The government’s proposed Renters’ Rights Bill has generated significant debate and uncertainty across the UK’s housing sector, with experts, trade bodies, landlords and letting agents all weighing in on its potential impact and on the lack of clarity from Westminster.

Government secrecy

Despite growing anticipation for the Renters’ Rights Bill, the government has so far refused to reveal critical information about its impact on the already overstretched court system. When asked for details about the Bill’s effect on the courts, the Department for Levelling Up, Housing and Communities (DLUHC) said:

“The Renters’ Rights Bill will transform the private rented sector for millions of renters and landlords.

It will ensure tenants have greater security and powers to challenge poor practice, while landlords will be able to recover their properties more easily where tenants are at fault.

The Government is committed to ensuring the courts have sufficient capacity to manage the transition, and we will continue to engage with stakeholders across the sector.”

However, the DLUHC has refused to publish the full impact assessment, prompting accusations of a lack of transparency on a crucial issue for landlords.

Landlords increasing rents

Uncertainty and perceived risk have already started to impact landlord behaviour. A survey reported by The Negotiator found 47% of landlords intend to increase rent in the next 12 months, citing the Bill as a primary reason.

Landlords fear that the Bill’s proposed abolition of Section 21 “no-fault” evictions and the new regulatory burdens could leave them vulnerable or less able to manage their properties effectively.

One respondent told The Negotiator “It feels like we’re being backed into a corner with little protection. If these changes go through, raising rents is the only way to manage the increased risk.”

When will the Bill go live?

With so much up in the air, the question of when the Renters’ Rights Bill will actually become law remains unanswered. Current expert opinion suggests the Bill is unlikely to be implemented before late 2025 or even 2026.

Potential destabilisation of the housing market

Some industry experts are warning that the Bill could have far-reaching, unintended consequences. Andy Halstead, chief executive of property technology firm Let Alliance, cautions that the reforms could destabilise the housing market.

He states “The Renters’ Rights Bill as currently drafted risks destabilising the private rented sector at a time when stability is desperately needed.

“Landlords are already facing significant challenges with increasing costs and regulatory pressures, and this Bill could further reduce confidence and push more landlords to exit the market.

“That would only serve to reduce the availability of rental homes and drive up costs for tenants.”