Renters’ Rights Act 2025

A shift in how the rental market operates

These reforms mark one of the biggest changes to the private rented sector in recent years. At their core are three key updates:

• The removal of Section 21 ‘no fault’ evictions

• Periodic tenancies becoming the default

• Stronger rights and protections for tenants

Together, they aim to create a more stable rental market. For property buyers, this means adjusting to a different way of operating, with less flexibility and a greater focus on long term planning.

What the end of Section 21 means in practice

One of the most significant changes is the removal of Section 21.

Landlords will no longer be able to regain possession without a valid legal reason. Instead, they will need to rely on specific grounds, such as rent arrears or antisocial behaviour.

For professional property buyers, this brings a few practical considerations:

• Exit timelines may be longer and harder to predict

• Clear tenancy agreements and thorough documentation become more important

• Greater emphasis on tenant checks and ongoing management

Landlords can still sell or restructure, but it will require more careful planning and stronger supporting evidence.

Periodic tenancies and income certainty

Under the new system, all tenancies will move to a periodic basis.

Tenants will be able to leave with notice, while landlords must rely on defined grounds to take back possession. This shifts the balance between flexibility and certainty:

• Income may be less predictable over fixed periods

• Retaining good tenants becomes more important

• Active management replaces a more hands-off approach

Jonathan Rolande, spokesman for the NAPB said:
The Renters Reform Bill is a step toward improving fairness in the housing market, particularly by strengthening tenant security and standards. However, has created unintended consequences as landlords feel overburdened with many choosing to sell up. The challenge lies in striking the right balance, protecting tenants from poor practice while ensuring responsible landlords remain confident enough to invest and provide quality homes. We shall have to await events…

Increased regulation and oversight

The reforms also introduce a more structured and regulated environment across the sector. This includes:

• A ban on rental bidding above advertised prices

• A new Private Rented Sector Ombudsman

• A national landlord database

• Stronger enforcement powers for local authorities

For professional buyers, this raises expectations around compliance and transparency.

Changing behaviour across the market

These changes are likely to influence how landlords operate.

Some smaller or less experienced landlords may choose to leave the sector, particularly where requirements become more demanding or flexibility is reduced. At the same time, the market is continuing to shift towards:

• Fewer casual landlords

• More professional, well-funded operators

• A stronger focus on long term asset management

This creates a landscape where how you operate matters just as much as what you buy.

What this means for professional property buyers

Taken together, the direction is clear. The sector is becoming more structured, with:

• Longer holding periods

• Higher compliance expectations

• Greater focus on tenant relationships

For professional buyers, this is less of a barrier and more of a change in emphasis. Those with solid processes, reliable funding and a long term outlook are likely to be in a stronger position than those relying on quick turnover.

What NAPB members can expect

For NAPB members, many of these changes reinforce what is already in place.

The association’s focus on transparency, fairness and professional standards reflects the direction of the legislation. That said, there are some practical steps to consider:

• Reviewing acquisition strategies in light of longer tenancy structures

• Strengthening compliance and record keeping

• Allowing for longer timelines when vacant possession is needed

• Keeping communication with tenants clear and consistent

In many cases, these reforms favour businesses that already operate to a high standard.

A more professionalised sector

The Renters’ Rights Bill is likely to speed up an ongoing trend, the professionalisation of the private rented sector.

There may be a period of adjustment, but over time the market is expected to become more consistent and transparent, with clearer expectations for everyone involved.

For NAPB members, this brings both challenges and opportunities. Those who adapt early and continue to operate with clarity and professionalism are likely to be well placed in a market that increasingly values trust, consistency and accountability.