Landlords advised to ‘get their ducks in a row’ as Renters’ Rights Bill signed to law
The Renters’ Rights Bill received Royal Assent yesterday after a year-long journey through Parliament.
The bill, which will remove so-called no-fault evictions, strengthen tenant protections and digitalise the sector, promises to shake up the market for both landlords and tenants – with considerable new burdens for the former.
Prime Minister Keir Starmer said the government was “putting an end” to “rogue landlords or insecure contracts”, while housing secretary Steve Reed said it was “the biggest leap forward in renters’ rights in a generation”.
But what does the bill mean for you? Crucially, the royal sign-off on the bill does not mean the changes will immediately affect renting.
In this case, the Royal Assent will be followed by a commencement period, generally expected to end sometime between March and April 2026 – this is when the changes will take effect.
‘New challenges’ for landlords
The Renters’ Rights Act present “several new challenges” for landlords across the United Kingdom, Patrick Ansell, property litigation expert at Taylor Rose Law Firm, said.
The bill’s headline policy is the abolition of no-fault evictions – Section 21 orders – which allow landlords to end a tenancy at the end of a defined rental period without providing justification.
Landlords will be unable to sell or move into a property in the first 12 months after a tenancy begins, although they will still have grounds to kick a tenant out if they commit antisocial behaviour or do not pay rent for at least three months.
After 12 months, landlords will have to give four months’ notice if they want their tenants to move out.
Some experts have warned that the bill risks “rent control through the back door” as it allows tenants to challenge the agreed tenancy rent in the first six months of a tenancy or any new rent proposed by a landlord, although this is only likely to affect the market in the short term.
All landlords will have to adhere to stricter rules on property upkeep, as well as digitalisation of records.
All tenancy structures will become periodic i.e., rolling, not a fixed 12 or 24-month contract, meaning that tenants who wish to remain can do so, which the government says will provide greater security.
Notably, tenancies where your rent is above 100,000 pounds a year and any lettings to companies where you’ve got a company as a tenant will fall outside the scope of the bill.
Landlords just need to ‘be prepared’
As the bill progressed through parliament, landlords became increasingly concerned that the legislation would affect returns, with a high number reporting that they wanted to sell up.
But Sabrina Furneaux-Gotch, partner in real estate litigation at Mishcon de Reya, said that landlords should just “be prepared to get their ducks in a row, to make sure that they’re ready to comply with the new regulations in relation to the database.”
The government will create a Private Rented Sector Database to “help landlords understand their legal obligations and demonstrate compliance”, alongside “providing better information to tenants to make informed decisions when entering into a tenancy agreement”, it said.
It will require all private landlords to register their properties and upload relevant safety certificates.
“If you have a property which is in good condition, where you have a tenant who is paying the rent and is otherwise complying with the terms of the tenancy, then there shouldn’t be a real hardship for landlords,” she said.
Laura Odlind also a partner in real estate litigation at Mishcon, added that the “act isn’t anything that new compared to what the previous government had proposed” and that while all landlords might struggle with the increased regulation, good preparation should stand them in good stead.”
“There’s going to be a need to have good vetting agents,” she said, adding that larger landlords are likely to find it easier to set up a system so that is kept regularly updated.