The Renters’ Rights Bill will bring the biggest shake-up to private renting in a generation after it received Royal Assent today.
The Bill, the first major legislation introduced in the private renting since the Housing Act 1988, passed through Parliament last week and now becomes law.
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said: “After years of debate and uncertainty, today marks an important milestone for the private rented sector. With the Renters’ Rights Act on the statute book, the sector needs certainty about the way forward.
“This is the most significant shake-up of the rental market in almost 40 years, and it is imperative that the new systems work for both tenants and responsible landlords. The NRLA stands ready to work with the government to ensure the reforms are implemented in a way that is fair, proportionate and deliverable.
“The government now needs to engage meaningfully with those providing the homes so desperately needed, to ensure implementation of the Bill is realistic and aligns with the practicalities of the market – not least the need for clarity well in advance of the next academic year for student housing.”
The housing minister Matthew Pennycook has not yet set out a timeline for when the reforms would take effect, despite pressure from shadow housing secretary James Cleverly to set out a schedule.
Beadle continued: “At a minimum, the sector needs six months’ notice before implementation to ensure a smooth and seamless transition, and the Government must provide certainty on this as soon as possible.
“The government must also recognise the vital importance of a thriving private rented sector not only to meet tenant demand but to the national economy. It is essential that the Government’s reforms do not worsen the supply crisis by discouraging long term investment in the homes to rent that so many rely on.
“As the changes bed in, the government should commit to ongoing monitoring of their impact and ensure its findings are published.”
Beverley Kennard, head of lettings operations at Knight Frank, commented, “With the Renters’ Rights Bill now granted Royal Assent, this marks a significant milestone in reforms that have been on the horizon for some time. While we await clarity on implementation – expected to take effect within the next six months – it’s worth remembering that the Bill is designed to tackle rogue practices, not penalise responsible landlords.
“Although the transition period may bring some adjustment, the core elements of the Bill remain largely the same: the abolition of Section 21, changes to notice periods, and a 12-month restriction on re-letting where a landlord has given notice to sell.
“It’s also important to view the Renters’ Rights Bill within the wider context of the market. Tax policy, energy efficiency requirements, and interest rates all continue to shape landlord confidence and investment decisions. We’ll be working closely with our landlords to help them understand the practical implications of these reforms, manage any perceived risks, and plan with confidence for the months ahead.
“For landlords, property remains a sound long-term investment. The fundamentals of the sector remain strong, and the keys to successfully letting a property are unchanged – thorough tenant referencing, good landlord-tenant relationships, professional management, and trusted advice. In short, this is not cause for alarm: with the right preparation and advice, the private rented sector will continue to be a stable and worthwhile place to invest.”
Morgan Vine, director of policy and influencing at Independent Age, is among those who welcomes the Renters’ Rights Bill gaining Royal Assent.
Vine said: “The rising number of older private renters, around a third of which are in poverty, desperately need a safe and secure home. Thankfully, today we are one step closer to this.
“For years, at Independent Age we have been calling for a better deal for older renters, and it’s good to see parliamentarians taking action. Many of the older private renters we have spoken to live in a constant state of anxiety, worried about eviction and asking their landlord for repairs. Now, we need to see swift implementation of the Bill, including the end of No Fault evictions and a limit to upfront payments.
“What the Bill won’t address, is the quality and affordability of rented homes. We need to see the UK Government commit to uprating Local Housing Allowance – the mechanism that decides how much Housing Benefit is paid – in the upcoming Budget, and every year in the future. With two-thirds of older private renters who receive Housing Benefit not getting enough to cover their rent, this is squeezing personal budgets to an unsustainable level. This must change.”
Catherine Williams, real estate partner at international law firm Addleshaw Goddard, has provided a summary on what the Act means for the sector:
Risk of rising rents
“I think there is a very real risk that these controls might end up pushing rents up for existing properties as supply continues to be restricted.”
Institutional landlords overlooked
“The Act overlooks the important distinction between individual private landlords and large-scale institutional operators. The Act’s changes to how rent reviews are implemented and challenged introduces uncertainty for institutional landlords, who rely on predictable annual rent increases to support long-term investment models. By limiting rent reviews and enabling tenant challenges which could drag on for months—many of which may be speculative or lack merit—the legislation disrupts financial planning for professionally managed rental portfolios and risks undermining the viability of much needed new BTR schemes during a housing crisis.”
Impact on professional investment
“These institutional landlords — such as pension funds, insurers and professional developers — are subject to rigorous compliance, sustainability and governance standards. They deliver well-managed, high-quality rental housing and play a vital role in addressing housing demand. Treating them the same as so-called cowboy landlords risks undermining investor confidence and penalising those contributing positively to the sector.”
Delivery targets at risk
“With this and the Building Safety Regulator delays, Steve Reed is going to be lucky to have 750,000 homes in this Parliament, let alone 1.5 million. The legislative programme simply does not facilitate the rhetoric of ‘backing the builders not the blockers.'”
Rent review provisions create systematic risk
“The transition to a mandatory statutory rent review process only (via Section 13) removes the ability for a Landlord to agree a regular index linked rent review. If a rent review is challenged, the inability of the First Tier Tribunal to increase rents beyond the landlord’s proposed amount introduces systemic risk, disrupting the financial models underpinning long-term institutional investment.”
Potential for legal challenge
“If signs of overload emerge and no corrective action is taken, it’s entirely reasonable to expect the legislation could face legal challenge.”
Restrictions on deposits and upfront payments
“Capping deposits and upfront rent payments is intended to enhance affordability but simultaneously reduces flexibility. Tenants who choose or need to pay rent in advance, often as a mitigating strategy against credit risk, may find their options constrained, ironically reducing housing accessibility.”
Support for tenant protections
“I support many of the measures aimed at protecting tenants; there’s no question that poor landlord practices have caused real harm — not just to individuals, but to the market itself, fuelling a distorted public perception of landlords and undermining trust in the sector.”
Call for balanced policy
“The Act assumes landlords are bad and tenants are good. But the private rented sector isn’t binary. There are as many good landlords dealing with problem tenants as rogue landlords abusing the system. If we keep legislating on that basis, we’ll drive out good landlords and further shrink supply — and that is bad news for renters and the housing crisis.”
