The Renters’ Rights Act is set to fundamentally reshape the private rental sector. These reforms introduce strict new rules on property management and tenant interaction, making it vital for landlords to ensure total compliance.

With the first phase of changes launching on 1 May, the stakes are high: local councils can now impose fines of up to £40,000 or, in severe cases, pursue criminal prosecutions for non-compliance.

Core Changes at a Glance:

• The End of Section 21: A total ban on “no-fault” evictions.
• Rolling Tenancies: An end to fixed-term tenancies in favour of periodic (rolling) agreements.
• Rent Control: A prohibition on rental bidding wars and ad-hoc price hikes.

7 Essential Steps for Compliance:

1.      Distribute prescribed information for all existing tenancies:

you must provide tenants with the official government information sheet outlining these reforms. This must be done before 31 May. The document is available for download at Gov.uk.

2.      Formalise oral agreements:

If you currently operate on a “handshake” or oral agreement, you are now legally required to provide your tenants with a written statement outlining the key terms of their tenancy.

3.      Update Your Tenancy Templates:

Any agreement signed after 1 May must be compliant with the Act. Do not reuse old templates; using non-compliant contracts is a fast track to a heavy fine.

4.      Mandatory Disclosures:

New tenants must receive specific key information in writing (which can be integrated into the tenancy agreement). This includes:

• Landlord’s name and contact address.
• Exact rent amount and payment due dates.
• Security deposit details.
• A clear breakdown of any bills the tenant is liable for.

5.      Ban on Bidding Wars & Excessive Advances:

Rental advertisements must state a final asking price. Encouraging or accepting bids above this price is now prohibited. Additionally, landlords are capped at requesting a maximum of one month’s rent in advance.

6.      The New Rent Increase:

Rent increases are now limited to once per year. You must provide at least two months’ notice and use the formal Section 13 process. Informal “gentleman’s agreements” regarding rent hikes are no longer legally valid.

7.      Review Non-Discrimination Policies

It is now illegal to discriminate against tenants who have children or receive benefits. Check your tenancy documents, insurance policies, and mortgage agreements to ensure no such restrictive clauses remain.

A Warning on Letting Agents

Recent investigations by The Times suggest that some estate agents remain unprepared, with many still charging landlords for “renewals”. Under the new Act, fixed-term renewals are obsolete as all tenancies move to a periodic model. If your agency is still charging these fees, you should challenge them immediately and cite the change in law.

Written by Hayley Eachus, Partner and Practice Group Head.

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