The Renters’ Rights Act has officially received Royal Assent, marking the most significant overhaul of England’s private rented sector in decades.
The new law abolishes Section 21 “no-fault” evictions, replaces fixed-term tenancies with open-ended agreements and limits rent increases, signalling a major shift in the balance between landlords and tenants.
It also introduces a national landlord register, a private rented sector ombudsman and extends the Decent Homes Standard to private landlords for the first time.
Awaab’s Law – setting deadlines for tackling health and safety issues – will now apply to private rented homes.
Although no implementation timetable has yet been confirmed, the Department for Housing said secondary legislation will follow “in due course,” with a phased rollout expected through 2026 and beyond.
The law comes as new figures from Rightmove show rents continuing to rise despite signs of improving supply.
The average advertised rent outside London has reached a record £1,385 per month, up 3.1% on last year, while in London it has climbed to £2,736, up 1.6%.
The number of available homes to rent is 9% higher than a year ago but still 23% below 2019 levels.
Average tenants now spend 44% of their income on rent, up from 40% five years ago, while the average buy-to-let mortgage rate stands at 4.87% – almost double pre-mini-Budget levels.
Rightmove’s Colleen Babcock said the reforms were designed to “give tenants more security and flexibility,” adding that renters are already staying in homes for longer.
LANDLORD DIVIDE
Landlords remain divided. Fewer than half (43%) told Rightmove they felt prepared for the new rules, and one in three are considering leaving the sector. Yet half plan to maintain their portfolios, and one in five intend to expand.
“The new legislation is a big change for landlords and it’s vital they remain compliant,” said Christian Balshen, director of agency partnerships at Rightmove.
Industry leaders broadly welcomed the clarity after years of uncertainty.
Marc von Grundherr of London estate agent Benham and Reeves said the Act “opens a new chapter of compliance and complexity,” while Knight Frank’s Beverley Kennard called it “a milestone designed to tackle rogue practices, not penalise responsible landlords.”
Paul Offley of The Guild of Property Professionals said the reforms should “level the playing field and drive out poor practices,” while Brendan Geraghty of the Association for Rental Living said they would “professionalise the sector and improve the rental experience.”
SENSIBLE TIMELINE
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said the Government must focus on a sensible implementation period.
“Now the Renter’s Right’s Bill has finally received Royal Assent, the focus must turn to sensible and pragmatic implementation of the regulations.
“In our view, that is at least six months before periodic tenancies are introduced and Section 21 ends.”
And she added: “A clear, well-communicated timeline for commencement is essential, providing landlords, letting agents and the broader sector with sufficient time to understand and adapt to the changes.
“A rushed or fragmented rollout risks undermining confidence.”
“A rushed or fragmented rollout risks undermining confidence and could lead to a contraction in supply at a time when demand for rental homes remains high.
“We support the Bill’s ambition to improve standards and security for tenants, but this must be balanced with practical implementation that recognises the complexity of the sector.
“A phased approach, with clarity at each stage, will be key to ensuring a smooth transition and maintaining a healthy, functioning rental market.”
