After months of parliamentary back-and-forth, the Renters’ Rights Bill has now become law – a defining moment for the private rented sector and one that will reshape how landlords, tenants and advisers interact for years to come.
We await confirmation from the government about when the different parts of the Act will be implemented, but overall the new rules are intended to give tenants greater protection and create a fairer, more transparent system. But they also signal a clear shift in how landlords must manage their properties and how advisers support them.
This legislation has been a long time coming, and while its core measures have evolved through extensive debate, the government has ultimately held firm on its proposals.
The end of Assured Shorthold Tenancies, the abolition of Section 21 ‘no-fault’ evictions, and the introduction of new rent regulation and compliance standards will touch almost every part of the private rental market.
That’s why we developed our ‘Guide to Getting Landlords Renters’ Rights Ready’, a comprehensive resource designed to help advisers understand the changes and support their landlord clients as they prepare for this new era.
MAJOR TENANCY SHIFT
For landlords, the first and perhaps most visible change is the end of fixed-term tenancies. From now on, all tenancies will default to periodic arrangements, meaning that we won’t have six/12-month tenancies but month-on-month ones by default.
Section 21 has gone, replaced by a system where landlords must demonstrate a valid reason for possession, such as rent arrears or the need to sell. This means landlords and their letting agents will have to manage tenancies more actively, maintaining communication with tenants and ensuring any actions they take are compliant and well-documented.
RENTAL RULES
The Bill also reforms how rent is set and increased. All rental listings must now include a proposed rent, and landlords can no longer accept bids above the advertised price – a direct effort to stop rental bidding wars.
Rent can only be raised once per year, and tenants will have the right to challenge any increase at a tribunal if they believe it exceeds market value. This clearly places more administrative and evidential pressure on landlords/letting agents to ensure rent changes are justified and transparent.
BROKER ROLE
Advisers can play a crucial role here, helping landlord clients review their existing tenancies, understand their obligations, and adopt new systems for tracking rent reviews and communications.
Our guide sets out practical checklists on everything from managing rent arrears to encouraging longer-term occupancy in the absence of fixed-term contracts.
‘DECENT’ HOMES
Another major change is the introduction of the Decent Homes Standard across the private rented sector. Landlords will now be required to ensure their properties meet minimum standards of safety and condition – with particular emphasis on issues such as damp and mould.
Local authorities will have enhanced enforcement powers, and the emphasis will shift decisively towards proactive maintenance. For advisers, this is an opportunity to open broader conversations with clients about the quality and sustainability of their portfolios. Advisers who can help landlords identify funding needs or plan property improvements will add real value at a time when professionalism and compliance are front and centre.
REGISTRATIONS
Two new regulatory requirements will also underpin this new framework: the PRS Landlord Database and the PRS Ombudsman. Every landlord will have to register both themselves and their properties on the national database, ensuring all documentation – from EPCs to gas safety and electrical condition reports – is up to date. They will also need to join the Ombudsman scheme, giving tenants access to a free, impartial route for resolving disputes.
For lenders like ourselves these changes will also have implications too. We will want to know borrowers are meeting their compliance obligations, as regulatory failures could affect rental income and, by extension, affordability and risk. That means lenders may begin to ask for additional information or assurances about how landlords are managing their portfolios.
In the short term, this adjustment period will feel challenging, and in the long run, it’s very difficult to say what the implications will be for the sector, and landlords place within it. There are rumours that it will lead to a greater number of landlords selling up and leaving the sector but my feeling is these are overcooked, especially in the portfolio/professional space.
What we obviously now only too well is that the private rented sector is a vital part of the UK housing ecosystem – housing millions of people who either choose or need to rent. Tenancy demand remains strong, we continue to build less homes than required, and for large swathes of the population the PRS is the go-to option for housing.
For advisers, the message is clear: staying informed and proactive is essential. Helping landlords understand and implement these changes will not only strengthen relationships but also highlight the value of expert mortgage advice in a market where regulation and responsibility are growing.
The Renters’ Rights Act marks a turning point – not an end – and advisers, landlords and lenders alike have a shared opportunity to make this new era of renting work better for everyone involved.
