A law firm says it had a wave of last-minute instructions to sell portfolios ahead of the Renters Rights Act coming into force today.
Thackray Williams says it also has instructions to conduct last-minute Section 21 notices for flats and houses.
“Our clients are all saying the same thing: the new liabilities and reduced flexibility being introduced by The Renters’ Rights Act is the final straw in making their property investments no longer commercially or practically viable” says Mustafa Sidki, Contentious Construction Litigation Partner.
“The changes being introduced by the Act mean it will take longer and cost more for a landlord to regain possession of a rental property.
“This reduced flexibility is causing many landlords to rethink their investment strategies, especially as other factors mean they are facing reduced – and even negative cashflow – while also facing increased admin and responsibilities.”
He says his firm is anticipating increased conveyancing instructions which in turn could negatively impact property prices, particularly in areas that have traditionally had a strong rental sector.
His company says landlord problems are being compounded by higher mortgage costs and service charges in some cases.
“On top of this, landlords now have additional admin with the requirement of quarterly income returns introduced under Making Tax Digital at the beginning of this month.
“With many landlords facing costly upgrades to bring their properties up to EPC C by 2030 under the Decent Homes Standard 2026, many of them are saying the finances simply no longer add up and are rushing to beat the legislation to be able to divest their portfolios.”
Paragraphs 3 and 4 of Schedule 6 of the Renters Rights Act prescribe that a valid Section 21 notice served before today will remain valid, and the tenancy will remain an AST until the landlord obtains possession and the tenancy ends, the notice lapses or a judge decides that the notice is invalid.
