The Renters’ Rights Act 2025 (RRA 2025) is now law, and it marks a seismic shift in the private rented sector. While some measures are still awaiting commencement dates, the direction of travel is clear: greater regulation, fewer landlord protections, and more significant risk for investors and developers.

Why this matters for landlords, investors and developers

The biggest change isn’t just new rules—it’s risk. Under the new regime:

• Possession will take longer and cost more. Even straightforward cases can already take months to progress at court. With the abolition of no-fault evictions, delays and costs will increase substantially. Landlords may also face loss of rental income for extended periods.
• Compliance obligations are expanding. From registration to property standards, landlords face more regulation and potential financial and criminal penalties.
• Investment returns are under pressure. Restrictions on rent increase terms and a prohibition on bidding wars will mean less flexibility to maximise income investment. Due diligence on tenants and strict compliance will be essential to protect against non-payment and enforcement action.
• Development. Developers and investors leasing residential units pre-construction now face tighter rules and rising costs. With possession limited to specific grounds under the legislation, construction and resale timelines risk disruption, much like the hurdles seen with vacant possession strategies under the 1954 Act for protected commercial tenants. Uncertainty around vacant possession can dent site valuations and add legal complexity, making early planning and strategic leasing more critical than ever.

What’s Ending Under the RRA 2025

• No-fault evictions
  Section 21 notices are going. It will only be possible to end tenancies' on specific grounds via Section 8 notices.
• Rent review clauses
  Rent increases must follow a statutory process and can be challenged at the First-tier Tribunal if the tenant thinks the rent is higher than the market rate.
• Rental bidding
  Landlords cannot accept offers above the advertised rent or induce tenants to offer more than advertised. The Act also bans pre-tenancy payments of rent.
• Pet restrictions
  Landlords cannot unreasonably refuse requests for pets.
• Fixed-term tenancies
  All Assured Shorthold Tenancies will become periodic, giving tenants the right to stay unless they breach terms of the tenancy or the landlord intends to sell, redevelop or move into the property. Landlords will only be able to recover possession of residential premises in defined circumstances creating uncertainty and increasing costs. 

What’s beginning 

• Decent Homes Standard & Awaab’s Law
  New obligations to address hazards, damp, and mould within strict timeframes will apply to private landlords in the future.
• Private Rented Sector Database and Landlord Ombudsman Scheme 
  A public digital register of landlords will increase transparency and identify rogue landlords.
• Local authority enforcement powers
  Councils will have new powers to impose penalties of up to £7,000 per breach, with repeat penalties for ongoing non-compliance of some measures.
• Written statement of terms
  Landlords must give tenants a written tenancy summary using a standard format set by the Government.

What should landlords, investors and developers do now?

• Strengthen tenant vetting to reduce risk of breaches and arrears.
• Budget for compliance costs and potential delays in obtaining vacant possession. Explore the availability of insurance against the changing risk profile and set realistic timescales for vacant possession strategies.
• Stay informed - implementation dates are pending, but change is inevitable.

The Renters’ Rights Act 2025 marks a once-in-a-generation change, tighter regulation, and greater risk and cost. For landlords, investors, and developers, early action is essential. Those who adapt now will be best positioned to safeguard their portfolios, streamline future projects, and avoid costly delays.