Navigating the Renters’ Rights Act: What Landlords and Agents Need to Know

The Renters’ Rights Act represents the most significant overhaul of the private rental sector in decades. Introduced by the current Labour government, it seeks to “reset the balance” between landlords and tenants by strengthening protections, raising housing standards, and reshaping how possession and rent increases are managed.

Following Claire’s earlier blog on the key reforms, the House of Lords have made some tweaks, following which the Act received Royal Assent on 27 October 2025.

The Aim of the Act

At its core, the Act seeks to create a fairer, more secure renting system for what were formerly assured shorthold tenants. Key measures include:

• Abolishing Section 21 “no-fault” evictions.
• Converting all fixed-term assured shorthold tenancies to open-ended periodic agreements, with tenants permitted to serve two months’ notice to quit at any time.
• Limiting rent increases to once per year, with the right for tenants to challenge rises at tribunal.
• Banning rental bidding wars, where tenants were previously encouraged to outbid one another.
• Raising housing standards by applying the Decent Homes Standard to the private rented sector and enforcing Awaab’s Law, which requires urgent action on serious hazards such as damp and mould.
• Allowing tenants to keep pets unless it is reasonable for landlords to refuse permission.
• Providing landlords with greater restrictions on their ability to recover possession.
• Introducing mandatory registration for all landlords.

These reforms form part of Labour’s broader housing agenda, which also includes:

• Reassessing Green Belt land to uncover housing development potential.
• Expanding the Affordable Homes Programme across both urban and rural areas.
• Establishing a national landlord register and mandatory Ombudsman to update dispute resolution processes.

How Landlords Should Prepare

Landlords will be directly impacted by these reforms. To prepare, they should:

• Review their tenancies and portfolio to identify risks, especially those relying on Section 21 notices.
• Inspect properties now to address hazards and bring homes up to the required standards, avoiding future enforcement action.
• Update internal processes for tenant referencing, advertising, and issue logging, in anticipation of stronger Ombudsman oversight.
• Work with agents to ensure documentation, notice procedures, and systems are aligned with the new rules.
• Budget for higher compliance costs, from repairs and upgrades to potential delays in possession proceedings.

Landlords who act proactively will protect their investments, maintain good tenant relationships, and be well-positioned to navigate the new legal landscape.

How Agents Should Prepare

Agents sit at the intersection of landlords, tenants, and compliance. To be ready, they must:

• Update their tenancy templates, policies, and notice forms to reflect the new legislation.
• Provide staff training so teams can advise landlords and tenants with confidence.
• Upgrade administrative systems to track rent review dates, notice periods, and repair obligations.
• Communicate proactively with landlords, offering guidance and reassurance during the transition.

Agents who prepare early will reinforce their value, retain client trust, and be well-placed to grow in a challenging market.

Market Impact

The Renters’ Rights Act is expected to bring lasting change to the private rental sector. By enhancing tenant security, control shifts in favour of tenants who will no longer be tied into fixed terms. There is fear that this will lead to increased turnover of tenants leaving landlords with increased administration costs and budgeting difficulties. It remains to be seen if in fact the Act will foster more stable communities or have the opposite effect. However, this shift may also prompt a rise in landlord exits, with recent surveys indicating that as many as 39% of landlords are considering selling their properties.

Such a reduction in rental supply will intensify competition for available homes, thereby pushing up rents and placing further pressure on local councils already struggling to meet housing demand. Letting agents may also face financial strain, particularly with the end of tenancy renewal fees, which is predicted to significantly reduce income. While rental inflation may begin to cool, the sector is likely to experience a period of volatility as landlords, agents, and tenants adjust to the new regulatory landscape.

Risks, Criticisms and Grey Areas

Although the Act has been welcomed by many housing campaigners, it has also drawn criticism from landlord groups and raised concerns about unintended consequences. Critics argue that stricter property standards, capped rent increases, and extended possession timelines could deter investment and lead to a significant landlord exodus. This, in turn, may reduce housing supply and exacerbate the current affordability issues.

Operationally, landlords and agents will need to navigate a more complex compliance environment, with increased exposure to tenant disputes via the newly established Ombudsman.

Conclusion: Preparing for Change

The Renters’ Rights Act represents a fundamental reshaping of the private rental market. Stakeholders who delay preparation risk disruption, legal exposure, and reputational harm. Landlords should review agreements, update possession strategies, and ensure properties meet the Decent Homes Standard. Agents should train staff, modernise systems, and communicate clearly with clients.

For personalised advice and more information on how these issues might affect you directly, please reach out to our specialist team at Kingsley Napley LLP.

For more information on any of the issues mentioned in this blog, please contact Vanessa Rhodes, Claire Lamkin or Úna Campbell.