Renters’ Rights Act starts tomorrow – the PRS reacts

The Renters’ Rights Act takes effect from tomorrow (Friday 1 May), scrapping Section 21 evictions and replacing fixed-term agreements with periodic tenancies across England.

Landlords will instead rely on revised Section 8 grounds to regain possession, including cases where they plan to sell or house family members.

Notice periods are being extended, and tenants will gain the ability to challenge rent increases they view as excessive.

Alongside possession reform, a Private Rented Sector Ombudsman is being introduced to resolve tenant complaints.

A national landlord database will sit alongside it, setting out legal obligations while giving tenants greater access to information.

Councils get more powers

Enforcement is also shifting and local authorities will see expanded powers, with higher civil penalties, new investigatory duties and a requirement to report on activity.

Rent repayment orders will be widened to include superior landlords, while the maximum penalty will double.

Other measures target how homes are let as landlords and agents will be banned from accepting offers above the advertised rent.

They will also be barred from discriminating against tenants with children or those receiving benefits.

Tighter rented property standards

Along with tenants gaining stronger rights to request a pet, property standards are tightening at the same time.

The Decent Homes Standard will extend to the sector, while Awaab’s Law introduces defined timeframes for resolving hazards such as damp and mould.

Marc von Grundherr, a director of Benham and Reeves, said: “The Renters’ Rights Act arrives after years of sustained government intervention in the private rented sector, which has already been reshaped by repeated tax changes, regulatory tightening and a steadily increasing compliance burden.

“For many landlords, it will be viewed less as an isolated reform and more as part of a long-running pattern of policy accumulation that has steadily increased the cost and complexity of being a private landlord.”

He added: “Even so, buy to let has not ceased to function as an investment asset.

“Despite repeated predictions of retreat from the sector, landlords have continued to operate within it, adapting to successive waves of reform rather than exiting in significant numbers.”

RRA will bring more work

Sam Humphreys, Dwelly‘s head of M&A, said: “The Renters’ Rights Act is expected to significantly increase the administrative and compliance workload for letting agents and landlords, particularly as possession processes become more structured and documentation-led.

“As regulation becomes more detailed, the operational demands of managing even a standard tenancy are likely to rise.

“In practical terms, this places strain on traditional, manual ways of working.”

Roma Sharma, the managing director of Rushbrook & Rathbone, said: “The Renters’ Rights Act is going to accelerate the ongoing shift towards professionalisation in the property management sector.

“As demand for managed services continues to grow, it is also creating a more competitive and fragmented market, with increasing pressure on margins and a greater need for clear differentiation between operators.”

Court waits are a concern

Court pressures remain a concern and Sarah Taylor, a partner at Excello Law, said: “It remains to be seen how the already overwhelmed court system will deal with an increased number of Section 8 notice claims, particularly where landlords are relying on mandatory grounds.

“There has been discussion as to whether the system will need to be altered to allow mandatory possession claims to be dealt with on paper, but this raises a question over whether this would give tenants sufficient ability to defend claims.”

Harry Angelides of The Barrister Group Chambers said the removal of Section 21 eliminates what some saw as a fallback, with possession now requiring a fully evidenced claim from the outset.

He said: “There was always a myth about landlord and tenant law in England.

“The myth was that, provided you had a tenancy agreement and a Section 21 notice, possession was ultimately within your control.

“Those of us practising in the field knew otherwise. What the Act has done is remove even the illusion of that control.”