"Unless [landlords] get their paperwork exactly right, it could feel like snakes and ladders, where missing a step or failing to meet the criteria will likely result in them having to start the process all over again"
- Mike Carter - Bermans
Residential landlords are being warned that the Renters' Rights Act will substantially increase the risk of setbacks in possession claims, with procedural missteps likely to send cases back to the beginning in what one lawyer describes as a game of snakes and ladders.
The Act, which will begin rolling out from this Friday, 1 May, introduces the most significant reforms to tenancy law in decades. These include the abolition of no-fault evictions and fixed-term contracts in favour of periodic tenancies, tighter restrictions on rent increases, and new rules governing when landlords can sell, move back into a property, or take action against tenants in arrears. The changes are designed to strengthen tenant protections and improve the security of tenure.
"The new legislation will bring sweeping changes and fundamentally tip the balance further in favour of tenants, significantly reducing the limited flexibility that landlords have historically relied upon," said Mike Carter, a litigation partner at north west law firm Bermans (pictured).
"In practice, it will make it much more difficult for a landlord to regain possession without a clear and valid legal ground. The requirements of the Act increase complexity and create a heavier evidential burden on landlords. There will be greater scrutiny and longer notice periods when seeking possession. Unless they get their paperwork exactly right, it could feel like snakes and ladders, where missing a step or failing to meet the criteria will likely result in them having to start the process all over again."
The practical implications are considerable. Beyond the abolition of no-fault evictions, tenants must now be at least three months in arrears before landlords can seek possession, up from two months. Notice periods for tenants in arrears double from two to four weeks. Landlords seeking to sell or move back into a property must give four months' notice and cannot do so within the first 12 months of a tenancy.
A new mandatory landlord database is also set to be introduced later this year, with penalties for non-compliance that include fines and potential restrictions on the ability to regain possession.
Carter also points to a shift in tenant awareness that is compounding the challenge for landlords. Readily available advice from housing charities and local authorities has significantly raised tenants' understanding of their rights, and in most cases, tenants are being encouraged to remain in properties until the end of the legal process, extending timelines further.
"There is already a shortage of housing stock, and tenants will understandably want to stay put for as long as possible," he said.
"That makes it even more important to get things right from the outset. They need to prepare now for the legislation or risk being caught out. This includes reviewing and updating tenancy agreements, revising rent review processes, and ensuring all documentation is fully compliant."
"Those who fail to plan and satisfy all the criteria simply won't get possession and could find themselves sent back to square one. Understanding the reforms is essential for landlords to remain compliant, avoid costly delays and protect their assets, including their value."
