Renters’ Rights Act comes into force ending no fault evictions for 11 million private tenants

11 million private tenants in England will gain stronger rights and protections from this Friday, transforming their experience in the sector.

The new Tenants’ Rights Act eliminates Section 21 ‘no fault’ evictions, requiring landlords to now provide a valid reason for the eviction.

Landlords must also reasonably consider tenants’ requests to live with pets. Tenancies will provide greater flexibility, moving from fixed contracts to monthly or week-to-week contracts. Tenants can terminate them with two months’ notice.

There are also fairer rent rules, where landlords can only increase rents once a year and tenants can challenge unfair increases.

Potential bidding wars should be avoided as landlords should not stick to more than the advertised rental price.

Landlords can now only ask for up to one month’s rent in advance and cannot reject tenants because they receive assistance or have children.

Prime Minister Sir Keir Starmer said: “For too long families have lived in constant fear of eviction, while young people have been given higher offers for the homes they need to start their lives.

“Today we’re fixing that. We promised to fix the broken rental system, and we’re delivering.”

“This historic action will make renting fairer, safer and more secure for millions of people so they can settle down, put down roots and build their lives.”

Housing Minister Steve Reed said: “For too long, tenants have been in fear of losing their homes and at the mercy of rogue landlords.

“We are putting an end to this with historic changes that signal the beginning of a new era for private tenants, giving tenants the security they deserve.”

Heavier fines of up to £40,000 are foreseen for non-compliance with the new rules.

Ben Twomey, managing director of Generation Rent, said: “Today marks a new era for private tenants across the UK. This new legislation is a vital step towards rebalancing power between tenants and landlords and should be celebrated.

“Our homes are the foundation of our lives, but for decades Section 21 evictions have forced tenants to live in fear of being evicted from our homes, keeping us from voicing valid concerns to our landlords. Eventually, this outdated and unfair law was packaged.

“If this legislation is to reach people’s homes and improve their lives, it is vital that councils across the country use all their powers to ensure landlords comply with the new rules. In the meantime, I would encourage every tenant to take the time to understand their new rights and how to enforce them.”

Clara Collingwood, director of the Tenants Reform Coalition, said: “As well as repealing Section 21, the Tenants’ Bill of Rights will make it easier for tenants to have pets in their homes, cap advance rent at one month, end exploitative practices such as bidding wars and make it easier for landlords to be held accountable for repairs. These are the biggest changes to private renting in a generation.”

Crisis chief executive Matt Downie said: “Finally private tenants can feel safe and secure in their homes without the unnecessary threat of eviction forcing them into homelessness.”

Private landlord recovery claims that use the Chapter 21 process and proceed in the courts may still be able to proceed.

Jennifer Leonard, Dogs Trust’s pet-friendly housing lead, said: “Across the UK, one in seven requests we receive from people wanting to transfer care of their dog is due to a housing issue.

“We hope fewer renters will now face the heartbreaking choice between finding a safe place to live and feeding their beloved pet.”

Sarah Elliott, Shelter’s chief executive, said the Act “will also bring other positive changes, including capping ridiculous upfront costs for rent and banning discriminatory ‘no child’ and ‘no benefits’ policies.”

The housing charity said it estimated more than 2,000 households a month “will now be protected from the threat of homelessness directly arising from fault evictions”.

Government data published on Thursday showed that 4,960 households in England were assessed by local authorities as needing help to avoid becoming homeless after receiving a section 21 notice at the end of December.

Amira Campbell, president of the National Union of Students, said: “I hope the momentum to give tenants our rights continues. Students are an important part of any university town or city and we need a warm, decent place to live.”

A survey of more than 1,000 tenants for Rightmove in March found that almost three-quarters (73%) of tenants were aware that tenancy laws would change, but more than a third (37%) were not sure they fully understood their rights.

The research showed that uncertainty was particularly evident among renters aged 18 to 34.

More than a third (35%) of renters in this age group said they did not feel confident understanding their rights, while some described their rental experience as uncertain (38%) or stressful (31%).

The research comes from Rightmove’s consumer research panel of more than 18,000 house movers.

Rightmove said the average rental house received eight inquiries, a number that fell to 11 last year and 29 in 2022, when competition peaked, indicating an easing in tenant competition.

Societal changes also mean that many people are renting into later life.

Rebecca Johnson, group sales and marketing director at McCarthy & Stone, said: “Renting has long been seen as something temporary – or something that is not true for later life – but this perception is starting to change.”

Joanna Elson, chief executive of Independent Age, said: “Many tenants we speak to say they have been living in a constant state of anxiety, worried about being evicted for no reason and the consequences of asking their landlord for repairs.

“Although the job of making renting safe, secure and affordable for everyone is far from over, today we are a significant step closer.”