‘Snakes and Ladders’ Risks Increase for Landlords as Renters Rights Act Shifts Balance Towards Tenants

Residential landlords are being warned that the Renters’ Rights Act will substantially increase setbacks in possession claims, with a wrong move likely to send more cases back to square one in a game of snakes and ladders.

The Act is being rolled out from May 1 and introduces the most significant reforms to tenancy law in decades.

These include the abolition of no-fault evictions and fixed-term contracts in favour of periodic tenancies, alongside tighter restrictions on rent increases and new rules governing when landlords can sell, move into their property or take action against tenants in arrears.

The changes are designed to strengthen tenant protections and improve security of tenure.

Mike Carter, a litigation partner at north west law firm Bermans advising landlords and letting agents nationwide, said: “The new legislation will bring sweeping changes and fundamentally tip the balance further in favour of tenants, significantly reducing the limited flexibility that landlords have historically relied upon.

“In practice, it will make it much more difficult for a landlord to regain possession without a clear and valid legal ground.

“The requirements of the Act increase complexity and create a heavier evidential burden on landlords. There will be greater scrutiny and longer notice periods when seeking possession.

“Unless they get their paperwork exactly right, it could feel like snakes and ladders – where missing a step or failing to meet the criteria will likely result in them having to start the process all over again.”

In addition to the abolition of no-fault evictions, the new rules mean tenants must be at least three months in arrears before landlords can seek possession, up from two months.

Notice periods for tenants in arrears double from two to four weeks, and landlords seeking to sell or move back into a property will have to give four months’ notice and will be unable to do so within the first 12 months of a tenancy.

Later this year, a new mandatory landlord database is set to be introduced, with penalties for non-compliance including fines and potential restrictions on the ability to regain possession.

Mike added that tenant awareness of their rights has increased significantly, fuelled by readily available, authoritative advice from housing charities and local authorities, making the landscape markedly more challenging for landlords.

He said that in most cases tenants are being encouraged to stay in properties until the end of the legal process, further extending the timeline for landlords.

“There is already a shortage of housing stock, and tenants will understandably want to stay put for as long as possible. That makes it even more important to get things right from the outset,” he added.

“They need to prepare now for the legislation or risk being caught out. This includes reviewing and updating tenancy agreements, revising rent review processes, and ensuring all documentation is fully compliant.

“Those who fail to plan and satisfy all the criteria simply won’t get possession and could find themselves sent back to square one. Understanding the reforms is essential for landlords to remain compliant, avoid costly delays and protect their assets, including their value.”

Bermans is an award-winning, full-service commercial practice operating across the north west and nationally from offices in Liverpool as well as Manchester.

It is part of MAPD Group, which was founded by Brian Cullen and Joanna Kingston-Davies in 2020 to power the growth of local law firms nationally through acquisition. The initials stand for Making a Positive Difference.