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The Renters’ Rights Act takes effect: Are you prepared for the changes?
The private housing sector is set for its biggest shift in regulation changes in a generation after the Renters’ Rights Act officially became law, enhancing the rights of tenants and clarifying what is expected of landlords moving forward.
From evicting tenants to the introduction of new initiatives and alignment of existing laws, you should expect significant changes to impact your role and procedures.
While the new regulations will be put in place over the coming weeks and months, preparation is key because you need to understand the laws and have measures in place for when the laws take effect.
What are the main changes you should prepare for?
The Renters’ Rights Act will officially abolish no-fault evictions, meaning Section 21 of the Housing Act 1988 will be completely removed.
No-fault evictions have allowed you to evict tenants without providing a reason, allowing you to easily claim your property back.
However, the new Act outlines that you will have to give clear reasoning for evicting tenants moving forward, using the grounds set in Section 8 of the Housing Act 1988, which clarifies the reasons you are allowed to give.
There will also be significant changes to tenancy structures, with fixed-term tenancies being abolished and replaced with periodic tenancies.
This will give tenants more flexibility with tenancies moving to a week-to-week or month-to-month structure, depending on when they pay rent.
It will also be illegal to instigate bidding wars. The rental price you advertise must be what the potential tenant pays, as you will not be allowed to accept higher offers.
If you do continue to hold bidding wars for your properties, you will face a significant fine and a criminal investigation is likely to be opened.
Alongside the removal of bidding wars, you could face sanctions if you discriminate against potential tenants because of their circumstances, such as if they have children. You will also be expected to treat all tenants with fairness and respect.
The Renters’ Rights Act also provides clarity for tenants having pets in your properties. Moving forward, you will need to consider any requests tenants make about having pets and provide clear justification as to why that may not be feasible.
All these changes will be part of the initial first phase of regulations introduced. These will take effect from 1 May 2026.
Phase Two Initiatives
Expected to be implemented from late 2026, the Act establishes a new, national Private Rented Sector (PRS) Database. Landlords will be required to register themselves and their properties annually and pay a fee.
Landlords must also be members of a new, single PRS Landlord Ombudsman scheme. This body will provide binding and quicker redress for tenants who make complaints related to management or maintenance, circumventing some court processes.
The government has advised that the ombudsman scheme will be introduced “as soon as possible”. Landlords will be given notice of the date by which they will be required to sign up to the ombudsman scheme and sufficient time to make appropriate arrangements.
Alignment of laws from the social housing sector
The Renters’ Rights Act will also see some laws that have only exclusively applied to the social housing sector apply to the private housing sector in the future.
Those are the Decent Homes Standard and Awaab’s Law. Both focus on the quality of your property and ensuring your tenants are living safely and comfortably.
This means you will have to learn how both regulations work and implement measures to ensure you are compliant.
Awaab’s Law focuses on the way you will need to handle tenant concerns. The laws will require you to follow a certain process, investigate and deem whether the concerns are an emergency that needs addressing straight away or are potentially significant.
Whatever the outcome of your investigation, you need to provide a written summary of what you have found, the actions you’ve taken and the plans for addressing the tenant’s concern.
Download our dedicated Renters’ Rights Act guide
The introduction of these laws will be a gradual process but that shouldn’t stop your preparations.
It is going to be a challenging period for yourself and other private sector landlords as you try to understand the new laws and begin to put plans in place.
That’s why we have crafted a dedicated Renters’ Rights Act guide which covers all the essential information you need to know, like what each change will entail, what it means for your role as the landlord and how you can prepare.
It is the ultimate companion that will ease your pressures and clarify everything you need to know and do.
Download your Renters’ Rights Act guide today and get in touch with our team for expert advice and support.