Landlords are just weeks away from the most radical overhaul of rental law in decades as the Government forces through its Renters’ Rights Bill, rejecting the majority of changes proposed by the House of Lords.
No-Fault Evictions Axed
The headline reform will scrap Section 21 “no-fault” evictions, replacing them with stricter possession grounds. Fixed-term tenancies will be abolished in favour of rolling agreements, and rent-in-advance restrictions will tighten cash flow flexibility.
Immediate Impact, Delayed Support
While core measures will bite straight away, sector support such as a national landlord register and Ombudsman scheme will be phased in later. Property professionals warn this leaves landlords navigating sweeping change without the promised infrastructure in place.
Key Rejections that Hit Landlords
-
No extra pet deposit: Peers’ push for a separate three-week pet deposit was blocked. Landlords remain bound by the five-week cap, regardless of potential pet damage.
-
No mandatory pet insurance: Landlords cannot require tenants to hold insurance, leaving them exposed to pet-related costs.
-
Re-letting restrictions remain: A failed sale still locks landlords out of re-letting for 12 months, despite calls to halve the wait.
-
Student lets limited: The right to reclaim student housing won’t extend to smaller properties, restricting options for landlords serving that market.
Industry Warning Signs
Landlord groups have criticised the Government for prioritising tenant protections without balancing landlord risks. They argue the rejection of pet-related safeguards and the 12-month re-letting rule could deter investment, exacerbating the shortage of rental homes.
Final Countdown
The Bill is expected to become law this autumn. “This is a once-in-a-generation change, and landlords have only a matter of weeks to prepare,” said Lucy Jones, Chief Operating Officer at Lomond.