What the Renters’ Rights Bill Means For Landlords

Posted on: August 20th, 2025 by Ella Darnell

Solicitor Shabnam Shekarian explores the Renters’ Rights Bill, explaining its significance in the changing regulatory environment and offering guidance to landlords on how to respond, in FT Adviser.

Shabnam’s article was published in FT Adviser, 7 August, and can be found here.

If there is one area in which the Labour party’s 2024 general election manifesto demonstrated particular clarity, it was in its stated intention to recalibrate the relationship between residential landlords and private renters.

This policy stance reflected a broader ideological objective: to shift the regulatory balance in favour of tenants, as part of a wider social justice agenda.

This policy shift represents a pivotal moment in housing regulation, reflecting the government’s recognition of the vital role landlords play in ensuring a stable and functional rental market.

By elevating housing security to a matter of public interest, the approach seeks to foster a more transparent and accountable framework; one that supports responsible landlords in providing quality accommodation, while promoting fairness and long-term stability for all parties involved.

More than a year since the launch of their manifesto, section 21 of the Housing Act 1988 remains in force.

However, as is often the case, the legislative process has proven more complex than anticipated, delayed in part due to amendments introduced in the House of Lords prior to the summer recess.

As matters currently stand, the House of Commons is due to debate the proposed amendments on September 8 2025, with Royal Assent expected thereafter.

Some political observers suggest that the government may seek to finalise the legislation ahead of the Labour party annual conference later that month.

A six-month lead time is anticipated, meaning the principal provisions may not take effect until spring 2026.

That said, some elements — most notably the abolition of section 21 — could be brought into force more rapidly for political effect, potentially as early as the end of September 2025. 

This could create uncertainty for landlords, who may be required to adjust their practices at short notice and face differing compliance timelines depending on when specific provisions come into force.

It is important to note that the abolition of no-fault evictions forms just one part of a broader legislative package.

Additional measures include enhanced rights for tenants, such as the right to keep pets, each of which will have operational and compliance implications for landlords.

The bill also introduces new enforcement mechanisms, including increased funding for local authorities to regulate landlord conduct more proactively.

Penalties for non-compliance with basic tenancy requirements are expected to increase, alongside new registration and database obligations designed to improve transparency across the sector.

Moreover, the government is expected to issue accompanying guidance to clarify how courts should interpret certain discretionary grounds, with the aim of promoting consistency in possession claims.

Another area of potential complexity lies in how transitional provisions will be applied to existing tenancies.

The government has suggested that all assured shorthold tenancies will eventually be converted into the new periodic model, however, it has yet to confirm whether this will occur automatically or via legislative triggers.

As such, both legal practitioners and landlords will need to monitor closely how and when these transitions are implemented.

Expanding compliance and dispute resolution

Further, the role of dispute resolution mechanisms is likely to expand as a result of these reforms.

In addition to formal court proceedings, it is expected that alternative dispute resolution schemes will be promoted to resolve disagreements over rent increases, repairs, or possession notices.

This reflects a wider governmental aim to reduce pressure on the court system while offering tenants and landlords a less adversarial path to resolution.

For letting agents, the bill is also set to introduce new compliance duties, particularly around the provision of prescribed information and oversight of tenancy documentation.

Failure to meet these standards could expose agencies to regulatory sanction or litigation.

As a result of this, industry bodies have already begun to urge their members to begin reviewing internal processes in anticipation of the new legal regime.

In practical terms, once the legislation is in force, landlords will face a more restrictive and procedurally burdensome process in seeking possession from tenants.

Those wishing to rely on the current regime should take proactive steps without delay.

With time running out for taking advantage of this legislation before it is abolished, landlords considering possession proceedings under section 21 should do so as a matter of urgency.  

Although still technically in force, use of this procedure requires strict compliance with regulatory requirements.

As the government notes: “You must follow strict procedures if you want your tenants to leave your property.”

This guidance focuses on England, as housing law diverges across the UK’s devolved administrations.

Under current rules, a section 21 notice may be served either:

  • at the end of a fixed-term tenancy (where a written agreement exists); or

  • during a statutory periodic tenancy (where no fixed term is in place).

Where the tenant has breached the tenancy terms, landlords should instead rely on section eight of the Housing Act 1988.

However, a section 21 notice will only be valid if specific conditions have been satisfied, including:

  • The tenancy must be at least four months old.

