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Renters' Rights Act: Essential Information for Landlords

A comprehensive guide to the UK’s latest rental legislation. Discover what is changing, the key dates, and what every landlord must do to stay fully compliant.

The Renters’ Rights Act 2025 represents one of the most significant reforms of the private rented sector in decades. It is designed to create a fairer, safer, and more secure rental market for tenants, while establishing a new compliance framework for landlords.

Key Reforms: Navigating the New Rental Landscape

The Renters’ Rights Act aims to enhance tenant security, property standards, and fairness within the private rental sector. For landlords, this requires adapting to updated tenancy arrangements, new compliance responsibilities, and stricter enforcement measures.

Here are the principal elements of the act and what each change means for you.

1: Abolition of Section 21 “No-Fault” Evictions

The Renters’ Rights Act 2025 will permanently abolish Section 21, the clause that currently allows landlords to regain possession of a property without providing a reason once a tenancy’s fixed term has ended. This change represents one of the most significant shifts in landlord law for more than 30 years.

Once enacted, landlords will only be able to end a tenancy under specific legal grounds — such as rent arrears, property sale, or serious tenant misconduct — through a reformed Section 8 possession process. The Government’s aim is to give tenants greater long-term security, but for landlords it removes a simple and predictable route to regain possession.

To navigate this change effectively, landlords will need to understand the new possession rules, notice requirements, and supporting documentation expected under the updated system.

The removal of Section 21 represents a major shift, replacing the assured shorthold tenancy (AST) system with Assured Periodic Tenancies (APTs). Landlords can no longer regain possession of a property simply by serving a two-month notice without providing a reason.

Open-Ended Tenancies

All new and existing assured tenancies will convert to periodic arrangements, continuing indefinitely unless the tenant chooses to leave or the landlord can demonstrate a valid statutory ground for possession.

Termination by Landlord

Section 21 notices are no longer applicable. To regain possession, landlords must follow the revised Section 8 process and show that one of the statutory grounds is met.

Termination by Tenant

Tenants gain greater flexibility, with the right to end the tenancy at any time by giving two months’ written notice.

Following the removal of Section 21, the government has revised and strengthened the grounds for possession under Section 8 of the Housing Act 1988. Additional grounds have been introduced and existing ones clarified, ensuring landlords can still regain possession where there is a legitimate reason to do so.

Several mandatory grounds have been added or reinforced, meaning the court must grant possession where the ground is proven:

Sale of the Property

A new mandatory ground allows possession where there is a genuine intention to sell. To prevent misuse, the property cannot be marketed or re-let for 12 months after this ground has been used.

Landlord or Family Occupation

A strengthened mandatory ground applies where the landlord or a close family member intends to occupy the property as their main residence.

Persistent Rent Arrears

This mandatory ground has been reinforced to address tenants who repeatedly fall into arrears, even if the balance is cleared before a court hearing. The threshold for mandatory possession is increasing from the equivalent of two months’ unpaid rent to three months.

Anti-Social Behaviour

Updated wording and reduced evidential requirements are intended to make it quicker and more straightforward for landlords to seek possession where tenants are involved in anti-social or criminal behaviour.

The introduction of periodic tenancies is intended to give tenants greater stability and confidence, enabling them to challenge poor practice without fear of unfair eviction.

Key measures that enhance tenant rights and long-term security include:

Decent Homes Standard

For the first time, this standard will apply to the private rented sector, placing a legal obligation on landlords to ensure homes are safe, warm, and properly maintained.

Awaab’s Law

Landlords must investigate and resolve reported health hazards, including serious damp and mould, within prescribed timeframes.

Challenging Rent Increases

Tenants are able to challenge rent increases they believe exceed market levels through the First-tier Tribunal. Rent increases, however, are limited to once per year.

Pet Ownership Rights

Landlords may not unreasonably refuse a tenant’s request to keep a pet. They may require appropriate pet insurance to cover potential damage.

Ban on Discrimination

It is unlawful for landlords or agents to apply blanket restrictions on letting to tenants who receive benefits or have children.

The government recognises that greater use of the courts will require procedural reform. These changes are intended to streamline possession proceedings, although existing court backlogs may still result in delays.

Key elements of the modernised system include:

Private Rented Sector Ombudsman

All private landlords will be required to register with a new Ombudsman scheme. This will provide tenants with a mandatory route to redress, offering fair, impartial, and binding decisions that may resolve disputes before court action is necessary.

Mediation Services

The Act enables the Ombudsman to offer landlord-initiated mediation, supporting the resolution of tenancy disputes without formal litigation.

