What the Renters' Rights Act Really Means for Landlords and Tenants - Ep. 18.

What the Renters' Rights Act Really Means for Landlords and Tenants - Ep. 18.

Welcome to the All Things Property Podcast! In this episode, hosts Simon Bacon and Ian Sadler kick off a deep dive into one of the biggest changes to hit the rental sector in decades, the Renters’ Rights Act. Set to come into force on May 1st, this act brings significant shifts for both landlords and tenants, including the abolition of Section 21 notices, the end of fixed-term tenancies, and new compliance measures like the property portal.

If you’re a landlord feeling overwhelmed by headlines or unsure what these changes mean for you, this episode is here to break it all down with practical, no-nonsense advice. Simon Bacon and Ian Sadler explain how the new laws will impact common situations like regaining possession, selling property, rent arrears, and more—with plenty of real-world examples for “accidental landlords” and experienced investors alike. Plus, you’ll get clear tips on what steps to take now to stay compliant and safeguard your property investments.

Tune in for straightforward guidance rooted in years of local expertise—perfect for landlords, tenants, and anyone wanting to stay ahead in Birmingham’s (and beyond) property market.

Chapters

00:00 "Renters' Rights Act Explained"

06:02 "Changes to Property Repossession Rules"

07:59 Landlords, Rent Arrears & Sales

11:11 "Landlord Tips & Compliance Insights"

______________________________

Get in touch with Simon for all your property needs. 
www.prefprop.com

E: simon@prefprop.com

T: 0121 2402244

Transcript

SPEAKER_01 0:00

Welcome to the All Things Property Podcast. Over the next few episodes, Ian and I are going to be looking at the biggest changes coming to the rental sector with the Renters Rights Act which is coming into force on the 1st of May. There's been a lot of headlines about it, but what we want to do during these episodes is to explain what the changes actually mean in practice for landlords and tenants. Welcome to the All Things Property Podcast with me, Simon Bacon of Preferential Properties. Every week, Ian Sadler and I will delve into all things property. We'll guide you through with friendly, no nonsense advice. So if you're a landlord and you're unsure about what the changes actually mean for you, when they come into effect, and what the implications are, then this episode is really going to be for you. We'll give you insight and advice to help you to manage your properties in an effective way.

SPEAKER_00 0:56

People are saying to me, Simon, this is the biggest change to renting in decades. What do you think?

SPEAKER_01 1:00

I think it is a really major shift. Obviously, the biggest change is the abolition of Section 21, which currently allows landlords to regain possession of the property without having to prove that the tenant has done anything wrong. The other key changes are the changing to the structure of fixed-term tenancies. There will no longer be fixed-term tenancies. And I think the final part of the act is very much around compliance legislation and the introduction of the property portal. So I think let's focus today on the abolition of section 21 and what that really means. Do landlords need to be concerned about it? I mean, perhaps it's worthwhile you just set starting off by saying, you know, how does Section 21 currently work?

SPEAKER_00 1:55

What is a Section 21 notice in a Section 21 notice is a notice that a landlord can serve on a tenant giving two months' notice to terminate a fixed term two months prior to the end of it, or a two-month notice to terminate a periodic tenancy on the anniversary date. It's loaded far too much in landlord's favour. This is going to level the playing field dramatically and give the tenants uh a far greater security of tenure. And do you think that's right that they should have it? Why? How can you go into a rental, a tenancy, with a six-month fixed term, knowing that's the only security of tenure you've got six months? How can you plan a life with six months guaranteed, nothing more? And and sometimes you're at the whim of a landlord who says, I'm gonna give you two months' notice. So giving that tenant, giving the tenant more security tenure is is is a because it's a crucial change.

SPEAKER_01 2:59

Yeah, but okay, I I get it, but how many landlords do you have that serve a Section 21 because they can?

SPEAKER_00 3:11

They can. Not very few. No. I think people, genuine landlords are in it for the long-term pension portfolios, it's an investment for them. What reason would you have to serve Section 21 to terminate a tenancy unless you wanted unless there were rent arrears and you had a bad tenant, who who deserves to get notice anyway? Or if circumstances change, you want to sell a property, relationships break up, circumstances change personally, which Yeah, but you can do you can do all of that under the new new legislation.

SPEAKER_01 3:46

And I think you know what I would say is if any of those kind of scenarios resonate with you, let's let's talk about some of those. Let's let's give you some examples of why maybe it doesn't impact you in a negative way. So I don't know, let's let's look at what you called an accidental landlord in. Give me an example of of perhaps what you would consider an accidental landlord to be.

SPEAKER_00 4:09

Well, a general generic example of an accidental landlord is somebody whose personal or work circumstances change. They'd never considered renting the property out, but due to relocation, a job or relationship changes, they're forced to consider the option of rental.

SPEAKER_01 4:26

Why would that landlord rely on a section 21? In what circumstances would that landlord?

SPEAKER_00 4:32

Well, if they want to sell the property, they'd um the section twenty-one gives them the ultimate flexibility. Okay.

