The Renters’ Rights Act has become law, bringing major changes for UK landlords. From eviction rules to tenancy reforms, here’s what you need to know. Plus, how falling SWAP rates and lender rate cuts could ease the pressure.
The private rental sector is facing one of its biggest shake-ups in decades. The Renters’ Rights Act has now received Royal Assent, and while implementation will likely roll out over the next six months, landlords need to prepare for significant changes.
Key Changes Under the Renters’ Rights Act
The headline reform is the abolition of Section 21 “no-fault” evictions. Landlords can now only evict under Section 8 grounds, such as antisocial behaviour, rent arrears, or if you intend to sell or move back into the property. If selling, you must give four months’ notice; if the sale falls through, you cannot re-let for 12 months.
Other major changes include:
• Periodic tenancies replace fixed terms: All assured shorthold tenancies will convert to rolling contracts automatically.
• Rent increases are limited to once per year and capped at market rate, with tenants able to challenge rises at tribunal.
• Upfront rent restrictions: Large advance payments (common for overseas tenants or those with poor credit) will no longer be allowed.
• Ban on bidding wars: You cannot accept offers above the advertised rent.
• Longer arrears threshold: Eviction for non-payment now requires three months’ missed rent (up from two).
• Decent Homes Standard compliance: Landlords must register properties on a new digital database and meet safety and quality standards.
• Anti-discrimination rules: No DSS bans, no refusal based on children, and tenants can request pets (with insurance).
These changes will require landlords to rethink tenant vetting, consider rent guarantee insurance, and ensure compliance with new documentation requirements.
Read the full details of all the changes included in the new Act here.
What Does This Mean for Your Strategy?
For landlords, the focus will shift to robust tenant screening, maintaining high property standards, and planning for longer notice periods. The removal of upfront rent options may make it harder to mitigate risk with overseas tenants or those with limited credit history.
SWAP Rates and Lender Pricing: A Silver Lining
Amid legislative changes, there’s some good news on the finance front. SWAP rates have fallen, with two-year swaps at 3.51% and five-year swaps around 3.56%, down from over 4% earlier this year. This opens the door for lender rate reductions, and we’ve already seen cuts from major names like TSB, NatWest, Santander, and Paragon.
If you have applications in progress, speak to your broker about switching to a lower rate before completion. And if you’re planning new purchases or remortgages, check that your lender allows rate switches post-application.
Search thousands of buy to let mortgage rates here.
Final Thoughts
The Renters’ Rights Act will reshape the UK rental market, but with careful planning, landlords can adapt and thrive. Preparing for the changes and taking advantage of falling fixed rates will mean you’re well-positioned for the future.
Ready to discuss your refinance plans? Contact MFB today on 0345 345 678 or submit an enquiry here.
