Renters’ Rights Act could backfire on tenants warns think-tank

“The Renters’ Rights Act is not a victory for tenants but economic vandalism that will hurt the very people it’s trying to protect”, claims a think-tank.

The Foundation for Economic Education (FEE) has published a piece on its website by Reem Ibrahim that warns the Act will wreak havoc on the private rented sector and cause landlords to leave the market.

The Renters’ Rights Act gained Royal Assent last month and will now become law, but the government has not yet released an exact timeline for implementation.

If you rent out your property, you might never get it back

Despite the Act being sold as a big win for tenants, Ms Ibrahim warns “this could not be further from the truth” and could cause more discrimination for tenants.

She writes on FEE website: “This legislation will wreak havoc on the already fundamentally broken rental market.

“It introduces de facto rent controls, crushes the supply of housing, and makes life harder for everyone trying to find somewhere to live.”

She describes how the Section 21 ban could mean landlords will struggle to get their properties back, pointing out that despite so-called “no-fault evictions,” evicting someone during their tenancy is already illegal.

She says: “Until 2017, the term “no fault evictions” had simply been used to distinguish between a Section 8 notice, in which a tenant is evicted because they’ve broken the terms of their tenancy agreement, and a Section 21 notice (the Section in question), when someone is evicted because their tenancy has expired.

“A landlord would be able to reclaim his property after an agreed period, because it is his property. This basic tenet of property rights was, until recently, uncontroversial.

“What this new law does is ban landlords from reclaiming their property after a lease ends (unless they are selling it, moving in themselves, or a tribunal gives permission).

“In other words: if you rent out your property, you might never get it back.

“Within these new indefinite tenancies, rent increases will be controlled by rent tribunals. Tenants will even be able to move in, agree to a rent, and then immediately take their landlord to a tribunal claiming it’s too high.”

Landlords will become more selective

Ms Ibrahim adds this means landlords will sell up, as many will not want to take the risk of being a landlord. She warns landlords will become more selective and that this will have the opposite effect of the Act.

She writes on FEE website: “The smaller rental market means less competition for tenants. Because it will be extremely difficult to evict tenants, landlords will be much more selective about who they allow to rent their property. This incentivises discrimination against those regarded as riskier tenants, younger people, the self-employed, and those with less financial security.

“The rental market would be systematically geared toward older tenants with stable, regular incomes or those who can count on help from Mum and Dad. Again, this is the exact opposite of what the government supposedly intends to achieve.”

She adds the key to solving Britain’s housing crisis is through supply.

She says: “If we want more affordable homes, we need more supply. If you want tenants to have more power, if you want better-quality housing, we must simply build more homes. That would tilt power in the market toward tenants.

“More building. More housing supply. More choice for tenants and more opportunity for investors.”

What responsible landlords should know

With the Renters’ Rights Act now confirmed, responsible landlords should prepare calmly for a new legal environment that may tighten possession rights and introduce further oversight of rent levels. Although the full implementation timetable is still pending, this is an appropriate time to ensure your records, communications, and tenancy structures are ready for greater scrutiny.

What this means for you

The ability to regain possession at the end of a tenancy may become more limited, so clear documentation of business reasons for regaining a property will be essential.

Rent reviews could attract greater oversight from tribunals, requiring transparent, evidence-based justifications.

Tenant selection procedures will need to be robust and fair, avoiding any risk of perceived discrimination.

Practical steps (do now)

Review all tenancy agreements, ensuring they specify end dates, review clauses, and grounds for possession in precise terms.

Keep a clear record of maintenance, inspections, and rent review calculations, which can demonstrate fair and consistent treatment of tenants.

Engage your letting agent or solicitor early to update template notices and tenancy documents in line with the new Act.

Check your business plan for exit or refinance strategies if your portfolio relies on predictable tenancy turnover.

Begin mapping how each property would be handled under an indefinite tenancy, identifying where flexibility may need to be introduced.

Good practice that reduces stress

Landlords who plan ahead and document their reasoning tend to feel more in control, even when regulation changes. Staying organised not only protects your position but also demonstrates professional integrity and fairness towards tenants—qualities that help sustain long-term stability in the rental market.