Renters warned over '£40,000' landlord loophole that makes it easier to evict them without reason
The Renters' Rights Act has been brought it to provide better protections for renters and tougher penalties for landlords who don't follow the new rules.
Landlords can now be fined up to £7,000 for initial breaches and up to £40,000 for serious, persistent or repeat ones.
Passed by Parliament in October 2025, the legislation aims to improve the relationship between tenants and landlords following years of criticism from renters who claim to have had too few safeguards in place.
One of the biggest changes is the end of Section 21 'no-fault' evictions. In the past, landlords could ask tenants to leave without giving a reason.
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From 1 May 2026, however, landlords can no longer issue new Section 21 notices.
The legal loophole
Campaigners have insisted that landlords can still evict tenants under Section 8 grounds if they give a valid reason, such as:
- The landlord wants to sell the property
- The landlord plans to move into the property
- The tenant has damaged the property or not paid rent
Because selling or moving in are allowed reasons, tenants could still lose their homes even if they have done nothing wrong.
The Greater Manchester Law Centre (GMLC) say they 'remain sceptical that the Renters Rights Act will significantly improve conditions in the private rented sector, or reduce the number of evictions'.
They warn that 'local authorities are often overstretched, under-resourced, under-trained and beset by legal challenges by landlords against any action they take'.
Phase 1
The first stage includes:
Rolling tenancies
Most tenancies will become monthly rolling agreements instead of fixed-term contracts.
This means tenants can stay in a property until they decide to leave or the landlord gives a valid reason for eviction.
Rent increases
Landlords can only raise rent once per year and must give two months’ notice. Tenants can challenge increases at a First-tier Tribunal if they believe the new rent is too high.
Rental bidding banned
Landlords and letting agents can no longer encourage tenants to offer more than the advertised rent.
Limits on upfront payments
Landlords cannot ask for more than one month’s rent in advance before a tenancy begins.
Discrimination banned
Landlords are not allowed to refuse tenants simply because they have children or receive benefits.
Pets
Tenants can ask to keep pets, and landlords must consider the request and give a valid reason if they refuse.
Phase 2 and 3
In late 2026, a national landlord database and a Landlord Ombudsman are expected to launch, giving tenants more ways to resolve disputes.
Later reforms could introduce minimum housing standards for private rentals and more rules requiring landlords to quickly fix serious hazards such as damp and mould.
Why some experts are concerned
"Without considerable extra funding and political will, it seems unlikely that increased local authority powers will make widescale change in the private rented sector," the GMLC said.
"Crucially, if tenants are not given individual rights to challenge their landlords for compensation or redress, they are relying on their local authorities, and are not given any protection by this.
"If you are homeless because your landlord relied on a lie to evict you, you could approach your local authority about it – but what is the point in pursuing a case with them if it won’t allow you to get your house back?
"And what if they are simply too busy, under-funded, or disinterested to bring a case for everyone who needs it? This seems very likely to us, looking at the current state of affairs."
Anish Vij