RENTERS RIGHTS BILL IS NOW LAW – 5 Things Landlords
Can Do to Survive the Renters Rights ACT
The long-debated Renters’ Rights Bill has finally become law in
the UK, marking one of the most significant shake-ups in the private rental
sector for decades. The new Renters Rights Act 2025, which received the Royal Assent on
27 October 2025, gives tenants stronger protections, abolishes Section 21
‘no-fault’ evictions, and introduces stricter rules on property standards
and rent increases.
Local authorities will have new powers to demand documentary evidence of
compliance and enter a landlords rented residential accommodation (without a warrant
in some cases) within two months of the new Act say the NRLA.
The far reaching Act
will introduce:
·
A standard tenancy for private
renting.
·
A new ‘Decent Homes Standard’ and new rules on
responding to hazards.
·
New changes to advertising and letting
practices.
·
New limits on when and how much rent can be
taken in advance.
·
The abolition of ‘Section 21’ notices for
possession or eviction.
·
New grounds Section 8 for
possession.
·
New changes to rent increases.
·
A private
rented sector database and Ombudsman landlords will be forced to sign up
to.
·
Further offences and civil penalties for
landlords who don't comply with these rules.
Other new rules
coming in because of the Act include:
·
Introduction of 15 new offences that can see
landlords issued with civil penalties.
·
Increase in the maximum civil penalty fine that
can be imposed of up to £40,000.
·
Six new offences that can result in landlords
facing a rent repayment order.
·
Increase in the maximum claim period for such
orders, with tenants now able to claim back up to two years of rent payments
for breaches.
When will the Act
be fully implemented?
|
|
Here are 5 things landlords can do to survive the Renters Rights
Act:
- Review
Your Tenant Agreements – Ensure all tenancy contracts comply with
the new legal framework. Outdated clauses could make you non-compliant and
exposed to penalties.
- Focus
on Quality Tenants – With longer tenancies likely, good tenant relationships are
vital. Screen tenants carefully and maintain communication.
- Incorporate
Your Property Business – Many landlords are now using limited
companies for tax efficiency, expense flexibility, and better mortgage
options.
- Diversify
Your Portfolio – Consider shifting into HMOs, serviced accommodation, leasing
to a company or local authority or commercial units for stronger
returns and lower regulatory impact.
- Seek
Professional Advice – For instance by joining the NRLA. Stay informed. Property tax
planning and compliance advice can save thousands each year under the new
regime.
Is the buy-to-let
rental property sector dead?
Wounded by successive ‘landlord bashing’ governments, but NOT dead! The Renters
Rights Act may be challenging, but proactive, informed landlords can still
prosper by adjusting early and managing smarter.
Although successive governments seem to be doing their best to encourage
the big corporate landlords and drive small landlords out of business (Section 24, licensing,
increased red tape etc), they still need the estimated 2.8 million private buy-to-let
property landlords.
See interview with Chartered Accountant and Tax Specialist - https://youtu.be/aMuGs_ek17s
See also:
Brace Yourself: 5 Tax Hikes Coming in the
UK Budget 2025
These tax changes could reshape property investing, retirement planning,
and asset strategies. If you're a landlord, investor, or homeowner, now
is the time to review your capital gains exposure, inheritance planning, and
use of ISAs before the 26 November Budget drops.
Watch full video - https://youtu.be/jITL4nOmBEo
If you are stuck in the Section 24 trap and need
professional advice, email Charles@CharlesKelly.net
#RentersRightsBill #RentersReformAct #UKLandlords #BuyToLet
#PropertyInvesting #LandlordTips #PropertyTax #Section21 #UKHousingMarket
#CharlesKellyPodcast #MoneyTips #rentersrightsact2025
