The implementation of the Renters’ Rights Act is raising concerns among landlords and letting agents about unintended consequences that could affect both tenants and property owners, according to Greg Tsuman from Martyn Gerrard Estate Agents.
The Government has released The Renters’ Rights Act Information Sheet, which must be served on tenants before 31st May to avoid a £7,000 fine.
Possession costs and legal delays
The abolition of Section 21 ‘no-fault’ evictions shifts the possession process from an administrative procedure into a legal process, with estimated costs of £3,000 for landlords to regain possession of their properties.
Court capacity remains a concern, with only two regional surveyors and 77 valuers assigned to the Upper Tribunal’s Property Chamber as their primary appointment as of 1st April 2025. Limited bailiff appointments are expected to extend enforcement timelines, particularly as local authorities advise tenants to remain until bailiffs attend.
Market impact and rental pricing
Regulatory complexity is influencing rental pricing strategies, according to industry observers. Provisions restricting landlords from requiring pet insurance from tenants have drawn criticism, with concerns that risk mitigation costs will be absorbed into rental prices. A similar pattern occurred when the Tenant Fees Act came into force in 2019.
The private rented sector decreased by 5.1% in 2025, losing £48 billion in value as landlords exited due to tax changes and the incoming legislation. This supply reduction is affecting tenant choice and rental pricing across the market, prompting industry bodies to develop new tenancy frameworks.
Housing supply concerns
The reduction in private rental supply, combined with oversubscribed social housing, is creating pressure across the housing system. Recent reports indicate that some build-to-rent projects have been abandoned due to economic viability concerns, including John Lewis’s decision to exit its build-to-rent plans.
There are reports of growth in informal rental arrangements designed to circumvent regulations, including unlawful subletting and fraudulent use of social housing. Some social housing tenants have reportedly been subletting properties at higher rents, creating what industry sources describe as a ‘black market’ within the housing system.
Local authorities now have enforcement powers to address these issues, though concerns remain about effectiveness given court delays and due process requirements. Even in clear cases of fraud, possession proceedings could take months to resolve.
Industry response
The sector faces challenges as it adapts to the new regulatory framework. While enforcement action against substandard landlords is supported, industry representatives argue that professional landlords who provide well-managed homes play a role in addressing housing supply issues and require appropriate support within the regulatory structure.
The full impact of the legislation will become clearer as implementation progresses and the regulatory regime develops over the coming months.
