As RRA Changes Loom, Thoughts from the Industry
Overview of changes due via RRA as of Friday 1st May
Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants.
Ensure possession grounds are fair to both tenants and landlords – giving tenants more security, while ensuring landlords can reasonably recover their property.
Provide stronger protection against backdoor eviction by ensuring tenants are able to appeal excessive rents.
Introduce a new Private Rented Sector Landlord Ombudsman that will provide resolution for tenant complaints about their landlord.
Introduce a new Private Rented Sector Database to help landlords understand their legal obligations, alongside providing better information to tenants
Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse.
Apply the Decent Homes Standard to the private rented sector to give renters safer and better quality homes.
Apply Awaab’s Law to the private rented sector, setting clear legal expectations about the timeframes within which landlords must take action to make homes safe.
Make it illegal for landlords and agents to discriminate against prospective tenants that are in receipt of benefits or with children.
End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent.
Strengthen local authority enforcement by expanding civil penalties, introducing 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.
Thoughts from the Industry
Director of Benham and Reeves, Marc von Grundherr, comments:
“The Renters’ Rights Act arrives after years of sustained government intervention in the private rented sector, which has already been reshaped by repeated tax changes, regulatory tightening and a steadily increasing compliance burden. For many landlords, it will be viewed less as an isolated reform and more as part of a long-running pattern of policy accumulation that has steadily increased the cost and complexity of being a private landlord.
Even so, buy-to-let has not ceased to function as an investment asset. Despite repeated predictions of retreat from the sector, landlords have continued to operate within it, adapting to successive waves of reform rather than exiting in significant numbers. In many cases, the sales activity we’ve seen has simply been stock transferring from one landlord to another, particularly where there is a strong rental history in place. In markets such as London, where rental demand and growth have been notably robust since the pandemic, this has created clear opportunities for incoming investors to step in.
The removal of Section 21 will add further operational constraints, but it is unlikely to fundamentally alter that underlying dynamic.
There is a clear and continued level of engagement and confidence among landlords despite the incoming changes. We recently hosted a webinar attended by over 1,000 landlords from across the UK and a further 19 countries, underlining both the scale of interest and the global appeal of the UK rental market. Many of these investors understand the cyclical nature of property and how to navigate changing conditions, which is why sentiment remains broadly positive.
What is changing is the level of professionalism and compliance required to operate effectively. The sector is becoming more procedural, more documented and more legally formalised, particularly around possession and compliance. Those who treat letting as a structured business, rather than a loosely managed investment, are most likely to remain resilient in an environment where political scrutiny of the sector shows little sign of easing.”
Sam Humphreys, Head of M&A at Dwelly, comments:
“The Renters’ Rights Act will significantly increase the operational burden on lettings, highlighting the need for technology that helps agents stay compliant and efficient.”
“The Renters’ Rights Act is expected to significantly increase the administrative and compliance workload for letting agents and landlords, particularly as possession processes become more structured and documentation-led. As regulation becomes more detailed, the operational demands of managing even a standard tenancy are likely to rise.
In practical terms, this places strain on traditional, manual ways of working. From compliance tracking and arrears management through to maintenance coordination and referencing, the volume and complexity of tasks involved in tenancy management is set to increase at a time when margins and turnaround times are already under pressure.
This is accelerating the case for greater adoption of technology within the lettings sector. AI-enabled platforms can help reduce administrative friction, improve process accuracy, and speed up decision-making across the tenancy lifecycle. In turn, this can help agents minimise void periods and reduce lost rental income, outcomes that are becoming increasingly important in a more regulated environment.”
Roma Sharma, Managing Director of Rushbrook & Rathbone, commented:
“The Renters’ Rights Act will accelerate the shift towards professional property management, as increasing compliance demands make consistent, expert oversight a necessity.”
“The Renters’ Rights Act is going to accelerate the ongoing shift towards professionalisation in the property management sector. As demand for managed services continues to grow, it is also creating a more competitive and fragmented market, with increasing pressure on margins and a greater need for clear differentiation between operators.
What is emerging is a landscape where standards of service, compliance and expertise are not always consistent. In a sector where regulatory expectations are rising, that inconsistency becomes more significant, particularly for landlords who are increasingly reliant on effective long-term management of their assets.
The introduction of the Act is likely to reinforce this trend. As tenancy management becomes more complex and compliance-driven, landlords are facing greater operational demands. For many, professional property management is moving from being a convenience to a practical necessity.”
Chris Mason, COO of The Letting Partnership, comments:
“The Renters’ Rights Act is going to create immediate and significant compliance pressures for letting agents, particularly in relation to rent in advance and the way tenancy payments are handled. There remains a concerning gap between awareness of the reforms and an understanding of what compliance will require in practice.
Our recent findings suggest a notable proportion of agents are not yet compliant with key elements of the incoming rules. Almost 40% continue to take more than one month’s rent in advance, while 41% are unaware that rent cannot be accepted before a tenancy agreement is signed by all parties. This all serves to highlight a clear risk of non-compliance across the sector.
This creates an urgent need for agents to review and adapt their processes ahead of enforcement. As traditional approaches to managing risk through upfront rent are removed, greater emphasis will need to be placed on affordability checks, guarantor arrangements and, critically, robust client accounting systems that ensure rent is collected, recorded and handled in line with the new legal framework.”
Sim Sekhon, Group CEO at LegalforLandlords, comments:
“The removal of Section 21 changes the process, not the principle. Landlords still have the right to regain possession, but they will now need to evidence their case.
The Renters’ Rights Act shifts the sector from discretion to documentation. Outcomes will increasingly depend on clear evidence, correct process and consistent record keeping, raising the importance of strong tenant referencing and ongoing compliance.
There is also a wider shift in mindset. Landlords and letting agents will need to move beyond traditional property management and towards a more structured asset management approach.
That means focusing on yield, risk and long-term performance, where decisions around tenant selection and compliance directly impact income and value.”
Sián Hemming-Metcalfe, Operations Director at Inventory Base, comments:
“The Renters’ Rights Act represents a fundamental shift in how disputes will be resolved, with evidence at the heart of almost all of them. Whether justifying a rent increase through comparables, pursuing Section 8 for consistent late payment, or demonstrating damage or antisocial behaviour, the ability to evidence their position will increasingly determine the outcome. Good intentions and institutional memory won’t be enough.
Rent increases will face greater scrutiny. Landlords with comparable data to support their proposed increase will be in a far stronger position than those without. The days of informal adjustments based on gut feel are over.
The same applies to possession. Section 8 has always required evidence, but with no Section 21 backstop, the quality of that evidence matters more than ever. Thorough records of communication, arrears, and property condition will be decisive if a dispute reaches the courts or the new ombudsman.
Maintenance is no different. A clear, timestamped record of inspection reports, repair requests and responses puts a landlord in a very different position, both defending against spurious claims and pursuing legitimate ones.
In a more regulated system, thorough record keeping stops being best practice and becomes essential protection, for landlords and tenants alike.”
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