The Renters’ Rights Act: What it means for landlords, brokers and the BTL market – Drummond

The question for landlords and brokers alike is a simple one: are you prepared?

The act represents a major shift in how the private rental sector operates, with the clear aim of giving millions of renters stronger rights and greater security. While much of the conversation has understandably focused on what this means for tenants, there are important implications for landlords and for the brokers who support them.

The most significant headline is the removal of so‑called ‘no‑fault’ evictions. Under the new legislation, landlords will no longer be able to end a tenancy without a valid, evidenced reason. This places a greater emphasis on clear documentation and good tenancy management from day one.

We’re also expecting to see the end of fixed‑term assured shorthold tenancies (ASTs), replaced by a more flexible rolling arrangement, operating on a month‑to‑month or week‑to‑week basis with no fixed end date. Renters will be able to end their agreement by giving two months’ notice, giving them greater freedom to move when their circumstances change.

Rent rules will also become fairer and more transparent. Landlords will need to advertise a clear and fixed rent to discourage bidding wars and ask for no more than one month’s rent upfront. They will also need to limit rent increases to a maximum of one per year. And importantly, tenants will also have the right to challenge rent increases if they believe they are unfair.

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The act introduces stronger protections around discrimination. Landlords will no longer be able to refuse tenants simply because they have children or receive benefits, and requests from renters who want to live with a pet must be fairly considered.

Implications for landlords

So, what does this mean for landlords? Well, there’s no doubt this creates a more regulated environment. Compliance, record‑keeping and property standards all come under sharper focus, and some may feel that flexibility has been reduced, particularly when it comes to regaining possession.

That said, there are also clear opportunities. Landlords may need to maintain higher property and management standards and plan for longer‑term tenancies as the norm, rather than the exception. For many, this is a chance to professionalise portfolios further and focus on sustainable, long‑term rental strategies that work for both landlords and tenants.

During this period of change, the broker’s role has never been more important. These changes are likely to shape client conversations over the coming months and years, and brokers may be approached for advice around portfolio structuring and risk management. They also need to be well-equipped to support first‑time landlords navigating a more complex regulatory landscape. Staying informed and proactive is key, and the role of the broker will inevitably evolve to that of a trusted adviser for landlords.

As the landscape shifts, lenders like us must stand by our intermediary partners to help lead the way in this evolving market. We are committed to supporting brokers with ongoing insight into market and regulatory developments via our communications, flexibility and a common-sense approach to underwriting, and a dedicated business development manager (BDM) network to help support a smooth application process.

The Renters’ Rights Act marks a major change for the private rental sector. While it introduces new challenges, it also creates opportunities for landlords and brokers to adapt, strengthen their approach and focus on long‑term sustainability.