The practical consequences of the Renters’ Rights Bill for agents
Solicitor, Neli Borisova, looks behind the headlines about how the Renters’ Rights Bill will impact the services agents provide to landlords.
With the now long expected and widely discussed Renters’ Rights Bill still progressing through Parliament, there are some less obvious practical consequences for agents.
Abolition of Section 21 Accelerated Possession Claims: On 15 May, the Ministry of Justice published its mortgage and landlord possession statistics for the 1st quarter of 2025 for England and Wales (Mortgage and landlord possession statistics: January to March 2025 – GOV.UK).
Almost a third (31%) of all landlord possession claims were accelerated possession claims, which means that they were issued and determined on paper, and did not require a court hearing. All of these claims were Section 21 claims as this is the only type of claim which can use the accelerated route. Since Covid, accelerated claims have represented about a third of all possession claims.
This is a relatively straightforward process which is less onerous on the limited court resources and is often successfully navigated by landlords and agents without legal assistance, which also makes it more affordable and accessible.
However, as a result of the impending renters’ reforms, accelerated possession claims will also cease to exist.”
However, as a result of the impending renters’ reforms, accelerated possession claims will also cease to exist. This will impact on users’ ability to navigate the possession claim process themselves and it will severely impede upon agents’ ability and willingness to assist landlords in the process without the involvement of a lawyer.
This is because a standard possession claim is more complex, involves a higher risk, requires preparation of evidence for court, and attendance of at least one court hearing.
More (complex) possession grounds
To compensate for the abolition of Section 21 notices, the new regime provides for new and updated possession grounds. Landlords will have to give a specific permitted reason in order to end a tenancy and they will have to provide evidence to satisfy a Judge that they can rely on the specific ground.
Especially where landlords are relying on discretionary grounds, adequate drafting and document preparation will be crucial and may make the difference between a successful and unsuccessful claim. Currently, landlords often opt for Section 21 even when there is a reason to terminate the tenancy. The reason for this is that as long as a landlord has complied with their legal obligations and followed the correct legal process, possession using a Section 21 notice is guaranteed. This will not be an option going forward.
Agents often draft and serve possession notices for landlords but this will be a less straightforward practice under the new regime to ensure that claims do not fail as a result of insufficient detail or evidence in a possession notice.
Crucially, the Renters’ Rights Bill also introduces an offence for serving a wrong notice, which increases the risk for anyone drafting or serving a notice. Agents will either have to receive additional training to manage this risk or this service will have to be handed over to the lawyers. In any event, the associated cost to landlords will inevitably increase.
Increased risk
The reformed rental sector will have to adapt its existing processes to comply with the new law. In areas such as service of notices and possession proceedings, for many agents the risk will be too high and reliance on legal assistance will likely increase.
Especially so in the first few months of implementation when changes will have to be implemented swiftly. There will be increased exposure to landlords and agents who choose to continue to handle possession recovery in-house and the accelerated possession process will no longer provide a cheaper and easier route to possession.
Neli Borisova is a Senior Associate in the Commercial Litigation team at JMW Solicitors.