The Renters’ Rights Act exposes a major problem in lettings - the tech being used is not fit for purpose any longer, argues Richard Jenkins.
21st Jan 20260 478 3 minutes read Richard Jenkins
The Renters’ Rights Act is now on the statute book and while most of its provisions do not take effect until May, the implications are already being felt across the private rented sector.
This legislation has been framed by some as a crackdown on landlords. That misses the point.
Deeper issueWhat the Act really exposes is a deeper issue. Much of the UK lettings industry is still operating on processes, habits and assumptions that belong to a different era.
I was reminded of this recently when we hosted a webinar for landlords alongside Suzanne Smith, better known as The Independent Landlord.
More than 500 people joined, not because they were anxious or disengaged, but because they were looking for clarity. What many are being offered elsewhere is confusion, contradiction and, in some cases, advice that simply will not survive under the new rules.
Biggest changeThe biggest structural change is the end of fixed term assured shorthold tenancies.
From May, all tenancies become open ended assured periodic tenancies. No renewals. No minimum terms. Tenants can leave with two months’ notice and landlords will only be able to regain possession using defined Section 8 grounds rather than ‘no fault’ eviction.
For landlords who already manage their properties professionally, this is not a radical departure. Many have been operating on rolling tenancies for years, focusing on keeping good tenants rather than cycling contracts. The real challenge lies elsewhere.
For decades, large parts of the lettings sector have been built around the annual renewal. It is how rent increases are pushed through, how fees are justified and how weak record keeping is quietly reset.
That model is now gone. Yet too many agents are still briefing landlords as if it remains intact.
BannedTake rent setting. Under the new regime, tenants will be able to challenge the initial rent within the first six months if it is above market level. Rental bidding is banned outright.
Inflating asking prices to create negotiating headroom, a practice still encouraged in some corners of the market, is no longer just poor advice. It is a liability.
Landlords who rely on agents to handle this process for them may find that old habits leave them exposed.”
The same applies to rent increases. From May, there is one lawful route. A formal Section 13 notice supported by evidence. No informal agreements. No rent review clauses slipped into renewal paperwork. No quiet uplifts justified by vague references to market conditions.
Landlords who rely on agents to handle this process for them may find that old habits leave them exposed.
PenaltiesThis matters because the penalties are real. Civil fines of up to £7,000 for initial breaches and up to £40,000 for serious or repeated offences will not be theoretical.
Advertising a property without stating the proposed rent. Accepting rent before contracts are signed. Attempting to enforce a fixed term after implementation. Blanket bans on tenants claiming benefits. All can now trigger enforcement action.
When things go wrong, it is the landlord, not the letting agent, who ultimately carries the risk.”
And when things go wrong, it is the landlord, not the letting agent, who ultimately carries the risk.
That is where the real opportunity lies. A system built on transparency, automation and data is far better suited to this environment than one built on discretion and workarounds, with clear rental comparables, proper documentation, embedded compliance prompts and accurate payment records forming the backbone of a more resilient approach. These are not burdens but protections.
OutdatedAt Hello Neighbour, this is exactly how we are changing lettings for good, by replacing outdated processes with tools that help landlords operate confidently, fairly and in line with the rules as they now stand.
None of this means landlords are the problem. In fact, most landlords want to do the right thing. They want stable tenancies, predictable income and fewer disputes. What they need is infrastructure that reflects the rules as they are now, not as they were 10 years ago.
There is understandable anxiety around tenant churn under the new two-month notice period.
Regulation should not mean landlords shoulder all the risk while legacy systems remain untouched. With the right data, the right processes and the right partners, this transition can be managed sensibly and sustainably.
It [Renters’ Rights Act] signals the end of a way of working that no longer fits the reality of the market.”
Suzanne closed our webinar with a point that deserves repeating. Being a landlord is not passive income. It is a business. But it is a business that increasingly depends on good systems, not just good intentions.
The Renters’ Rights Act does not signal the end of private renting. It signals the end of a way of working that no longer fits the reality of the market. The landlords who succeed will be those supported by tools and partners that understand that difference.
Richard Jenkins is Co-Founder and CEO at Hello Neighbour
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