Tenants are quitting tenancies early believing the Renters’ Rights Bill is already law

Tenants are quitting tenancies early believing the Renters’ Rights Bill is already law

0:01 AM, 1st May 2025, About 3 weeks ago 4

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There appears to be a growing misconception among tenants that the Renters’ Rights Bill is already law to trigger a surge in early tenancy terminations.

That’s the warning from Propertymark Past President Greg Tsuman who says the misunderstanding is driving tenants to invoke early surrender agreements.

They are doing so believing they can legally exit a tenancy with just two months’ notice.

Tenancies can’t be ended currently with two months’ notice until the Bill becomes law.

Tenants believe Bill is now law

Mr Tsuman says that many tenants already believe that the Renters’ Rights Bill is law, and he points to a rise in early surrender agreements stemming from this confusion.

These agreements allow tenants to exit fixed-term contracts early, but they expose landlords to financial risks.

While the Bill aims to bolster tenant protections, Mr Tsuman also warns that it may inadvertently shrink the private rental sector.

Tenants get freedom

He says: “Because the Renters’ Rights Bill means that any tenant can leave a fixed-term tenancy with two months’ notice, this may give tenants more freedom of movement without any fees, but it will also increase landlords’ costs.”

He adds that the extra financial burden could lead to landlords selling up and leaving the PRS.

Consider early surrender agreements

Mr Tsuman is advising landlords to approach early surrender agreements with caution until the Bill becomes law.

He said: “In the meantime, there must be a valid reason why landlords may want to waive their rights before they lose their rights.”

For instance, landlords planning to sell properties might find early surrenders advantageous.

Tenants may act unreasonably

However, he warns of risks, including potential fines, revenue losses and unforeseen expenses.

Mr Tsuman said: “We have seen tenants turn on their landlord as soon as the early surrender agreement was signed.

“Once tenants are no longer contractually bound, some may feel emboldened to act unreasonably or even make threats.

“It’s a good reminder to document everything and, where possible, ensure mutual surrender terms include clauses about post-surrender conduct or settlement of disputes.”


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Cider Drinker

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8:42 AM, 1st May 2025, About 3 weeks ago

Don’t tell them that they are wrong. Let them leave and sell up or take the opportunity to choose better tenants.

TheMaluka

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13:03 PM, 1st May 2025, About 3 weeks ago

“Because the Renters’ Rights Bill means that any tenant can leave a fixed-term tenancy with two months’ notice, this may give tenants more freedom of movement without any fees, but it will also increase landlords’ costs.”
Freedom of movement to go where when all the landlords have quit?

Yellard

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15:25 PM, 1st May 2025, About 3 weeks ago

The government can't be that thick. Rental reform was necessary ( Eg periodic tenancies should have been made roll over tenancies) but RRB is a bad reform that will drive small landlords out of business.Thr government don't care. They want corporations like Lloyds to set up subsidiaries &loan the subsidiary tax exempt mortgages.The bank gets the rent & the mortgage tax break. Small guys can't compete. But it'll take time and rents will rise as small LL's quit. Therefore..wait for it...rent price controls! In the process forcing out yet more small landlords who can't make a profit with no mortgage relief & a low rent. The government knows it. Are they in the pay of the big Banks?

Jack Jennings

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19:39 PM, 1st May 2025, About 3 weeks ago

Successive governments sold off utilities and UK infrastructure to foreign based big institutions. Housing stock will follow as domestic landlords fold. All the rental profits will leave the country along with the profits from electricity, gas, toll bridges, water etc. What a shambles from a country that used to run 2/3 of the entire world..

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