Landlords warned of higher costs and tighter rules under 'most significant change in decades'

The new rules will touch almost every part of letting property, from tenancy agreements to eviction procedures, marking a major shift in how renting is managed across the country.

Parliament has now given final approval to the Renter’s Rights Bill, which Brooke Taylor, property finance expert describes as "one of the most significant changes to the private rented sector in England that has happened in decades."

The Bill has completed its journey to Royal Assent, the final step before becoming law.

Landlords in England are facing sweeping new obligations under the Renter’s Rights Bill, as the law prepares to overhaul the private rental market from top to bottom.

Fixed-term shorthold tenancies will be scrapped entirely, meaning property owners must now secure buy-to-let insurance even for short-term lets.

Section 21 "no-fault" evictions under the Housing Act 1998 will also be abolished, with landlords only able to reclaim their properties through specific, justified grounds.

Alongside this, a national database will record every private landlord and rental property, while a new independent ombudsman will be set up to handle tenant disputes.

Renters will gain a series of new rights, including the ability to challenge excessive rent increases, protection from bidding wars, and stronger entitlements to keep pets.

Landlords will be required to give four months' notice if they intend to sell or move into a property, and tenants will be guaranteed at least twelve months of security from the start of their tenancy.

According to Mr Taylor, these changes mark "one of the most significant shifts in the private rented sector in decades."

He says landlords now face five major challenges. Fixed-term contracts will be replaced by rolling periodic agreements, creating uncertainty over when owners can recover their properties and making portfolio management more complex.

“The new rules will prevent landlords from including automatic rent-increase clauses in agreements, with rises now restricted and bidding wars banned,” Mr Taylor explains. "Income growth will slow, forcing adjustments to financial projections and yield calculations.”

He adds that compliance costs will also rise due to mandatory registration, ombudsman oversight, and tougher property standards. Landlords will need to dedicate more time and resources to meeting documentation and regulatory requirements.

"There's a real concern that these reforms could push smaller or lower-margin landlords out of the market," Mr Taylor warns.

Supply reduction could drive rental costs higher if property owners abandon the sector. Market contraction might worsen housing availability for tenants despite the bill's protective intentions.

"As the Bill limits exit flexibility, restricts income growth, and raises compliance costs, we're likely to see an impact on property valuations," Mr Taylor notes. Mortgage providers may adopt stricter lending criteria for rental properties.

The reforms create particular challenges for investors with smaller portfolios or tighter profit margins. Professional operators maintaining high standards might benefit from market differentiation, whilst others face mounting operational pressures.

Financial institutions are expected to reassess risk profiles for buy-to-let lending, potentially tightening credit availability in the rental property sector.