The Renters Rights Act 2025
What Property Owners Need to Know.
Samantha Johnson
5/17/20263 min read
The Renters’ Rights Act 2025 – What Property Owners Need to Know
The biggest change to residential tenancy law in a generation is now in force.
The Renters’ Rights Act 2025 came into effect in England on 1 May 2026 and fundamentally changes the relationship between landlords and tenants. The legislation introduces greater security for tenants, reforms possession procedures and places additional obligations on landlords managing residential property.
For landlords, investors, pension schemes and property professionals, understanding the implications of these changes is essential.
What Has Changed?
End of Section 21 “No Fault” Evictions
Perhaps the most widely publicised reform is the abolition of Section 21 notices.
Landlords can no longer terminate a tenancy without providing a valid statutory ground for possession. Instead, possession must be sought through the revised Section 8 process, with evidence supporting the relevant ground.
Whilst landlords retain the ability to recover possession in certain circumstances, the process is now more structured and in many cases likely to take longer than under the previous regime.
Fixed-Term Tenancies Abolished
Traditional Assured Shorthold Tenancies (ASTs) have been replaced by periodic tenancies.
Existing ASTs automatically converted on 1 May 2026, and new tenancies are now granted on an open-ended periodic basis. This means tenants are no longer tied to a fixed term and can generally leave by providing notice in accordance with the legislation.
New Rules on Rent Increases
The Act introduces greater controls around rent reviews.
Rent increases are generally limited to once per year through the statutory Section 13 process, and tenants have enhanced rights to challenge increases they believe exceed market levels.
As a result, robust market evidence and accurate valuation advice are becoming increasingly important when determining appropriate rental levels.
Restrictions on Rental Bidding
The practice of inviting tenants to offer more than the advertised rent has been prohibited.
Landlords and agents must advertise a clear asking rent and cannot encourage or accept bids above that amount.
The intention is to improve transparency and affordability within the private rented sector.
Stronger Rights for Tenants
The legislation also introduces wider protections including:
Stronger rights for tenants wishing to keep pets.
Restrictions on discrimination against applicants with children or those receiving benefits.
Enhanced enforcement powers against non-compliant landlords.
New information and documentation requirements.
What Does This Mean for Property Owners?
For professional landlords and institutional investors, the Act is likely to increase the importance of proactive asset management and careful tenant selection.
Property owners should:
Review tenancy documentation.
Ensure compliance procedures are up to date.
Maintain detailed records relating to rent reviews, repairs and tenant communications.
Seek advice before commencing possession proceedings.
Consider how the reforms may affect investment performance and risk profiles.
Whilst many landlords already operate to high professional standards, the legislation raises the compliance bar across the sector.
Potential Impact on Property Values
The long-term effect on residential investment values remains uncertain.
Some commentators suggest the reforms may encourage higher standards and greater professionalism within the sector. Others believe increased regulation could lead to some smaller landlords exiting the market, potentially affecting housing supply and investment returns.
From a valuation perspective, factors such as tenancy security, rental growth assumptions, management intensity and regulatory compliance are likely to become increasingly important considerations.
‘RICS emphasises the need for valuers to continue to reflect the market, exercise professional judgement as to the market impact of the implementation of the act, such as the appropriateness of the vacant possession assumption, and the need to appropriately interrogate and adjust comparable evidence obtained prior to and after the Act implementation.’
RICS will continue to consider market feedback as the Act takes effect and reflect upon how the market reacts to it.
How Delaford Property Consultants Can Help
At Delaford Property Consultants, we provide independent valuation advice for landlords, lenders, pension schemes, legal professionals and private clients.
Whether you require:
Investment valuations
Pension (SIPP and SSAS) valuations
Inheritance Tax valuations
Secured lending valuations
Charities Act valuations
our advice is delivered in accordance with the latest market conditions and regulatory framework.
If you would like to discuss how the Renters’ Rights Act may affect the value of your property portfolio, please get in touch.
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