Doom and Gloom for Landlords is how the new Renters Rights Act is being portrayed by the media. The Act which received Royal Assent on 25 October 2025 overhauls the private rented sector. It is being presented as a stripping of rights for Landlords and the main headline is that “no fault” evictions are to be abolished.
Yet, the Government states the intention behind the new Act is to “Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable. The Act introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.”
This article considers the most prominent changes to be brought in by the Act with views from a private landlord on what concerns them most.
The Current Law
If you own or are acquiring a residential property to let out, then you would do so on what is known as an Assured Shorthold Tenancy (AST), usually for a fixed term of 6 or 12 months.
The main governing law for Buy-To-Lets is the Housing Act 1988. Section 1 defines an assured tenancy as a residential dwelling-house let to an individual as their principal home.
Tenants under an AST are afforded many statutory protections. The Protection from Eviction Act (PEA) 1977 and HA 1988 gives AST tenants protection from eviction without due process of law (PEA s3) and the HA 2004 makes it a requirement for all deposits to be held in a Deposit Protection Scheme.
Currently, if as a landlord you want to take back possession of your let property, you must follow due process and can only evict in certain circumstances. The most well-known is on a section 21 no fault notice or on one or more of the section 8 grounds.
A section 21 notice requesting possession can be served once an AST fixed term has expired by giving 2 months’ notice. No reason is required. This is known as a “no fault” eviction.
A section 8 ground is for when the AST is running and notice for possession is only valid if it sets out one of the allowable grounds under Schedule 2 of the HA 1988. Some grounds are mandatory and some are at the discretion of the court. The most common ground is ground 8 which relate to non-payment of rent.
A Landlord’s View:
“As a private landlord, currently, the system works but it can be frustrating to navigate, particularly if you have a tenant that causes issues or fails to pay on time. At times the process can be cumbersome and the slowdown in court proceedings since COVID-19 has increased costs and frustrations. As a private landlord we simply want a minimal fuss and a reputable tenant. Private landlords are not the same as housing associations and often the rental income is making up your pension to live off. A challenging tenant can be very costly and very frustrating to deal with. Reclaiming possession from a tenant who refuses to leave or is a bad payer is not easy. Possession proceedings are costly and can take months. Even then, once you have a court order, you have to then enforce through bailiffs which is a further cost.”
Changes under the Renters Right Act 2025
Abolishing Fixed Term ASTs
The RRA will abolish fixed term ASTs meaning they will operate from month to month (section 1 inserts a new section 4A into the HA 1988).
For landlords, changing from fixed term 6 or 12 month ASTs to month to month periodic tenancies is a blow because there will be significantly less security and certainty over how long a Property will be generating rental income and it may lead to a higher turnover of tenants and therefore a higher chance of letting to a problematic tenant.
Shorter term tenants will mean more costs to landlords on tenant finding services and dealing with deposits under deposit protection schemes.
It will likely result in tenants being able to build up smaller arrears and leaving without concern for being pursued for the accruing rent remaining on a fixed term.
Abolishing “no fault” evictions
This is the headline grabber. The RRA abolishes “no fault” evictions under the Housing Act 1988. Clause 2 of the RRA removes the entirety of Chapter 2 of Part 1 of the HA 1988, which includes section 21 notices.
It makes sense for section 21 notices to be abolished, given that tenancies will no longer be fixed term.
It would appear that the abolishment of fixed term tenancies is the bigger area of concern to landlords and the impact this will have, rather than the abolishment of section 21 notices. After all, it is still possible to evict tenants under specific section 8 grounds.
Changes to Grounds for Eviction under Section 8.
A Landlord can still claim possession under section 8 grounds where the tenant is at fault or in certain circumstances. Arguably, if a tenant is peaceably renting and paying on time, then you don’t need to serve notice. If you do, it will be necessary to rely on a ground under section 8. These grounds have been changed by the RRA. A comparison of changes and additions is below presented as a side-by-side comparison:
| Ground | Grounds Under the Housing Act 1988 | Change or Addition under Renters Rights Act 2025 |
|---|---|---|
| 1 | The landlord requires the property in order to use it as their main residence (provided the landlord used the property as their main residence prior to the tenancy beginning). | Extended to include wider family members and removes the need for the landlord to have lived there. Notice: 4 months |
| 1A | Landlord intends to sell, or grant a lease for a term certain or no more than 21 years. | New ground. 4-month notice. 12-month ban on re-letting after giving notice. |
| 2 | Mortgage lender has served notice to foreclose. | Removes requirement for mortgage to pre-date the tenancy. Notice: 4 months |
| 2zb–zd | Possession when superior lease ends. | Additional provisions for landlords with only a superior tenancy interest. |
| 3 | Property previously used as a holiday let. | No major change. |
| 4 | Educational institution letting to students. | Notice: 2 weeks |
| 4A | — | New student accommodation ground. |
| 5 | Owned by religious body and needed for Minister of Religion. | No major change. |
| 6 | Demolition, reconstruction, or redevelopment. | Stricter criteria; cannot be used in first 6 months. Notice: 4 months |
| 6A | — | New enforcement-related ground. Notice: 4 months |
| 7 | Tenant heir not named on original tenancy. | No major change. |
| 7A | — | New ground for serious ASB/criminal behaviour. Notice: 2 weeks |
| 7B | — | Tenant has no lawful right to rent. Notice: 2 weeks |
| 8 | More than 2 months’ rent arrears. | Increases threshold to 3 months’ arrears. Notice: 4 weeks |
| 9 | Suitable accommodation offered and refused. | No major change. |
| 10 | Rent in arrears (less than 2 months). | No major change. |
| 11 | Persistent late payment. | No major change. |
| 12 | Breach of tenancy agreement. | No major change. |
| 13 | Damage or neglect by tenant or subtenant. | No major change. |
| 14 | Nuisance to neighbours. | No major change. |
| 15 | Misuse or damage of furniture. | No major change. |
| 16 | Tied accommodation after employment ends. | Renumbered as Ground 5C. Notice: 2 months |
| 17 | False information provided by tenant, referee, or guarantor. | No major change. |
These grounds relate to private landlords only.