  • The landlord must have protected the tenant’s deposit in an approved scheme (for post-April 2007 tenancies).

  • The local authority must not have served an improvement or emergency works notice within the preceding six months.

  • No unlawful fees or deposits must remain unpaid.

  • Where required, the property must hold an appropriate HMO licence.

The tenant must have been provided with:

  • a valid energy performance certificate;

  • an up-to-date gas safety certificate; and

  • a copy of the government’s How to Rent guide.

Landlords are required to provide at least two months’ notice, although longer notice periods may apply to contractual periodic tenancies — for instance, where rent is paid quarterly.

If the tenant fails to vacate following expiry of the notice period, landlords must seek a possession order from the court.

Delays in court listings — especially in London — mean that this process can be protracted.

In some cases, further applications for a warrant of possession and bailiff appointment may be required.

Given the increasing scrutiny of section 21 notices, landlords should ensure that their documentation is in order and that all preconditions have been fulfilled.

The prescribed notice (form 6A) should be used, or an equivalent containing all required statutory information.

This may be the final opportunity to make use of section 21. Diligent preparation is strongly advised.

Once section 21 is repealed — likely in the first half of 2026 — landlords will be required to provide a specific ground for possession, primarily via a section eight notice.

In addition, fixed-term assured shorthold tenancies will be phased out.

Most tenancies will become periodic by default, operating on a rolling weekly or monthly basis.

While the final legislative text is still subject to parliamentary scrutiny, the government has indicated that the new framework will specify both mandatory and discretionary grounds for possession.

Although, as mentioned earlier, the full details of the proposed new act have not been finalised, practitioners already have a sense of what this will look like, with a number of criteria being laid out as legitimate reasons for eviction. 

Examples of mandatory grounds include:

  • The landlord or a close family member intends to occupy the property.

  • The property is to undergo substantial redevelopment.

  • The tenant has accrued three months’ rent arrears.

  • The tenant lacks lawful immigration status.

Discretionary grounds, which require judicial discretion, include:

  • Breaches of tenancy obligations.

  • Damage or deterioration of the property.

  • Conduct amounting to anti-social behaviour.

  • Involvement in criminal activity, such as rioting.

  • Circumstances relating to agricultural tenancies.

A full list of proposed grounds can be found on the government’s website.

To obtain possession, landlords must serve notice in the prescribed form and allow for the applicable notice period.

If the tenant does not vacate, possession must be sought through the courts with supporting evidence.

Landlords must also prepare for heightened evidential standards under the new regime. 

Courts are likely to scrutinise applications closely, particularly where discretionary grounds are cited and thorough record-keeping, including photographs, correspondence, and inspection reports, could prove critical in demonstrating that possession is justified.

The reforms also introduce further controls on landlord conduct, including:

  • A cap of one month’s rent in advance.

  • A prohibition on rent increases more than once per year.

  • A requirement for two months’ notice prior to any rent increase.

  • The right for tenants to challenge increases deemed unreasonable.

Importantly, the tribunal process for challenging rent increases will be streamlined, with First-tier Tribunals expected to play a larger role.

This will introduce new litigation risk for landlords seeking to push rents to market levels.

The government has stated that this will prevent landlords from using excessive rent rises as a de facto eviction strategy, while still allowing adjustments in line with market conditions.

Tenants, under the new periodic regime, will have the right to terminate the tenancy at any time, subject to a minimum of two months’ notice.

The renters’ rights bill represents the most significant reform to the residential rental sector in a generation.

While its intent is to redress perceived imbalances in tenant protection, it will have far-reaching operational consequences for landlords and letting agents.

Professionals advising landlord clients should ensure that they are aware of both the short-term opportunities to act under the existing framework, and the longer-term procedural and evidential requirements that will arise once the new regime comes into effect.

The transition will demand not only technical legal compliance, but also a strategic re-evaluation of portfolio management practices, tenancy structuring, and dispute resolution protocols.

Particularly for institutional landlords and build-to-rent operators, advance planning will be essential to ensure readiness for the evolving regulatory environment. 

Failure to prepare could lead not only to delayed possession proceedings and rent loss, but also reputational damage, particularly for larger landlords subject to public scrutiny or investor expectations around compliance.

However, ultimately, success in navigating these reforms will depend on early engagement, robust legal advice, and a willingness to adapt.

