With the Renters’ Rights Bill due to receive imminent Royal Assent and become law in the new year, the private rental sector is preparing for the largest regulatory shake-up in nearly four decades.
The legislation creates greater tenant rights and improved housing standards, but for many landlords, it also brings new uncertainty, additional expense and greater administrative burden.
Here, John Angus, managing director at Switch Housing, explores what these reforms could mean for the sector, and how investors can protect their portfolios in response to the new regulation.
Navigating change
The Renters’ Rights Bill looks to address important concerns about tenant safety and security that have dominated the news agenda since the Grenfell Tower tragedy, particularly against rogue landlords. Few dispute the need to improve housing standards, but the measures also present risk for the investment landscape.
Through our work with reputable property owners across the UK, we have heard first-hand how some of the most notable changes under the Bill are creating uncertainty.
The abolition of Section 21 ‘no fault’ evictions mean landlords must now rely on Section 8 notices and cite specific grounds for possession. The impact of this is already being felt, with analysis by Dwelly reporting that repossessions by landlords have already risen 6.8% nationally in the past year, with some areas experiencing increases of more than 2,500%.
This reflects growing anxiety in the market, as landlords pre-emptively move before Section 21 is formally scrapped.
Meanwhile, the introduction of Assured Periodic Tenancies removes the certainty of fixed-term contracts, increasing the risk of unexpected voids, greater marketing costs and higher tenant turnover. Landlords must also now give four months’ notice to repossess if they wish to sell or move back in, compared to tenants, who only need to give two months – representing a significant imbalance.
Annual restrictions on rent increases, subject to tribunal challenge by the tenant, could leave investors exposed to delayed income adjustments, while operational outgoings continue to rise.
Beyond tenancy terms, new safety obligations under Awaab’s Law – while necessary to deliver better living standards – will create further cost and responsibilities that must be urgently addressed.
Together, these changes ultimately present less predictable returns, increased risk, and a greater cost of compliance.
What the Bill means for landlords
We are hearing growing concerns from many legitimate landlords, about the impact of the Bill on financial security – particularly for smaller investors, who rely on rent as an income stream.
Longer evictions, tribunal delays and stricter regulation will all increase management costs.
With the government now also considering a requirement for landlords to pay National Insurance on their rental income, there could be even further financial pressures, leaving many unsure about their future in the private sector.
The market is already responding. A recent survey by Alto found that one third of letting agents had seen more landlords selling up, while over 90% expressed worries about losing independent landlords as the reforms take effect.
Ultimately, if this trend continues, the knock-on effect will be felt across the wider housing system. Councils are already under strain, with over 81,000 families with children now living in temporary accommodation, according to the latest government figures – a 13.7% rise year on year. Fewer private landlords could intensify this crisis.
Partnership opportunities
The challenge is one of balance: tenants need security, investors need certainty, and councils need access to suitable housing stock. Without solutions that benefit all three, the affordable housing crisis will only deepen.
This is where partnership becomes essential. For many landlords, navigating the new regulatory landscape could present high risk; but we believe that working with specialist property managers offers a stable middle ground.
For example, at Switch Housing, we take on two-year tenancies to guarantee long-term rental income and find suitable tenants on behalf of councils, to house vulnerable families who are living in unsuitable temporary accommodation, having otherwise been priced out of their local rental market.
Acting as an intermediary, our team ensures properties remain compliant with evolving legislation, manage resident relationships, and take care of any ongoing maintenance issues.
This approach not only protects investor returns, but also supports local authorities by providing safe, stable homes for those who need it most. By working together, we can reduce financial uncertainty, raise living standards, and help to address the growing housing crisis.
Preparing for the future
Whether it’s welcome or not, the Renters’ Rights Bill is around the corner.
For investors, this is raising serious questions about the long-term viability of their assets, and many may find the ‘hands-on’ landlord approach carries too much risk in this new environment. Rethinking the management model is critical for stability.
The Bill will undoubtedly reshape the way the rental market looks, but those who act early and embrace a more resilient, collaborative approach with trusted, reputable partners, will be able to safeguard their investments in what could potentially be an increasingly uncertain environment.