Other notable changes
Restrictions on ability to market the dwelling after seeking possession under Ground 1 or 1A
Where landlords seek possession to live in the Property themselves, there is a new restriction on re-letting the Property for 12 months from the date of the notice.
Prohibiting Rental Bids (section 55)
Landlords must specify the rent when they market the property. Tenants cannot offer higher bids.
The private rented sector database
The Bill provides for the introduction of a private rented sector database (clauses 73 to 94).
The database must contain entries in respect of:
- Persons who are, or who intend to become, residential landlords (landlord entry).
- Dwellings which are, or are intended to be, let under residential tenancies (dwelling entry).
A dwelling must not be marketed unless there is an active landlord entry and an active dwelling entry.
A breach does not affect the validity of a tenancy but may affect possession rights.
Landlord redress schemes
Clause 62 allows regulations requiring landlords to join a redress scheme. Complaints can be independently investigated.
Local Housing Authorities may impose penalties for breaches.
Courts may refuse possession orders where database entries are missing.
Fines and Penalties against Landlords
Clause 15 creates new financial penalties and offences up to £7,000.
Breaching the 12-month re-letting restriction can lead to penalties up to £40,000.
Landlords may also be penalised for:
- Not advertising the correct rent.
- Accepting offers above the advertised rent.
A Landlord’s View – Overview:
“The abolishment of section 21 “no fault” possession is not as concerning to me because the section 8 grounds are extended. However, there is concern that in order to rely on the most common section 8 ground, being rent arrears, we must now wait 3 months rather than two. This does not seem to make sense because the AST is no longer a fixed term, meaning we could experience an increase in tenants building arrears and choosing to simply leave leaving the landlord in a position where you are likely unable to secure repayment and have to chase a person of no fixed abode.
My biggest concern is the overall increase in regulation placed on the Landlord and the financial penalties that can be applied if breached. As a private landlord, my BTL is to supplement my pension and the financial penalties seem disproportionate and unfair.
It will result in higher costs and I wonder whether these will fall on the tenant or landlord.
My concerns would be:
- Stricter referencing to ensure safe tenants are allowed in may actually harm the tenants and reduce the availability of properties available to tenants who cannot show bank statements or are young and have no history of previous renting.
- Will this result in higher rent to compensate for the lack of longer fixed term security, which again harms the tenant?
- The section 21 process was useful if the tenant persistently pays rent late. It allowed you as a landlord to decide as the fixed term end approached to serve notice 2 months from the end of the term. This would then give you time to look for new prospective tenants. Now the Act may result in void periods where the Property is not generating any rental income.
- The increased referencing and the rules on being entered on a property database will result in higher property management fees and administration and perhaps insurance for Rent and Legal Protection.
- The prohibition on rent bidding does not make sense. The UK is a free market and if a property is popular amongst tenants it is natural to secure the highest rent. All this will do is likely increase the rent from the start which will harm tenants and place more regulation and stress on landlords.
- The Act appears to treat all private landlords on the same level as housing associations. This is not right. Many individuals, middle-aged married couples, and people who have saved up a nest-egg choose to become a private landlord as a way to supplement income and build their wealth. It is difficult to know what to put your savings into. A BTL Property is intended to protect and provide income, but many parts of this Act look to prevent me from maximising the yield on my personal investment and penalising me if I make mistakes.
As a whole, the Act appears to increase regulation on the Landlord and I expect it to increase costs across the board which could have an adverse impact. It also seems to provide a way to create another source of revenue for the Treasury through fines and penalties.
In my view it harms landlords more than it helps tenants. Certainly in relation to a private landlord tenant relationship such as mine (as opposed to a housing association).
A lot of the guidance on penalties and redress schemes is yet to be given and I hope the government considers the rights of the typical private landlord in giving its guidance.
I am actively looking toward commercial property opportunities rather than residential. In commercial there is much less regulation.”
Sources:
https://www.gov.uk/government/publications/guide-to-the-renters-rights-act
https://www.legislation.gov.uk/ukpga/1988/50/contents
https://www.legislation.gov.uk/ukpga/1977/43
https://www.legislation.gov.uk/ukpga/2004/34/contents
https://www.legislation.gov.uk/ukpga/2025/26/enacted