The Renters’ Rights Act is here – how Switch is supporting small landlords through the changes
With the Renters’ Rights Act now in force, many landlords will be considering the viability of their portfolios, and whether they want to remain in the market. But an alternative option still exists, with third-party property managers alleviating the burden of compliance, cost and administration.
Government guidance states that the Renters’ Rights Act “will improve the current system for both the 11 million private renters and 2.3 million landlords in England” – highlighting that this long-awaited legislation is designed to bring more stability and security to both tenants and private residential landlords.
Yet, the introduction of the Act has caused concern for many landlords, who fear that the new regulations will impact the flexibility and long-term viability of their portfolios. The burden of this regulatory change, coupled with ongoing mortgage rate rises and tax reforms, has resulted in many smaller landlords choosing to exit the sector completely.
As experts in property management, Switch Housing works with landlords across the UK to help them navigate evolving sector challenges. We believe that by supporting landlords, and helping to protect their property portfolios, we can ensure the continued provision of good quality and reliable housing stock – to the long-term benefit of both landlords and renters.
Here, we explore how the Switch Housing programme can offer an alternative, stress-free solution to private landlords – helping them to remain in the sector, future-proof their portfolios, and provide vital housing provision for those in need.
The Renters’ Rights Act – the key changes:
The Renters’ Rights Act has now been implemented for landlords in England, bringing major changes to how tenancies are managed. Here’s a reminder of the key reforms now in place:
• Abolition of Section 21 ‘no fault’ evictions – Landlords must now use a Section 8 notice, citing the specific grounds for possession.
• Introduction of Assured Periodic Tenancies – All new and existing tenancies are now month-to-month contracts, meaning that both landlords and tenants can end the tenancy with adequate notice.
• Extended notice periods – Notice periods for eviction have increased, including four months’ notice due to property sale or personal use, and a minimum four-week notice for rent arrears exceeding three months.
• Restrictions on rent increases – Landlords can only increase rents once a year to the market rate, with at least two months’ written notice.
• Protection from discrimination – Landlords cannot discriminate against potential tenants based on children or benefit status, and tenants have strengthened rights to request a pet in the property.
Sector shifts
Against the backdrop of a national housing shortage, there has been a significant shift in recent years from home ownership to private renting.
According to recent data, the private rental sector in England nearly doubled in size between 2004 and 2013, and by 2023, almost two-fifths of households were either renting privately or socially. Meanwhile, home ownership levels have steadily declined, with 39% of those aged 25 to 34 owning their home in 2023, compared to a peak of 59% in 2000.
With the private rental sector growing at pace, legislation such as the Renters’ Rights Act is vital to help safeguard standards and better protect tenants. However, the risk is that the burden of regulation will drive out smaller landlords, who are unable to manage the resulting pressures – from increased administration to potential hikes in eviction costs.
The impact of the Act is already being felt among those who remain in the market. Aldermore recently reported that two in five landlords are considering cutting the number of properties they own, with 43% of those citing increased regulation as a driver.
With landlords being pushed out, renters will ultimately feel the impact – with reduced housing availability resulting in increased rents and greater competition. In a national housing crisis, it’s vital that the long-term interests of both renters and landlords are protected, to help ensure a continued pipeline of safe, stable, and suitable accommodation.
Making the Switch
It’s concerning to see that a significant number of landlords are planning to leave or reduce their presence in the sector as a result of these reforms, which are primarily designed to deter the small proportion of ‘rogue landlords’ that exist in the market.
However, for responsible operators, the risk is that many will consider the current environment as unviable. Under the new Act, long-term financial planning may be more difficult landlords, while the additional regulatory requirements – from database registration, updated documentation, and more stringent record-keeping – will create more pressure for those with limited time and resources.
That’s where property management partners, like Switch, can step in to support – helping to alleviate regulatory pressures whilst ensuring good compliance.
Through our Housing programme, we work with local authorities and private residential landlords to provide good quality housing for vulnerable families. As well as helping to address the UK’s housing crisis, our programme also offers a unique package of services and support for landlords – providing real benefit to those struggling to meet new regulatory demands.
Our license-to-occupy model also differs from traditional assured tenancies, which is what the Renters’ Rights Act specifically targets. This means the properties managed within our Housing programme are exempt from the new reforms.
For all properties, we take on the tenancy on behalf of the owner, allowing landlords to benefit from a stable, low-risk income stream as well as comprehensive property management services.
When partnering with Switch, landlords receive a guaranteed monthly income for the duration of the two-year rental agreement. This is in addition to full tenant management, maintenance protections, annual incentives, and regular home inspections by our expert team – giving landlords complete piece of mind that their property is protected and fully compliant.
A Secure Future
Amidst the UK’s escalating housing crisis, it’s important that new regulation helps to build a more fair and secure system for both private renters and landlords.
The Renters’ Rights Act is placing increasing pressures on landlords, and we’re here to help. Through our unique partnership model, landlords can confidently maintain their property investments, whilst removing the operational and administrative demands that make managing small portfolios increasingly complex.
By taking on tenancies on behalf of the landlords we work with, we can help to mitigate some of the key concerns arising from the Renters’ Rights Act. This allows good landlords to stay in the sector, with the assurance that their properties are protected. Most importantly, it future-proofs a pipeline of high quality housing stock for those in need of a safe and secure home.
To learn more about our Housing programme, contact Mikey Grewal at mikey.grewal@swhm.co.uk
