The Renters Rights Act – in law
The Renters Rights Act has now officially become law, and with it comes a step change for landlords and tenants across England. As Urpad Property Management, we have covered the journey toward this legislation in previous blogs (here and here) to keep our landlords informed of the pending changes. With Royal Assent now given, and final details released, this blog will aim to will clarify what the Act means for landlords, the confirmed provisions, and also provide some reactions for context.
The journey so far
The Renters Rights Bill is the biggest change to the private rented sector in over four decades. Driven by government priorities to ‘level the playing field,’ the bill responds to years of tenant insecurity, rising costs, and inconsistent property standards. Our prior blogs have walked through the ‘why’ and also tabled some opinions – both positive and negative.
Key changes for Landlords
End of Section 21 ‘no-fault’ evictions
At the heart of the new Act is the abolition of Section 21 ‘no-fault’ evictions. No more can a Landlord end a tenancy without providing a valid reason, such as property sale, moving in, or persistent rent arrears. In its stead, Section 8 grounds have been strengthened to allow for legitimate repossession, including streamlined processes for dealing with anti-social behaviour or rent arrears.
At Urpad, we keep documentation for any claims, demonstrating rent arrears, property condition, or consistent tenancy issues – this will be important in the event of a legitimate repossession.
Universal periodic tenancies
Fixed-term tenancy agreements are now gone, and all new tenancies will automatically be ‘Periodic’ (rolling). Tenants are allowed to end their tenancy with two months’ notice at any time. For a Landlord, they need to use one of the prescribed grounds to regain possession.
Note: For the first 12 months, landlords are banned from regaining possession to sell or move in. This is to safeguard the tenants’ stability during the initial period.
Regulated rent increases
Rent can now only be increased once yearly, and there needs to be at least two months’ notice given. The increase must be in line with local market rates, and tenants can challenge excessive increases via a tribunal process.
The advertised rent is the maximum that can be charged to a new tenant. ‘Bidding wars, ’ where applicants are encouraged to outbid one another, are now banned, ensuring fairer processes for all parties.
Note: For landlords with larger, geographically diverse portfolios, it is increasingly important to work closely with their property management company. Expertise in analysing local market conditions will help you set the right rent in each area, ensuring maximum returns while maintaining full compliance with the new Renters’ Rights Act. At Urpad, we have a UK-wide reach and can advise on the right rent based on the area and property.
Higher property standards and new compliance requirements
The Act extends the Decent Homes Standard to the private sector, with more stringent enforcement powers for local authorities. Properties must meet standards of warmth, safety, and habitation or face sanctions including fines up to £40,000 for repeat offences.
- Landlords must register themselves and all their properties on the national Private Rented Sector Database, a general, government-run platform. This is aimed at increasing transparency, accountability and compliance in the market..
- Landlords must subscribe to the Private Rented Sector Landlord Ombudsman service. This ombudsman provides tenants with a free, independent, and impartial way to resolve disputes with landlords without having to go to court
- All tenancies must be documented with a clear, written tenancy agreement covering the terms of the rental arrangement.
Note: At the time of writing, the process for simplifying, or even automating, multiple property portfolios isn’t clear, and therefore we cannot say how much we can fulfil on behalf of the landlord – we will keep you informed of any progress.
Equal opportunity and pet-friendly policies
Discrimination against tenants receiving benefits or families with children is now explicitly prohibited. Additionally, tenants have the right to request a pet, which landlords cannot unreasonably refuse. However, property owners can require pet insurance to protect against additional costs.
What has been decided?
The Act’s journey through parliament has been closely watched by the whole industry, with some amendments considered in response to lobbying from both landlord and tenant advocacy groups. While certain penalties related to discrimination were limited, core proposals – including the end of Section 21, capped rent increases, and stronger property standards – have remained intact. The government’s message is clear: this Act exists to rebalance the private rented sector whilst maintaining fair grounds for landlords to manage their properties and safeguard investments.
Market and industry reactions
The sector’s reaction has been mixed but generally pragmatic:
- Many landlords remain concerned about financial stability, increased administrative load, and possible rent capping, particularly small-scale investors facing rising compliance costs. More here
- Some have sold properties in anticipation of the Act, while others, especially those committed to long-term, high-quality letting, are reassured by the clarity the Act finally provides. More here
- Industry groups underline the necessity for landlords to professionalise: “You can’t wing it anymore,” said one leading landlord advisor, highlighting the risks of large fines for non-compliance, but also acknowledging that proper understanding and adaptation can secure ongoing success.
- A narrow majority of landlords consider the Act a fair balance between tenant and landlord rights – this suggests a broader acceptance will grow as the dust settles.
From the tenant perspective, responses have been overwhelmingly positive, lauding the security, fairness, and improved housing standards the Act will bring. More here
What should you do next?
We recommend that you give us a call so we can talk through your specific situation – everyone is different, each property has its own specific nuance, so it makes sense to be thorough. However, broadly speaking, every landlord should do the following:
- Carefully review and update tenancy agreements to ensure compliance.
- Register with the new Private Rented Sector Database and ombudsman.
- Ensure there is robust documentation for rent collection, maintenance, and communications.
- Plan finances around regulated rent increases and possible maintenance outlays.
- Maintain open lines with tenants, encouraging early dialogue on issues to minimise disputes.
Student lets retain some exemptions, but most other rental properties are fully covered by the new rules.
Looking forward
Change, while always challenging, presents opportunities for landlords willing to adapt and focus on quality. The introduction of the Renters Rights Act is not intended to penalise landlords but to ensure that professionalism and accountability define the sector’s future.
Urpad is committed to guiding our landlords through this new landscape. Our advice and management support will evolve as further regulatory details emerge. We encourage all landlords to talk to us for practical, up-to-date guidance tailored to your specific circumstances.
For personalised advice about your specific situation, contact Urpad’s team. As always, we will update you all as and when the government clarifies their plans around implementation and secondary regulations, helping to ensure you remain both compliant and competitive in this new era for the Private Rented Sector.