As the Government advances its renting reforms, the successor to the previous Renters (Reform) Bill, into its final parliamentary stages, the industry is increasingly alarmed by its potential to inadvertently shut out many tenants it ostensibly intends to help.

While the legislation rightly abolishes ‘no‑fault’ Section 21 evictions and strengthens protections, it fails to account for the complex realities of today’s tenant and lettings market.

The Bill is crafted with the best intentions, but it overlooks the nuance of real-tenure renting dynamics.

Abolished

Crucially, fixed-term contracts will be abolished, replaced with rolling periodic tenancies, and tenants may leave at any time with just two months’ notice. While this enhances flexibility, it strips away core security that many rely on to secure housing.

Tenants who previously offered six–12 months’ rent in advance, such as international students, migrants, self-employed professionals and people with past financial difficulties, will be unable to do so, as the Renters’ Rights Bill caps advance rent at one month.

That upfront rent was their only way to offset weak credit or lack of UK references. Without it, they are likely to be screened out by landlords before they even apply.

High risk

Another major concern surrounds short-term renting, including by contract workers, NHS locums, people between homes and temporary project staff, who rely on defined tenancy lengths. Without the ability to offer a three to six month fixed shorter term, landlords are far less likely to accommodate them.

If a tenant’s employment reference doesn’t show long-term, permanent work in a single location, landlords will see them as high risk knowing the tenant could give two months’ notice and leave at any time.

This uncertainty makes it virtually impossible for landlords to plan around re-letting or regaining possession. The situation is even more acute for owners of short-term or seasonal accommodation.

No guarantee

With the Government repealing Ground 3 of Section 8 [of the Housing Act 1988], which previously allowed landlords to recover a property used temporarily, such as a holiday let, they now have no guaranteed legal route to ensure they can get their property back when they need it.

The result is that many will simply stop renting altogether to anyone who can’t prove long-term stability, cutting off access to thousands of homes for exactly the people who need them most.

The private student rental market may also collapse.”

The private student rental market may also collapse. With no fixed terms proposed which are aligned to academic years for accommodation that is not a HMO or purpose-built for students, many landlords are unlikely to risk letting to students.

Similarly, pet owners, while allowed to request a pet, may face indirect exclusion; landlords will hesitate if tenants can leave unpredictably and risk property damage unrecouped beyond a single month’s rent.

Essential issue

Compounding all this is the Government’s silence on an essential issue: the impact on courts and possession processes. Despite repeated demands, no data has been released showing how the judiciary will absorb the expected surge in Section 8 cases.

If court delays stretch to six months or more, landlords will become ultra-selective. The people who already struggle will be locked out completely.

In summary, unintended negative consequences of the Renters’ Rights Bill:

• Sharp decline in short-term and flexible lets
• Withdrawal of landlords due to loss of tenancy control
• Exclusion of tenants with poor credit, no references or irregular income
• Collapse of private student lettings
• Indirect discrimination against pet owners
• Additional hurdles for vulnerable individuals and informal renters
• Increased rent, reduced availability and heightened competition
• Lack of clarity on court capacity and processing delays

Two-tier

This Bill could create a two-tier rental market, where only the ‘perfect’ tenants, those with clean credit, regular jobs, perfect references, can get homes. Everyone else gets shut out.

The Government needs to release its court-impact data, pause implementation and consider the impact of the unintended consequences of the Bill before irrevocably changing the rental landscape.

Des Simmons is Managing Director at Bournecoast Property Agents

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