UK tenants breathe easier under new laws – but there is a downside

This article appeared as part of the Daily Sensemaker newsletter – one story a day to make sense of the world. To receive it in your inbox, featuring content exclusive to the newsletter, sign up for free here.

The Renters’ Rights Act takes effect today, representing the biggest set of changes to the UK rental market in a generation. The legislation bans landlords from issuing “no-fault evictions” that allow them to boot out tenants without an explanation. Instead they will only be able to evict tenants if they intend to sell the property or move into it – and must give four months’ notice. Fixed-term tenancies will become rolling monthly contracts, rent rises are restricted to once a year and properties cannot be let for more than the advertised rate to stop bidding wars. The legislation is designed to empower tenants and force dodgy landlords out of the sector. But there could be unintended consequences: hundreds of thousands of properties are being sold, which will diminish rental stock and increase competition between would-be tenants.

Read more: Rental reform: private landlords out and companies in?