The Ultimate Guide To The Renters' Rights Act

If you invest in UK property (especially as an expat/non-UK resident), the Renters’ Rights Act 2025 is the biggest shake-up to the private rented sector in decades. It’s now law (since 27 October 2025) but is being phased in over several years.

In this Ultimate Guide To The Renters' Rights Act, we break down what’s changing, when the changes take effect, what it means for you as an investor, and the concrete actions you need to take to stay compliant.

At Expat Property Investments, we build these regulatory changes into how we source, structure and manage properties for our clients, so they stay on the right side of the law without having to live on GOV.UK.

If you want to chat about how we can help you build your UK property portfolio without breaking these new laws, book a call with me here.

Now let's get into it...

Key Dates To Know

27 October 2025: Renters’ Rights Act receives Royal Assent and becomes law, but not yet fully in force.

27 December 2025: New investigatory powers for councils go live such as stronger inspection/document powers & expanded data access.

1 May 2026 (Phase 1):

• End of Section 21 “no-fault” evictions.

• End of fixed-term AST contracts and a move to assured periodic tenancies.

• Reformed Section 8 possession grounds.

• Rent increases limited to once per year via a prescribed process.

• Ban on rental bidding wars and rent in advance over one month.

• Ban on discrimination against tenants with children or on benefits.

• Stronger rights to allow pets.

• Tougher council enforcement & enhanced rent repayment orders.

From late 2026 (Phase 2):

• Roll-out of the national PRS Database which will come with mandatory registration and annual fee for landlords.

• Gradual switch-on of a PRS Landlord Ombudsman. Membership is expected to be mandatory around 2028.

Phase 3 (Dates TBC):

• Awaab’s Law extended to PRS meaning strict timescales for fixing damp and mould.

• A new Decent Homes Standard applied to the private rented sector.

Note: these reforms apply to England’s private rented sector. Scotland, Wales and Northern Ireland have separate regimes.

The Ultimate Guide To The Renters' Rights Act: Key Changes

1) End of Section 21 & move to periodic tenancies

From 1 May 2026, you will no longer be able to use Section 21 “no-fault” notices to evict tenants. All private tenancies become assured periodic tenancies meaning that renters can stay indefinitely unless you use a valid Section 8 ground, and they can leave with two months’ notice.

Implications for investors

• You’re effectively running on lifetime rolling tenancies. Your exit, refinance and refurb plans must assume you may need to prove a ground for possession.

• Deal structure and yield assumptions need to account for longer tenancy stability and potentially slower possession routes.

• You’ll still be able to gain possession to sell, move in yourself or house family, or where there is serious rent arrears/anti-social behaviour, but the evidential bar rises.

Actions to stay compliant

• Stop issuing new ASTs as “fixed terms” ahead of May 2026. Keep an eye on gov.uk website for a new contract template.

• Every late payment, breach or complaint should be documented.

• Review your investment strategy because high-turnover models such as student lets & HMOs may need more robust upfront vetting and cash buffers.

At Expat Property Investments, we already vet deals and tenancy strategies assuming this more tenant-secure landscape, so clients aren’t caught out in 2026.

2) Reformed Possession Grounds (Section 8)

Section 8 is being expanded and tightened to become the main route to possession. Key points:

• Extended grounds for landlord sale, moving in, or family occupation.

• Tougher grounds and clearer tests for serious and persistent rent arrears.

• Stronger tools to evict for anti-social behaviour.

Implications

• Courts will scrutinise whether you really meet the ground you rely on.

• Sloppy paperwork will be punished so errors will delay or derail possession.

Actions

• Standardise evidence packs with rent statements, arrears notices, complaints logs, witness statements.

• Train whoever manages your properties or choose a managing agent who is already up to date on this.

• Assume that possession will take longer and cost more. Build this into your cash flow model.

This is one of the areas where our ongoing management service really earns its keep: we track issues from day one so that, if you do need to seek possession, the file is court-ready. If you want us to manage your UK property whilst you're overseas, contact us here.

3) Rent increases, bidding bans & limits on rent in advance

Changes from 1st May 2026:

• You can only raise rent once every 12 months and must use the revised Section 13 process.

• You must give at least two months’ notice of any increase.

• Tenants can challenge above-market rent rises via the First-tier Tribunal.

• You cannot ask for or accept more than one month’s rent in advance.

• Rental bidding wars are banned

Implications

Poor rent-setting at the start of the tenancy will hurt, because your ability to catch up later is limited and challengeable.

Actions

• Get serious about upfront deal analysis. Use hard numbers to set rent correctly at the start. If you want help, use our free ROI calculator to model yields and returns before you buy or set the rent.

• Build a rent review diary so increases are planned, justified and properly documented.

• Adjust cash flow forecasts to reflect realistic rent trajectories, not aggressive hikes.

