Published: 17 November
Reading time: Four minutes
The Renters’ Rights Bill is now the Renters’ Rights Act. Following months of debate in the UK Parliament, which provisions made it onto the statute book? Jamie Douglass explains.
Renters' Rights Act 2025: Strategic implications for property investors and landlords
Handelsbanken Insights Blog
By Jamie Douglass, Corporate Communications Manager
What is changing for landlords?
The private property investment landscape in England is undergoing its most significant transformation in over three decades, with the Renters' Rights Act – as it now is – receiving Royal Assent on 27 October, meaning it has now passed into UK law.
The government still needs to confirm how — and when, each of the changes will come into force, and as housing is a devolved power, the rules differ between home nations. That said, professional private landlords in England need to prepare for changes that are reshaping both tenant rights and business operations.
The new tenancy framework: strategic implications for scale
The Act abolishes all assured shorthold tenancies entirely, and “no fault” section 21 evictions along with them. Save for a few exceptions, short-term residential tenancies can no longer be for a fixed term but instead will become periodic tenancies. Tenants will be able to walk away at any point during the tenancy subject to giving only two months’ notice ending at the end of a rental period. By contrast, landlords will only be able to obtain vacant possession under certain specified grounds.
For private landlords – especially those managing multiple properties, this will require a fundamental shift in portfolio management strategy. With all new tenancies becoming periodic from day one, the tenant selection process becomes even more critical; decisions may have longer-lasting effects across an entire portfolio.
However, there are potential benefits for landlords where high quality tenants are in place. The enhanced tenant security could reduce void periods and turnover costs across properties, as satisfied tenants are more likely to stay long-term.
Landlords with larger portfolios may develop standardised tenant assessment procedures that can be efficiently applied across an entire roster while ensuring compliance with new anti-discrimination requirements.
Key admin changes for landlords
For portfolio landlords, the administrative burden will increase. The new national landlord database requires individual property registration before letting. Each property will need separate registration, compliance tracking, and renewal management.
The extension of the Decent Homes Standard to private rental means portfolio landlords are likely to need systematic property audits, prioritised improvement schedules, and capital expenditure planning across multiple properties. This represents increased upfront costs, which could benefit professional landlords who are in a position to leverage both institutional knowledge and economies of scale, but some smaller competitors may find compliance a challenge.
Some landlords will no doubt be looking at investing in property management software that can track compliance deadlines, maintenance schedules, and registration renewals across their portfolio.
Financial Impact: Revenue planning at portfolio level
The new rent increase framework – limited to once annually with “proper justification” – requires more sophisticated revenue planning for multi-property portfolios. Some landlords may decide to stagger rent reviews across properties to maintain steady cash flow while ensuring market-rate optimisation within the new system.
The prohibition on rent bidding should at least create more predictable pricing environments, however, investors will need to budget significant time in accurate market analysis to set initial rents optimally, as opportunities for adjustments thereafter will be limited.
For portfolios spanning multiple local authority areas, it is likely there will be varying enforcement approaches and penalty structures. This makes professional property management and legal support increasingly valuable investments – and certainly not optional extras.
Enhanced tenant rights
The stated aim of the Act is to strengthen tenant protections significantly. However, professional landlords who embrace these changes may find they deliver competitive advantages. The new ombudsman-led mediation system, while adding to the process, could reduce legal costs and court delays when issues arise across a portfolio. It’s hoped this will be a quicker, fairer and more impartial way to resolve landlord-tenant disputes, without the need for court action.
Compliance costs: investment in professional standards
Beyond individual property registration fees, investors will likely face enhanced record-keeping requirements, potential property improvement costs, and increased professional services fees.
These costs could be viewed as investments, however, it is possible that some smaller landlords will see the increases in cost, compliance and complexity as sufficiently significant to consider exiting the market altogether. Those who have the ability to operate at scale, however, will be in a position to be more competitive, and perhaps even to take advantage of disposals.
Ultimately the further professionalisation of the sector should benefit those already operating at scale with proper systems and standards.
Strategic preparation for professional landlords
As yet we have no information on when each specific change comes into force. But landlords will already be preparing comprehensive compliance strategies now. This likely includes auditing existing tenancy agreements across all their properties, implementing standardised processes, and potentially restructuring property management operations.
Renters Rights Act: Key provisions summary
- Section 21 abolition and periodic tenancies: Enhanced tenant security requires more rigorous initial selection processes; potential for reduced void periods across portfolios but in general there is less flexibility for strategic property disposals;
- Portfolio registration requirements: Individual property registration requirements before letting increases the administrative burden; systematic compliance tracking becomes essential for multi-property operations;
- Decent Homes Standard extension: Capital investment requirements across entire portfolios; systematic property audits and improvement prioritisation needed for cost-effective compliance;
- Anti-discrimination and enforcement: Expanded tenant access requirements with substantial penalties; professional referencing systems become crucial for maintaining standards while avoiding discrimination claims;