RENTERS RIGHTS BILL IS NOW LAW – 5 Things Landlords Can Do to Survive th...

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?

Housing Minister Matthew Pennycook has previously said that landlords and tenants will be given ‘sufficient notice’, which could be as soon as six to twelve months. The ‘Spare Room’ website said the all the new provisions of this major Act will not be in place until early 2026.   Key Implementation Dates:

 

Investigatory rights for local authorities From 27th December 2025  Part 1 – changes include, end of fixed terms and Section 21, new possession grounds From 1st May 2026 PRS Database and Ombudsman Late 2026 estimated Decent Homes Standard Date to be confirmed

Here are 5 things landlords can do to survive the Renters Rights Act:

1. 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.
2. Focus on Quality Tenants – With longer tenancies likely, good tenant relationships are vital. Screen tenants carefully and maintain communication.
3. Incorporate Your Property Business – Many landlords are now using limited companies for tax efficiency, expense flexibility, and better mortgage options.
4. 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.
5. 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

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