Understanding the Renters' Rights Act 2025: What Property Professionals Need to Know

The UK rental market has undergone its most significant change in more than thirty years. Following Royal Assent on 27 October 2025, the Renters' Rights Act 2025 is now law, fundamentally reshaping the relationship between landlords and tenants across England. As property professionals, we must understand not only what has changed but also how to navigate these reforms effectively for our clients and the sector as a whole.

The Core Changes

The centrepiece of this legislation is the abolition of Section 21 "no-fault" evictions. This means landlords can no longer terminate a tenancy without providing legitimate grounds. Moving forward, tenancy agreements will operate on a rolling periodic basis rather than fixed terms, offering tenants enhanced security whilst maintaining the flexibility to relocate when circumstances require.

Perhaps equally significant is the establishment of the Private Rented Sector Ombudsman, a dedicated national body tasked with resolving disputes between landlords and tenants more efficiently than the traditional court system. This should reduce both costs and delays, though its effectiveness will depend heavily on adequate resourcing and capacity.

What's Actually Changed?

The Act introduces several critical reforms that property professionals must understand:

• Grounds for Possession: Landlords now require valid legal grounds to reclaim their properties. These include rent arrears, property sale requirements, owner occupation needs, or substantiated tenant misconduct. The days of terminating tenancies at will have ended.
• Tenancy Structure: The shift from fixed-term to rolling periodic tenancies represents a philosophical change in how we approach rental agreements. Tenants gain stability without being locked into lengthy contracts, whilst landlords maintain ongoing rental income under clearer regulatory frameworks.
• Registration and Standards: A national landlord and property database will require registration of all rental properties. Additionally, properties must meet the new Decent Homes Standard, ensuring they are safe, adequately heated, and free from serious hazards.
• Local Authority Powers: Councils have been granted significantly stronger enforcement capabilities, including the ability to impose substantial fines for non-compliance. This represents a genuine shift in accountability within the sector.

The Professional Perspective

From my position at Gracechurch Property Services, I view these changes as both challenging and necessary. The private rented sector has grown substantially, now accounting for over one-fifth of households in England, yet regulation has lagged behind this expansion. Tenant advocacy groups have long called for stronger protections, particularly around eviction practices and property standards.

However, we must acknowledge the concerns raised by landlords and property investors. The removal of Section 21 has created anxiety about portfolio management, particularly among smaller landlords who may lack the resources to navigate more complex possession proceedings. Some fear this could lead to reduced rental supply as landlords exit the market. However, with a reduced number of rental properties available, this may lead to increased rents within the market, something many tenants wish to avoid, meaning the changes go full circle in assisting tenants.

There are also practical questions about implementation. Will the Ombudsman system have sufficient capacity to handle the volume and complexity of disputes? Will local authorities receive adequate funding to fulfil their expanded enforcement role? These questions remain partially unanswered.

Market Implications

The timing of this legislation is particularly noteworthy. We're operating in a challenging housing environment characterised by supply constraints, affordability pressures, and uncertain development pipelines. With home ownership increasingly unattainable for many households, the private rented sector has become essential infrastructure rather than merely an investment vehicle.

This legislation attempts to professionalise the sector through clearer standards and stronger accountability. For landlords willing to adapt by investing in property quality, maintaining transparent practices, and prioritising tenant relationships, there may actually be long-term advantages. Quality portfolios with strong compliance records should prove more resilient as weaker operators exit the market.

For letting agents and property managers like ourselves, this represents an opportunity to add genuine value through compliance expertise. Those who can efficiently navigate the new regulatory requirements, implement robust documentation systems, and guide clients through the transition will strengthen their market position.

Preparing for Implementation

The government has wisely chosen phased implementation throughout 2026, allowing time for adaptation. As property professionals, we should be taking proactive steps now:

• For Landlords: Review your current portfolio against the Decent Homes Standard. Ensure you understand the new grounds for possession and how they might apply to your circumstances. Consider whether your current tenancy agreements need revision.
• For Tenants: Familiarise yourself with your enhanced rights, including how to access the Ombudsman service. Understand both your protections and your continued responsibilities under the new framework.

Looking Forward

The Renters' Rights Act 2025 represents a fundamental recalibration of England's rental market. Whether you view this as overdue reform or excessive intervention likely depends on your position within the sector. What's undeniable is that change is here, and it's substantial.

From my perspective, the key to successfully navigating this new landscape lies in professionalism, transparency, and genuine commitment to quality. The landlords and agents who will thrive are those who see these regulations not as obstacles but as frameworks for delivering better outcomes for all parties.

The rental market has matured considerably over the past two decades. This legislation acknowledges that maturity by establishing regulatory frameworks more appropriate to the sector's current scale and significance. There will undoubtedly be implementation challenges and unintended consequences that require attention. However, the fundamental principle, that rental housing should be secure, decent, and fairly managed, is one that property professionals should embrace rather than resist.

At Gracechurch Property Services, we're committed to helping our clients navigate these changes successfully. The coming months will require adaptation, but they also present opportunities for some.

If you wish to discuss the Renters' Rights Act, please get in touch with the Gracechurch team today.

Thomas Neil
Director of Gracechurch Property Services