Renters' Rights Act impacts English rental market and local policies

The implementation of the Renters' Rights Act in England is leading to significant shifts in the housing market. The legislation, which abolished Section 21 'no-fault' evictions and replaced fixed-term tenancies with rolling periodic tenancies, aims to strengthen tenant protections and improve housing standards.

In Wokingham, the borough council is updating policies to support the law, which affects approximately 10,000 residents in the private rental sector. Local officials have welcomed the measures, noting that the council will gain enforcement powers to act when tenants are threatened with illegal evictions or face violations of rental agreements.

However, early data suggests the reforms may be causing unintended economic consequences. Three months after the Act took effect, rental prices in England have continued to climb. According to the Goodlord Rental Index, average monthly rents for new tenancies rose from £1,211 in May to £1,309 in June.

Industry experts suggest that because landlords are now restricted to raising rent only once every 12 months, many are setting higher initial asking prices to avoid being locked into lower rates. Additionally, rental supply is shrinking as landlords exit the sector, while tenant demand remains high.