Galbraith warns the Renters’ Rights Act, coupled with the end of Section 21 notices and new buildings’ standard rules, could cause an exodus of landlords from the rental market, particularly in rural areas, where provision of rental properties is already more challenging.

Sam Gibson, a partner with Galbraith and head of sales and lettings in Northumberland, said: “This marks the most substantial overhaul of the private rented sector in a generation”.

The Renters’ Rights Act abolishes Section 21 ‘no fault’ evictions, meaning a landlord will have to rely upon at least one of the Section 8 grounds to gain vacant possession.

Under the Act, tenants can challenge any rent increase via the First Tier Tribunal. The tribunal cannot set a higher rent than the level proposed by the property owner.

The new Private Rented Sector Database, Landlord Ombudsman, and simplified routes for tenants to make complaints and challenge rent increases, will potentially result in more frequent disputes between landlord and tenant.

The Renters’ Rights Act is being introduced in addition to the Decent Homes Standard and Awaab’s Law requirements in the private rental sector, compelling landlords to maintain stricter overall standards and report hazards more rapidly.

For rural landlords — often letting traditionally built stone cottages and farmhouses, this is especially disruptive. Rural homes are typically less energy efficient and more expensive to upgrade. Listed buildings are not automatically exempt from the energy efficiency requirements.

In addition rural homes are more likely to be heated by oil-fired central heating; and oil prices are set to increase significantly as global markets rise.

Tenants now have a legal right to request a pet, and landlords must reasonably consider the request. Landlords cannot impose blanket bans on pet ownership.

Sam Gibson continued: “For many rural landlords, the Renters’ Rights Act is the end of the road. Reduced control, rising compliance demands, restricted rent flexibility, and harder exit routes are pushing an increasing number toward selling rather than adapting. The additional paperwork, and greater liability for the landlord, are proving overwhelming for many, especially for such a small return on investment.  The legislation fails to properly consider the rural rental market and how much more difficult and expensive it is to upgrade these properties in order to be compliant with the new standards. We expect a further reduction in the availability of rental homes as a result.”

Galbraith handles property sales and lettings across rural Northern England — from Northumberland, to Cumbria, County Durham, the Yorkshire Dales, and the North Pennines.