The upcoming Renters’ Rights Act represents one of the most significant changes to the private rental sector in recent years. It is understandable that many landlords feel uncertain about what the new legislation will mean for their property and their investment.
While the reforms will introduce new rules, they do not remove landlords’ rights altogether. Instead, they change the processes that landlords must follow. Understanding these changes now can help you prepare and avoid problems later.
Here are three common concerns landlords often raise and what the new rules are expected to mean in practice.
1. “What if I need to sell my property?”
Many landlords worry that the new rules will prevent them from selling their property if circumstances change. In reality, selling will still be possible, but the process will be different.
Under the new legislation, landlords will be able to regain possession of their property if they intend to sell it or move into it themselves. However, certain conditions will apply.
Landlords will need to provide tenants with four months’ notice. In addition, this option will not be available within the first 12 months of a new tenancy. If a landlord regains possession on the basis of selling but later decides not to proceed, they may also face restrictions on re-letting the property within a defined period.
For landlords considering selling in the near future, it is sensible to speak with both a letting agent and an estate agent before making any decisions.
2. “Will I still be able to increase the rent?”
Another common concern is that landlords will lose the ability to adjust rents. In reality, rent increases will still be permitted, but they will follow a clearer process.
Rent will typically be able to increase once per year and must reflect the current market rate for comparable properties. To implement an increase, landlords will need to give tenants at least two months’ notice and issue a formal Section 13 notice.
Tenants will also have the right to challenge increases they believe to be unfair through a tribunal. This makes accurate local market knowledge particularly important when reviewing rents.
Local letting agents are usually best placed to advise landlords on realistic rental values within their area.
3. “Could I be stuck with a difficult tenant?”
The removal of Section 21 “no fault” evictions has caused understandable concern among landlords. However, eviction will still be possible where legitimate grounds exist.
Instead of Section 21, landlords will need to rely on Section 8 notices and provide specific legal grounds for possession. These grounds include issues such as rent arrears or anti-social behaviour.
In practice, this means landlords will need clear documentation and evidence if a situation escalates to court. Maintaining good records, inspections and communication will become even more important under the new framework.
What landlords should do now
The Renters’ Rights Act is expected to come into force in England on 1 May, so now is a good time for landlords to review their current arrangements.
Consider whether you are satisfied with your existing tenancy agreements, whether rents reflect current market conditions and whether your documentation and compliance processes are fully up to date.
Taking professional advice early can help landlords adjust smoothly to the new rules.
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Article by Andrew Overman | Partner | Location Location East
