Does greater stability for tenants mean greater risks for landlords?

Now the Bill has received Royal Assent, the priority is clear: to deliver greater security and stability for tenants.

The new legislation encourages long-term tenancies – something most landlords support. But stability must work both ways. However, for many landlords – the changes will inevitably alter the balance of risk.

Landlords will need to rely on robust tenancy management, clear evidence trails and lawful grounds for possession in the event of a dispute more than ever before.

Overview of 10 changes landlord clients need to know

1. All tenancies to become periodic

Assured Shorthold Tenancies (ASTs) will automatically convert into assured periodic tenancies (rolling contracts). That means tenancies will continue indefinitely until ended by a valid notice – either from the tenant or from the landlord for specific legal reasons.

2. New Tenancy Terms

Landlords will need to provide tenants with a written statement of tenancy terms at the start of every new tenancy. Existing tenants won’t need new agreements, but they must be given a Government-issued summary of the changes within one month of the legislation coming into force.

Landlords can take the deposit in advance of a tenancy agreement but cannot insist on advance rent beyond the first month.

3. Higher property standards

All rented homes must now meet the Decent Homes Standard meaning they must be safe, well-maintained and free from harmful hazards.

Compliance with Awaab’s Law, requires landlords to act promptly on issues like damp and mould which must be inspected within 10 working days, and made safe within five, after the inspection. Gas leaks, broken boilers – or if damp or mould are affecting a tenant’s health will need to be looked at within 24 hours. If landlords can’t meet those deadlines, they must offer alternative suitable accommodation.

4. Section 21 “no-fault” evictions abolished

Landlords will only be able to regain possession using Section 8 grounds which includes selling the property or moving in themselves – but these cannot be used within the first 12 months of a tenancy. Tenants can leave at any time with two months’ notice.

5. Rent Increases only permitted once per year

Rent increases must be issued with at least two months’ notice via a Section 13 notice and tenants can challenge increases through the First Tier Tribunal.

6. An end to rent bidding wars

Landlords and agents must now advertise a set, clear asking rent. Prospective tenants cannot be encouraged to offer above that amount and offers over the advertised rent cannot be accepted.

7. Anti-discrimination measures

Landlords will no longer be allowed to refuse tenants simply because they have children or are receiving benefits. However, they can still conduct affordability checks and refuse applications based on income viability or property suitability.

8. Greater rights to keep pets

Landlords cannot unreasonably refuse a tenant’s request to keep a pet – and they must respond to requests within 28 days. Only superior landlords (such as a freeholder or building owner) can prohibit pets or if it can be proved that the request is unreasonable.

9. Mandatory landlord registrations

Every landlord will need to register on the new Private Rented Sector Database and join the Landlord Ombudsman who will handle complaints and disputes.

10. Tougher local authority enforcement

Local councils will have extended powers to enforce the new law and can issue fines which start at £7,000 for a first offence, rising to £40,000 for repeat breaches.

Tenants may also apply for Rent Repayment Orders of up to 24 months’ rent for serious offences.

Mitigating risks for private landlords

As the legislative and financial implications of being a landlord become more acute, broader market pressures are also reshaping the rental landscape. Rising mortgage rates and maintenance expenses mean margins have tightened. A prolonged period of missed rent, even just a few months, can place significant strain on rental viability.

That’s why rent guarantee protection has never been more important. It provides a critical safety net, ensuring landlords can continue meeting their financial commitments even if rent stops being paid.

Beyond covering the income gap, our legal expenses insurance will become increasingly valuable as updated possession processes come into play.