The Renters’ Rights Act brought in some of the biggest changes the rental market has seen in years.
If you’re a tenant or a landlord, here’s what you need to know.
What is the Renters’ Rights Act?
The Renters’ Rights Act is designed to:
Key Changes at a Glance
What the Changes Mean for Tenants
Landlords are no longer be able to serve a Section 21 notice, which means that tenants can no longer be asked to leave without a valid legal reason. Landlords instead need to serve a Section 8 notice which relies on one or more specific grounds. Tenants may end their agreement at any time by providing at least two months’ notice in writing, which can be given by email, letter, or text message.
Rent increases are limited to once per year, with a minimum of two months’ notice, and any increase must not exceed the current market rate. Tenants also have the right to challenge any increase they believe to be unfair.
The Act also strengthens protections against discrimination. Landlords can no longer refuse tenants simply for having children, being on benefits, or owning a pet. Tenants may request permission to keep a pet, which must not be unreasonably refused.
Landlords are not able to insist on upfront rent payments, only the first month’s rent is payable once the tenancy agreement has been signed. The tenant may then voluntarily offer to make a lump sum payment for subsequent rental payments.
What the Changes Mean for Landlords
One of the most significant changes is the removal of Section 21 “no-fault” evictions. Landlords must now rely on specific legal grounds under Section 8 to regain possession of their property.
Mandatory grounds (i.e. grounds where the court must order possession provided the Landlord has given sufficient evidence of the ground relied upon applying) and include the following:
Discretionary grounds (i.e. where the court may order possession to the Landlord):
Increased Regulation and Compliance
Landlords face increased administrative responsibilities under the new legislation.
Looking ahead, further changes are expected to shape the sector over the coming years. These include the introduction of a Private Rented Sector (PRS) database with which the Landlord will need to register all tenancies, and a Private Rented Sector Ombudsman scheme (anticipated by 2028), both of which are mandatory for landlords. The application of the Decent Homes Standard to the private sector by 2035 and legislation relating to requirements to fix serious health hazards like damp and mould is anticipated to be introduced in 2027.
What This Means for Deputyship Clients
For Deputies managing Property and Finances, these changes are particularly significant and bring both opportunities and considerations.
For clients who are tenants, they may be less likely to face unexpected eviction and the removal of discrimination based on benefits or family circumstances may make it easier to secure suitable accommodation, particularly for vulnerable clients.
Although landlords can no longer require an upfront lump sum rental payment at the outset, Deputies may still choose to offer advance payments voluntarily. The involvement of a professional Deputy can also provide reassurance to landlords regarding financial reliability.
For deputyship clients who are tenants, the abolition of the “no fault” Section 21 eviction notice provides improved security of tenure.
FAQs
What is a Section 21 “no-fault” eviction notice?
A process that allowed landlords to evict tenants without giving a reason. This has now been abolished.
Do I need a new tenancy agreement?
No. Existing agreements remain valid.
Can rent still be paid in advance?
Yes, but only if the tenant chooses to do so.
What happens if no notice is served?
The tenancy continues indefinitely on a monthly rolling basis.
Are landlords still required to meet safety and regulatory standards?
Yes. This includes:
Need help navigating these changes?
If you’re a Deputy or are considering applying for a deputyship and need help navigating these changes, please contact us at: info@hughjonessolicitors.co.uk