The Renters’ Rights Act (RRA) lands in England tomorrow, bringing some of the biggest changes the Private Rented Sector (PRS) has seen in years.

With over 11 million private renters in England – 19% of all households – the scale of these changes is significant, not just for landlords and tenants, but for brokers and lenders supporting them.

While much of the noise has focused on a negative impact to landlords, the bigger picture is an overall shift toward a more professional rental market, with a continuing need for expert support from brokers and lenders alike.

The key changes – at a glance

End of Section 21
‘No-fault’ evictions have been removed. Landlords can still recover possession under strengthened and expanded grounds, such as selling the property, serious rent arrears or antisocial behaviour.

Fixed term tenancies banned
In most cases, fixed-term Assured Shorthold Tenancies (ASTs) have been replaced with Assured Periodic Tenancies (APTs), which work on a rolling basis. Most existing ASTs automatically convert to APTs.

Rules on setting rents
Restrictions on how and when rent can be increased are being introduced, alongside limits on rent in advance. Rent increases are limited to once a year, with at least 2 months’ notice. Any increases must reflect market levels and can be challenged by tenants.

New obligations and potential fines
To avoid potential fines, there are various obligations landlords must comply with. These include providing key tenancy information in writing, restrictions on blanket bans for tenants who have children or receive benefits, and a requirement to reasonably consider requests for pets. Rental bidding is also banned.

More to come
There are more requirements to come later this year, such as a property database and a new ombudsman for dispute resolution. There will be a further phase, subject to consultation, which includes Awaab’s Law and a modernised Decent Homes Standard.

Our view on the changes

This isn’t the end of landlord opportunity; it’s a continuation of a long-term trend. While the Renters’ Rights Act brings significant impact to landlords, it also accelerates the professionalisation of the PRS.

In recent years, we’ve already seen significant growth in buy-to-let limited companies (SPVs), with a 363% increase over the past decade to over 440,000. That trajectory looks set to continue.

Whilst smaller/accidental landlords will continue to assess whether they have the appetite to stay in the rental market, the majority of professional landlords are unlikely to be deterred and may ultimately be better positioned as the ‘dinner party landlords’ exit the market.

Opportunity for brokers

Rather than reducing opportunity, this reform reshapes it.

Brokers will play an increasingly important role in helping landlords to:

• Understand the new requirements
• Navigate evolving lender criteria
• Structure portfolios more strategically
• Focus on sustainable yields over short-term gains

Good mortgage advice is even more valuable to professional landlords who will need a long-term relationship as they manage their portfolios.

In summary

Change in the PRS is nothing new. What’s different this time is the scale.

The landlords who succeed will be those who treat property as a professional investment, and the brokers who support them will play a central role in shaping the sector’s future.

One thing is clear: Zephyr is here to support brokers and landlords in navigating change and capitalising on the opportunities ahead.

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