Impact of the Renters’ Rights Bill on Rental Prices in England

The Renters’ Rights Bill, introduced in September 2024 and expected to take effect in late 2025 or early 2026, aims to reform the private rented sector in England significantly. Key provisions include the abolition of Section 21 "no-fault" evictions, the introduction of periodic tenancies, and new regulations governing rent increases. As the bill progresses, it has already begun to influence rental prices across the country.

Most landlords unprepared for the Renters’ Rights Bill

Since the announcement of the Renters’ Rights Bill, rental prices in England have increased by an average of 4.3%, equating to an additional £58 per month for tenants. Notably, areas such as Broxbourne and Camden have experienced the steepest proportional rent increases, both seeing a 12.2% rise since September 2024. In real terms, this translates to an additional £178 and £306 per month for tenants in these locations, respectively. Other regions with significant increases include Slough (11.9%), Gloucester (9.8%), and Newcastle upon Tyne (9.5%).

Broxbourne and Camden see steepest rent rises since Renters’ Rights Bill, study findsRents in England up 4.3% since Renters’ Rights Bill announcedRental growth eases as supply-demand gap narrowsRents hit near-record highs in August – GoodlordRental supply crisis hits towns as cities prove too costlyLabour's NI taxation plan for landlords to cost £722 per propertyLandlords face an NI bill of up to £885 per propertyMost landlords unprepared for the Renters’ Rights Bill

Nathan Blackler, a home insurance expert at Go. Compare, indicated that these rent hikes could be a preemptive response from landlords anticipating the new regulations. He cautioned tenants to be vigilant about potential rent increases before the bill's provisions are enforced.

Rents in England up 4.3% since Renters’ Rights Bill announced

In addition to rising rents, landlords are facing new financial pressures due to proposed National Insurance (NI) contributions on rental income. Research from Inventory Base suggests that landlords could incur an annual NI charge of £722 per property, increasing to £885 in London. Sián Hemming-Metcalfe, Operations Director at Inventory Base, criticized this potential tax, arguing it could drive good landlords out of the market and exacerbate instability in the rental sector.

Landlords face an NI bill of up to £885 per property

A recent survey revealed that only 16% of landlords feel fully prepared for the upcoming changes introduced by the Renters’ Rights Bill. Many landlords are uncertain about the implications of the legislation, with 7% unaware of its existence. David Adams, managing director of Cavendish, emphasized the importance of understanding these changes to avoid financial penalties and reputational damage.

How can 7% of landlords not have heard of Renters Rights Bill?

To assist landlords in navigating these changes, local councils, such as Fylde Council, are offering free bi-monthly surgeries to provide guidance on compliance and tenant relations.

Confidential advice sessions for landlords to be staged by council

Critics of the Renters’ Rights Bill argue that the proposed changes may inadvertently harm the rental market. Concerns have been raised that the combination of rising rents and increased taxation could lead to a reduction in the number of available rental properties, further straining an already tight housing market. The potential for landlords to exit the market due to financial pressures could ultimately reduce housing options for tenants.

What is a Section 13 notice? A guide for landlords

The Renters’ Rights Bill is poised to bring significant changes to the private rented sector in England, with immediate effects on rental prices and landlord operations. As the legislation progresses, both landlords and tenants must prepare for the evolving landscape, balancing the need for tenant protections with the economic realities of rental property management. The coming months will be critical in determining how these changes will reshape the rental market and affect housing affordability across England.

Most landlords unprepared for the Renters’ Rights Bill