England's Renters' Rights Act Overhauls Private Rental Market

The Renters' Rights Act, hailed as the most extensive overhaul of residential lettings in a generation, came into force in England, affecting around 11 million private‑rented households. It replaces fixed‑term assured shorthold tenancies with month‑to‑month periodic tenancies and abolishes Section 21 no‑fault evictions, requiring landlords to use strengthened Section 8 grounds for possession. The Act also caps advance rent payments at one month, introduces a Private Rented Sector Ombudsman, a new Decent Homes Standard for private rentals, and mandates registration on a national property portal.

In Woking, landlords must adjust to the loss of fixed‑term contracts, manage more unpredictable void periods, and ensure properties meet the new standards. Premium lets and family homes face added compliance costs, while all letting agencies are warned of financial risks such as reduced cash flow, potential landlord exits, and increased arrears. The Property CA advises agencies to model scenarios where 5‑10 % of managed portfolios disappear, to safeguard profitability and staffing levels.

The reforms aim to increase housing supply by giving owners more confidence to return vacant properties to the market, while also offering tenants stronger protections against abrupt evictions and excessive upfront payments.