The rental market is changing, and with it comes increased responsibility and risk for landlords. This guide breaks down the key changes and explains how landlords are protecting themselves against longer tenancies, delayed evictions, and lost rent.
Section 21 for ‘no fault’ evictions are being abolished. Landlords will only be able to regain possession with a valid legal reason, such as serious rent arrears or other specific grounds.
Why this matters: Evictions are likely to take longer, require stronger evidence, and involve higher legal costs – increasing financial risk if rent stops.
Fixed-term tenancies are being phased out. Most tenancies will become rolling (periodic), meaning tenants can leave with notice but Landlords cannot easily end the tenancy.
Why this matters: Less control over end dates and greater exposure if a tenant becomes problematic or falls into arrears.
Rent increases will usually be limited to once per year, tenants can challenge increases, and rental bidding wars will be banned.
Why this matters: Less flexibility to respond to the market and a higher chance of disputes if rent reviews are handled incorrectly.
Landlords will need to register on a national landlord database, join a landlord Ombudsman scheme and respond to increased local authority enforcement.
Why this matters: More administration and penalties if compliance requirements are missed.
Tenants gain stronger protections, including limits on discrimination, rights to request pets and clearer routes to complain.
Why this matters: Removing a bad tenant becomes harder and decisions must be carefully documented
Court delays and more complex eviction routes mean Landlords may face long periods without rent while still covering mortgage and legal costs.
What this means for Landlords:
⚠️ Higher risk of rent arrears
⚠️ Longer periods without rental income
⚠️ Increased legal and eviction costs
⚠️ Greater administrative burden and compliance risk
How Landlords Are Protecting Themselves:
✅ Reviewing tenancy agreements and processes
✅ Tightening tenant referencing
✅ Staying ahead of compliance charges
✅ Protecting rental income with Rent Guarantee insurance.
Rent Guarantee insurance is a simple, cost-effective way to protect your rental income if a tenant stops paying. It can cover lost rent and legal costs during what may now be longer, more complex possession processes, helping to remove uncertainty at a time when the balance of risk has shifted firmly towards landlords. Increasingly, landlords are viewing this not as an optional extra, but as a sensible safeguard against the realities of the new legislation.
✨ If you want to ensure your rental income is properly protected as these changes come into force, we’re here to help. Get in touch with our team to find out how our Rent Guarantee insurance works and whether it’s the right fit for your property. A short conversation now could save significant stress and cost later. ✨
Get in touch with Hannells lettings on 01332 294396 or email: lettings@hannells.co.uk
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