Why the Renters’ Rights Bill will create a ‘perfect’ tenant crisis for Labour

As the Renters’ Rights Bill heads back to the Lords next week, I fear there is now real potential to reshape the rental market in ways that could harm the very tenants it aims to protect.

Far from delivering the promised security and fairness to renters, the Bill risks creating a two-tier system where only ‘perfect’ tenants – those with impeccable credit, stable long-term employment and flawless references – will secure homes.

Vulnerable groups, including international students, self-employed professionals, pet owners, and those on benefits, face being excluded entirely, while landlords grapple with reduced control and greater financial risks.

But still the tenant groups are oblivious to what is coming down the track – Generation Rant again had a pop at landlords this week, saying we can leave.

Critics like them just can’t understand that a landlord selling up means there will be fewer properties to rent. Don’t talk about it being OK because a first-time buyer will step in. Unless they have a cracking income and a perfect credit score, that won’t happen.

PRS is complex

So, while the Bill says it will equalise the PRS by banning Section 21 ‘no-fault’ evictions, introducing rolling periodic tenancies and prohibiting discrimination against families or benefit recipients., it fails to account for the complex realities of the market.

Labour wilfully fails to see the real-world impact of abolishing fixed-term contracts, replaced by tenancies where tenants can leave with just two months’ notice which strips landlords of the ability to plan for re-letting or property management.

This uncertainty is compounded by the Bill’s cap on advance rent at one month, a measure that removes a critical lifeline for tenants who rely on upfront payments to offset weak credit or lack of UK references.

International students, migrants and those with past financial difficulties, are among those already struggling to find a home and they will find it nearly impossible to secure tenancies as landlords prioritise low-risk applicants.

Short-term renters face even greater challenges. Without fixed-term tenancies, landlords are unlikely to accommodate tenants whose employment lacks long-term stability in a single location.

The private student rental market, particularly for non-HMO or non-purpose-built student accommodations, is at risk of collapsing entirely.

Without fixed terms aligned to academic years, landlords may deem students too risky, given their ability to leave at short notice.

This could shrink the supply of private student housing, forcing students into already oversubscribed (and pricey) purpose-built student accommodation or leaving them without viable options. More students will, inevitably, be forced to stay at home for their studies.

Must accept pets

Similarly, while the Bill allows tenants to request pets, a Labour amendment, as reported by Property118 this week, looks like mandating landlords to accept them. This is just nonsense on stilts.

I’ll be waiting keenly for the first alligator to be kept in a tiny flat. It will happen because the tenant ‘will have the right’ to do so!

With tenants able to exit tenancies from day one, landlords may hesitate to rent to pet owners, fearing property damage that costs more than a single month’s rent to repair. This will lead to the exclusion of pet-owning tenants.

My other issue that isn’t being appreciated – but, by God, it will be – is that court-appointed bailiffs already take more than six months to secure possession, which will be on top of a year’s worth of rent arrears.

The government’s silence on court capacity for dealing with evictions after the Bill is implemented is also a critical oversight. And a shameless one at that.

Inevitably, landlords and agents will– regardless of what the Bill’s aims are – prioritise tenants with pristine credit profiles and a permanent job. Plus, they will need strong references from a previous landlord.

However, this will create a ripple effect: higher rents, reduced availability and fierce competition for the few remaining properties.

Organisations like Generation Rent dismiss concerns about a landlord exodus but that ignores the financial and emotional toll on landlords, many of whom rely on rental income for their livelihoods or pensions.

Bill’s unintended consequences

For those who support the Bill, please appreciate its unintended consequences which include the sharp decline in short-term and flexible lets, landlords selling up due to loss of tenancy control and the exclusion of tenants with poor credit, no references or irregular income.

But the uncertainty around court delays and possession processes may well be the final nail in the PRS’ coffin.

When gaining Royal Assent, we will see the Renters’ Rights Bill creating a market where only the ‘perfect’ tenant thrives, while everyone else – that’s students, freelancers, pet owners and benefit recipients – faces exclusion.

Without urgent revisions, the Bill will not empower renters but will instead lock them out, leaving landlords and tenants to navigate a broken system.

Tenants, please understand that landlords are not the enemy; we provide essential housing in a market already stretched thin.

Squeezing us too hard will only fuel rent rises and reduce supply, hurting the very tenants the Bill seeks to protect. Is that something you would vote for?

Until next time,

The Landlord Crusader