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On 27 October 2025, the Renters' Rights Act became law – marking one of the most significant reforms in the private rental sector for decades.
The Government is expected to implement the changes in stages during the course of 2026. Detailed guidance from the Government is awaited, however landlords and tenants take note as significant changes are coming.
Small-scale and “hands-off” landlords should be aware that the days of informal management and straight forward evictions are over. Those with older or lower-standard properties, anyone not used to keeping full records, and landlords relying on rent bidding will feel the squeeze first.
Tenants on the other hand will benefit from the most secure and regulated rental market in decades, whereas landlords are now faced with decreased flexibility, being held to higher standards and more oversight. It is important that landlords familiarise themselves with this legislation and be ready.
Here are the reforms in a nutshell…
Say goodbye to “no fault” evictions
Every possession must now be justified. Landlords will no longer be able evict tenants without reason, bringing greater security for renters.Possession will now rely on specific legal grounds (for which there have been additions). There will be an increase in the notice period required from 2 weeks to 4 and the mandatory threshold for eviction will also increase from 2 to 3 months' arrears. Every new tenancy will be assured “rolling” periodic tenancies and not fixed terms.
Landlords take note. Regaining possession is likely to become more costly, time-consuming and legally complex which is likely to require involving a solicitor to secure the desired outcome. Landlords will need to maintain detailed records to substantiate any grounds for possession, as tenants will be able to challenge eviction claims.
It will also be essential to plan for potential “void periods” – those gaps when a property isn't bringing in any rent.This may arise, for example, where possession is being sought due to rent arrears, or where a tenant vacates the property before a new tenancy is secured. Landlords should factor such gaps into their financial planning to ensure they can continue to meet mortgage or maintenance obligations even when the property isn't generating revenue.
Clampdown on hidden rent hikes
Rental bidding will be banned in the future. What this means is that landlords and agents must not ask for or accept offers above the advertised rent, even if a keen tenant offers it. Landlords must also not use excessive or above-market rent increases to pressure tenants to leave – known as “backdoor eviction”. Where rents are increased and the tenant believes the proposed rent exceeds the market rate they can appeal rent increases at a First-tier Tribunal who will then determine the market rent.
Be prepared:
- Set rents carefully. Go too low and you're losing out; too high, and tenants have a real route to challenge within the first 6 months of the tenancy even if they initially accepted it.
- Keep evidence of market rates in your records, as you may need to justify rent rises in a tribunal, for example.
- Review rents now; getting the rent in line with “market rent” as it is likely to be much easier to start from a fair base than to justify a steep increase later.
More oversight, new database – and harsher penalties
A new Private Rented Sector Database means every landlord must register and keep compliance up to date. A new independent Ombudsman will be appointed to resolve disputes between landlords and tenants offering fast, binding resolutions without the cost of court. Councils will receive new investigatory powers, can give tougher penalties and they will have a legal duty to report on enforcement activity. This will primarily concern property standards and repeat offenders will face tougher sanctions with enforcement being expected to become more consistent and proactive.
The key is to be proactive. If you've ever thought, “I'll sort it out later,” that approach will be a liability. Proactive landlords will be okay whereas complacent ones will be caught out.
Landlords should:
- Register with the Database (more detail coming soon) and get compliant or risk both financial and reputational consequences.
- Expect more transparency; tenants can check your record on the database.
- Upgrade and maintain properties to the Decent Homes Standard, or risk local council intervention and substantial fines.
What landlords can do:
- Review your portfolio – Adjust rents or consider selling underperforming properties to reinvest strategically.
- Consider ownership structure – Company ownership can offer tax benefits, but may reduce flexibility in certain situations.
- Stay informed – Keep track of implementation dates and compliance requirements to avoid penalties.
- Seek Professional Support – Partner with a knowledgeable agent to reduce risk, even if it impacts short-term profit.
Key takeaways…
Property is still a strong investment for the strategic, proactive landlord. But the era of casual, low-attention letting is behind us.
The key is not to panic but equally not to be complacent. The winners in the Renters' Rights era will be those who act early, get smart with compliance, and see opportunity, not just risk.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
