Tenants are still being told to commit to rent increases despite ban ...Middle East

Tenants have been getting misleading advice from estate agents that could cost them money ahead of the new Renters’ Rights Act coming into force.

From 1 May renters in England will be given a swathe of rights providing them with extra protection from rent rises and no-fault evictions amongst other things.

However, some letting agencies have been sending tenants emails about their contracts ahead of the new rules coming into play, suggesting they should commit to long-running fixed-term deals, paying several months’ rent upfront or commit to future rent rises to ‘strengthen their offer’ – all of which will be banned in a matter of days.

As well as creating confusion for tenants, it could leave some out of pocket if they believe they have already committed to paying large amounts up front or agreed to  future rises.

One such example is an email sent to a renter, seen by the i Paper, by agency Marsh and Parsons in London offering advice on how the tenant can boost their chances of having their offer accepted in a “competitive market”.

In the email – sent at the end of February – the agent advised the renter to suggest a longer tenancy of 24 to 36 months, as well as including a scheduled rental increase within the offer.

But from 1 May offering a longer contract and scheduled rent increases will be void as a result of the Act’s new rules.

Renters will no longer have fixed terms, with all tenancies becoming rolling, regardless of fixed-terms tenants have signed previously.

Landlords will also only be able to increase rent once a year and must use a Section 13 notice – a legal document used to increase rent on a periodic rolling assured or assured shorthold tenancy.

They will also not be allowed to accept anything over the advertised asking price.

Marsh and Parsons told the i Paper it was “committed to providing a high standard of service and always works in line with industry regulations and best practice.”

It added: “We’re not able to comment on individual cases or share specific details. However, we can reassure you that all tenant agreements and related services are handled carefully and in accordance with relevant guidelines.”

Misleading advice from estate agents could potentially be unlawful, or lead to future legal claims.

Tom Kelly, director at Robertsons Solicitors, said: “Deliberately misleading a tenant about their legal rights is not simply poor practice, it can have serious legal consequences.

“Under the Consumer Protection from Unfair Trading Regulations 2008, letting agents are prohibited from giving misleading information that causes a tenant to make a decision they would not otherwise have made. Telling a tenant they must fix into a long-term tenancy when the Renters Rights Act removes that obligation could fall squarely within that definition.”

However, Alice Harris, legal director in the property disputes team at Birketts LLP, said: “It is not currently an offence under the Housing Act 1988 for an agent to provide prospective tenants with misinformation relating to a tenancy. It is however bad practice and behaviour that can be reported to the regulatory body for letting agents.

“When the Renters’ Rights Act 2025 comes into force, there will be a new provision inserted into the Housing Act 1988 which will make it an offence for an agent or landlord to provide false or misleading to the Private Rented Sector database, which is expected to be launched in late 2026.”

Another renter described being sent an email from a different letting agency which said once the new rules come into effect, the tenant may be able to leave their fixed-term tenancy early “only if your tenancy includes a break clause or if your landlord agrees to an early surrender of the tenancy”.

It also said if the tenant’s contract does not have a break clause, they will be legally required to remain until the end of the fixed term.

However, under the rules tenants will be able to leave at any time by giving two months’ notice.

Similar to the email sent by Marsh and Parsons, the agent provided erroneous information regarding fixed contracts.

It said if the tenant was currently on a fixed-term contract, this would continue until the end date specified in their agreement, when in fact all tenancies will become rolling.

Robertson said those who had been sent such information should “document everything in writing” and seek legal advice.

Landlords and estate agents should comply with the relevant housing laws but if they don’t, they could fines of up to £7,000 or £40,000 for repeat offenders.

Jill Carey, property litigation partner at Freeths, said: “It is very important to note that ignorance of the new law will not be a defence, and so any landlord or agent who acts mistakenly could still be caught out by the rules.

“If a landlord is exposed to such penalties due to the actions of its managing agent, and the landlord was unaware of the terms put forward by the agent, or had relied upon advice from the agent to approve them, they may be able to take their own action against the managing agent.

“Similarly, managing agents must ensure that all staff are fully trained and understand the new rules and their implications.”

Nye Jones, head of Campaigns of campaign group Generation Rent, said: “From May, all tenancies will become rolling, regardless of previous fixed terms tenants have signed. This will allow renters to leave the home with two months’ notice at any point. Letting agents and landlords telling people otherwise risks renters not knowing about this new right.

“Meanwhile, from 1 May, landlords will only be able to raise the rent once a year through a Section 13 notice. Therefore, commitments to a specific yearly rent increase, which some agents are currently asking, will be meaningless.”

Multiple property listings on Spare Room and Open Rent also seem to be including ‘no pets’ within the description despite tenants having the right to request a pet from 1 May with the landlord having to consider the request fairly.

Jones added: “Many agents are still advertising homes with ‘no pets’ despite renters having the right to request a pet from Friday, which landlords can’t unreasonably refuse.”

Landlords will still be able to evict tenants under certain circumstances such as moving back into the property, selling the home, unpaid rent or antisocial behaviour.

Chelsea Phillips, National Chair of Acorn, said: “Misleading renters about their rights right now is completely unacceptable and it risks stopping people from using the protections they’ve just won.

“This is exactly why it’s so important that renters know their rights. These changes are meant to give people more security and power, but that only works if renters understand what they’re entitled to and feel confident enough to exercise these rights.”

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