The Renters’ Rights Act: The Questions Landlords Are Really Asking

The Government’s Renters’ Rights Act (“the Act”) represents one of the most significant shake-ups to England’s private rented sector in decades. With reforms such as the abolition of section 21 “no-fault” evictions, new tenancy structures, and stronger repair and safety standards, it has been said that the Act is intended to create a fairer, more secure rental market for tenants. There has been extensive commentary on the Act, but beyond the headlines, many landlords and freeholders are raising deeper, more practical questions:

1. Should I think about selling my rental properties before the new rules take effect?
2. How does the Act interact with Awaab’s Law and the growing focus on damp and mould?
3. What are the cost implications for landlords who will now be pushed to use section 8 notices?
4. Are there any loopholes? With fixed-term tenancies ending, can landlords use alternative models to achieve better letting security?
5. How will the Act impact my mortgage?

Are landlords really selling up?

This is perhaps the most common question we are hearing from clients. While the Act does not expressly force landlords to sell, it certainly tightens the rules around possession, repairs, and tenant rights. Smaller landlords, particularly those with heavily mortgaged properties and/or older homes, may feel squeezed by new compliance obligations. The fear is that regulatory burdens and the loss of “eviction flexibility” could reduce the number of private landlords, thereby shrinking supply and pushing up rents.

Key points to consider

Evictions

The abolition of section 21 “no-fault” evictions means landlords need to rely exclusively on section 8, in accordance with specific grounds such as wanting to sell the property or move family in, rent arrears or serious anti-social behaviour. The section 8 process is more regulated and time-consuming.

Repairs and maintenance

Stronger obligations around disrepair and damp may increase costs, particularly for older homes. The need to meet stricter standards (especially under Awaab’s Law, see below) may force capital expenditures on older properties. Some landlords may calculate that the margin under rental income does not justify those costs, especially in lower-value areas, prompting them to sell up. 

Compliance costs

New requirements, such as future registration, National landlord database entry, and participation in Ombudsman schemes, will add administrative layers for landlords.

Whilst selling might look tempting from a risk perspective, landlords will need to weigh up the Capital Gains Tax, transaction costs, and whether alternative investments offer better returns with less risk. Many landlords hold buy-to-let assets precisely because of long-term capital appreciation, tax strategies, or pension replacement. We recommend that clients review their portfolios, consider which properties are most affected by compliance risk and maintenance obligations, and then decide whether to streamline their holdings or exit altogether.  

Despite the risks, data shows that only 35% of landlords have left the market whilst tenant demand stays high; therefore, for those landlords who remain, they may find there to be an opportunity here. Generally, property continues to be viewed by many as a tangible asset with strong long-term performance and tax efficiency, offering financial benefits despite the more complex regulatory landscape.,

Clients may also wish to wait until the final form of the Act has been produced so that the regulations and the extent to which they affect landlords are understood. It may be that the government provides tax incentives or mitigation measures (e.g. reliefs, grants) to offset the detriment of the Act.  Landlord clients should run “stress tests” on their portfolios now (projecting costs, worst-case compliance scenarios) and assess whether the new regime still delivers acceptable risk-adjusted returns.

How does the Renters' Rights Act interact with Awaab’s Law?

Awaab’s Law is a statutory reform, named after Awaab Ishak, a child who died due to mould exposure in 2020, which mandates strict time limits for social housing landlords to repair hazards (especially damp, mould, fungal growth, and emergency hazards). Since 27 October 2025, it now applies in the social housing sector, with obligations on social landlords to investigate and remediate hazards within fixed timeframes and, where a property cannot be made safe promptly, to provide alternative accommodation for the tenants at the landlord’s expense. Later phases, due to be implemented in 2026 and 2027, will extend to other hazards.

Importantly, the Renters’ Rights Act will extend the scope of Awaab’s law to tenancies and licences in the private rented sector. This means that even private landlords will need to carry out investigations and repair works within specified timeframes, which will be set out in future regulations. Failure to comply with these regulations will entitle tenants to raise complaints with the new Private Rented Sector Landlord Ombudsman or bring court proceedings, usually via injunctive relief against their landlords. There are currently no set timescales as to when Awaab’s law will apply to the private rented sector, but it is on the horizon.

Landlords are advised to carry out prompt inspection of their properties, implement an effective system to deal with repair requests, and maintain accurate records of their action plans. It would also be sensible for landlords to explore insurance products to mitigate the risks ahead of the Act being implemented next year.

What are the Cost Implications?

One of the most common practical concerns we hear from landlords is how the end of section 21 “no-fault” evictions will affect both cost and time when regaining possession. Under the current system, landlords have two main routes. Section 21 allows landlords to recover possession at the end of a tenancy without alleging tenant fault, and when served correctly, the claim can often proceed through the accelerated possession procedure, which usually avoids a court hearing.  In contrast, section 8 requires the landlord to rely on one of several statutory grounds, for example, rent arrears, anti-social behaviour, or the landlord’s intention to sell or move in a family member. These cases usually require a court hearing and supporting evidence, and tenants can contest them. Here is an estimated cost and time comparison of the two eviction types:

Figures are approximate and dependent on several variables like case complexity, location, and solicitor involvement. They do not include enforcement costs and all disbursements.

