Navigating the Renters’ Rights Act: Key changes for landlords

Originally published by The Intermediary 

For much of the period leading up to the implementation of the Renters’ Rights Act, the focus was understandably on what landlords needed to do to prepare, but with the main first phase of the legislation having been in force since May, the conversation needs to move on.

The Act of course represents a major change to the way the private rental sector (PRS) operates in England, and while landlords should already have dealt with a number of its requirements, implementation did not begin and end on a single date.

Further measures are still to come, which is why, in the first of this three-part series, I want to look at what has already changed, what further measures landlords can expect, and why advisers who understand the developing requirements will be well-placed to help their landlord clients deal with them.

A very different rental environment

Perhaps the most widely discussed change has been the abolition of Section 21, which means landlords now need a valid possession ground if they want to regain their property, while the move away from fixed-term assured shorthold tenancies means all tenancies are now periodic.

However, these are far from the only changes landlords are dealing with, because rents can now only be increased once a year through the stipulated process, tenants have the right to challenge increases, rental bidding has been banned, and landlords cannot discriminate against prospective tenants because they have children or receive benefits.

Tenants also have stronger rights when requesting pets, while property condition and the way landlords respond to issues such as damp, mould and repairs are becoming increasingly important considerations.

What is particularly useful now is to move beyond simply listing these changes and consider how they are playing out in the real world, because that is where the implications for individual landlords become much clearer.

We are already seeing the types of situations that demonstrate this, whether it is a landlord wanting to regain possession because they intend to sell, a tenant requesting permission for a pet, a landlord seeking a sizeable rent increase in response to higher costs, or complaints being made about the condition of a property.

Each situation is different, but collectively they demonstrate why landlords need to understand the processes they are now required to follow, the evidence they may need to retain and the potential consequences of getting those processes wrong.

The questions advisers can ask

This is also where advisers can provide considerable support, without straying into areas where landlords should seek legal, tax or other professional advice.

For example, have clients updated their tenancy and management processes following the move to periodic tenancies? And do they understand the revised possession grounds now Section 21 has gone? How resilient would their rental income be if a tenant fell into arrears? And have they considered whether their insurance arrangements provide sufficient protection?

There are also questions around whether compliance certificates and property records are current, how complaints and repairs are being recorded and managed, and whether individual properties are still producing the returns landlords expect.

Some landlords will already have considered all these points in detail, particularly those operating larger professional portfolios, but others may have focused on the immediate requirements without considering the wider consequences for their property business.

We have recently launched our updated ‘Getting Landlords Renters’ Rights Ready: A Guide for Advisers’ document, alongside new broker conversation material, designed to help advisers with precisely these discussions, providing action plans, tips and practical questions that can be used to start conversations with landlord clients. Brokers can access and download all of these resources from the Fleet website: https://www.fleetmortgages.co.uk/renters-rights-act-resources-for-advisers/

The adviser does not have to know every answer, because part of providing good support is recognising when a client needs input from another professional, but understanding the issues and asking the right questions can ensure important matters are identified earlier.

There is more still to come

It is equally important that neither landlords nor advisers regard May as the finishing line because, as we know, the Act is being implemented in stages and further requirements remain ahead.

These include the introduction of the Private Rented Sector Database, which will be rolled out on a region-by-region basis in England from 15^th December 2026, starting in the West Midlands and expanding to other areas over 12 months. The Ombudsman is likely to follow later, coming into force in 2028. But both will create additional responsibilities for landlords, while the direction of travel on property standards and enforcement means there will continue to be issues requiring attention.

As the timetable and further detail for these measures are confirmed, advisers will have another natural opportunity to communicate with landlord clients, explain what is changing, direct them towards useful information and ask whether the latest requirements create issues they have not previously considered.

More than a mortgage conversation

For advisers, this should therefore be viewed as much more than another reason to discuss mortgage products, because the greater opportunity lies in demonstrating an understanding of the environment in which landlord clients now operate.

A client might need mortgage advice as a result of one of these conversations, but equally they might need to review their insurance, speak to a solicitor, address a property management issue or consider whether their existing portfolio remains right for their longer-term objectives.

The Renters’ Rights Act provides advisers with repeated opportunities to raise those questions as its different stages take effect, while our guides and supporting material can provide the information needed to help make those conversations useful.

In the next two articles in this series, I will look more closely at the questions advisers should now be asking landlord clients, including some they may never previously have considered, before considering how those answers can feed into a wider assessment of portfolio performance, resilience and future plans.