Could Stronger Tenant Protections Lead to Fewer Rental Properties?
Anna Clarke is a Chartered Legal Executive in our Residential Conveyancing Department. You can contact her by emailing anna.clarke@stephenrimmer.com or by calling 01323 644222
The Renters' Rights Bill, introduced by the government, signals a significant shift in the private rented sector. Designed to protect tenants and balance the relationship between renters and landlords, the Bill brings new regulations that will greatly impact how rental properties are managed.
The Renters’ Rights Bill is set to transform tenancy laws in England and Wales, offering stronger protections for tenants, including the abolition of ‘Section 21’ evictions. Now in its second reading in the House of Lords, the proposed legislation aims to prevent unfair evictions, but there are growing concerns that it could also lead to a reduction in available rental properties.
Currently, Section 21—named after the relevant part of the Housing Act 1988—allows landlords to reclaim their properties without providing a reason. It is often used when tenants fail to pay rent, as an alternative to lengthy court proceedings, or when landlords need to sell or move in themselves. However, it has also been criticised as a loophole that enables some landlords to evict tenants unfairly, such as in retaliation for complaints about property conditions or to pressure them into accepting rent increases.
Under the proposed changes, landlords would need to provide a legally valid reason for eviction, such as rent arrears, anti-social behaviour, selling the property, or a significant breach of the tenancy agreement. The required notice period would vary depending on the grounds, extending up to four months in some cases.
With county courts already struggling with delays, the introduction of a requirement to prove grounds for eviction is expected to increase the number of contested cases, further slowing down an already overloaded system.
The sector recognises the importance of greater security for tenants, but the changes are likely to add significant time and cost to the eviction process—even in cases where landlords have clear and legitimate reasons for repossession. In some areas, it could take up to a year to remove a tenant who has stopped paying rent, and if a claim is contested, the process might stretch to 18 months or more.
For landlords with mortgages or those dependent on rental income, these extended delays could bring serious financial strain. Faced with the risk of lengthy legal disputes and rising rent arrears, many small-scale private landlords may reconsider their place in the rental market.
A reduction in available rental properties could, in turn, push up rents—potentially creating more difficulties for tenants in the long run.
With the Bill now in its final stages in the House of Lords, landlords should start preparing for the new legal landscape. Reviewing tenancy agreements, ensuring compliance, and working closely with letting agents to manage risks at every stage will be crucial. Seeking specialist advice early on will help landlords navigate these changes and avoid unnecessary disputes or financial losses.
ENDS
Note: This article provides general information on current legal issues and should not be considered legal advice.