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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.
Do you need Company Commercial and Banking and Finance advice for your business? How our joined-up services can help
Running a business is not always smooth sailing and commercial, banking and finance issues are often bound to arise. However, you will rarely find that these matters sit neatly in one legal sector.
Commercial matters are often tied to financial risks and our joined-up service between our Company Commercial and Banking and Finance Law departments is here to help.
Our team works under one umbrella to advise you on matters ranging from funding rounds and supplier agreements to personal guarantees and lending arrangements.
Our Supervising Director of the Company Commercial department, Matthew Johnson, explains how our joined-up services can support you.
How do our joined-up services work?
Rather than having two separate workstreams, our Company Commercial and Banking and Finance solicitors work closely together to provide seamless and practical advice that supports businesses at every stage.
Whether you are negotiating a contract, acquiring a business, entering a funding round or refinancing existing facilities, the legalities and financial implications of the deal will be considered.
Our combined services include:
- Drafting and negotiating commercial contracts
- Due diligence when entering new suppliers, clients, acquisitions and financing agreements
- Advice on financing obligations
- Support with contract renewals or restructurings
- Dispute resolution when issues arise
How can our teams help you?
For brokers
Our Company Commercial and Banking and Finance teams work closely to support brokers by providing clear guidance on corporate structures and contracts.
Without close collaboration between teams, issues such as unexpected debt or restrictive covenants can delay or derail your deal entirely.
For lenders
Our combined expertise can help you secure favourable terms and maintain your relationships with borrowers, suppliers, investors and commercial partners.
We will draft robust documentation and facilitate efficient transactions, particularly in secured lending and property finance.
For advisers
Our joined-up service offers advisers a complete view of the legal and financial implications of any transaction.
Whether it is negotiating contracts or entering new funding arrangements, we provide advice that protects your legal position and helps you manage the risks.
We don’t just tick boxes. We want to give you informed advice that helps your business thrive.
To find out how our joined-up services can support your business, contact our team today.
Can you convert your commercial property into residential use?
The demand for UK housing continues to rise and converting commercial property into residential accommodation has become an increasingly attractive option.
Whether you own an industrial building that is vacant or a retail unit, these spaces can be repurposed and see new revenue streams.
However, commercial to residential conversions are not straightforward and often involve planning considerations and legal obligations.
One of our Commercial Property solicitors, Katherine O’Sullivan, explains what you need to know before converting.
Why should you convert commercial property into residential?
Converting an existing building is often more cost-effective than developing a site from scratch.
The land has already been developed and infrastructure is usually already in place, which can reduce development time and initial costs.
In recent years, the UK Government has expanded Permitted Development Rights (PDR), which allow certain types of commercial property to be converted into residential use without the need for full planning permission.
This has made conversion projects more accessible and commercially viable for many property owners.
However, permitted development does not remove the need for careful planning.
Each project must still meet legal and regulatory standards and professional advice is crucial to ensure your conversion is lawful.
What are the planning permission and regulatory requirements?
When looking to convert your commercial property, you must assess whether your project qualifies for permitted development or requires full planning permission.
Many commercial buildings can benefit from PDR, but full planning consent is often required for properties located in conservation areas, national parks, Areas of Outstanding Natural Beauty (AONBs) or listed buildings.
Regardless of whether PDR applies, all commercial-to-residential conversions must comply with building regulations.
This includes fire safety, structural integrity, insulation, energy efficiency, ventilation, accessibility and sanitation.
Failure to meet these standards can result in costly delays or even enforcement action.
What is the conversion process?
A thorough assessment of your property could be the answer to a successful conversion.
This can include:
- A structural survey – This can help spot any defects or limitations that may affect the project.
- Research into local housing demand – This can help determine whether the conversion is commercially viable. You may also identify whether previous planning applications for conversion have been granted or denied.
- Assessing if funding is needed – Depending on the size and nature of your project, you may require development finance, a bridging loan or a buy-to-let mortgage.
- Choosing the right contractors – Experienced contractors in commercial-to-residential conversions may be better placed to anticipate challenges and deliver the project efficiently.
- Well-drafted contracts – This should define responsibilities and timelines to help reduce the risk of disputes.
Once your conversion is finished, you must complete the final compliance steps, including building control sign-off and obtaining energy performance certificates, before the property can be occupied or let.
Why does the right support matter?
From planning rules to contract obligations, commercial-to-residential conversions often involve a lot of turning cogs.
Managing these risks without specialist support can be overwhelming.
Our expert team can help you prepare the correct documentation and assess any potential risks early so your project remains compliant.
We can support you at every stage of the process and help you minimise delays and disputes so that you can achieve a successful conversion.
