The Renters’ Rights Bill received Royal Assent last night, which will ban no-fault evictions and “rebalance” the relationships between England’s 11 million tenants and 2.3 million landlords, the government says.
The wide-ranging Act passed into law at 7.40pm yesterday and brings reforms to the private rented sector that were first pledged in the Conservative Party’s 2019 General Election manifesto.
Key features include giving renters the right to end tenancies with two months’ notice, strengthening local authority enforcement orders and bringing the Decent Homes Standard to the private rented sector for the first time.
However, landlord bodies and buy-to-let lenders now call for six months’ grace before the legislation is implemented, adding that its measures “work for both tenants and responsible landlords”.
Prime Minister Keir Starmer says: “For too long, millions of renters have lived at the mercy of rogue landlords or insecure contracts, with their futures hanging in the balance. We’re putting an end to that.”
The housing department will set out how the reforms will be rolled out over “the coming weeks”
Other key measures include:
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A new Private Rented Sector Landlord Ombudsman that will provide binding resolution for tenants’ complaints about their landlord
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A Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance
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End the practice of rental bidding by banning landlords and agents from accepting offers above the advertised rent
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Making it illegal for landlords and agents to discriminate against prospective tenants on benefits, or who have children
National Residential Landlords Association chief executive Ben Beadle says: “This is the most significant shake-up of the rental market in almost 40 years, and it is imperative that the new systems work for both tenants and responsible landlords.
“At a minimum, the sector needs six months’ notice before implementation to ensure a smooth and seamless transition, and the government must provide certainty on this as soon as possible.”
The average advertised rent of homes outside of London hit a new record of £1,385 per calendar month, up 3.1% higher than a year ago, according to the latest data from Rightmove.
In London, average advertised rents also peaked at a new record of £2,736 a month, up 1.6% on a year ago.
But Rightmove also points out that although the number of available homes to rent is now 9% higher than this time last year — this figure is still 23% below 2019.
The NRLA’s Beadle adds: “It is essential that the government’s reforms do not worsen the supply crisis by discouraging long-term investment in the homes to rent that so many rely on.”
Paragon Bank managing director of mortgages Louisa Sedgwick says that the government should take “at least six months” before periodic tenancies are introduced and Section 21 ends.
Sedgwick adds: “A clear, well-communicated timeline for commencement is essential, providing landlords, letting agents and the broader sector with sufficient time to understand and adapt to the changes.
“A rushed or fragmented rollout risks undermining confidence and could lead to a contraction in supply at a time when demand for rental homes remains high.”
The Law Society welcomed the new Act, but urged the government to beef up court operations to handle an expected rise in cases between renters and landlords.
Law Society president Mark Evans says: “For this Act to be successful, the government must now invest in the courts to ensure they can handle the expected rise in contested hearings.
“Court reform and modernisation are crucial if the Renters’ Rights Act is to help both tenants and landlords.”
Knight Frank head of lettings operations Beverley Kennard points out that the new Act is only part of the changing landscape for property investors.
Kennard says: “Tax policy, energy efficiency requirements, and interest rates all continue to shape landlord confidence and investment decisions.”
