The Renters Rights Act 2025 was passed into law on 27 October 2025, and with it, the landscape for developers, property investors and landlords changed significantly. While full implementation of the Act is expected in mid-to-late 2026, the implications are already being seen through the property investment sector. David Riggs, Relationship Director at Secure Trust Bank Real Estate Finance, discusses what the key changes are, and strategic considerations for those with existing property portfolios.
The Renters Rights Act is a significant gamechanger for landlords, property developers and investors, with a host of changes swept in to help balance the power between tenants and their landlords. The most significant amendment is arguably the abolishment of Section 21 'no fault' evictions and fixed term, assured shorthold tenancies (ASTs).
What this means is that landlords will no longer be able to evict tenants within the first 12 months of their tenancy for reasons like selling the property or taking the property back for personal use.
Another key change is rent controls. Rent increases are now limited to once per year, and must align with market rates. Tenants have the option of contesting any rent increases, which can potentially lead to court hearings. Crucially, even if the rent increases are upheld, they cannot be backdated.
In addition to these new restrictions, a new minimum standard for rental properties will be enforced. This is in the shape of the Decent Homes Standard, which is currently under review by the Government and is expected to be reformed. Although details of this standard are still being decided, the expectation is that substandard assets that suffer from damp or mould, for example, will need to be fixed quickly.
How to prepare for the Renters Rights Act
Given these changes, landlords and property developers should be looking to conduct a full audit of tenancy schedules of their property portfolios, re-evaluate exit strategies, and complete a full check-up on their properties' conditions.
For underperforming assets where yields are low and the prospect of raising those yields is not possible, planning for the earliest opportunity to sell the property and invest elsewhere is likely to be a good idea. Doing this will mean losses can be cut as soon as possible, and landlords do not subject themselves to long, drawn out court battles with their tenants.
On this note, preparing for potential court backlogs is another area to be mindful of, as tenants choosing to contest their rental increases could create a situation where it may be weeks, or even months, before that rental increase can be applied, if at all.
If not doing so already, landlords, developers and investors are also encouraged to routinely check their properties and living standards, to ensure they are compliant and in a decent living condition. Lenders are now likely to factor capital expenditure requirements into stress testing and underwriting for either new schemes or for portfolios reaching the point of needing refinancing. Here, engaging with lenders early to understand how changing risk profiles may affects LTVs and refinancing can help to avoid property finance applications being refused.
If finance agreements are coming up for renewal in the next 12 months, it is advisable to engage with lenders now, to see what offers are available and how much can be borrowed if additional capital is required.
For property developers entering the buy-to-let market, tenancy selection is now critical, and having protocols in place is essential to prevent loss of rental income. Measures here could include a mandate for tenants to have guarantors, and more robust income checks.
It should also be noted that the Renters Rights Act prevents landlords from discriminating against their prospective occupiers. This is particularly for families with children, or people receiving benefits. There is also a blanket ban on refusing rental because of pets, but landlords can request that their tenants have pet insurance in place. Landlords should review their marketing materials and listings as a priority to make sure they do not contain any discriminatory language of this nature.
An eye on the buy-to-let market future
Beyond taking these practical steps, landlords are encouraged to keep an eye on developments with the Act as we progress towards implementation. One area to be aware of is the introduction of a national landlord ombudsman, along with a tenancy database.
How these will operate is still undecided, but it is expected that these mechanisms aim to streamline dispute resolution and improve transparency.
In terms of the market outlook itself, we have seen landlords choose to exit the market already.[1] Where smaller landlords might exit, it opens the door for institutional investors to broaden their portfolios. Careful planning is still essential to avoid void risks, compliance costs, and uncertain yield growth. For those seeking property development finance or property loans, acting quickly is the name of the game.
Find out more about how Secure Trust Bank can help with your next buy-to-let schemes and residential property investment loans.