Last summer, we reported on the Renters’ Rights Act, originally introduced in September 2024. It represents the biggest shake-up in private renting since the Housing Act 1988. The bulk of the reforms became law on May 1 this year, including the ban on Section 21 or ‘no-fault’ evictions and the introduction of rolling periodic tenancies replacing fixed short-term contracts.
The aim is to give England’s 11m private renters clearer rights and better protection and security in their homes.
More changes come into effect later this year. These include a new Private Rented Sector (PRS) database on which landlords will have to register their properties and compliance information.
Equally, the reforms will be extended to the social rented sector in 2027. And by around this time next year, courts handling possession proceedings should be fully digitalised. By 2028, signing up to the PRS Landlord Ombudsman will be mandatory – this will aim to resolve tenant complaints against landlords fairly, speedily and without court proceedings.
Now that most of this important Act has become law, we thought it was worth revisiting a year on. So here’s a reminder of its main points:
- Section 21 evictions are illegal, meaning private landlords can no longer evict renters unless they have a valid reason.
- An end to fixed contracts: PRS tenancies will roll over on a weekly or monthly basis to give tenants greater flexibility. Renters can then end the arrangement at any time by giving two months’ notice. So all fixed-term assured shorthold tenancies are now indefinite periodic ones.
- Rent raises can only occur once annually with two months’ notice, made formally through Section 13, plus tenants have the right to challenge any increases which seem unreasonable.
- Pets allowed: If tenants ask to bring a pet with them, landlords must now at least reasonably consider the request.
- Changes to deposits: Landlords cannot charge more than a single month’s rent upfront under the new rules.
- It’s now illegal to refuse tenancies on the grounds that the prospective renters are in receipt of benefits or have children.
- Equally, landlords must stick to the advertised rent, in a move designed to end bidding wars.
Finally, the Act gives local housing authorities in England the power to issue civil penalties of up to £7,000 when serious hazards remain in qualifying residential premises which could reasonably have been dealt with by the responsible person.
Can landlords still evict tenants?
Yes, they can. But they’ll need a clear reason for doing so, such as selling up, moving back into the property or in cases of anti-social behaviour or rent arrears.
What should I do as a landlord?
If you’re one of England’s 2.3m private landlords, then clearly these changes will affect you. If you haven’t done so already, familiarise yourself with the changes to the PRS which are now law. You can read the government’s official guidance.
Any ads for rental properties should be in keeping with the Act – and as you now have to give renters certain written information ahead of a tenancy, be sure you’re across that, too.
How has the Act been received?
Tenants and advocacy groups have widely praised the Renters’ Rights Bill and the replacement of fixed-term contracts with rolling periodic tenancies giving renters enhance flexibility.
Among landlords and letting agents, the response has perhaps been more mixed, with some online forums indicating that, while landlords appreciate the basic protections the Bill affords, they’re frustrated over two-month rolling clauses, and fear that more tenant mobility could increase void periods, i.e. times when a property lies empty.
Then again, early market data for London reveals that the sector here has largely absorbed the changes, with supply and demand for rental homes stabilising immediately after implementation. So fears of a mass exodus of landlords from the capital seem to have been ill-founded. And there’s no reason to believe this pattern will not be replicated elsewhere in the country.
Renting in Salisbury and around with Carter & May
At award-winning estate agent Carter & May, we have years of experience in renting and letting in Salisbury and the surrounding areas. We love our neck of the woods and know it well.
We’ve broadly welcomed the Renters’ Rights Act and its additional support for tenants, while appreciating that landlords will be keen to understand what the legislation means for them.
We’re happy to discuss the implications for you, whether you’re looking to let out or rent locally. Take a closer look at what we have to offer, and get in touch with the expert team today to start plotting your next move.