Renters' Rights Act: one month in, and what the next phase brings

It's one month on from the first phase of the Renters' Rights Act, and the next wave of reforms is now confirmed. Manjit Kataora, Foxtons Head of Legal and Compliance, reflects on what has changed and what landlords should prepare for next.

With the first phase of RRA now in effect, and with the first procedural deadline of 31 May behind us, it feels like a natural point to reflect on the changes, and look ahead to what’s coming next.

The obvious starting point is the landlord (or agent’s) obligation to serve on former assured shorthold tenancy (‘AST’) tenants the government information sheet. The requirement here was to serve this by 31 May otherwise a penalty of £7,000 would apply.

Although the deadline was 31 May, relying on that date as an absolute deadline risked falling into a potential hidden trap: where a former AST was set to end during May – let’s say on 15th – but the information sheet had not been served on the tenants by that date, then it could not be served on them subsequently because they would no longer be ‘tenants’. A breach would not only arise but crystallise, as would the risk of a fine.

What this means is that, in practical terms, 31 May was only really a deadline that applied to those ASTs likely to extend beyond 31 May, and did not apply in the same way to those tenancies that were set to end during that month; the actual deadline for these tenancies would be their planned end date.

Responsible landlords (and agents) would of course have flagged this risk and identified those tenancies set to end before the official deadline. They would have planned service of the information sheet to cover these tenancies, removing the risk of exposure to a fine.

Rent in advance and guarantors

We then turn to Assured Periodic Tenancies (‘APTs’) themselves, under which tenancy applicants can no longer pay rent in advance but can only pay a maximum of one month’s rent.

Concerns that this would present an unlevel playing field for certain tenant groups, e.g. overseas students who, without a demonstrable UK credit footprint, were at risk of being ruled out by landlords in favour of those applicants who could prove a financial track record were raised several times during the passage of the Bill stage of the RRA but the ban nonetheless passed into law.

Fortunately, the commercial sector has responded by offering guarantee products that make things more even. Tenants prevented from offering a surety by way of six months’ rent (for example) can now select a guarantor provider of their choice. Foxtons has partnered with Zero Deposits’ whose ‘Guarantor +’ product enables otherwise excluded applicants to find a home – of course, applicants are free to select another provider of their choosing.

The importance of these arrangements cannot be underestimated for those applicants who, notwithstanding anti-discrimination provisions already set down in law (and reflected in the RRA) would still have been at risk of being discriminated against because they would probably not pass standard referencing procedures.

Further down the line

The government has this week confirmed the anticipated roll-out dates for the next phase of RRA. These will start from late 2026. A private rented sector database is expected to be rolled out gradually area by area from late 2026. Tenants will be able to check who they are renting properties from, and check compliance information.

The private landlord ombudsman will enable tenants (including potential tenants) sort out complaints against landlords without the need to go to court. It will also support landlords with tools, guidance and training on handling complaints from tenants at an early stage.

In the longer term, private sector homes will by 2030 need to be rated EPC C or better unless exempt and from 2035 a new Decent Homes Standard will apply to private sector homes and which will cover safety, warmth and aspect of repair.

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Staying ahead of each phase of the Renters' Rights Act

The first month has shown how much turns on the detail, and the next phase will bring more of it.

At Foxtons, we get it done, so you don't have to. We have spent the last two years preparing for rental reform, so our teams are fully equipped to meet every requirement of the Renters' Rights Act on your behalf. We take care of the legislation, the operational detail and the day-to-day communication for your let, so you know everything is covered and correct.

If your property is already tenanted, it does not need to have been originally let through Foxtons for you to benefit. Our team can step in and manage it for you at any stage.

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