Renters’ Rights Act ushers in biggest shake-up of rental sector

The government’s long-awaited Renters’ Rights Act – described as the most comprehensive reform of the private rented sector in a generation – has received Royal Assent, drawing widespread support but also calls for caution and clarity over implementation.

The landmark legislation abolishes “no fault” evictions under Section 21, replaces fixed-term contracts with open-ended tenancies and introduces new grounds for possession.
It also limits upfront rent payments and paves the way for a national landlord database and the extension of the Decent Homes Standard to the private sector.

Mark Evans (main pic true, inset), President of the Law Society of England and Wales, says the Act was a “vital step toward fairness” between tenants and landlords but warns that successful delivery would depend on investment in the courts.

LEVEL PLAYING FIELD

“We welcome the Renters’ Rights Act as it helps level the playing field between tenants and landlords,” he adds. “The decision to end ‘no-fault’ evictions addresses a long-standing imbalance that gave landlords an unfair advantage.

“However, the government must clarify what kind of evidence landlords will need to provide to invoke new possession grounds.

“For this Act to be successful, the courts must be properly resourced to handle the expected rise in contested hearings. Court reform and modernisation are crucial if this legislation is to work for both sides.”

UNCERTAIN TIMES

Industry reaction has been broadly positive, though many have warned of a period of uncertainty before the detailed implementation plan is revealed.

Timothy Douglas, Propertymark
Timothy Douglas, Propertymark

Timothy Douglas, Head of Policy and Campaigns at Propertymark, says the Act introduces “significant changes” but notes that not all provisions will come into force immediately.

“Initially, from the end of December, local authorities will have greater investigatory powers,” he says. “We’re working with government to ensure there is capacity in the courts system and a smooth transition to periodic tenancies and evidence-based grounds for eviction.”

PERIOD OF PREPARATION
Allison Thompson, LRG
Allison Thompson, LRG

Allison Thompson, National Lettings Managing Director at LRG, says Royal Assent “marks a landmark moment” but adds that “the real work starts now”.

“The Act replaces fixed-term tenancies with open-ended agreements, removes Section 21 and introduces new grounds for possession and rent regulation,” she says.

“We expect key provisions such as the abolition of Section 21 and the transition to periodic tenancies to take effect in early to mid-2026, with other elements such as the landlord database to follow later.

“Until those details are confirmed, landlords, tenants and agents remain in a period of preparation rather than execution.”

GREATER CLARITY
Isobel Thomson, Safeagent
Isobel Thomson, Safeagent

Letting agent bodies say the changes will require strong professional support for landlords.

Isobel Thomson, Chief Executive of Safeagent, says: “Landlords will inevitably be concerned about the implementation of the Act. Those who engage the services of a professional agent will be best placed to navigate the transition.”

Lucy Jones, Lomand
Lucy Jones, Lomand

Lucy Jones, chief operating officer at Lomond, says the reforms “bring greater clarity and protection for landlords and tenants while encouraging higher standards”.

She adds: “As letting agents who already operate at the highest standard, we see this as a positive opportunity to support both landlords and tenants through a period of adjustment.”

But some warn that smaller landlords could exit the market.

John Tarazi, a buy-to-let expert at Money Helpdesk
John Tarazi, Money Helpdesk

John Tarazi, a buy-to-let expert at Money Helpdesk, says: “It will hit the smaller, accidental landlord and could result in some selling up. Professional long-term landlords will adapt, but many casual investors are already thinking twice.”

With the government expected to announce the rollout timetable within weeks, the success of the Renters’ Rights Act will depend on how effectively Westminster balances reform with realism – ensuring fairness for tenants without driving landlords away from the sector.

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