For further support or advice, contact our Commercial Property team today.
What should you do when you want to pass on the family business?
Family businesses often represent years of hard work and a legacy that many owners want to protect for the next generation.
However, not every family business survives after ownership is passed on and this can often be due to poor succession planning.
Family businesses may delay succession planning if passing on ownership seems far away or if uncomfortable conversations must be had. However, leaving it too late could be a costly mistake.
Jonathan Hol, an Associate in our Company Commercial Department, explains the importance of succession planning in a corporate or business entity.
What is succession planning?
A succession plan sets out how ownership and control of the business will pass on from one generation to the next or to new owners when an individual steps back.
A clear succession plan should consider ownership, management, timing and address the legal, tax and financial implications of passing on ownership. More often than not, private client as well as accountancy advice is required in most instances.
Family business succession planning often overlaps with personal estate planning and making sure these decisions are clearly documented can help your business’s continuity.
Why is succession planning needed?
Without a clear succession plan, disputes between family members can arise over ownership or leadership roles.
Some family members may wish to be involved in day-to-day management, while others may prefer an ownership role, a sale of the family business or merely an exit altogether.
Clear ownership structures that are supported by shareholders or partnership agreements can set out expectations and prevent future conflict.
It can even help preserve family relationships by setting expectations early.
Poor planning can also lead to unexpected tax liabilities and could even reduce the value of the business when it is passed on to the next generation.
Employees and customers may lose confidence if there is uncertainty about who is in control.
Business owners should consider succession planning if they wish to retain control over how and when the transition happens.
How do you prepare a succession plan?
Succession planning should ideally begin at least five years before your intended exit.
If your business is owned by multiple family members or you wish to pass on your ownership to a family member, you should consider reviewing shareholder agreements to set out how shares can be transferred and the responsibilities of each shareholder.
Wills should be updated alongside any corporate succession decisions, as an outdated Will can result in the ownership of business interests being handed over in a way you did not intend it to.
How can we support your succession planning?
Succession planning is not about preparing for retirement but protecting the future of your business.
Our professional team can help assess your current arrangements, draft or update shareholder agreements and advise on the most appropriate structure for transferring ownership.
We want to help secure the future of the business you have built and provide reassurance that your plans will be enforceable once you step back.
For more advice or support from our specialist family business team, please contact us.
How can I resolve a dispute from a verbal agreement?
Whether you agreed to a customer contract quickly or did not have time to formally document the terms, your business may have entered into a verbal agreement without realising.
Misunderstandings about what was agreed can quickly escalate and disputes can often arise when no written agreement is in place.
Although it is more challenging to untangle disagreements involving verbal contracts, you do still have the right to dispute them.
Our Manager of Dispute Resolution, Luke Morgan, investigates.
Are verbal agreements legally binding?
Verbal agreements are legally binding in the UK, provided they meet certain elements of a contract.
This includes:
- An offer being made by one party
- Acceptance of that offer by the other party
- Consideration, meaning an exchange of value under the contract
- Intention by both parties to create a legally binding agreement
If these conditions are met, a verbal agreement can be enforced just like a written contract.
Courts have increasingly upheld informal agreements, such as emails, text messages, WhatsApp or Snapchat messages, as evidence of legally binding contracts when the essential terms are clear.
This was proven in the Jaevee Homes Ltd v Fincham case, where WhatsApp messages were found to be evidence of a legally binding agreement.
Verbal contracts may fail to address warranties, delivery obligations, late payment penalties or termination clauses.
These omissions can often lead to disputes that require careful management and professional guidance to resolve.
How can you resolve a verbal agreement dispute?
When a dispute arises, your first step is usually to negotiate directly with the other party.
Open discussion may allow both sides to reach a mutually acceptable solution and preserve the business relationship.
This negotiation will also present you with an opportunity to formalise the agreement in writing and help prevent future misunderstandings.
If negotiation is unsuccessful, Alternative Dispute Resolution (ADR) can be pursued.
ADR involves mediation, where an independent third party helps the parties work toward an agreement and arbitration, where the third party adjudicates and makes a binding decision.
When negotiations or ADR are insufficient, the final option is to issue a claim in court for breach of contract.
Evidence is crucial in these situations to prove or refute the terms of the verbal agreement.
Courts, mediators and arbitrators will consider emails, letters, invoices, witness statements and other documentation when reviewing the claim.
How can we support your verbal agreement dispute?
Verbal contract disputes can be difficult, but our expert team can help assess the terms of your agreement and gather the necessary evidence to support your claim.
We can support you during negotiations or court proceedings and help you achieve a fair outcome that protects your interests.
To learn more about how we support you during a dispute, contact our team today.