It feels like the Renters’ Rights Act 2025 has been a long time coming — but having received Royal Assent on 27th October, it has finally passed into law in England and on 13th November the government laid out a partial timetable for its implementation.
Some enforcement-type provisions are scheduled to come into force before the end of 2025, including expanded local authority investigatory powers and increased civil penalties for certain landlord breaches.
The major reforms (such as abolishing “no-fault” evictions and converting all assured shorthold tenancies (ASTs) to periodic assured tenancies) will now come into force on 1st May 2026.
Phases two and three, which include bringing in a new Private Rented Sector Landlord Ombudsman and a landlord database to give renters information on their home and who they are renting from, are still to be given an implementation date.
Although the first major reforms are now six months away, this shouldn’t be a sign to relax preparations. Change is coming and landlords, investors and lenders should stay ahead of the curve.
While the Act’s aim to enhance tenant security, affordability, and living quality should be welcomed, it needs to be balanced alongside maintaining a healthy supply of rental properties and keeping private landlords motivated to continue trading.There is a risk that the Act will have unintended consequences, including a loss of supply of rental accommodation and further inflationary pressures on rental levels as a result of higher regulatory and maintenance costs for landlords.
In the student sector in particular, landlords may be forced to increase rents to cover decreased annual occupancy levels.
Landlords may also become more selective in choosing tenants, preferring those with higher incomes and better credit histories to minimise risks. Perversely, the unintended consequence of these changes could be that it becomes harder for tenants to find affordable rental properties.
There is a big question-mark over how all of the new and existing infrastructure associated with the Act is going to be managed and funded. This includes the new Private Rented Sector Landlord Ombudsman, Digital Property Portal, monitoring of the new Decent Homes Standard and an expected significant increase in court and tribunal hearings — given landlords will now have to prove good reason for eviction and the likely significant amount of challenges made to tribunals in respect of rental increases.
It’s not currently clear how the government intends to manage increased demand on the courts/tribunals and what additional resources it will put in place to deal with existing backlogs. The reality is that in the short-term at least, court backlogs will only increase, and the existing provision will be incapable of policing or monitoring much of the new legislation.
The Renters’ Rights Act marks a pivotal moment for the private rented sector — one that, with the right approach, could lead to a fairer, more professional and sustainable market for everyone. Change always brings challenge but it also brings opportunity.
At United Trust Bank, we’re ready to support landlords who want to adapt and thrive in this new landscape.
