Landlords divided as new renters law looms

Around half a million landlords in London are preparing for what has been described as one of the biggest changes to housing law in history, with the Renters' Rights Act due to come into force on 1 May.

Housing law specialists claim the reforms have already had an impact, with an increase in "no‑fault eviction" notices being served in recent months.

Some landlords felt pushed into serving notice, with a number now selling up and leaving the sector, according to Paul Shamplina, founder of Landlord Action.

But the Housing Secretary Steve Reed said 2.7 million renters across London would benefit from the bill, "ending Section 21 no‑fault evictions so families can't be forced out without reason".

The changes to the law include:

• Banning no‑fault evictions
• The end of fixed‑term tenancy contracts, with renters moving on to so‑called rolling agreements
• An end to bidding wars, meaning new tenants cannot be asked to pay more than the advertised price
• Clearer rules around having pets

Opinion on the bill has been divided, with landlords and renters often at odds over how the Renters' Rights Act (RRA) should be implemented and the impact it will have.

Adam Osieke, a legal director at Kennedys Law who specialises in property disputes, described the act as "a blunt tool to tackle a complex problem".

But many renters feel the changes could bring long‑awaited improvements to security and fairness in the private rental market.

BBC London has spoken to a number of tenants and landlords about their views on the changes and what they could mean for them.

Amanda Richardson, a pensioner from east London, owns three rental properties, two of which are let to local authorities.

She said she bought the properties to supplement her state pension and was concerned about the impact of the upcoming changes.

Speaking to the BBC, Richardson said: "I've always had long‑term tenants and I'm very worried about this new RRA, as there seems to be no support for landlords in it.

"The government seem to be demonising all landlords, when most of the issues highlighted recently come from large social housing companies."

Louisa Hill, who rents privately in Battersea, welcomed the changes to tenants' rights.

She said: "The flexibility of the rolling tenancy is really beneficial, especially as you're not then trapped in these one or two‑year tenancies."

Hill also praised the clearer pricing and the move to end what she described as "secret bidding wars".

She added: "It can get very competitive when you are trying to get somewhere."

However, her landlord, David Simms, takes a different view. He is the director of S&M Property Limited and owns 10 properties in the Clapham area of south‑west London.

He says he is planning to sell half of them over the next few years and believes the act will bring additional bureaucracy for landlords.

He gave the example of a tenant information sheet he is required to share with renters by the end of May.

Simms said failing to do so could result in a £7,000 fine, which he said would amount to more than a quarter of a million pounds when applied to every tenant across his business.

Under the new system, landlords would instead need to rely on a Section 8 notice, which requires stricter grounds in order to evict a tenant.

These include:

• A landlord intending to sell the property or have a family member move in
• Tenants falling into rent arrears
• Antisocial behaviour by the tenant

Simms said he had never issued a Section 21 notice but was worried about what he described as the tougher criteria.

Speaking to BBC London, he said: "The additional risk is if I cannot get the property back at a point that suits to enable me to sell in the future, then it makes it hard to justify what is a razor‑thin or often negative return for something that you know is not viable in the long run."

However, a major property firm felt the new act was a positive move.

Lora Bencheikh is the managing director of the Caridon Group, which owns and manages more than 2,000 properties across London.

Bencheikh said the reforms would lead to a better‑regulated lettings industry, stronger tenant rights and more experienced landlords committed to the long term, rather than those "looking to make a quick buck".

Around 90% of the Caridon Group's tenants are referred through local authorities or homeless charities.

Bencheikh said the company had no plans to sell any of its housing stock and added she had never seen such high demand for accommodation.

She said: "On average we are showing 18 people a studio and, more than ever, these people are entitled to housing benefit but are also working and have found themselves homeless."

Shamplina, from Landlord Action, pointed out that the number of Section 21 cases was running at nearly three times the level of Section 8 cases, raising questions about how the courts will cope once that balance shifts.

The courts minister, Sarah Sackman, said the government has worked closely with the Ministry of Justice and HM Courts and Tribunals Service to prepare county courts for the introduction of the tenancy reforms.

She said court capacity would be increased in anticipation of higher demand for hearings under the Section 8 process.

• Labour Party

The Secretary of State for Housing, Communities and Local Government, Steve Reed, said: "This is what change looks like: a Labour government working with Labour councils and a Labour mayor to bring down the cost of living and give Londoners the security of a home they can rely on."

• Conservative Party

The Conservatives said the Renters' Rights Act "was legislation that the Conservatives put forward in the last Parliament".

The party added: "Labour's version does not seek to strike an appropriate balance with landlords and, in the midst of a housebuilding collapse, will exacerbate housing costs for Londoners by driving landlords out of the market."

• Liberal Democrats

The Liberal Democrats said the rental market should offer "security, not stress… everyone has the right to a safe, warm and affordable home".

A party spokesperson said: "We've long called for an end to no‑fault evictions – a promise the Conservatives made and repeatedly broke. We're glad this has now been delivered, and we'll keep pushing to make renting fairer."

• Green Party

A Green Party spokesperson said: "Rent controls are not included in the Renters' Rights Act – something the Greens have campaigned on.

"Greens are hugely disappointed that this Labour government refuses to devolve powers for rent controls. The mayor of London hasn't done enough to push for this – Greens will keep up the pressure."

• Reform UK

Reform UK said: "Labour's Renters' Rights Act has been a disaster for renters in London. It's already driving landlords to sell up in droves, slashing rental supply and pushing up rental prices."

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