Renters’ Rights Act comes into force today

Landlords and letting agents face a new legal landscape from today as the Renters’ Rights Act comes into force, abolishing Section 21 and replacing fixed-term tenancies with a periodic system across England.

The government says 11 million private tenants will now benefit from the biggest increase in renters’ rights for more than 40 years.

Landlords can no longer evict tenants without a legal reason, while rent increases are limited to once a year and tenants can challenge rises they believe are unreasonable.

Upfront rent demands are also capped at one month’s rent, bidding wars are banned, meaning landlords and agents cannot invite or accept offers above the advertised asking rent.

The Act also gives tenants the right to end any tenancy with no more than two months’ notice.

Discrimination against prospective tenants because they receive benefits or have children is now unlawful, while requests to keep pets must be considered reasonably.

Prime Minister welcomes Act

The Prime Minister, Keir Starmer, said: “For too long, families have lived with the constant fear of eviction, while young people have been outbid for the homes they need to start their lives.

“Today we are putting that right. We promised to fix a broken rental system and we’re delivering.

“This historic action will make renting fairer, safer and more secure for millions, so people can settle, put down roots and build their lives.”

Housing Secretary Steve Reed said: “Renters have been living at the mercy of rogue landlords and in fear of losing their home for too long.

“We are putting a stop to this with historic changes that give renters the security they deserve – marking the beginning of a new era for private renters.”

Hefty financial landlord penalties

For landlords, however, the immediate issue is compliance and breaches of the new rules can carry penalties of up to £40,000.

Councils have been given stronger powers to investigate and enforce against criminal operators.

Ben Beadle, the chief executive of the National Residential Landlords Association, said the Act marks the biggest shake-up to the private rented sector for almost 40 years.

He said: “Today marks the biggest shake up to the private rented sector for almost 40 years.

“With 4.7 million households across England in the private rented sector, it is vital that the changes work for landlords as well as tenants.”

Courts must meet demand

Mr Beadle warned that the reforms will be judged on whether responsible landlords keep providing homes and criminal operators are driven out.

He added that the courts must handle legitimate possession claims, including rent arrears and anti-social behaviour cases, quickly and fairly enough to maintain investor confidence.

Mr Beadle said: “On all three tests, the jury is very firmly out.

“We will be monitoring developments closely to assess whether the Act is working as intended in practice.”

Most landlords are worried

The government says the courts are being digitalised to improve access to justice for tenants and landlords, with millions of pounds being invested to simplify the process.

William Reeve, the chief executive at Goodlord, said: “While this might feel like a finish line for policymakers, for those on the ground it’s the starting gun being fired on a new era.

“Despite months of preparation, uncertainty still looms over how these changes will play out in practice.”

He added: “Goodlord’s latest research shows that more than four in five landlords are concerned about the legislation’s impact, while less than one in five tenants feel confident about their new rights.”

Tighter tenant checks

The Act also changes the financial risk calculation for landlords, with PRS experts expecting more emphasis to fall on referencing, affordability checks and guarantors.

Sam Reynolds, the chief executive of Zero Deposit, said: “The Renters’ Rights Act represents the most significant structural shift in the private rented sector in decades.

“For landlords and letting agents, that means navigating risk, particularly around rent arrears, where the abolition of no-fault evictions and restrictions on upfront rent will make recovering losses from problem tenancies slower and more complicated than before.

“As a result, the sector is likely to place greater emphasis on upfront risk assessment, rather than relying on remedies after arrears have occurred.”

Tenant groups celebrate RRA

Tenant groups welcomed the reforms, particularly the abolition of Section 21 and the new limits on upfront payments.

Generation Rent’s chief executive, Ben Twomey, said: “Today marks a new era for private renters across England.

“This new law is a vital step towards re-balancing power between renters and landlords and should be celebrated.

“Our homes are the foundations of our lives, but, for decades, Section 21 evictions forced renters to live in fear of being turfed out of our homes, preventing us from raising valid concerns with our landlords. At last, this outdated and unfair law has been sent packing.”

Clara Collingwood, a director at the Renters’ Reform Coalition, said: “It’s fantastic that section 21 no fault evictions have finally been banned.

“For too long this everyday injustice has allowed landlords to get away with outrageous behaviour – profiting from unhealthy homes and threatening tenants who try to stand up to them.

“It’s taken years of campaigning by renters’ organisations to get us to this point but thanks to this legislation, today we are significantly closer to securing decent, secure homes for every renter.”

Student sector changes welcomed

Students will also see immediate changes, including more flexibility to leave tenancies and protection from large upfront rent demands.

Amira Campbell, National Union of Students president, said: “Renting as a student can be as stressful as any university assignment.

“The Renters’ Rights Act is a transformative piece of legislation, giving us the ability to leave tenancies, capping the rent that can be demanded upfront, and stopping the rush to sign next year’s contract.

“I am proud of the student leaders who worked with us to ensure that Act reflects the reality we face as students and gives us the reassurances we need to be able to feel secure in our housing. Those students have made sure that future students will not face the same exploitative conditions they had to endure.”

Agents must be prepared

Nathan Emerson, the chief executive of Propertymark, said agents must now operate within the new framework from day one.

He said: “Today marks a watershed moment for the private rented sector as the Renters’ Rights Act comes into force.

“The removal of Section 21 and the move to a fully periodic tenancy system represent one of the most significant structural changes the industry has ever faced.

“This is no longer about preparation; it is about implementation.

“Agents must now be fully operational within the new legal framework, ensuring every process, communication and decision is compliant from day one.”

More RRA reforms

Further reforms are still to follow, including the planned Decent Homes Standard, a private rented sector Ombudsman and the PRS landlord database.

Mr Beadle said: “Whilst today is undoubtedly a significant moment, other important parts of the Act, including the planned Decent Homes Standard, the private rented sector Ombudsman and the PRS landlord database, have yet to be implemented.

“It is therefore vital that landlords continue to keep on top of how these remaining reforms will be rolled out to ensure they remain compliant with their legal obligations.”