SPEAKER_01 4:38

Well they can still do that. They could serve notice. Yeah, they can still s they can still serve notice to sell. Yeah. So not impacted. Right. What else? Uh moving back into the property? Yeah. Not impacted. There are grounds for that. And rent arrears? Grounds for that as well. The difference, I think, the real difference is that there's got to be genuine reasons, and it goes back to what we said earlier, which is why would a landlord want to get rid of a good tenant unless they had specific reasons?

SPEAKER_00 5:16

Right. Talk me through the scenario where a landlord wants to move back into the property, serves a requisite notice, and the tenant says, I'm not going.

SPEAKER_01 5:26

It's no different. So the situation is that instead of the landlord as they would do currently serving a section 21 notice, they will now have to serve a section 8 notice.

SPEAKER_00 5:39

Right. So the biggest problem here is that people haven't experienced this rent as a right act. They haven't seen it in in practice. And I think a lot of these worries and concerns landlords have got will disappear when it's been going 18 months, two years, and they've seen it actually works in the new system, a fairer system, a more regimented system, and it it works fine.

SPEAKER_01 6:02

Yeah, yeah, absolutely. I think what they what has to happen now is that you have to be compliant. You have to document your reasons, you have to document issues that are arising. So if a tenant, if a sorry, if a landlord wants to move back into their property, they will still be able to do that under a section 8 notice, but they will have to prove that that is the reason that they are doing it, and they won't be able to just go, oh, I don't fancy that tenant anymore, or they're starting to cause me a few issues, and therefore I'm just going to serve them a section 21 notice. A section 21 notice used to be a catch-all scenario. Now, if you want to recover possession back of your property, you've got to have clear defined reasons under the housing act. There are specific grounds that you are able to do that, but you have to follow a process and you have to make sure that your everything is really well documented. Which is a good thing. Absolutely. So, you know, uh another scenario where perhaps uh a tenant hasn't paid their hasn't paid their rent. Have you had any of of those?

SPEAKER_00 7:23

Um one. Okay. That was a personal work circumstance, very complicated procedure.

SPEAKER_01 7:31

And often in those cases, landlords would have relied on a section 21 notice, because section 21 notice effectively you don't have to give a reason. If you if they weren't paying their rent, you would have to have served a section 8 notice in the past and you would have had to have documented it and proved why. So that's where landlords use section 21 was a really easy way of doing that.

SPEAKER_00 7:58

Yeah, as you say, the capture.

SPEAKER_01 8:00

Yeah, yeah. But so if a tenant isn't paying their rent, a landlord will still be able to recover possession back of the property, but they'll have to have proof that the tenant is in arrears. So, again, common theme coming out here: documentation, evidence. They have to be able to evidence that the tenant hasn't paid their rent, that it was due on a certain day. So, you know, the professionalism of landlords, I think, is one of the things that may well have to have to change, whether that's a landlord letting their own property or us as letting agents managing that process. A situation we're seeing quite a lot at the moment, I think. I don't know if you agree with this, Ian, is that landlords deciding to sell, either because of tax changes, changes to regulation, changes in circumstances. Um, you know, we are seeing I I know the media is saying that's you know, lots of Bitalette landlords are looking to sell at the moment. We're not seeing that, I've got to be honest. We I I don't know about you, but we seem to be bucking the trend on that, although we have got some landlords who are selling because of changes in their personal circumstances.

SPEAKER_00 9:20

Have you got any I have not changes in personal circumstances, changes in professional circumstances? It's um it's a guy that came to the end of his professional football career and wanted to go in a new direction. He had three rental properties that he'd bought, say, five, six years ago. They'd both all three had had some significant capital appreciation. He wanted to go in a uh a completely new direction and he needed capital to start that business. Right. So it was a specific reason for doing it, not just a whim, he needed that capital to invest.

SPEAKER_01 9:51

And that would have been a specific way of regaining possession by serving a section 21. And I think that's one of the real fundamental changes that landlords are probably concerned about. What if I want to do that? The abolition of section 21, does that mean I can't do it anymore? Well, good news, landlords, you can still do it, it just means you're serving a section 8 notice, and there are specific grounds for doing that, and you know, specific requirements that you have to you have to follow. So landlords will still be able to serve a notice in order to recover their property because they want to they want to sell it. So, what I would say is if landlords are listening to this now and trying to understand what they should be doing before the new rules come into force, what would your advice be?

SPEAKER_00 10:50

A lot of online research, the government have got several documents, leaflets out about the impact of the Renters' Rights Act. I think they're well worth reading. It gives you um uh a brief but detailed explanation of the implications for every aspect of it, whether you're a landlord or a tenant.

SPEAKER_01 11:11

What I would say as well is make sure your record keeping is good, um, particularly around rent payments and communication with tenants. I think make sure your compliance documentation is completely up to date, things like gas safety certs, electrical safety reports and EPCs, and finally, I suppose picking up on what Ian was saying, familiarise yourself with Section 8 possession grounds because they will become the primary route for regaining possession. And if you need any advice on that, please give us a call. So that's all for this episode of the All Things Property Podcast. Over the next few episodes, Ian and I'll be looking at other aspects of the Renters' Rights Act and what they mean in practice for landlords and tenants. Join us next week for the next episode in the series. Thanks for tuning in to this week's episode of the All Things Property Podcast. If you found this episode useful, don't forget to subscribe, like and share. These things really help us reach the people who need to hear this advice. See you next week.