What the Renters' Rights Bill means for landlords
Paul Shamplina from NRLA recognised supplier, Landlord Action gives us his insight into what the Renters' Rights Bill means for landlords.
With the Renters' Rights Bill set to transform the private rental sector, the upcoming changes - particularly the abolition of Section 21—are now firmly on the horizon. As someone who's worked with landlords for nearly 30 years, I understand the concern this causes. But while some worries are valid, I want to reassure landlords that they shouldn’t fear change. The reality is that without landlords, there’s no private rented sector (PRS). You’re essential to the housing market, and with the right preparation and professionalism, you’ll come out stronger.
The end of Section 21: What does it mean?
For five years, we’ve known that Section 21, which allows "no-fault" evictions, would eventually go. The Renters' Rights Bill abolishes this, meaning landlords will no longer be able to ask tenants to leave without giving a reason. Assured Shorthold Tenancies (ASTs) will be replaced by periodic assured tenancies, set to take effect around the summer of 2025. This means fixed-term tenancies as we know them will be a thing of the past, and tenants can give notice to leave from the very first day of their tenancy.
For landlords, this creates uncertainty. There’s no more guaranteed six-month minimum, and tenants can choose to leave at any time. I understand how unsettling this is, but landlords are adaptable, and there are ways to adjust to this new normal. In fact, we may see some landlords offering longer fixed-term tenancies before the changeover, giving them more certainty while they navigate the transition.
With Section 21 gone, landlords will need to rely on specific grounds to regain possession of their properties. These include the new grounds for landlords wishing to sell or move a family member into the property, but these come with restrictions. For example, you can’t use these grounds within the first 12 months of a tenancy, and you’ll need to give four months’ notice. If successful, you won’t be able to re-let or re-market the property for 12 months. The evidence required here will likely be stringent, and the courts will closely scrutinise these claims to avoid abuse.
Another major change is to Ground 8, which applies to rent arrears. Previously, you could evict tenants with two months of arrears, but this threshold will now increase to three months. While this ground remains mandatory (if proven, the court must grant possession), the delay means landlords could face greater financial losses before being able to act. A minimum of four weeks’ notice will also be required.
While I’m supportive of many changes in the Renters' Rights Bill - especially those improving property standards - my greatest concern, as I have said many times before, is how the court system will cope. As it stands, the courts are already overburdened. At Landlord Action, we’ve seen landlords waiting up to two years to regain possession. One case has dragged on for 19 months, and we still don’t have a hearing date. This kind of delay cannot become the new norm.
With the volume of possession claims likely to increase after Section 21 is abolished, the courts will be under even more pressure. Without extra funding and resources, the promises of strong grounds for possession could end up being meaningless if landlords can’t get a hearing in a timely manner.
Despite these challenges, the Renters' Rights Bill presents an opportunity for landlords to elevate their professionalism. I’ve always said that landlords need to run their properties as a business. This Bill pushes us towards that, weeding out rogue operators and giving landlords who maintain high standards a competitive edge. Now is the time for landlords to look at their business models, understand the new regulations, and adapt.
Some of the new measures will help create a fairer playing field. For example, landlords will need to advertise properties with the proposed rent clearly stated upfront, and rent bidding (where tenants offer more to secure a property) will be banned. While this removes some flexibility, it could also simplify the process and ensure landlords get the rent they initially sought.
Alongside these changes, landlords will also need to navigate new regulations about tenants’ rights, such as the ability to request pets. Landlords will need to respond to such requests within 28 days, and while you’re not required to agree, you must have reasonable grounds to refuse.
When it comes to rent increases, landlords will need to give two months’ notice—another move aimed at protecting tenants. While this might feel like additional red tape, being transparent and managing relationships with tenants in a professional manner is the key to staying ahead.
The truth is, landlords are the backbone of the PRS, and without you, the entire system collapses. Tenants need homes, and you provide them. As more landlords exit the market due to uncertainty, we’re already seeing the number of available rental properties shrink, which is pushing up rents and straining housing supply. The government needs to recognise this. Protecting tenants is important, but so is ensuring that landlords can continue to operate effectively.
My advice is simple: don’t fear change, but embrace it. Understand the details of the Renters' Rights Bill, adapt your business, and prepare for the future. The market is evolving, and landlords who step up to the challenge will thrive. Those who already run their properties professionally will likely benefit from the new structure, as it will drive out those who cut corners and give the rest a bad name.
At Landlord Action, we’re here to help landlords through this period of change. I’ll be speaking at events like the NRLA On Tour, where we’ll discuss these issues in more detail and provide guidance on how to navigate the new regulations.
In conclusion: Don’t panic, prepare
The Renters' Rights Bill is a major shift for the sector, but landlords are resilient, adaptable, and vital to the housing market. With the right approach, you can continue to provide quality homes while protecting your interests. Professionalism is the key. Prepare, stay informed, and don’t let fear of change stop you from succeeding.
As I’ve always said, landlords are essential to the PRS, and by adapting to these new rules, you’ll not only survive—you’ll thrive in the years to come.
