Renters’ Rights Act 2025 For UK Property Investors
How the key legislative changes will impact UK property investors.
Updated 14th November 2025
The Renters’ Right Bill passed Royal Assent on 27th October 2025 and became the Renters’ Right Act 2025.
The UK property landscape faces one of its most significant legislative shifts in a generation with the introduction of the Renters’ Rights Act. The majority of current housing legislation has been in place since the late 1980s, so this update is long overdue. While headlines may have stirred alarm, landlords and property investors need to be able to distil fact from myth and take a moment to understand the reality of the proposed changes.
At Settio, we’re committed to providing clarity and confidence to our clients and being your trusted source of truth and innovation in the face of change.
The Purpose Behind the Act
The act aims to reform aspects of the sector that have created an imbalance between tenants’ and landlords’ rights. Its primary goals are to:
- Enhance property standards in the private rental sector.
- Improve the security of tenure for good tenants.
- Offer fairer, more transparent processes for ending tenancies.
While some are interpreting these changes as limiting landlords’ control, the reality is far more measured. In truth, the Act seeks to modernise a system that has long been due for reform without stripping landlords (and their agents) of their ability to manage their investments efficiently and fairly.
Dispelling the Noise: Three Key Changes Explained
- Removal of Fixed-Term Tenancies
Under the new Act, Assured Shorthold Tenancies (ASTs) will be replaced by a single system of Assured Periodic Tenancies (APTs). This means:
- Fixed-term tenancies, typically of 6, 12 or 18 months, will no longer exist.
- Tenancies will roll on a month-by-month basis with no fixed end date.
- Tenants can give notice to leave at any time, but must provide a minimum of 2 months’ notice.
- Landlords can also regain possession at any time, but must provide fair and legitimate grounds (see below).
- Section 13: Annual Rent Increases
Section 13 notices (part of the original 1988 Housing Act) will become the only mechanism for rent increases in periodic tenancies.
- Rent increases will be permitted once per year.
- A minimum of two months’ notice must be given.
- Tenants can challenge increases through a first-tier tribunal if they believe the new rent is excessive.
- Any challenge will be reviewed by the court, and a new fair rent will be ruled upon based solely on market data.
- Abolishment of Advance Rent Payments
The Act will prevent landlords from collecting rent in advance for more than one month. It will also impose a ban on accepting rent amounts exceeding the advertised price of a property. This is designed to:
- Protect affordability and accessibility to property for all suitable tenants.
- Prevent those with greater wealth from outcompeting individuals who can also afford the property on a monthly basis.
Understanding Section 8 Notices and Regaining Possession
With all tenancies running month to month, there will be no natural break point at which to end one. Instead, a landlord will be able to instigate the ending of a tenancy by serving a Section 8 Notice. The Renters’ Rights Act will expand and strengthen the grounds under Section 8 and includes an extensive range of fair reasons for possession, including:
- Landlords moving into the property themselves.
- Persistent rent arrears.
- Landlords planning to sell the property.
- Antisocial behaviour by a tenant.
The government has committed to modernising the court process to reduce delays and make it easier for landlords to enforce legitimate possession claims when necessary.
What to Expect Next…
Time for Poise, Not Panic
The Renters’ Rights Act 2025 has now been finalised, marking a pivotal moment for the UK property market. With the legislation confirmed, we can now move forward with clarity, purpose, and confidence.
At Settio, our team is already preparing the processes and structures needed to ensure we continue to manage every property to the highest professional standards.
Phase 1 – Coming into force on 1 May 2026
From 1 May 2026, the first wave of Renters’ Rights Act reforms will begin. Tenancies will convert to Assured Periodic Tenancies, giving renters open-ended tenancies unless a landlord has a valid Section 8 ground. Possession grounds will be strengthened and modernised, including clearer routes for tackling anti-social behaviour and serious rent arrears.
Rent increases will be limited to once per year, with a two-month notice period. Additionally, rental bidding and requests for more than one month’s rent in advance will be prohibited.
Tenants will gain the right to request a pet, with landlords required to respond within 28 days and provide reasons for refusal.
Phase 2 of the Renters’ Rights Act is scheduled to take effect in late 2026.
Our role is to maintain consistency and compliance throughout this transition, ensuring our landlords and tenants experience the same high level of service and peace of mind.
While the Renters’ Rights Act represents significant change for the sector, it’s a positive step forward that raises standards and enhances professionalism across the industry.
Landlords who provide quality homes and treat tenants fairly have no reason for concern. If anything, this change will help distinguish you further in a market where demand continues to outstrip supply and the UK rental sector remains one of the strongest globally.
This is a time for adaptation, not anxiety. Settio’s industry-leading experts are here to guide our clients through each stage of the transition with clarity and confidence.
For more information, we recommend watching our webinar recording, or if you have questions about how the Renters’ Rights Act could affect your portfolio, please get in touch with our team.
