The Renters’ Rights Act (RRA) was introduced with the intention of improving conditions for tenants, yet early indications suggest it may be falling short of its goals. Key concerns focus on eviction processes, rent arrears, and the availability of rental properties, which together cast doubt on the Act’s effectiveness.

Eviction Grounds and Rent Arrears

Before the RRA, eviction under Section 8 covered various grounds, but Shelter reported that 90% of these cases were due to rent arrears. Although data on Section 21 ‘no fault’ evictions was not collected, it is likely that most of these were also related to rent arrears. This highlights that rent arrears remain the primary cause of eviction in the private rental sector.

Despite the introduction of the RRA, the number of bailiff evictions remains low—approximately one in every 200 tenancies. Given this small figure, it is unlikely to change significantly even with the new legislation in place. The Act’s removal of ‘no fault’ evictions under Section 21 is expected to shift evictions towards Section 8 grounds, but this will not reduce the overall eviction rate.

Delayed Reporting and Accountability

The government plans to collect statistics on the impact of the RRA but will not publish these until 2028. This delay is problematic as it allows those responsible for the legislation to avoid accountability for any negative consequences. Immediate data collection and reporting are essential to assess the Act’s real-world effects and to provide timely support for tenants who are struggling.

Impact on Tenants and Rental Market

Rather than easing difficulties for tenants, the RRA may inadvertently make it harder for many to secure a home. The Act does not facilitate the swift removal of tenants who fall into arrears; instead, it permits tenants to accumulate more arrears before landlords can take action. This is counterproductive, given that rent arrears are the leading reason for eviction.

As a result, landlords are increasingly relying on rental guarantors to protect themselves. Prospective tenants without guarantors risk being overlooked, which disadvantages those who may already face barriers to securing accommodation. This dynamic reduces the pool of available rental properties, further exacerbating housing shortages and contradicting the RRA’s intended purpose.

If the system allowed for quicker eviction of tenants in default, the need for guarantors would diminish, potentially broadening access to rental homes. However, the current framework appears to overlook this practical necessity.

Underlying Issues and Future Challenges

The government seems to have misunderstood the primary causes of eviction, focusing insufficiently on rent arrears and the scarcity of rental properties. By complicating the eviction process without addressing these root problems, the RRA may have worsened the situation.

There is concern that policymakers, facing rising market rents and reduced housing supply, may turn to rent controls as a solution. However, the real issue lies in the failure to provide enough homes. Legislative decisions that reduce the number of available properties contribute to higher rents and increased housing insecurity.

What this means for landlords

For landlords, the RRA presents new challenges in managing tenancies, particularly those involving rent arrears. The shift from Section 21 to Section 8 evictions means landlords must navigate a more complex and lengthier process to regain possession of their properties. This increases the importance of thorough tenant vetting and securing guarantors where possible.

Landlords should also be aware that the current legislative environment may shrink the rental market, making it harder to find reliable tenants. Proactive measures, including clear communication and early intervention in arrears cases, will be essential to mitigate risks under the RRA framework.

Source: Based on reporting from Property118

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