4) Anti-discrimination rules & pet-friendly rights

From 1 May 2026, it becomes illegal to discriminate against prospective tenants because they have children or receive benefits (i.e. “No DSS / No kids” adverts are finished). You also have to consider pet requests fairly and give a good reason for refusing within 28 days.

Implications

• Your adverts, screening questions and written policies must be squeaky clean.

• Expect more tenancies with families, benefit recipients and pets + plan your property type and finishes accordingly.

Actions

• Audit all your advert templates and referencing criteria now; remove any indirectly discriminatory language.

• Create a written pets policy (what types, where you’d say yes/no, reasonable conditions like cleaning or insurance).

• Design your refurb specs with durability in mind. Flooring, paint and fixtures should stand up to kids & pets.

5) Tougher enforcement, PRS Database & Ombudsman

Councils will gain stronger investigatory powers (from 27 December 2025) to inspect properties, demand documents and access third-party data to clamp down on non-compliant landlords.

At the same time, rent repayment orders are extended and maximum penalties doubled, with tougher treatment for repeat offenders.

PRS Database & Ombudsman (from late 2026 onwards)

A national PRS Database will be rolled out regionally from late 2026; all private landlords must register each property and pay an annual fee.

A mandatory PRS Landlord Ombudsman will follow, with landlord membership expected around 2028, funded via a charging model.

Actions

• Get your paperwork in order now, such as your gas safety, EICR, EPC, deposit protection, right-to-rent checks, licences, etc.

• Budget for:

  • Annual database fees.

  • Ombudsman membership costs.

  • The admin time to keep your records up to date.

• Consider whether self-management still makes sense or whether you want a professional team to sit between you and this growing compliance burden.

Our clients benefit from us tracking these obligations centrally across their portfolios which is particularly useful if you’re investing from overseas.

6) Decent Homes Standard & Awaab’s Law (The next wave)

In Phase 3, the government will:

• Extend a revised Decent Homes Standard to the private rented sector, creating a clearer baseline for what counts as a “decent” home.

• Extend Awaab’s Law so private landlords must tackle serious damp and mould within strict timeframes once notified. I think personally this is great.

Exact start dates will follow consultation, but the direction of travel is obvious. Sub-standard properties will become much riskier assets.

Actions

• Don’t wait for the deadline. Use upcoming works, voids and refinances to lift the standard of your stock.

• Build a simple property compliance & condition checklist for each asset and review annually.

Implication For Non-Compliance

Failing to comply with the Renters’ Rights Act isn’t just an administrative slip-up, it can become seriously expensive and legally dangerous for any landlord who doesn’t stay ahead of the rules.

Under the Act’s strengthened enforcement regime, councils now have the power to issue civil penalties of up to £40,000 per offence for serious or repeated breaches.

Lesser offences can still carry fines up to £7,000, but that’s only the beginning. Authorities can also force landlords to repay up to 12 months of rent through Rent Repayment Orders, pursue criminal sanctions for the worst violations, and even apply for banning orders that prohibit individuals from managing or letting property altogether.

With expanded investigatory powers, councils can demand documents, inspect properties and act quickly, meaning landlords who aren’t compliant are now high-risk targets.

The safest, smartest and most cost-effective move is to work with professionals who understand the Renters’ Rights Act inside out. We offer a Renters’ Rights Act Compliance Check which is a full audit of your properties, paperwork and processes to identify any risks before they turn into £40,000 penalties.

What Should You Be Doing Now?

Educate yourself

Save the official government guide to the Act and the implementation roadmap. Make sure your managing agent or in-house team can explain how each change affects your portfolio.

Stress-test your numbers

Use our ROI calculator to check that your deals still stack up under tighter possession and rent rules. Use our Stamp Duty Calculator to factor in your SDLT and non-resident surcharges accurately – especially important for expats and non-UK residents.

Systemise compliance

Create a compliance folder for each property with all certificates, licences, tenancy docs and communication history. Diarise renewal dates and rent review dates.

Upgrade your deal and due-diligence process

Before buying, run through our ultimate investment checklist for expats and non-UK residents so you’re not just compliant, but also buying in the right area, with the right tenant profile and realistic returns.

Decide how hands-on you really want to be

This Act doesn’t make investing in UK property “bad”. It just makes it more professional. If you don’t want to become a full-time compliance officer, outsource these jobs to UK property professionals (like us).

Get Help Navigating The Act To Avoid Big Fines

This is exactly the kind of complexity we help our clients with:

• When we source properties, we build the Renters’ Rights Act into the numbers and strategy.

• When we manage properties, we stay on top of changing rules so you don’t have to, and make sure your investments stay compliant and profitable over the long term.

If you’d like to understand how these reforms affect your specific situation as an expat or non-UK resident investor, and how to structure a portfolio that still delivers strong returns under the new rules, book a free strategy call with me.

We’ll walk through your goals, your current or planned portfolio, and map out a compliant, future-proof game plan.