Landlords have been warned to brace for significant changes to the private rental sector as the Renters’ Rights Bill nears becoming law. Sean Hooker, Head of Redress at the Property Redress Scheme, has cautioned that the legislation will transform tenancies “overnight”, creating major implications for both landlords and tenants.

Uncertainty Over Implementation Date

While the Bill is expected to take effect later this year, no official date has been confirmed. Experts anticipate implementation between June 2025 and spring 2026, with many predicting October or later.

Speaking at the National Landlord Investment Show, Hooker emphasised that the biggest challenge landlords face is this legislation, which will abolish Section 21 “no-fault” evictions and bring sweeping reforms to the rental market.

Government’s Perspective vs. Landlord Concerns

Housing Minister Matthew Pennycook has defended the Bill, arguing it will:

• Improve tenant security
• Provide stability for 11 million private renters
• Ensure landlords retain fair rights to reclaim properties

However, landlords fear unintended consequences. The removal of Section 21 could make it harder for landlords to repossess properties, increasing risks and costs. Hooker warned that if the Bill is not balanced, rental supply could shrink, pushing rents even higher.

Potential Market Consequences

• Reduced rental stock: Landlords may sell properties, further tightening supply.
• Higher rents: A drop in available homes could increase competition among tenants.
• Landlord exodus: Increased regulation could discourage new investors, worsening the housing crisis.

Paul Shamplina, founder of Landlord Action, fears that many landlords may exit the market, leaving renters with fewer choices and rising costs.

Landlords Face a Difficult Future

With rising costs, higher interest rates, and increased regulation, many landlords feel pressured to reconsider their role in the market. While the Bill aims to improve conditions for tenants, an imbalance could reduce rental supply, increase rents, and create new challenges for both landlords and tenants.