Renters’ Rights Bill: What It Means for Buy to Let Landlords
If you own — or are considering investing in — a buy to let property, the Renters’ Rights Act 2025 is something you cannot afford to overlook.
Coming into force on 1st May 2026, this legislation represents the biggest overhaul of the private rented sector in over 30 years. It fundamentally changes how landlords manage tenancies, increase rent, regain possession, and maintain their properties.
While the aim is to create a fairer and more secure rental market for tenants, the reality is clear:
Landlords now face tighter regulation, reduced flexibility, and increased responsibility.
Understanding these changes early is key to protecting your investment and adapting your strategy.
Renters’ Rights Act 2025: Key Summary
- Section 21 evictions banned
- All tenancies now rolling (periodic)
- Rent increases limited to once per year
- Rent bidding illegal
- Higher property standards enforced
- Tenants gain stronger legal rights
- Applies to existing tenancies automatically
What is the Renters’ Rights Act?
The Renters’ Rights Act (formerly the Renters’ Rights Bill) received Royal Assent in October 2025. The first major phase of the Renters’ Rights Act 2025 took effect on 1 May 2026, with further measures being introduced in later phases.
Its core objectives are to:
- Strengthen tenant protections
- Improve property standards
- Increase landlord accountability
- Create a more transparent rental market
This includes structural changes to tenancy agreements, eviction processes, rent controls, and compliance requirements.
Key changes at a glance
- Section 21 “no-fault” evictions abolished
- All tenancies become periodic (rolling)
- Rent increases are generally limited to once per year using the statutory procedure, and tenants can challenge an increase.
- Rental bidding wars banned
- A new Decent Homes Standard will apply to the private rented sector, but implementation is from 2035, rather than from May 2026.
- Stronger tenant rights (including pets and anti-discrimination)
- New compliance requirements and enforcement powers
- Rules apply automatically to existing tenancies
Section 21 abolished: Evictions now require valid grounds
One of the most significant changes is the abolition of Section 21 “no-fault” evictions.
Landlords must now rely on Section 8 grounds to regain possession, including:
- Rent arrears
- Anti-social behaviour
- Intention to sell the property
- Moving back into the property
This change increases tenant security but introduces:
- Longer possession timelines
- Greater reliance on the courts
- More documentation and evidence requirements
For landlords, this means less flexibility and more legal process when dealing with problematic tenancies.
All tenancies are now periodic
Fixed-term Assured Shorthold Tenancies (ASTs) are no longer the default.
From May 2026:
- All tenancies automatically become rolling periodic agreements
- Tenancies continue until ended legally by either party
This gives tenants greater flexibility, but for landlords it means:
- Less certainty over rental income
- Reduced control over tenancy end dates
- Potentially more frequent tenant turnover
If your mortgage relies on consistent rental income, this is a key risk area to review.
Rent increases are now tightly controlled
The Act introduces clear restrictions on rent increases:
- Rent can only be increased once per year
- Landlords must give 2 months’ notice using a formal process
- Increases must reflect market rates
- Tenants can challenge increases at tribunal
In addition:
- ❌ Rental bidding wars are now illegal
- ❌ Accepting offers above advertised rent is banned
This creates a more transparent system — but limits landlords’ ability to maximise rental income in high-demand areas.
Higher property standards and enforcement
The Decent Homes Standard is now mandatory across the private rental sector.
Landlords must ensure properties are:
- Free from serious health and safety hazards
- In a good state of repair
- Warm and energy-efficient
- Equipped with modern facilities
In line with Awaab’s Law, issues such as damp and mould must be addressed quickly.
Local authorities now have stronger enforcement powers, including:
- Fines of up to £7,000 for breaches
- Civil penalties and improvement notices
- Potential criminal prosecution for serious non-compliance
This marks a clear shift toward professionalising the landlord sector.
Tenant rights expanded significantly
Tenant protections have been strengthened in several key ways:
- Tenants can request pets, and landlords cannot unreasonably refuse
- Blanket bans on tenants with children or on benefits are prohibited
- Anti-discrimination rules are stricter and enforceable
These changes require landlords to adopt a more flexible and inclusive approach when letting properties.
New compliance requirements
The Act also introduces new administrative responsibilities:
- Requirement to provide a Renters’ Rights Information Sheet by 31st May 2026
- Ongoing compliance with updated legal standards
- The PRS Ombudsman and PRS Database are being introduced in later implementation phases. The government roadmap places these measures in Phase 2 rather than the 1 May 2026 tenancy-reform commencement.
Failure to comply can result in financial penalties and legal consequences.
How does this affect buy to let mortgages?
These reforms are already influencing how lenders assess risk in the buy to let market.
You may start to see:
- Stricter affordability assessments
- Higher rental coverage requirements
- Lower loan-to-value limits
- Increased focus on landlord experience and reserves
With less certainty around rental income and possession timelines, lenders are becoming more cautious.
This makes it more important than ever to have a well-structured mortgage strategy.
Market outlook: Challenge or opportunity?
While some landlords may exit the market due to increased regulation, others see opportunity.
A reduction in supply — combined with strong tenant demand — could:
- Support rental prices long term
- Create opportunities for well-prepared investors
- Reward landlords who offer high-quality, compliant properties
The key difference going forward will be professionalism and preparation.
How to prepare as a landlord
To stay ahead of the changes, consider:
- Reviewing your tenancy agreements
- Ensuring rents align with market levels
- Updating all compliance documents (EPC, gas safety, EICR)
- Budgeting for potential void periods
- Improving property standards proactively
- Understanding your legal grounds for possession
- Reviewing your mortgage and financial structure
What this means for your investment strategy
The Renters’ Rights Act doesn’t mean the end of buy to let — but it does mean:
You need to be more strategic than ever.
Successful landlords will be those who:
- Plan for longer-term tenancies
- Maintain high-quality properties
- Keep strong financial buffers
- Seek professional advice
FAQs: Renters’ Rights Act 2025
Can landlords still evict tenants?
Yes, but only using valid legal grounds under Section 8.
Can landlords still increase rent?
Yes, but only once per year and in line with market rates.
Do these rules apply to existing tenancies?
Yes — the changes apply automatically from 1st May 2026.
Can tenants keep pets?
Tenants can request pets, and landlords cannot unreasonably refuse.
How Kerr & Watson can help
At Kerr & Watson, we work closely with landlords to ensure their investments remain viable — even as the market evolves.
Whether you’re:
- Reviewing your current buy to let mortgage
- Expanding your portfolio
- Restructuring your investments
- Or entering the market for the first time
We can help you with lender criteria, assess affordability, and build a strategy that works under the new rules.
Final thoughts
The Renters’ Rights Act 2025 is a landmark moment for the UK rental market.
It brings greater protection for tenants — but also introduces more complexity, responsibility, and planning for landlords.
Those who adapt early will be in the strongest position to succeed.
If you’re a landlord or property investor and want to review your mortgage or strategy, contact Kerr & Watson today.