As the regulatory landscape continues to evolve, careful compliance and anticipatory legal planning will be critical, and the role of advisers will only become more vital for private landlords and agents looking to navigate these shifting tides.

Swift completion of £5.9million loan secured over prime residential blocks

Posted on: January 20th, 2025 by Hugh Dineen-Lees

In a recent financial transaction, a £5.9 million loan was secured over three multi-unit residential blocks located in London and Hemel Hempstead. This deal involved multiple linked refinancing transactions of the commercial elements, showcasing the complexity and efficiency of the process.

Anna Christou represented YBS Commercial Mortgages, while Paul Marsh acted for the Borrower. The transaction was completed within an impressive nine working days from the issuance of the Offer, highlighting the dedication and expertise of the teams involved.

A special mention goes to Katie Peck and Amy Bristow, at YBS Commercial Mortgages, whose pivotal role ensured the smooth and timely completion of this significant transaction.

This achievement underscores the importance of collaboration and precision in high-stakes financial dealings, setting a benchmark for future transactions.

Residential Real Estate market update: navigating the current UK housing market

Posted on: August 9th, 2024 by Yvonne Uzoka

The Bank of England (the ‘BoE’) Monetary Policy Committee’s recent decision to cut interest rates to 5% and the anticipated government taxation regime announcement in October 2024 are likely to affect both the wider UK housing and Prime Central London (‘PCL’) markets. In this market update our Residential Real Estate team take a look at the possible effects.

Impact on Swap Rates and the UK housing market

Let’s dive in. The UK housing market continues to show robust price growth. Earlier analysts’ predictions of an expected 1.8% rise in housing prices in July 2024, prices have been surpassed by actual increases of 2.1%. This unexpected growth reflects strong pent-up demand as borrowing conditions improve. In anticipation of the BoE’s interest rate cuts, several mortgage lenders, such as HSBC, NatWest and Nationwide, have recently reduced their mortgage rates boosting approvals to around 60,000 per month.

Following the BoE’s decision, five-year swap rates fell to 3.6%, the lowest since February 2024. This is under the crucial 4% threshold and experts are predicting rates will stabilise around 3.25% above pre-pandemic levels.

Why does this matter? The current trends suggest that lenders expect long-term interest rate reductions, making 5 to 10 year fixed mortgages the most cost-effective options. This indicates that lenders are keen to secure borrowers at these lower rates, which are predicted to drop over the next few years – a positive signal for the housing market.

Overall, there is cautious optimism. While house prices are rising steadily, borrowing conditions are improving and no dramatic drops in rates are expected.

The contrasting trends in PCL: signs of recovery?

In the wake of 20+ months of economic fluctuations and high interest rates, the UK property market has shown a mix of different trends. In the broader market Q2 of 2024 saw a 22% increase over the previous quarter for properties valued between £3-15 million. However, during the same time period, PCL prices were falling, with valuations dipping slightly. The trend of increasing average discounts has continued for the seventh consecutive month after three years of declines. This suggests that PCL may be influenced by other factors and the recent interest rate reductions may have a limited effect.

Despite the ratio of available stock to monthly sales at 25:3 in Q1,2024 to 22:6 in Q2, 2024, supply remains high, with an above long-term average of 20. Consequently, sellers must maintain realistic expectations regarding property prices, especially as the market broadens and buyers are presented with more options.

Key takeaway:

  • Demand is rising, but price drops in PCL are likely to continue as supply remains high.

The Government’s taxation updates and potential impacts

Lastly, we address the central government’s upcoming taxation regime, due to be announced in October, and its potential impact on the housing market. The Labour Government’s mandate is pro-growth, with an expectation of coming into effect by 6 April 2025. However, the practical implementation remains uncertain.

They aim to boost public service investment and stimulate the economy without raising income tax, national insurance, or corporation tax, which constitute about 80% of tax revenue. Proposed changes include:

  • Taxation of non-UK domiciled individuals – individuals with 10 consecutive years of non-residence will be exempt on their foreign income and gains received in the first 4 years of residence in the UK. It is irrelevant whether the income and gains are remitted to the UK;
  • Introduction of VAT on private school fees;
  • Abolition of furnished holiday lets (FHL) regime;
  • Adjustments to taxation on carried interest; and
  • Changes to transfer of assets abroad.

