In the property world, the last few months have been dominated by one topic: the Renters’ Rights Bill. As one of the biggest changes to the private rentals market in decades, many landlords are naturally concerned and keen to understand more about what action they need to take to protect their business and remain on the right side of the law.
All landlords, whether they own a single property or an entire portfolio, must be aware of and understand the recent changes in property standards and evictions, terminations, and rent pricing. If not, they risk complicating the transition process and damaging their reputation.
The final form of the bill is still taking shape, but there are some areas we’re certain to see change. It’s likely to come into force late this year or early next, although even this is uncertain.
The best way to minimise the bill’s disruption is to prepare for change early, and continue to stay on top of new developments as it passes through parliament. The bill is changeable and open to interpretation at the moment, so seeking advice to fully understand how it affects you is advisable. Here are the key measures in the bill, and the best ways to navigate them.
Possession and Evictions
The most notable change is the abolishment of Section 21 ‘No-Fault’ evictions. While this increases tenant security, it raises concerns about problematic tenants and how landlords should approach the matter.
To avoid added complications when dealing with the eviction process, the first point of call should be to update and review existing tenancy agreements to reflect the new law and then conduct an audit on all current properties. This should include reviewing tenancy agreements and checking that all documentation, such as EPC and deposit protection, is up to date. With the introduction of a more formal eviction process, even if a tenant is at fault, if a step has been missed, it could affect your ability to regain possession of a property.
Renovations
Landlords will now be required to ensure their properties meet the government’s Decent Homes Standard, which will mean significant renovations for some. These will need to start now if they’re to meet the standard in time for when the bill comes into force.
There’s also the extension of Awaab’s Law, which will require all landlords to promptly investigate and rectify hazards, including damp and mould, within strict timescales.
Disputes
Along with evictions, other general disputes are still bound to occur. They are often a frustrating ordeal, especially when the law tends to favour a problem tenant rather than the landlord. A recent report found that disputes rose 13% in 2024 from the previous year. The new changes are expected to make an unstable market even more volatile, and in turn create an additional rise in disputes.
Although we recognise the need to modernise the rentals market, the rights and property of the landlord still need to be protected. Most disputes can be resolved by a simple, honest conversation between the parties involved, and this is often the best course of action. However, if matters go further than this, there are options we can try before undertaking court proceedings. Expert legal advice can ensure that a dispute is brought to a satisfying conclusion, quickly and efficiently.
Transparency
The rental market is now experiencing the most significant reform since the Housing Act of 1988. Many of the changes concern transparency: landlords will no longer be able to increase rent more than once a year, and there will also be a ban on rental bidding wars. Another step towards transparency is developing a comprehensive database consolidating essential information for landlords, tenants, and local authorities, enhancing transparency and compliance within the rental market.
While these legislative changes aim to provide tenants with increased security and certainty, landlords face a significant adjustment period. The new framework demands might drive higher tenant turnover, a scenario many landlords will need to factor into their long-term strategies. The first point of call should be to update existing tenancy agreements to reflect the new law.
Accountability
With the updates to transparency and evictions, landlords will be held to a higher standard and will be subject to more accountability. They will have to participate in the ombudsman scheme, and tenant complaints will be escalated and ruled on by a third party.
Although these changes are necessary to help reduce the volume of rogue operators, this will lead to honest landlords having to jump through several hoops to operate and maintain their business. The increased paperwork, regulation, and accountability will result in more work that landlords must stay on top of. However, a change as significant as this can lead to more benefits, with tenants being more secure in their position due to the increased accountability on the landlord’s behalf, and longer tenancies are expected to increase.
What this means for Landlords
It’s a really turbulent time for the private rental market, so the number of changes can be overwhelming, and a lot to deal with. Landlords deserve to feel assured and confident in their actions and businesses.
Whether you’re new to the market or have a number of properties within your portfolio, taking legal advice early ensures that your investment and reputation are protected.
Seeking legal advice is an important way of preventing escalation and avoiding court, which could become especially important once the bill comes into force, as we’re likely to see a very large increase in disputes.
Nick Armitage, Partner and Head of the Disputes Resolution team at Ramsdens Solicitors. [email protected].
