"The Renters’ Rights Bill will bring new challenges for landlords, with legitimate concerns about the long-term viability of their portfolios"
- John Angus - Switch Management Ltd
The Renters’ Rights Bill, due for imminent Royal Assent, represents the largest shift in private rental sector policy in nearly 40 years. The Bill will bring significant changes designed to help better protect renters, including the abolition of ‘no fault’ evictions, stricter compliance rules, and strengthening local authority enforcement powers.
A balancing act
The Renters’ Rights Bill is designed to address a perceived imbalance in the private rental sector by making the market fairer for tenants. The reforms aim to minimise tenancy insecurity, cap rental increases, and end ‘no-fault’ evictions.
Some of the key changes include:
· Abolition of Section 21 ‘no fault’ evictions - landlords must now use a Section 8 notice, citing the specific grounds for possession, such as rental arrears or antisocial behaviour.
· Assured Periodic Tenancies – fixed terms will be replaced with rolling, month-to-month contracts, giving tenants greater flexibility, but limiting landlords’ long-term certainty.
· Rent and notice restrictions – rent increases will be capped at once a year, landlords must give four months’ notice if they wish to sell or move back in – presenting an imbalance against the renter’s requirement to provide two months’ notice to end the tenancy.
While intended to improve tenant security, these measures also create new pressures for landlords.
Analysis by Dwelly shows landlord repossessions have already risen 6.8% nationally in the past year, with some areas experiencing spikes of more than 2,500%, as owners seek to protect themselves ahead of Section 21 being scrapped.
Meanwhile, a recent survey by Alto found that one third of letting agents had seen more landlords selling up, with over 90% concerned about further exits as the reforms take effect.
What these changes mean
For many landlords, particularly those with smaller portfolios, the Bill presents a number of concerns.
· Financial insecurity: extended notice periods and tribunal processes could tie up cash flow, while capped rent rises may leave some covering mortgage and maintenance costs.
· Increased compliance: new obligations, such as Awaab’s Law – while welcome – will require landlords to address maintenance concerns within strict timeframes, presenting greater cost and liability.
· Greater administration: with less flexibility across their portfolios, in line with the removal of fixed-term tenancies and the need to evidence possession grounds, the amount of additional paperwork required is expected to rise.
These challenges risk deepening an already untenable housing market, with government figures showing that more than 81,000 families with children are currently living in temporary accommodation, an increase of 13.7%. If landlord exits continue, councils will face even more pressure to rehouse families, either in unsuitable living conditions or more expensive long-term accommodation.
Partnership opportunity
However, there are solutions to help landlords adapt, remain profitable and continue to support tenants. Specialist property management companies offer a stable middle ground to help share the burden.
For example, at Switch Housing, we work as an intermediary between landlords, local authorities and tenants, to take on a two-year tenancy that guarantees long-term rental income, regardless of whether the properties are occupied or not.
This removes uncertainty around tenant turnover and rent arrears, and gives landlords complete peace of mind that they will be paid in full and on time while ensuring compliance with evolving regulations.
We also minimise the administrative burden by offering full property management services at no cost to the landlord - including tenant induction programmes, regular property inspections, and 24/7 maintenance support – as well as malicious damage guarantees.
Our work helps to rehouse vulnerable families who would otherwise remain in unsuitable temporary accommodation. This model demonstrates that protecting tenants and supporting landlords can go hand in hand.
Future solutions
The Renters’ Rights Bill will bring new challenges for landlords, with legitimate concerns about the long-term viability of their portfolios.
Yet, this creates an opportunity to rethink management practices and work in collaboration with a trusted, reputable third party, who can remove many of the stresses and uncertainties in an increasingly complex regulatory environment.
By partnering with a third-party expert, landlords can safeguard their portfolios and reduce the administrative burden, all while continuing to generate reliable returns. Most importantly, they can contribute to the delivery of safe, secure homes that vulnerable families across the UK desperately need.
