The introduction of the Renters’ Rights Bill – which includes a ban on Section 21 evictions – marks a fundamental shift in the balance of power between landlords and tenants and could “inadvertently lead to an increase in disputes”, a lawyer has warned.
Daniel McAfee, head of legal operations at Lawhive, has examined the proposed legislation, highlighting its potential to redefine the landlord-tenant relationship.
New amendments aim to strengthen landlords’ responsibility to maintain properties to a decent standard, offering tenants greater options to address poor conditions, and as a result McAfee says landlords and property managers must be proactive in “understanding and complying with the new requirements”.
He said: “The ban on “no-fault” evictions, which would abolish Section 21 evictions, fundamentally alters the balance of power between landlords and tenants. While this move is designed to provide greater security for tenants, it may inadvertently lead to an increase in disputes.
Without the ability to evict without cause, landlords may become more stringent in their tenancy agreements and more likely to pursue legal action to regain possession when issues arise. This could increase the burden on courts, which would need to handle a surge in possession claims where landlords are required to demonstrate “robust grounds” for eviction.”
Daniel McAfee explains how the law redefines landlord rights and responsibilities: “The proposed cap on in-tenancy rent increases could raise potential legal conflicts, especially concerning contract law and market pricing. Landlords may argue that the cap interferes with their ability to set rents at market rates, potentially leading to challenges based on contractual freedom. The cap will need to be justified as a reasonable measure to protect tenants, without unduly infringing on landlords’ rights to negotiate terms freely.”
“The law limits landlords’ ability to set financial terms that could disadvantage tenants, thereby shifting their responsibilities towards fostering a fairer and more accessible rental market. It aligns landlords’ obligations with broader societal goals of housing affordability and equity.
“Landlords should focus on efficient screening processes and consider alternative methods to secure tenancies, such as guarantor services or insurance products, rather than relying on large deposits or upfront payments.”
Under Awaab’s Law, landlords who fail to address serious hazards such as damp or mold face significant penalties, including fines up to £7,000 and possible prosecution. Non-compliance could also lead to loss of rental income and damage to the landlord’s reputation, especially if tenants are empowered to take legal action.
The law will likely prompt landlords to be more proactive in property maintenance, though it may also lead to disputes over the interpretation of what constitutes a “serious hazard.”
McAfee continued: “Landlords must review and amend tenancy agreements to ensure they do not stipulate advance payments exceeding one month’s rent. Property management systems should also be updated to reflect this change, and staff should be trained on the new requirements.
“Failure to comply could result in financial penalties, regulatory action, or potential legal disputes with tenants. Landlords could also face reputational damage, making adherence to the new rules essential.”
Tenancy terms, agreement endings, and maintenance standards under new amendment explained
“The law will likely introduce changes to tenancy agreements, particularly around renewals and termination conditions. This could result in more transparent and tenant-friendly terms.
“By encouraging affordability, the law indirectly promotes greater tenant stability. Additionally, new rules are expected to reinforce landlords’ obligations to maintain properties at a decent standard, providing tenants with more recourse to address substandard conditions.”
McAfee added: “This proposal is a welcome move for tenants, but landlords and property managers must be proactive in understanding and complying with the new requirements. While campaigners have celebrated the measure as a victory for tenant rights, critics from the property sector argue it may introduce additional burdens on landlords, potentially impacting rental availability.”
“Balancing these concerns will be key as the Bill progresses through Parliament.”
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