“The independent landlord is no more”, one conveyancer has claimed, as the Renters Rights Act came into force.
A range of industry figures have given their views to Newspage. https://app.newspage.media/news-alerts/renters-rights-act-become-law
“The independent landlord is no more”, one conveyancer has claimed, as England’s 11 million private renters were granted the most significant increase to their rights in a generation last night when the government’s Renters’ Rights Bill received Royal Assent. Meanwhile, a broker warned that “the losers will be tenants as this will no doubt push rents up further.”
At the core of the Act, according to the official announcement, is the abolition of Section 21 ‘no fault’ evictions.
This seismic shift will empower tenants to challenge poor conditions and unreasonable rent increases without fear of retaliatory eviction. The reforms will give renters the right to end tenancies with two months’ notice, while protecting legitimate landlord interests through strengthened repossession grounds that support continued investment in the sector.
In the coming weeks, ministers will outline how the reforms will be rolled out.
Chris Barry, director at London-based Thomas Legal, says: “The independent landlord is no more. There is no doubt that this Act will help many who have been victim to greedy landlords in the past, but this is another blow to landlords who have been hit by a monsoon of challenges in recent years.
“Landlords now have to contend with higher borrowing costs, increased taxes and, in some cases, extreme costs for building safety remediation. Gone are the days of landlords making a solid return on income and capital, which begs the question for many: is there a better home for their money?
“There is now a real risk we will see fewer landlords and this could lead to increased rent unless the corporates step in to supply the market, which comes with its own risks.”
Michelle Lawson, Director at Fareham-based Lawson Financial, said that the Act receiving Royal Assent could have unintended consequences: “The rental landscape has changed forever and not all for the better. There are some good parts but many bad ones as the government, true to form, have ignored much advice.
“It will erase some of the shabby landlords, which is a positive, but some will still fly undercover. The losers will be tenants as this will no doubt push rents up further and landlords will batten down the hatches due to increased costs.”
Ken James, Director at London-based Contractor Mortgage Services, was concerned that social housing tenants could be left behind: “England’s rental sector is set for a historic overhaul following the Renters’ Rights Bill being granted Royal Assent, ushering in what has been described as the biggest change to tenant protections in decades.
“The reforms are designed to rebalance the relationship between landlords and tenants, giving renters the freedom to challenge unsafe or unfair conditions without fear of losing their homes. However, while private renters stand to benefit from this landmark decision, many have questioned what it means for social housing tenants living in properties plagued by damp, disrepair and neglect.
“Across England, countless families continue to endure substandard conditions that threaten their health and safety. As the Government celebrates progress in the private sector, attention is now turning to whether those in social housing will receive similar protections or whether they will continue to be left behind in homes unfit for modern living.”
Ranald Mitchell, Director at Norwich-based Charwin Mortgages, said: “This is the biggest shake-up in renting for a generation. Ending no-fault evictions gives tenants vital security, but landlords will still be able to reclaim homes if they genuinely plan to sell or move back in.
“That strikes a fair balance on paper, yet several loopholes could still test the system from landlords exaggerating rent ‘market values’ to price tenants out, to claiming they plan to sell then quietly re-letting soon after, or shifting homes into short-term lets such as Airbnb to sidestep the new rules.
“The intentions are right as renters need stability but unless enforcement keeps pace, these reforms could tighten supply, push up rents and test the patience of both landlords and tenants alike.”
