This year landlords have to cope with a new piece of legislation, The Renters Rights Act. PropertyWire provides a summary for those looking to prepare before a number of the changes come into force in May.
Abolition of Section 21
The abolition of Section 21 ‘no fault evictions’ will prevent landlords from evicting tenants without giving a reason.
Landlords can serve eviction notices before May 1st, but afterwards evicting a tenant without a reason would result in a civil penalty of up to £7,000.
Using Section 8 instead
The Section 8 eviction route has been expanded to compensate.
Landlords can evict their tenant if they:
- Fall into at least three months’ rent arrears
- Engage in anti-social behaviour
- Breach terms of the tenancy
- Plan to sell the property
- Want to redevelop the home
- Decide to have a family member move in
If landlords evict their tenant to sell, they are not allowed to re-let the home for a full year.
Periodic Tenancies
Assured shorthold tenancies will be replaced by periodic tenancies, eliminating fixed-term tenancies on May 1st, meaning month-to-month will become the norm.
Tenants will need to give landlords two months’ notice before terminating their tenancy, up from a single month.
Decent Homes Standard
Also known as Awaab’s Law, the policy will mean landlords are forced to respond to serious property issues faster.
The standard will be extended to the private rented sector, though it’s unclear as to when. Target dates of 2035 and 2037 have been mooted, though penalties on Category 1 hazards are likely to take effect as early as spring or summer 2026.
Timelines will be outlined in an upcoming consultation.
Rent increase restrictions
Landlords can only increase rents once per year from May 1st, while they need to give tenants two months’ notice before putting the rent up.
Tenants can complain to a first-tier tribunal if they think the increase is unfair, which would delay the rise coming into effect. Under the terms of the tribunal increases cannot be backdated, while the rent can’t be increased by more than what the landlord was asking for.
It wouldn’t be a shock to see a rising number of rental challenges, given that tenants have lots to gain and little to lose from challenging their landlord.
Pet rights
Tenants will be able to request to keep a pet from May 1st. Landlords must get back to them in writing within 28 days, and they only refuse the request for good reason, for example if the animal is likely to be noisy and the property has poor sound insulation. The Private Rented Sector Ombudsman is set to rule on disputes.
Private Rented Sector Ombudsman
The body is expected to resolve disputes between tenants and their landlords, to settle more issues without burdening the courts.
The plan is for the ombudsman to launch gradually, starting in late 2026 with the PRS Database. It’s expected to be mandatory for landlords to sign up by 2028.
Energy efficiency standards
Privately rented homes will have to meet improved energy efficiency standards by 2030, with a target of EPC C or above unless exempt. The Decent Homes Standard is designed to reduce energy bills for tenants.
Student properties
Purpose built student accommodation will be handed an exemption from periodic tenancies, enabling providers to offer fixed term tenancies for the year. However, to be exempt landlords need to be approved by organisations like the Accreditation Network UK, seemingly giving corporate landlords the advantage.
Student landlords will have their own grounds for possession, known as Ground 4, which allows landlords to seek possession for the next academic year.
Selecting a tenant
Landlords can’t reject a tenant because they are on benefits or have children, though they are permitted to use reference checks to make sure they are able to pay.
Rental bidding wars are banned, meaning landlords can’t benefit from the desperation of tenants trying to outbid one another in a busy rental market.
Landlords cannot demand more than one months’ rent in advance.
Rising standards
Rental standards are likely to improve due to the regulations, though you wonder if they could lead to a rise in rents, giving the increased burden placed on landlords.
Those who fall foul of the rules will be hit hard, as fines range from £7,000 for one breach to £40,000 for multiple or serious breaches.
Some investors may decide it’s not worth it anymore and depart from the market, which would leave the door open for more corporate landlords taking market share.
