![\"Construction](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/05\/Labour-renters-rights-act-construction-site-e1777655448642.jpg\")
\t\tThe Renters Rights’ Act came into force today\t<\/p>\n\t\t\tFriday 01 May 2026 6:11 pm\n\t\t\t<\/p>\n
\t\tThe Renters Rights’ Act came into force today\t<\/p>\n
There were celebrations across the Labour frontbench as the Renters\u2019 Rights Act came into force today. That won\u2019t last for long, writes Ben Hopkinson<\/p>\n
Swedish economist Assar Lindbeck famously called rent control \u201cthe most efficient technique presently known to destroy a city \u2013 except for bombing\u201d. Somebody must have communicated this to No 10 and the Housing Ministry last week, given how quickly they shut down the rumours that Rachel Reeves was mulling a rent freeze<\/a> ahead of the local elections.<\/p>\n It\u2019s just a shame that the government\u2019s very own Renters\u2019 Rights Act, which came into force today, will have similarly devastating consequences. More rights<\/a> for renters rights might sound great \u2013 but they are useless if there are no properties available to actually rent.\u00a0<\/p>\n What does the Renters\u2019 Rights Act actually do?<\/p>\n The headline policy of the Act abolishes Section 21 evictions, also known as \u2018no fault\u2019 evictions. These enabled fixed-term tenancies by giving landlords the power to regain possession of their property once the agreed term expires. Since the Act went into force, every tenancy is effectively indefinite.c<\/p>\n There\u2019s a principled argument against this: why shouldn\u2019t tenants and landlords be able to agree a contract length between them? But there\u2019s also a practical one: if landlords are confident that they can easily regain possession, they will be much more likely to let out their properties in the first place.\u00a0<\/p>\n With this protection gone, landlords have no certainty about getting their property back at an agreed point. Instead they may have to jump through multiple hoops, including backlogged courts and the queue to get a bailiff, with a huge potential for lost income.\u00a0<\/p>\n It\u2019s little surprise, then, that thousands<\/a> of landlords put in last-minute Section 21 notices in the final weeks of April. They knew how damaging this change will be.<\/p>\n Landlords will be more likely to pass over first-time renters<\/p>\n But the Act also changes who will actually get to rent flats. The Act stops tenants from paying rent in advance and bans landlords from accepting an offer above their initial asking price. Without the ability to compete on price, prospective renters will be forced to compete on other grounds. That could mean CV checks, references from previous landlords and renting within personal networks.\u00a0<\/p>\n This will be disastrous for young people who are trying to move out of their childhood home into their first tenancy. Without a rental history, and probably on a lower income than those further along in their career paths, they will look riskier on paper, which will mean landlords are more likely to pass them over.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tRenters\u2019 rights act: what does it mean for landlords, rent hikes, tenants and no-fault evictions?<\/a><\/p>\n Perhaps most significant of all, the act brings in rent control through the backdoor. No longer will rents be set by agreements between tenant and landlord. Instead, tenants will be empowered to challenge any rental increase through a tribunal.\u00a0<\/p>\n Until the tribunal makes its decision, the tenant will pay the existing rent \u2013 and any tribunal decision will not be backdated. The tribunal is also banned from suggesting a rent higher than the one the landlord proposed. So there\u2019s literally no reason for a tenant not to go to a tribunal.<\/p>\n With 11m private renters and only 34<\/a> tribunal judges, the system is likely to be overwhelmed almost instantly. That will mean Rachel Reeves gets her rent freeze wish after all.\u00a0<\/p>\n Landlord exodus will not improve the rental sector<\/p>\n If we want a functioning private rental sector, it needs to be in the interest of both tenants and landlords to enter into agreements. Over the past decade there\u2019s been increased stamp duty for landlords, tax changes that mean they can no longer deduct mortgage interest from their taxes and increased regulatory requirements like improved energy efficiency, which have all added costs. The result has been a net loss of 300,000 homes in the private rental market between 2016 and 2023.<\/p>\n