It is unclear if the government can achieve growth with these mechanisms or if they will backtrack on promises. As such, borrowers, lenders, and property owners should stay vigilant in the coming months.

At Lawrence Stephens we are dedicated to helping our clients navigate these changes. If you have any questions or need assistance, please do not hesitate to contact our specialised Residential Real Estate team.

Emma Cocker comments on challenging bad references from previous employers in The Telegraph

Posted on: July 5th, 2024 by Natasha Cox

Emma Cocker, Senior Associate in the Employment team, comments on whether an employer can give a bad reference, and how employees can challenge a bad reference from a previous employer.

Emma’s comments were published in The Telegraph, 5 July 2024.

“An employer can give a negative reference, but it must be factual. Employers owe the subject of a reference a duty to take reasonable care to ensure the information it contains is true, accurate and fair. The reference must not give a misleading impression. If a referee gives a reference which is misleading, they may be liable for negligence, either to the new employer or the employee.

“In addition, if a referee knowingly includes false information with the intention that the recipient will rely on it, the referee will be liable to the recipient for a civil claim of deceit.

“It is difficult for employees to challenge a bad reference, unless they can demonstrate that the information was inaccurate, discriminatory or was given in retaliation for raising allegations of discrimination or whistleblowing. In practice, most employees will only become aware of a bad reference once a job offer has been withdrawn. At that stage, it is highly unlikely a prospective employer could be convinced to offer a role again, as the seeds of doubt will have already been sown.

“The only real option is for the employee to take legal advice to see whether they have a claim against the referee. If an employee does become aware of a bad reference before it has been shared with a prospective employer, they should try to discuss the reasons for the negative content with their new employer as soon as possible.

“Protecting your reputation is simple: be the best employee you can be. Courteous, on time for work and reliable – these are all behaviours employers hold in high regard. If there are circumstances which might affect your ability to comply with expected norms, such as being a parent or carer, or having a disability, discuss these with your employer as soon as possible so they are aware of any mitigating circumstances.

“There is a common misconception that employers are obliged to provide references. However, with the exception of regulated industries such as financial services, this is not the case. In reality, most employers will provide a “factual” reference, outlining the employee’s name, job titles and dates of employment, but they cannot be forced to provide further information.

“Employers are also entitled to include a disclaimer within the reference that limits any liability to the recipient of the reference. References may be given orally or in writing. However it is generally safer to provide basic factual references in writing with no further information given to avoid any liability to the employee or the recipient. If incorrect or misleading information is given, the recipient may allege negligence. Do not be tempted to say things on the phone that you wouldn’t commit to in writing!

“If you are not happy with a reference provided by your ex-employer, the first step is to find out whether the reference has actually been sent to the prospective employer. If not, you may be able to talk to your ex-employer and see whether they might be prepared to change the content. Remember however that they are under a duty to provide accurate information, so they may not be willing to change it. Also consider whether their approach or any of the information they have provided might be discriminatory, such as commenting negatively on high absence levels if you have taken a period of parental leave, or on your performance which has been adversely affected by a disability.

“If you have been given a bad reference because of or after raising concerns about discrimination, or after you have “blown the whistle”, you may have a claim against your ex-employer for victimisation or whistleblowing detriment. It is important to take legal advice at an early stage to assess whether you might have viable claims against the referee. This will be especially important if you have lost a job opportunity because of a negative reference.”  

If you have any questions relating to the above, please contact a member of our Employment team.

Lawrence Stephens advises Blue Shield Capital on £25million facility loan

Posted on: May 17th, 2024 by Yvonne Uzoka

Lawrence Stephens’ Banking team recently advised Blue Shield Capital on a £25m facility loan provided by OakNorth.

The £25m loan will be used to empower Blue Shield to expand its real estate bridging loan portfolio at speed.  Our dedicated Banking team played a crucial role in supporting this deal. Their expertise and commitment ensured a smooth process despite the complexity involved.

The Banking team from Lawrence Stephens was led by Director and Head of Banking  Ajoy Bose-Mallick, with assistance from Senior Associate Ashley Wright and Trainee Solicitor Alex Ruder.

Ajoy commented: “Blue Shield Capital’s recent £25 million loan arrangement marks a significant milestone in our partnership. We’re thrilled to support their growth across various real estate sectors, and we look forward to witnessing their continued success”.