How lenders should prepare for the Renters’ Rights Act

The Renters’ Rights Act comes into effect at the start of May – and, it’s fair to say, many people in the real estate industry have been, at best, mildly sceptical as to whether it is the right prescription for our ailing housing sector. 

The aim of the Act is to offer greater protection to residential tenants. For some in the industry, that translates to meaning more burdensome regulation. But property isn’t a zero-sum game, and the Act will have some negative consequences for tenants – including discouraging investment into the new homes we need to increase supply and drive down rent – and some benefits to certain segments of the real estate investment landscape.

It will reshape the operating environment for anyone managing residential assets. For joint fixed charge receivers, like me, that’s no different. Receivers are often required to take control of portfolios at speed, frequently inheriting assured shorthold tenancies and tenants whose rights the Act is designed to strengthen. 

There are reasons to believe that – while not a net positive for the sector – the Renters’ Rights Act does come with benefits to lenders that are underrepresented in much of the discourse. While lenders need to be careful, as they always are, they should understand that much of the conversation on the Act isn’t targeted at them and instead weigh it up on its own merits and make plans to mitigate its impact.

How the Act is more nuanced for lenders than it may first appear

As with most legislation, the impact of the Act in an insolvency scenario remains the final piece of the puzzle. In recent years, possession cases have typically taken between 12 and 18 months, depending on the court in which proceedings are heard. Additionally, due to the receiver’s inherited status – that is, we take on tenancies once the property is placed in receivership rather than instigate them – no fault evictions have always been a challenge. Instead, it is possession proceedings on the basis of lender possession or rental arrears that are the routes open to us and the lenders on whose behalf we act.

However, a review of the new legislation suggests that the grounds for possession available to receivers may, in fact, be broader than those currently available. While the default and notice periods will be longer, a wider range of grounds should provide greater certainty for possession claims from an insolvency perspective.

Relevant grounds to recover possession available to receivers will include rent arrears, mortgagee possessions – and, crucially – intent to sell. Given the intent to sell is typically the primary objective from the receivership perspective in order to recover the debt, this is a significant clause in the lender’s arsenal.

In means, in terms of likely timeframes, uncontested possession could take as little as four weeks for an accelerated rent arrears claim – compared with around six months under the current system. However, where possession is contested, it may take 12 months or longer.

So, what can lenders do?

Given the inherently contentious nature of receivership, we expect that the upcoming changes will result in longer timeframes to gain possession and ultimately sell the property. It’s therefore more important than ever that extended timelines are factored into decision-making at an earlier stage.

With the cost of capital becoming more expensive again, base rate holding and wider geopolitical factors depressing the capital realisations, it may not be worth the time and effort of gaining possession and instead selling the property now in order to mitigate for market uncertainty in a year’s time.

While it is likely going to take longer to obtain possession through the new system, a section 21 notice is still worth considering before May if there’s an issue with your property and the strategy portfolio is to sell your units individually within the next 12 months.

The Renters’ Rights Act tightens tenant protections and raises the evidential and compliance burden on landlords. While some new grounds may improve clarity for insolvency-driven possession claims, longer lead times and higher costs are expected. Early planning, robust documentation and timely action will be essential to preserving value.

This blog was first published on 8th April 2026 by Property Week. You can see the full article here