Louisa Sedgwick, managing director of mortgages at Paragon Bank, says there must be a sensible implementation period for the controversial Renters Rights Act. 

“Now the Renter’s Right’s Bill has finally received Royal Assent, the focus must turn to sensible and pragmatic implementation of the regulations. In our view, that is at least six months before periodic tenancies are introduced and Section 21 ends” she says.

“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.

“We support the Bill’s ambition to improve standards and security for tenants, but this must be balanced with practical implementation that recognises the complexity of the sector. A phased approach, with clarity at each stage, will be key to ensuring a smooth transition and maintaining a healthy, functioning rental market.”

Meanwhile Emma Cox, MD of Real Estate at Shawbrook, comments: “The Royal Assent of the Renters’ Rights Act marks one of the most significant reforms to the private rented sector for a generation.

“Whilst landlords may feel concerned about how this may impact their holdings, the changes may further professionalise the buy-to-let sector.

“We’ll likely see professional, portfolio investors (those with over four properties) staying in the market while so-called ‘dinner party landlords’ exit, as professional investors will naturally understand that offering tenants quality, energy efficient properties may cost more in the short term but lead to less void periods, longer tenancies, and increased profit in the long term.“

This is how the government describes the new Act:

• Abolish Section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic;  
• Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable;   
• Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out;
• Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord;
• Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement;
• Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property;
• Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities;
• Apply Awaab’s Law to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards;
• Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live;
• End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate;
• Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity;
• Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.