Updated government guidance under the Tenant Fees Act, issued after the Renters’ Rights Act came into force, has raised questions about whether some professional rent guarantor contracts entered into before 1 May may still be valid. The guidance also indicates that tenants must be given genuine choice over guarantor services, and that requiring a specific provider could amount to a prohibited payment.
Slough Council has proposed introducing additional HMO and selective licensing schemes that could bring around 17,000 rental properties under new regulation for five years. The plans would extend licensing to smaller HMOs and other private rented homes, with a consultation running for 10 weeks and closing on 23 September.
The article argues that the Renters’ Rights Act is already affecting the rental market, with Foxtons reporting lower revenue and Savills saying landlords in prime London are raising rents to offset higher costs and administration. It also suggests the legislation is contributing to earlier tenant move-outs, an expectation gap between landlords and tenants, and some landlords considering selling rather than continuing to let.
Hamptons reports that landlord sales have slowed after the Renters’ Rights Act, with more landlord purchases than sales recorded in June for the first time since 2019. The research suggests the new 12-month re-letting ban after serving notice to sell may be making landlords more cautious, particularly where sales are slower and failed sales are more common, such as in flats and in London and the South.
The article argues that the Renters’ Rights Act has created significant disruption in the student lettings market by allowing some tenants to end contracts early, leaving landlords and agents with summer voids and reduced income. It suggests the sector may respond by changing tenancy start dates, increasing rents, or shifting supply toward purpose-built student accommodation and professional lets.
