The Renters’ Rights Act 2025 is officially law (having received Royal Assent), and it represents the biggest reform to renting in a generation.
IMPORTANT CAVEAT: The major changes in this Act are not yet in force. The government is expected to implement them in 2026. Everything described below is what will happen once the Act is fully implemented.
åThe Act is designed to give you much more stability, security, and control over your home.
Part 1: What you will gain as a renter
When the new legislation is implemented, here is what tenants are likely to gain:
1. The end of the ‘No-Fault’ eviction
This is the biggest intended change. The controversial Section 21 eviction notice will be abolished.
- What it means: Landlords will no longer be able to ask you to leave (evict you) without giving a specific, legally valid reason.
- The win: This removes the constant threat of a ‘no-fault’ eviction hanging over your head. You can truly settle down without the fear of being forced to move just because your landlord decides to sell, or wants a new tenant.
2. Freedom and flexibility
The Act will introduce a modern approach by abolishing fixed-term tenancies:
- All new tenancies will become periodic (rolling monthly) from the start.
- Your win: You will gain the flexibility to end your tenancy whenever you need to by giving just two months’ notice. You don’t have to wait for the fixed term to expire.
3. A right to a decent home (and pets)
The law will introduce new standards for property quality.
- Decent Homes Standard: Landlords will be required to meet the Decent Homes Standard, which sets minimum requirements for things like safety, cleanliness, and protection against issues like damp and mould.
- Pet policy: Landlords will no longer be able to issue blanket bans on pets. You will have the right to request a pet, and your landlord must have a good, specific reason to refuse. They can, however, ask you to take out pet insurance to cover any potential damage.
Part 2: How this will impact buying and mortgages
If you’re on your homeownership journey, it’s essential to understand how these reforms will affect the financial side of property investment.
Here’s a simplified look at the key financial ripples of the Act:
1. BTL mortgages may get tougher
Once Section 21 is abolished, it will become slower for a landlord to regain their property from a tenant in arrears. This is expected to be viewed by lenders as a higher risk.
- The potential change: Lenders may demand more rental income relative to the size of the mortgage (known as the Interest Coverage Ratio, or ICR).
- What this could mean for buyers: You might need a higher deposit or be limited to buying properties that can command very high rental income.
2. Higher cost to be a landlord
Being a landlord will require greater investment and maintenance when the law is implemented.
- Rising cost: Meeting the new quality standards will require landlords to budget more for regular repairs and improvements.
- Rent increases: Landlords will be limited to increasing rent only once per year, which reduces their flexibility in managing costs.
3. The property market is toughening up
The new rules will raise the bar for entry.
- Selling is more complex: If a landlord wants to sell, they will have specific legal steps to follow. This makes it harder for landlords to make a quick exit from the market.
- Our take: The Act favours professional, well-capitalised landlords—which is a good sign for the quality of future rental homes.
What happens next?
The Renters’ Rights Act is officially law, but the changes won’t happen overnight. While it received Royal Assent in October 2025, the major changes that affect you, like abolishing Section 21 and introducing periodic tenancies, are not yet in force.
The government is expected to confirm the Commencement Date (the date the new rules begin) soon. The main reforms are widely anticipated to be implemented in early to mid-2026.
Keep an eye out for updates. Once the date is confirmed, these new rights will begin applying to existing and new tenancies.