With the Renters’ Rights Act 2025 now receiving Royal Assent, the UK’s private rental sector is on the brink of its most sweeping overhaul in decades. Sale or eviction without cause — once permitted under Section 21 — will end. But the changes go far beyond that. This legislation rewrites how tenancies are structured, how rental properties are managed, and how landlords and tenants interact. Forward-thinking investors must understand the full breadth of the reforms to safeguard their portfolios and seize opportunity in a more regulated, transparent market.
Key Reforms: More Than Just Section 21
- Abolition of ‘no-fault’ evictions: Section 21 is retired and fixed-term assured shorthold tenancies (ASTs) are abolished — from 1 May 2026 all tenancies become indefinite, periodic assured tenancies.
- New tenancy structure: Fixed-term contracts disappear. Tenants and landlords operate under rolling periodic tenancies. Tenants may end tenancy with statutory notice; landlords may only terminate using specific legal grounds.
- Reformed Grounds for Possession under Section 8: To regain possession, landlords must rely on valid grounds (e.g. rent arrears, sale, owner move-in, redevelopment), with new notice-period requirements — often longer than prior Section 21 periods.
- Cap on rent increases: Rent raises will be restricted to once per year.
- Ban on rental bidding and excess advance payments: Practices such as bidding wars and excessive up-front rent or deposits are to be outlawed — designed to prevent price gouging and make renting fairer.
- Tenant protections: anti-discrimination & pets: Landlords and agents can no longer discriminate against tenants based on children or benefit status. Also, tenants will have the right to request permission for a pet — and landlords must handle such requests reasonably.
- Stronger property-standards & enforcement: The Act brings private rentals into closer alignment with standards historically reserved for social housing — ensuring homes meet decent, safe and habitable standards. Local authorities will have stronger enforcement powers.
- New compliance infrastructure: The legislation paves the way for a Private Rented Sector register/database and enhanced redress and enforcement frameworks, aimed at raising landlord accountability.
Implementation Timeline & What Happens When
- Now (post-Royal Assent): The Act is law. Government drafting of secondary legislation and detailed guidance is underway.
- Before April 2026: Landlords and investors should review their existing tenancy agreements, property standards, tenancy-management processes and prepare for compliance.
- 1 May 2026 — Major Switch-On:
- Section 21 notices abolished — no more no-fault evictions.
- Fixed-term ASTs end; all tenancies become periodic assured tenancies.
- New ground-based eviction regime fully operative: landlords must rely on specified Section 8 grounds, with new notice periods and compliance requirements.
- Rent-increase limits, rent-in-advance restrictions, bans on bidding wars, and anti-discrimination & pet-request protections come into effect (for new and renewing tenancies).
- 2026 onwards – Compliance & Enforcement Era: Landlords must adapt to stricter tenancy-management, property-maintenance and regulatory compliance. Local authorities and redress bodies will be empowered to enforce standards and penalise non-compliance.
What This Means for PropertyWealth Investors
This overhaul is not just a risk — it’s a turning point and an opportunity. The new system favours professional, well-managed portfolios. Landlords who:
- ensure properties meet higher standards,
- maintain up-to-date, compliant tenancy documentation,
- operate fair rent-setting and tenancy-management practices,
will benefit in a market shifting toward stability, transparency and long-term tenants.
In contrast, landlords relying on outdated tenancy structures, arbitrary evictions or aggressive short-term tactics may struggle under increased regulation — or exit the market entirely. For investors with a long-term, compliance-driven mindset, this change could enhance value, reduce void periods and attract quality tenants.
