What Six Months of the Renters' Rights Act Has Taught Prime Central London Landlords

In the months beforehand, landlords heard a great many predictions about what it might mean: a rush of owners leaving the market, tenants moving on after only a few months, rent reviews tied up in tribunals and landlords unable to recover their properties.

Six months on, the reality on the ground has proved considerably calmer. While the Act has certainly changed how letting works, several of the biggest fears have not come to pass. For Prime Central London landlords, that is an encouraging message, and one worth looking at in a little more detail.

What the Act changed

The Act covers tenancies where the rent is £100,000 a year or less. Since 1 May, fixed-term assured shorthold tenancies have been replaced by periodic tenancies, which continue until either the tenant gives notice or the landlord relies on one of the statutory grounds for possession. Section 21 "no-fault" evictions have been abolished, and rent increases are now made through a formal notice once a year, which tenants can challenge if they believe the new rent is above market level.

Tenants still want to stay

One of the main concerns before May was that periodic tenancies would mean a constant turnover of tenants, with tenants leaving after a few months and landlords facing frequent void periods. So far, that has not happened. The great majority of tenants still want what they have always wanted: a well-located, comfortable home they can settle into for the long term.

Moving is expensive and disruptive, and in Prime Central London many tenants are families with children in local schools or professionals on long assignments. When a tenancy does finish sooner than planned, it is usually for familiar reasons: a new job, an international relocation or a change in personal circumstances.

Possession is still possible

Perhaps the most persistent misunderstanding about the Act is the idea that a landlord loses the ability to get their property back once a tenant has moved in. That is not the case. While Section 21 has gone, landlords can still seek possession on a range of legitimate grounds, including a planned sale or a wish to live in the home again, provided they follow the correct process and notice periods.

In practice, abolishing Section 21 has made less difference than many expected. Even before the Act, most tenancies ended because tenants chose to move on, rather than through a no-fault notice. What has changed is the importance of getting the process right, which makes good advice more valuable than ever.

Rent reviews are working as intended

Another worry was that the new rent review process would lead to large numbers of tenants challenging increases, causing delays and uncertainty. Early experience suggests otherwise. Only a very small proportion of tenants who have received a formal rent increase notice have referred it to the tribunal. Where increases reflect genuine market levels, the vast majority are accepted without dispute.

The lesson for landlords is clear. Setting any proposed increase on the basis of sound local evidence, and explaining it clearly, makes a challenge far less likely and far easier to defend if one arises.

No mass exodus

The predicted rush of landlords leaving the sector has also failed to materialise. Some owners who were already thinking of selling have done so, with the Act acting as one factor among many. But most landlords have adapted, and a significant number who tested the sales market have returned to letting when they could not achieve the price they wanted.

Rents in central London have continued to rise modestly, driven far more by the balance of supply and demand, and by affordability, than by the legislation itself. Homes with gardens or terraces, room to work from home, easy transport and a quality finish continue to attract the strongest interest, often at or close to the asking rent.

What landlords should take from the first six months

The most important lesson is that the Act has changed the framework, not the fundamentals. Good tenants still want good homes, and well-run lettings remain a sound long-term investment. What the new rules do require is careful attention to process: correct documentation, proper notices, compliant rent reviews and a clear understanding of the possession grounds available.

This is where professional management earns its value. Much of the anxiety surrounding the Act has come from misunderstanding rather than from the rules themselves, and landlords who work with an experienced letting agent are better placed to stay compliant, avoid costly mistakes and protect their investment.

It is still early days, and the longer-term effects of the Act will take time to become clear. But after six months, the picture for Prime Central London landlords is far more reassuring than many expected.