"This proposal is a welcome move for tenants, but landlords and property managers must be proactive in understanding and complying with the new requirements"
- Daniel McAfee - Lawhive
The proposed ban on no-fault evictions is set to reshape the relationship between landlords and tenants, with legal experts warning it could create more disputes and court pressures if not carefully managed.
Daniel McAfee, UK lawyer and head of legal operations at Lawhive, explained: “The ban on ‘no-fault’ evictions, which would abolish Section 21 evictions, fundamentally alters the balance of power between landlords and tenants. While this move is designed to provide greater security for tenants, it may inadvertently lead to an increase in disputes. Without the ability to evict without cause, landlords may become more stringent in their tenancy agreements and more likely to pursue legal action to regain possession when issues arise. This could increase the burden on courts, which would need to handle a surge in possession claims where landlords are required to demonstrate ‘robust grounds’ for eviction.”
Rent caps and contract law concerns
McAfee noted that proposals to cap in-tenancy rent increases could generate further challenges. “The proposed cap on in-tenancy rent increases could raise potential legal conflicts, especially concerning contract law and market pricing,” he said. “Landlords may argue that the cap interferes with their ability to set rents at market rates, potentially leading to challenges based on contractual freedom. The cap will need to be justified as a reasonable measure to protect tenants, without unduly infringing on landlords’ rights to negotiate terms freely.”
He added that the law places stronger obligations on landlords to ensure fairness in rental terms. “The law limits landlords’ ability to set financial terms that could disadvantage tenants, thereby shifting their responsibilities towards fostering a fairer and more accessible rental market. It aligns landlords’ obligations with broader societal goals of housing affordability and equity. Landlords should focus on efficient screening processes and consider alternative methods to secure tenancies, such as guarantor services or insurance products, rather than relying on large deposits or upfront payments.”
Maintenance and safety obligations
The bill also introduces stricter rules on property standards. “Under Awaab’s Law, landlords who fail to address serious hazards such as damp or mold face significant penalties, including fines up to £7,000 and possible prosecution,” McAfee explained. “Non-compliance could also lead to loss of rental income and damage to the landlord’s reputation, especially if tenants are empowered to take legal action. The law will likely prompt landlords to be more proactive in property maintenance, though it may also lead to disputes over the interpretation of what constitutes a ‘serious hazard.’”
Compliance measures for landlords
To remain compliant, landlords will need to update practices and systems. “Landlords must review and amend tenancy agreements to ensure they do not stipulate advance payments exceeding one month’s rent,” McAfee advised. “Property management systems should also be updated to reflect this change, and staff should be trained on the new requirements. Failure to comply could result in financial penalties, regulatory action, or potential legal disputes with tenants. Landlords could also face reputational damage, making adherence to the new rules essential.”
Changing tenancy terms
The amendments will also reshape tenancy conditions. “The law will likely introduce changes to tenancy agreements, particularly around renewals and termination conditions,” McAfee said. “This could result in more transparent and tenant-friendly terms. By encouraging affordability, the law indirectly promotes greater tenant stability. Additionally, new rules are expected to reinforce landlords’ obligations to maintain properties at a decent standard, providing tenants with more recourse to address substandard conditions.”
McAfee concluded: “This proposal is a welcome move for tenants, but landlords and property managers must be proactive in understanding and complying with the new requirements. While campaigners have celebrated the measure as a victory for tenant rights, critics from the property sector argue it may introduce additional burdens on landlords, potentially impacting rental availability. Balancing these concerns will be key as the Bill progresses through Parliament.”
