically, social renters were protected by government measures that ensured rent was paid directly to landlords, helping to secure tenants’ housing. This approach recognised the financial difficulties faced by social tenants. Over time, however, successive governments have removed these protections and reduced the real value of rents payable by social tenants by keeping Local Housing Allowance (LHA) benefits flat while wages increased for working tenants.

Eviction Statistics Under Previous Legislation

Under the previous Section 21 regime, data showed that only around 0.5% of tenancies—approximately one in 200—resulted in no-fault bailiff evictions. This relatively low figure suggested that outright evictions were not widespread under the old system.

Rising Rent Arrears and Implications for Evictions

Current figures reveal a stark increase in rent arrears among social tenants, with up to 41% in some regions falling behind on rent for less than 13 weeks, and a smaller but significant 4% in arrears for 13 weeks or more. Private tenants are also experiencing rising arrears, with levels not far behind those in social housing.

This shift means that the number of tenants at risk of eviction under Section 8—used for rent arrears and other breaches—is now approximately eight times higher than the number of tenants previously evicted under Section 21 bailiff orders.

Challenges for Landlords Under the Renters’ Rights Act

The Renters’ Rights Act removes the straightforward no-fault eviction option, replacing it with a system that requires landlords to prove grounds for eviction. This change is unlikely to reduce eviction numbers, as many evictions are driven by unpaid rent, which remains a persistent issue.

Landlords have limited control over whether tenants pay rent and can only respond after arrears occur. The new legislation is expected to increase costs, delays, and stress for landlords trying to regain possession of their properties.

What this means for landlords

All landlords face the possibility of dealing with non-paying tenants under the Renters’ Rights Act. The increased complexity of eviction processes means landlords must prepare for longer timelines and potentially higher legal and administrative expenses. The Act’s protections for tenants, while important, also place greater responsibilities and risks on landlords, who must navigate a more challenging regulatory environment.

Given these factors, landlords should carefully consider their risk management strategies and seek advice on how best to protect their interests while complying with the new legal framework.

What does the Property118 community think?

Thanks,

Paul

Source: Based on reporting from Property118

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