Agents at risk as Renters' Rights Act hits letting market

Agents at risk as Renters' Rights Act hits letting market

Agents at risk as Renters' Rights Act hits letting market

Agents at risk as Renters' Rights Act hits letting market

Priya Kapoor

Priya covers regulation and compliance for Property Filter. She specialises in translating complex legislation into practical guidance for landlords and letting agents.

THE PROPERTY FILTER TAKE

  • The Renters' Rights Act is now live in England, and a significant share of letting agents still do not understand the rules they must follow.

  • If your agent is not across the new framework, your tenancy management could be exposed to penalties and invalid notices from day one.

  • You may wish to contact your letting agent directly to confirm they have updated their procedures under the Renters' Rights Act.

The Renters' Rights Act (RRA) is now in force in England. It is the most significant overhaul of residential tenancy law in a generation. And according to Letting Agent Today, a significant proportion of letting agents are still not across how the new rules work - which means some are technically in breach from the moment the Act took effect.

What the RRA changed and when

The Renters' Rights Act abolished Section 21 evictions - commonly known as no-fault evictions, where a landlord could reclaim a property without giving a specific reason - and replaced the assured shorthold tenancy (AST), the standard private rental agreement used across England for decades, with a new tenancy framework.

Every letting agent in England must now operate under this framework. There is no grace period for agents who were slow to prepare. The effective date is the date the Act came into force, and compliance obligations attached at that point.

Full source article unavailable at time of writing (paywall).

What non-compliance looks like in practice

In practice, an agent who continues to issue documentation based on the old AST structure, or who advises a landlord that a Section 21 notice remains valid, is operating outside the law. Letting Agent Today reports that a significant proportion of agents are still not clear on how the rules work - which creates direct risk for landlords who rely on those agents to manage their properties correctly.

The penalties for non-compliance under the RRA sit with both landlords and agents depending on the specific breach. Where an agent acts on a landlord's behalf, the landlord can still bear liability for procedural errors. That is a critical point for investors who have handed day-to-day management to a third party and assumed the compliance burden transferred with it. It did not.

What property investors in England should check now

If you hold rental property in England and use a letting agent, the following areas are worth reviewing.

First, confirm your agent has updated all tenancy agreements and notice templates to reflect the new framework. Any document referencing the old AST structure or Section 21 is now outdated.

Second, ask your agent how they are handling existing tenancies that were in place before the Act came into force. The transition rules matter, and agents unclear on the new framework may also be unclear on how the changeover applies to live tenancies.

Third, you may wish to request written confirmation from your agent that their internal procedures have been updated and that staff have been briefed on the Renters' Rights Act requirements. If an agent cannot provide that reassurance, it is worth considering whether they remain the right partner for your portfolio.

The RRA is not a future risk. It is a live compliance obligation today.

The Renters' Rights Act (RRA) is now in force in England. It is the most significant overhaul of residential tenancy law in a generation. And according to Letting Agent Today, a significant proportion of letting agents are still not across how the new rules work - which means some are technically in breach from the moment the Act took effect.

What the RRA changed and when

The Renters' Rights Act abolished Section 21 evictions - commonly known as no-fault evictions, where a landlord could reclaim a property without giving a specific reason - and replaced the assured shorthold tenancy (AST), the standard private rental agreement used across England for decades, with a new tenancy framework.

Every letting agent in England must now operate under this framework. There is no grace period for agents who were slow to prepare. The effective date is the date the Act came into force, and compliance obligations attached at that point.

Full source article unavailable at time of writing (paywall).

What non-compliance looks like in practice

In practice, an agent who continues to issue documentation based on the old AST structure, or who advises a landlord that a Section 21 notice remains valid, is operating outside the law. Letting Agent Today reports that a significant proportion of agents are still not clear on how the rules work - which creates direct risk for landlords who rely on those agents to manage their properties correctly.

The penalties for non-compliance under the RRA sit with both landlords and agents depending on the specific breach. Where an agent acts on a landlord's behalf, the landlord can still bear liability for procedural errors. That is a critical point for investors who have handed day-to-day management to a third party and assumed the compliance burden transferred with it. It did not.

What property investors in England should check now

If you hold rental property in England and use a letting agent, the following areas are worth reviewing.

First, confirm your agent has updated all tenancy agreements and notice templates to reflect the new framework. Any document referencing the old AST structure or Section 21 is now outdated.

Second, ask your agent how they are handling existing tenancies that were in place before the Act came into force. The transition rules matter, and agents unclear on the new framework may also be unclear on how the changeover applies to live tenancies.

Third, you may wish to request written confirmation from your agent that their internal procedures have been updated and that staff have been briefed on the Renters' Rights Act requirements. If an agent cannot provide that reassurance, it is worth considering whether they remain the right partner for your portfolio.

The RRA is not a future risk. It is a live compliance obligation today.

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult a qualified professional before making investment decisions.