Renters' Rights Act: Good or Bad for London Landlords?
Renters' Rights Act: Good or Bad for London Landlords?

The Renters' Rights Act came into force on 1 May, fundamentally altering the landlord-tenant relationship. But can it benefit both sides? We present the case for and against in this week's Debate.

YES: Flexibility means tenants stay longer, reducing void periods and costs

The leading narrative frames this legislation as a win for tenants at the expense of landlords. However, approached correctly, the Act can prove beneficial to both parties. For too long, the rental market has rewarded complacency. Rents have risen sharply since the pandemic, regardless of property quality or tenant service. This Act demands landlords become proactive, not passive—working harder to provide a better product and responsive service. This is not a threat but a standard serious investors should already meet.

Grounds for possession are now more aligned with commercial leasing standards—structured, evidenced, and proportionate. Abolishing fixed-term contracts has sparked debate, but the reality is that renters seek stability they have not been offered. At Noiascape, flexible contracts have shown that secure, well-served tenants stay for years, not months. This results in lower void periods, re-letting costs, and tenant turnover, ultimately increasing net operating income. The math of a four-year tenancy versus four successive one-year lets is straightforward.

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The Act must provide clarity on rent increase rules to prevent landlords exiting the sector, which could reduce supply and drive rents higher—an unintended consequence harming renters. Nonetheless, this is an opportunity for a reset. Landlords who treat properties as investments and tenants as counterparties protecting that investment will find the Act works in their favor.

James Teatum is co-founder of Noiascape

NO: Landlords will struggle to resolve legitimate possession cases swiftly

The Renters' Rights Act is unlikely to be welcomed by many landlords in England, especially in London. London's private rental sector is unique—the largest market, often exposed to shocks, and a significant part of the national picture. The Act's impact on landlords, stock availability, and the overall market in the capital is a major concern.

Quantifying the direct impact may prove impossible due to multiple challenges facing private landlords. However, unless the government recognizes the damage to the sector and mitigates risks, the effects will be profound. The starting point must be the courts service. Without urgent reform, landlords cannot resolve legitimate possession cases swiftly and efficiently, discouraging long-term investment in London's market.

The overriding motivation must be to retain responsible landlords who provide much-needed homes and encourage property investment. Without this, many landlords may exit, worsening the chronic shortage of rental properties in London.

Chris Norris is chief policy officer at the National Residential Landlords Association

THE VERDICT

After years of discussion, Labour's Renters' Rights Act—a flagship manifesto policy promised in 2024—is finally law. As of Friday, all tenants in England have new entitlements, including the abolition of no-fault evictions and the right to request pets. This is a massive shift in power. While Mr. Teatum argues benefits for landlords, he omits a crucial caveat: longer tenancies benefit landlords only with good tenants. The Act makes all tenancies rolling, limiting landlords' ability to evict troublesome tenants unless selling or moving in, reducing flexibility. The surge in no-fault evictions just before the Act suggests landlords are concerned.

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