The Major Changes Landlords Need to Know
Posession and Periodic Tenancies
- Section 21 (“no-fault”) evictions will end. Landlords will only regain possession through specific legal grounds under Section 8 of the Housing Act, such as breach of contract, sale of the property, or owner occupation.
- If a landlord wishes to either sell or move into the property they will be required to provide 4 months’ notice. The tenancy must have commenced at least 1 year prior to expiry of the notice.
- Fixed-term Assured Shorthold Tenancies (ASTs) will be replaced by periodic tenancies, continuing until either party ends them legally.
- Existing ASTs will convert automatically once the new rules start.
Rent Reviews and Advance Payments
- Rent increases limited to once per year via a Section 13 notice, with at least two months’ notice.
- Tenants can challenge increases at a Tribunal.
- Upfront rent limited to one month’s rent, and rent periods capped at monthly intervals.
Fairness, Pets and Property Standards
- Bidding wars banned: rent must match the advertised amount.
- Pets permitted by default unless refusal is reasonable; landlords may request pet insurance for damages.
- No blanket bans on tenants with children or those receiving benefits.
- The Decent Homes Standard and Awaab’s Law on damp and mould now extend to all private rentals
Landlord Registration and Dispute Resolution
- A Digital Property Portal will record all registered landlords and properties.
- A new Landlord Ombudsman will resolve tenant complaints outside court.
- Non-registration could restrict letting activity or result in enforcement action.
Current Assured Shorthold Tenancies will become Assured Tenancies.
- No more fixed terms: renewal cycles will disappear.
- Possession may take longer: recovering possession will become more complex as landlords will need to rely on legal grounds.
- Rent strategy matters: increases must be justified and timed carefully.
- Cash-flow impacts: monthly rent limits and caps on advance payments may affect liquidity.
- Compliance focus: higher property standards and new reporting obligations will apply.
- Pet and marketing policies should be updated to reflect new legal duties.
Transitional Arrangements
- The Act applies once commencement regulations take effect. Current Section 21 rules still apply until then.
- Existing tenancies will automatically shift to periodic status after implementation. To leave the property, tenants will be required to give two months’ notice (the end date of the tenancy will need to align with the end of a rent period).
- Landlords should best prepare themselves by using a trusted agent that will keep them compliant.
- The government may phase in provisions - stay alert for official updates.
Exemptions from the Renters’ Rights Act
The Renters’ Rights Act applies only to Fixed-term Assured Shorthold Tenancies (ASTs) under the Housing Act. Certain arrangements fall outside its scope and will not be affected by the new rules.
These include:
- Resident landlords: where the landlord lives in the same property as the tenant or lodger.
- Premium tenancies: where the annual rent exceeds £100,000.
- Non-primary residences: where the property is not the tenant’s main or principal home.
- Short-term and specialist lets: such as holiday lets, company lets, or other short-term arrangements.
- These agreements remain governed by their existing contractual terms and relevant legislation, not by the Renters’ Rights Act.
How to prepare for the Renters’ Rights Act
The Renters’ Rights Act represents a major cultural and legal shift in the private rented sector.
Working with a trusted lettings specialist will be critical to navigate these regulations effectively and compliantly.
John D Wood & Co. has been advising clients for over 150 years, and in that time, we’ve successfully navigated everything the property market has had to throw at us. Having been trusted to successfully let and manage thousands of properties for our clients, our lettings team has the experience and expertise required to ensure your property remains compliant.
For expert advice and tailored support, contact your local office or email [email protected]
