Why renting your London property will get more challenging and what can you do about it?

The Renters’ Rights Bill, which is in its final stages of review, is expected to receive Royal Assent this year and become law later this Autumn. While this Bill aims to provide enhanced protection and stability to tenants, private landlords across the UK and its capital are concerned about how it will affect their income and their rights to regain possession of their property legally.

At Benham and Reeves, we understand these concerns and recently hosted a webinar to explain these sweeping changes to the law and how landlords can easily navigate them with professional help. Based on interactions with landlords whose properties we let and manage in London, we have addressed the most frequently asked questions about the Renters’ Rights Bill.

Q1. What is the Renters’ Rights Bill, and how does it affect me as a landlord?

The Renters’ Rights Bill includes a raft of amendments and additions to current legislation within the private rental sector aimed at providing more protection for tenants and clearer for landlords to understand their responsibilities. Therefore, if you are a landlord, this increases the scope of legal compliance, so taking professional advice about what to expect is recommended.

Key changes for landlords include:

i. No more Section 21 evictions: Landlords can no longer serve their tenants a ‘Section 21’ notice to reclaim their property and will need to provide a valid reason, such as self-occupancy or sale, which requires giving the tenant at least a four-month notice.

ii. End to fixed-term tenancies: Currently, tenancy agreements can stipulate a fixed term (ex, six months or 12 months) after which the tenant needs to renew or vacate. Under the Renters’ Rights Bill, fixed-term tenancies will end and, all tenancy agreements will become open-ended, or called periodic. This means that tenants can leave when they decide to by giving two months’ notice.

iii. Stricter licensing rules: Under current legislation, the existing Decent Homes Standard (DHS) which applies to social housing and is regulated by local councils, will apply to all private rentals to make sure that the condition of property meets the standards for renters to live safely.

iv. No frequent rent revisions: Rent increases are limited to only once per year through a Section 13 notice with at least two months’ notice.

v. No more bidding wars: Letting Agents will not be allowed to take bids on rental properties and properties can only be marketed with one asking price which should reflect market conditions.

vi. New Landlord Ombudsman: Landlords will be required to join a new Ombudsman for the private rented sector to resolve all tenant-related disputes quickly and cost-effectively.

Q2. Is it still possible to rent out my property without hiring a letting agent?

A landlord does not have to hire a letting agent, but there will be penalties of up to £7,000 for initial breaches, rising to £40,000 for repeated or continuing breaches so using an experienced Propertymark member Letting Agent could save you money in the long run. This is particularly helpful if the UK is not your home country and you are letting a property while based overseas.

Q3. What problems are DIY landlords facing at the moment with this new law on the horizon?

We have spoken to landlords who are not currently using a professional lettings agent and are managing everything themselves. They have real concerns about dealing with complicated the paperwork, with longer notice periods, tighter eviction procedures, specific property standards, and the possibility of more pressure and involvement from local authorities to comply.

Q4. What can a letting agency do for me when the rules are change?

Benham and Reeves has more than 65 years of experience in the industry. Our staff consists of skilled legal and property specialists who can handle all aspects of compliance, lettings and property management, such as:

i. Tenancy agreements: Our tenancy agreements are drafted according to the latest updated property and landlord laws in the UK

ii. Maintenance and safety checks: We make sure that your rental property meets all of the required health and safety standards, such as those for gas, electricity, fire safety, and will ensure you aware of your responsibilities when it comes to compliance.

iii. Registering deposits and collecting rent: By law, all tenant deposits must be kept in a government-approved scheme and Benham and Reeves are members of the TDS. We also provide a rent collection service which includes following up late-payments or any issues to do with non-payment.

iv. Help is available 24/7: Aside from dedicated departments who manage our properties, help is available to tenants 24 hours a day, seven days a week, so we can quickly deal with emergencies at properties we manage in London.

v. Offices and staff nearby your property: We have 21 branches in London and Staff who are local enough to ensure your property is fit for renting. If we think an upgrade is needed, we will advise you how to add value and keep your property in good shape.

vi. Legal eviction process: If you plan on occupying the property yourself or selling it in the future, we also assist with legal evictions and property sales. I am not sure we do this do we assist with eviction process???

Q5. I already have a tenant. Should I be worried about these changes?

Once the new law comes into effect, even existing tenancies will need to be reviewed and adjusted to comply with the new rules. The legislation will be phased in over time but we recommend you talk to a professional letting agent so you don’t fall foul of the law.

Q6. What did landlords in your webinar say about managing these changes?

While many landlords expressed frustration and confusion about the changes to the private rental sector, our experts successfully addressed their concerns, assuring them of a stress-free process for adapting to the new law. Here are a few statements we recorded from landlords who attended our webinar.

“It’s getting too risky to do it myself.”

“I just want to avoid legal problems.”

“Your advice has been very helpful and far more detailed than I had realised.”

Understandably, landlords want to adjust to the new law as easily and quickly as possible, without having to deal with the legislation themselves.

Q7. What’s the first step if I want to let my property with Benham and Reeves?

As a landlord, simply contact us to schedule a free rental valuation. Based on the information provided, we can find the potential compliance concerns and suggest a customised plan for letting and managing the property. Once you agree to our terms of service, we will take over all communication with the tenant, prepare your property for market and handle your rentals with minimal involvement from your side.

While these FAQs address most of the landlord concerns about the implications of the Renters’ Rights Bill, a few landlords raised pertinent questions about advance rent payments, the alternative of using a guarantor instead of reference checks, and how the new law will affect these terms. Here are some examples of such questions we received.

Q8. My tenancy started on 1 September for 1 year to a student – agreement is 6 months rent paid on 1 September and another 6 months payable on 1 December. Is this still ok, with the 2nd tranche payable on 1 December?

Currently, it is acceptable, as landlords will most likely not need to comply with the new rules until January 2026 or later. However, when the law comes into effect (mostly before April 2026), landlords cannot accept rent in advance for periodic tenancies, as advance payments are only reserved for licences.

Q9. What about tenants who opt for a professional guarantor, on the basis of which the landlord accepts them as having no references? But then the tenant does not renew the guarantor at the year’s end. Are landlords allowed to include a clause stating that they must have a Rental Guarantor policy, and if they don’t renew it, the landlord can terminate the tenancy?

If worded correctly, based on not passing references with guarantor support, it should be acceptable to seek tenancy termination if there is no guarantor renewal after 12 months.

Don’t let the law let you down

As the private rental sector in the country evolves, new legislation and amendments to existing ones are inevitable. As an individual landlord, adapting to big changes can feel overwhelming. Benham and Reeves have been letting properties in London for over six and a half decades, and we have the expertise and resources to make it easy. Why deal with the complexities and risks of changing laws when you can avail of our one-stop lettings and management services designed for landlords and buy-to-let investors?

From detailed landlord and area guides to free valuations and industry insights, we offer a range of resources to help you learn about London and its dynamic investment ecosystem. Contact us to discuss your specific needs.

We also have 14 international offices looking after landlords who own London property. You can reach out to them directly if you are in China, Hong Kong, India, Indonesia, Malaysia, Middle East, Pakistan, Qatar, Singapore, South Africa, Thailand or Turkey.

We also have a dedicated video addressing the various questions landlords have asked us about the new Renters’ Rights Bill.