While the Renters’ Rights Act was designed to improve tenant protections, the full effects of the legislation are only now starting to make themselves known, with various provisions in the act unintentionally increasing risk, costs and delays that will be felt by both tenants and landlords.

The sector faces a challenging period, but understanding what lies ahead will help landlords to better navigate and manage the impact. Thankfully there is now some greater clarity as the Government has at last released The Renters’ Rights Act Information Sheet, which must be served on tenants before 31^st May to avoid a costly £7,000 fine.

1. Evictions will cost landlords heavily

One of the most significant changes within the legislation is the abolition of Section 21 ‘no-fault’ evictions. This will shift the possession process from what has historically been a relatively administrative procedure into a costly and time-consuming legal process, which could cost landlords £3,000 simply to regain possession of their own property.

2. Court and Tribunal backlogs 

Pursuing possessions and settling disputes through the Courts and Tribunals will also place additional pressure on an already overstretched legal system.

There are millions of tenancies across England, but nowhere near enough professionally qualified surveyors and valuers assessing cases meaning that delays are almost guaranteed.

For example, as of 1^st April 2025, there were just two regional surveyors and 77 valuers assigned to the Upper Tribunal’s Property Chamber as their primary appointment. Given the volume of cases that could arise, there are understandable concerns about the capacity of the courts to handle them.

With Local Authorities advising tenants to remain until bailiffs attend, enforcement timelines may lengthen further.”

As if that wasn’t enough, limited bailiff appointments will worsen backlogs. With Local Authorities advising tenants to remain until bailiffs attend, enforcement timelines may lengthen further, increasing landlords’ losses while they await possession.

If court capacity does not increase, confidence in the justice system could well be undermined. Rather than addressing existing bottlenecks, the Renters’ Rights Act risks opening the floodgates and adding further pressure to an already congested system.

3. Rent increases driven by risk pricing

Growing regulatory complexity and financial uncertainty are contributing to what many landlords perceive as increased risk, which is now being factored into rental pricing.

For example, the provisions to restrict landlords from requiring pet insurance from tenants have been widely criticised across the sector. While the intention may have been to make renting more accessible for pet owners, it ultimately removes one of the mechanisms landlords use to mitigate potential property damage.

If landlords are unable to manage risk through insurance or deposits, the most likely outcome is that the risk will instead be absorbed into rental pricing, and it will be tenants that ultimately bear the cost. We saw this pattern when the Tenant Fees Act came into force in 2019, and it is likely to happen again.

4. Landlords exiting the sector 

The private rented sector decreased by 5.1% in 2025 – losing £48 billion in value – as landlords sold up and left the sector to an impossibly difficult tax regime and the incoming Act.

Many landlords who have chosen to stay will simply sell up if they find the Act makes leasing their property too burdensome.”

The exodus is already taking place, but many landlords who have chosen to stay will simply sell up if they find the Act makes leasing their property too burdensome.

This is already causing a major supply issue, reducing tenant choice and increasing rents as there is no sufficient alternative available to meet the shortfall.

5. Surge in homelessness

A diminished supply of private rental properties, combined with struggling councils that are already operating beyond capacity, could add further pressure across the housing system. Socially rented housing is already oversubscribed and will not be able to absorb the additional demand.

Recent reports like John Lewis abandoning its build-to-rent plans have highlighted the struggles the sector is having with economic viability. Without critical new supply entering the market, the result could be devastating – we’ll see a rise in housing insecurity and that will inevitably drive more homelessness.

6. Growth of unregulated lettings

Another potential consequence is the growth of informal or unregulated rental arrangements. There are already signs of short-term or temporary letting structures designed to avoid the regulations, including unlawful subletting and the fraudulent use of social housing.

In some cases, social housing tenants have reportedly been subletting properties at higher rents, effectively creating a ‘black market’ within the housing system, raising concerns around not just taxation, but also safety standards and protection for tenants.

Although local authorities now have enforcement powers, which are certainly welcomed, we’ll have to wait and see how effective they are in practice – being subject to the same court delays and due process requirements, even in clear cases of fraud, possession proceedings could take months to resolve.

Not only would this result in the Treasury losing income tax revenue while landlords wait for resolutions, but a growing black market would also run directly counter to the government’s aim of strengthening protections for renters.

Resilient but strained

The private rented sector is resilient, but it’s under significant strain. While it is right that action is taken against landlords who fail to meet proper standards, it is equally important to recognise and support the many professional landlords who provide well managed homes and play a vital role in addressing the housing shortage, rather than being treated as a source of it.