Renters’ Rights Bill 2025: What Portfolio Landlords Need to Know

The Renters’ Rights Bill has completed its final reading in the House of Commons on 22 October 2025 and is now awaiting Royal Assent, which is expected imminently. Once granted, the legislation will become the Renters’ Rights Act 2025. However, the new tenancy regime will not take effect immediately. Implementation is anticipated to occur in mid-2026, providing landlords with time to prepare for the upcoming changes

Periodic Tenancies Replace Fixed Terms

One of the most significant changes is that all tenancies will convert into rolling month-to-month agreements. Landlords cannot evict tenants during the first 12 months, and ending a tenancy will require up to four months’ notice, depending on the reason. Tenants, however, can leave at any time with just two months’ notice. While this provides tenants with greater flexibility and security,  landlords will face more uncertainty in occupancy and cash flow, requiring careful planning for potential void periods across multiple properties.

Removal of Section 21

The Bill also removes Section 21 “no-fault” evictions, meaning landlords must rely on updated Section 8 grounds to evict tenants. Valid reasons include unpaid rent, property damage, or the landlord or a family member needing to occupy the property. If a tenant is evicted for sale or personal occupancy, the property cannot be re-let for 12 months. 

Rent Increases

Under the Bill, landlords can only increase rent once per year using a Section 13 notice, and any increase must align with local market rates. This may restrict the ability to offset rising mortgage costs, so financial planning and affordability calculations will be essential.

Pets in Rental Properties

The Bill makes it harder for landlords to refuse pets. Tenants can now request to keep a pet, and landlords must consider such requests fairly. 

Student Tenancies

Fixed-term student tenancies are converted into periodic tenancies. University-owned accommodation is generally exempt, but private student housing will be affected. Landlords can regain possession under Ground 4A for the next academic year if all tenants are full-time students, proper notice is given, and the tenancy begins within six months of occupancy. 

Landlord Database and Compliance

A national landlord database will require landlords to register all properties and demonstrate compliance with safety, EPC, and maintenance standards. Landlords must ensure that all properties meet these requirements to avoid regulatory penalties.

Awaab’s Law

Awaab’s Law will require landlords to fix serious damp or mould problems within strict timeframes. Properties with poor EPC ratings may require upgrades sooner to maintain compliance and protect tenant health, which is particularly relevant for landlords managing large portfolios.

Mortgage Strategy for Landlords

The Bill has major implications for mortgage management. Portfolio landlords should conduct an annual portfolio review to assess yields, rents, and mortgage terms across all properties. Planning for rent increases is critical, as only one increase per year is allowed, and maintaining property compliance protects portfolio value. Fixed-rate mortgages may offer stability in this more regulated environment, while cash reserves are essential to manage extended notice periods, voids, and re-letting restrictions. Landlords will also need to account for student turnover, pets, and other operational changes across multiple properties to maintain steady income.

Given these changes, expert guidance is more important than ever. Mortgage consultants can provide personalised advice on portfolio planning, cash flow management, void periods, and property upgrades, helping landlords navigate the evolving rental landscape. For portfolio landlords seeking support, our experienced consultants are available for an initial consultation at 01628 564631.

The information contained within was correct at the time of publication but is subject to change.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Source: Gov.UK