England has the new Renters’ Rights Act. Should we have a similar one here in Malaysia

England has the new Renters’ Rights Act. Should we have a similar one here in Malaysia

People always tell me that the current market favours the renters. If you ask me as a landlord, I will be asking, ‘are we really serious on this?’ I do not speak for home owners who bought overpriced property and now struggling to pay monthly mortgage and thus desperately looking for a tenant and of course there are lots of competition too. Anyway, the question is whether the tenants / renters really do reign supreme or actually the final say of whether to rent or not depends on the landlord…? Now, let’s know a little about how renters rights are soon to be protected by legislature in England.

Rented on ‘periodic’ basis and not a fixed 12 or 24-month contract

Article in bbc.com From 1 May 2026, properties will be rented on a “periodic” or rolling basis, rather than under a fixed 12 or 24-month contract. 

It means that tenants who wish to remain can do so, which the government says will provide greater security. 

Tenants who want to leave can give two months’ notice, rather than being tied in for a year or longer. The government says this will end “the injustice of tenants being trapped paying rent for substandard properties”. Article in bbc.com

My comments: I do wonder why this is needed because if I was the tenant, I would have already seen the place. So, when I signed, I am fully aware what I was signing myself into. Well, if the tenant is now able to provide a two months’ notice versus having to pay until the end of the contract, what would be the avenues available to the landlord? Can they also give the same two months’ notice and tell the tenant to leave?

Landlord cannot sell within 12 months of a tenancy agreement signed

Article in bbc.com. In the year to June 2025, more than 11,000 households in England had their homes repossessed by bailiffs following a Section 21 “no-fault” eviction. 

The new law means that a landlord will not be able to sell or move into a property in the first 12 months after a tenancy begins, from 1 May.  After this, they will need to give four months’ notice.

However, it will still be possible for landlords to evict tenants in certain circumstances.

If tenants damage the property, commit antisocial behaviour, or fall significantly behind paying the rent – known as rent arrears – the landlord can give notice at any point.

Tenants will need to owe three months’ rent rather than two to trigger an arrears eviction.  Article in bbc.com.

My comments: The landlords would have to do sufficient checks on the tenants so that they would not need to rely on the law to evict them later on. However, what the law says is that after the landlord has rented out their unit, they cannot suddenly want to sell / want back the property in the first 12 months after a tenancy begins. I think it’s fair. If I am the tenant, if would inconvenience me tremendously if I have to move out again to another place in just a few months after moving in.

Can landlord increase my rent? Answer is Yes but…

Article in bbc.com. When can a landlord increase my rent? Landlords will need to give two months’ notice, and can only increase rent to “the market rate”.

If a tenant believes the amount is excessive, they can challenge the landlord at a first-tier tribunal, a type of civil court.

The Act will also end the practice of “bidding wars”, so new tenants cannot be asked to pay more than the advertised price. 

The changes come as average UK monthly private rents increased by 5.5% to £1,354 in the 12 months to September 2025, according to a provisional estimate by the Office for National Statistics (ONS).  Article in bbc.com.

Comment: The law does not say landlords cannot increase the rental yeah. It says the landlord must give two months’ notice. It says the increase needs to be at “the market rate.” We need to understand that “the market rate’ can still mean a rate which the tenants do not regard as fair for them. So, let’s see what happens when they start implementing this next year. Lots of learnings in case Malaysia intends to do something similar to protect the tenants in the future.

More interesting things to read too

There are a lot more interesting stuffs too. How much deposit to pay… Can landlords discriminate against those receiving benefits… can tenants have a pet in a rented home… changing rules for student accommodation… England is certainly a more advanced property market than Malaysia. Whatever happens there has a possibility to happen here as well. So, knowing in advance would be very beneficial for anyone who’s a landlord or a tenant here in Malaysia. Read it all here: Article in bbc.com.

Now imagine is you are a landlord with the above Renters’ Rights Act

Screening will be much tighter. This is because any landlord making a mistake of implying accepting any tenant will be in big trouble. One mistake and we could not do anything. I would also prefer to rent out my unit at a good rental versus a lower rental simply to buy time. Once rented at a lower rental, I have to continue to accept this same rental for the next 12 months even if the market has improved.

Fortunately, I can increase the rental to market’s rate by giving 2 months’ notice. Tenants can challenge this in the tribunal but if I have followed the market rate, then my increase is technically permissible. Now do we not wonder why renters need an act to protect their rights? Yea, maybe, just maybe landlords have the upper hand in any negotiation / agreement. This is why we need Renters’ Rights Act in England.

No worries, there are no signs that this is coming to us soon here in Malaysia. Anyone wants this to come soon?

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