The Act has brought in 37 grounds for possession, some old and some new, but for the most part, there are now longer notice periods and more discretionary grounds (a discussion on the specific grounds will constitute another article, as there are so many discussion points to be had in this regard). A lot of our landlords have expressed concern, citing that discretionary grounds are “useless”; but with the right evidence in place, they are not. For example, if a landlord is alleging disrepair, then a good report from a surveyor will be required.

With the section 8 model firmly in place, many of our clients have asked whether it will still be necessary to serve a Gas Safety Certificate on their tenant. It is currently not a requirement under the Act, but that does not mean it will not be included in the legislation at the very last minute.

There is also nothing stopping landlords from entering into Cash for Keys agreements. Put simply, this is where the landlord offers the tenant a financial incentive to voluntarily vacate the property. We anticipate that these private arrangements will be on the rise once the Act has been implemented, but it will be prudent for landlords to do so in writing and preferably enlist the assistance of a lawyer when drafting the agreement to ensure that key points are covered (beware of “Possession Experts” who are not usually legally qualified and not insured). This option offers the landlord speed, cost-effectiveness, and reduced conflict, whilst tenants have the opportunity to skip often hostile litigation with their landlord.

Can landlords use alternative tenancy models to achieve better letting security?

Lawyers tend to avoid the word loopholes as it is suggestive of something sinister or sneaky in the law. The Act has made clear that fixed-term tenancies will be abolished and converted to periodic tenancies. Further, any agreement created outside of the legislation will be illegitimate and will attract criminal sanctions.

It is, however, possible to form a contract for the use and occupation of property that is not a tenancy but a licence to occupy. For example, a licence to occupy where the occupant does not have exclusive use of the property because the landlord needs to provide support services (for example, in temporary accommodation or in supported housing) is outside the scope of this legislation. This is not a loophole but a different vehicle altogether, which serves a different purpose. 

The distinction between tenancies and licences is important. However, it is also interesting to note that the Act will extend Awaab's Law to accommodation occupied under a licence. Licensors will need to address prescribed hazards within defined time limits; in the same way, private landlords will need to take corrective action in the private rented sector. In addition, the Act extends the definition of “residential premises” as set out in the Housing Act 2004, such that the Decent Homes Standard (which applies to the social rented sector) will apply to temporary accommodation for the homeless.

The message seems clear that whilst there is currently a legal distinction between a tenancy and a licence agreement, if there is a risk that the "licence" may be deemed to be a tenancy, landlords could be liable to prosecution and potentially rent repayment orders. In other words, Assured Shorthold Tenancies cannot be falsely dressed up as licences, as to do so may result in civil penalties.

Further, the trajectory of the Act seems to be expanding to include licences within the scope of the new legislation. This is because the Secretary of State has the power to pass regulations which can change the meaning of "residential tenancy" to include other types of tenancy or licence in other areas of the Act where this is currently not included. Both licensors and landlords will be able to rely on the defence that they have taken 'all reasonable endeavours to avoid the breach'. However, as we see it, the Act upholds the government’s long-standing commitment to make the private rented sector housing secure, safe and decent for all, whether that is for tenants or licensees.

Will the Renters' Rights Act affect my mortgage?

The abolition of section 21 notices will limit the quick recovery of properties, and with the ending of fixed-term tenancies and restrictions on rent increases, the landlord’s income stream will be compromised, which will impact their ability to service their mortgage, which may increase risk. Furthermore, landlords face greater exposure to civil penalties and fines if compliance is not met with the Decent Homes Standard, Awaab’s Law, PRS database and the PRS Ombudsman.

To meet the new standards, landlords may be required to financially invest in their properties, and if capital is not readily available, they may need to look to refinance. In turn, lenders will need to weigh up these risks to see how they can support landlords without compromising their positions. This may include reassessing mortgage arrangements and preparing for potential enforcement if they become mortgagees in possession.

The implementation of the Act may encourage lenders to carry out enhanced due diligence on borrowers, requiring them to provide evidence of PRS registration, registration with the new redress scheme, DHS compliance, Deposit protection scheme compliance and so on. Property inspections may increase, and regular reviews may take place to ensure compliance and to manage risk. Landlords should certainly be ready to have further dialogue with their lenders once the Act has been implemented, as they will have a key involvement in the running of buy-to-let properties.

Conclusion: Preparing for a new landscape

The Renters’ Rights Act is designed to protect tenants, but it also reshapes the legal and commercial environment for landlords. While some may see challenges ahead, others will find opportunities in becoming more professional, transparent, and compliant operators.
The key is to prepare early, understand your obligations, and adapt. With the right strategy, landlords can continue to thrive in the new era of renting. Landlords are encouraged to:

1. Audit your properties – Identify maintenance, damp, or energy efficiency issues early.
2. Review your tenancies – Clarify repair obligations, service charge provisions, and dispute procedures.
3. Budget for compliance – Include potential costs for repairs, registration fees, and legal updates.
4. Improve record-keeping – Keep written logs of maintenance requests, responses, and repair works.
5. Stay informed – Track when different parts of the Act and Awaab’s Law come into force.
6. Get advice early – A short legal review now may prevent expensive disputes later.