Legal Expert Reacts to Renters’ Rights Bill: “Both Landlords and Tenants Will Lose in the Long Term”

He warns that the implications of the new Bill could have far-reaching effects across the private rented sector.

“The obligations of the Renters’ Rights Bill mean that if landlords seek to sell their properties and exit the market, in the long term, both landlords and tenants will lose,” Daniel says.

“Of much greater risk to landlords is if they refrain from serving notice on tenants until closer to completion, or after exchange, at a time when they are contractually obliged to sell, as serving notice is not the same as guaranteeing vacant possession.”

“The new Bill implies into law the right of every tenant to ask for a pet. There seems to be greater financial risks for landlords who consent to the occupation of pets… landlords risk throwing good money after bad in seeking to recover damages where tenants often have less means.”

Abolition of Section 21 and New Re-letting Rules

The Renters’ Rights Bill delivers on the long-promised abolition of no-fault (Section 21) evictions — a change that has been in discussion since 2019. On the surface, the reform appears to benefit tenants, enhancing security for the 11 million private renters in England. However, Daniel warns that it also places new pressures on landlords.

“In general, landlords will now need to have specific reasons and comply with certain formalities to recover possession of properties. However, the obligations of the Renters’ Rights Bill mean that if landlords seek to sell their properties and exit the market, in the long term, both landlords and tenants will lose.”

Under the new measures, landlords will only be able to recover possession if there is a genuine property sale. Selling a property with a tenant in situ remains possible, but the buyer must take on the tenancy agreement.

“If a sale collapses through no fault of the landlord, the property may remain vacant for up to 12 months,” Daniel explains. “The greater risk arises if landlords delay serving notice until they are contractually obliged to sell — as serving notice is not the same as securing vacant possession.”

Tenants’ Right to Keep Pets

The Bill also enshrines in law a tenant’s right to request permission to keep a pet, with landlords required to respond within 28 days and only able to refuse on reasonable grounds.

“While many tenancy agreements already contain similar clauses, the lack of clarity over what constitutes ‘unreasonably withholding consent’ creates uncertainty,” Daniel says. “Given the continued restrictions on tenant deposits under the Tenant Fees Act 2019, and Parliament’s refusal to allow a three-week pet damage deposit, landlords could face increased financial exposure.”

He adds that pursuing damage claims through the courts may prove costly and often unrecoverable:

“Landlords risk throwing good money after bad in seeking to recover damages where tenants often have less means.”