Digitalisation of Processes

Possession claim procedures are expected to be updated, including revised statutory notice templates and improved online guidance, making applications more straightforward for landlords.

Extended Notice Periods

The notice period for mandatory possession claims relating to serious rent arrears will increase from two weeks to four weeks, allowing tenants additional time to address arrears before proceedings commence.

The move from no-fault to for-cause possession significantly raises the burden of proof for landlords. As possession can now only be obtained by establishing a statutory ground in court, thorough and accurate record-keeping is essential.

To successfully progress a Section 8 claim, landlords must be able to provide:

Proof of Intention

For grounds such as selling the property or personal occupation, clear and verifiable evidence of genuine intent is required to avoid allegations of misuse.

Comprehensive Documentation

Landlords must maintain detailed and up-to-date records to support any claim, including:

  • Complete rent ledgers and payment histories
  • Records of all communication with tenants
  • Inspection reports and maintenance records
  • Evidence of anti-social behaviour where relevant, such as police reports or witness statements

The new legislation introduces increased complexity and risk for private landlords. Meeting the Decent Homes Standard, navigating the expanded Section 8 grounds, mandatory Ombudsman membership, and the higher evidential burden all signal a shift towards an environment where professional expertise is essential.

This is where our experience and Guaranteed Rent programme provide protection and reassurance:

Risk Reduction

Our programme removes the primary financial risks associated with periodic tenancies. Rent is paid on the same day every month, even if the property is vacant or the tenant does not pay.

Complete Compliance Management

We take full responsibility for keeping your property compliant with all relevant landlord legislation and obligations, including adherence to the Decent Homes Standard.

Proactive Maintenance and Repairs

All minor repairs and ongoing maintenance are covered by our 24/7 in-house team at no cost to you. Issues are addressed proactively, reducing the risk of tenant complaints or Ombudsman disputes.

Expert Possession Support

If possession becomes necessary, our specialist team manages the entire Section 8 process, including detailed evidence preparation and liaison with the courts and the Ombudsman on your behalf.

In this evolving regulatory landscape, professional oversight provides vital protection against complexity and financial uncertainty. Our Guaranteed Rent service is designed to manage these challenges effectively, helping to keep your investment secure and profitable.

2: End of Fixed-Term Assured Shorthold Tenancies

The Renters’ Rights Act 2025 will abolish fixed-term Assured Shorthold Tenancies (ASTs), the standard tenancy model in the UK since 1988. Following implementation, all new and existing tenancies will automatically convert to rolling periodic agreements. This provides tenants with greater flexibility but reduces fixed-term certainty for landlords.

This reform significantly impacts how landlords plan tenancies, manage rental income, and handle notice periods. The following outlines the key changes and considerations for landlords.

The primary change is the complete removal of fixed-term Assured Shorthold Tenancies (ASTs) in England, replaced by Assured Periodic Tenancies.

Rolling Contracts

All new assured tenancies will be periodic from the outset, creating open-ended agreements with no fixed end date, continuing indefinitely until lawfully terminated by either the tenant or landlord.

Existing Tenancies

Once the legislation is fully enacted, all current fixed-term ASTs will automatically convert to Assured Periodic Tenancies after their initial fixed term concludes.

Ban on Fixed-Term Agreements

It will become illegal for landlords to offer new fixed-term tenancies, with potential fines of up to £7,000 for non-compliance.

Increased Flexibility for Tenants

The aim of these reforms is to give tenants greater freedom to move when circumstances change and to challenge poor conditions without fear of retaliatory eviction at the end of a fixed term.

The introduction of periodic tenancies gives tenants greater control over the length of their tenancy by standardising and simplifying the notice process for both parties.

Tenant’s Right to Leave

Tenants can terminate the tenancy at any time by providing a minimum of two months’ written notice. This allows them to move when circumstances change, without being bound by a fixed-term agreement.

Landlord’s Right to Possession

The Section 21 no-fault eviction route is removed. Landlords can only regain possession by relying on a specific, valid statutory ground under the updated Section 8 process.

Notice Periods

The required notice from landlords will vary depending on the ground used, ranging from two weeks for serious anti-social behaviour to four months if the landlord intends to sell or move in. For grounds such as sale or occupation, tenants are protected from eviction during the first 12 months of the tenancy.

To adjust to the end of fixed-term ASTs, landlords should:

  • Review all existing tenancy agreements and prepare for their automatic conversion once the legislation takes effect.
  • Update property management and rent collection systems to accommodate ongoing periodic tenancies.
  • Communicate clearly with tenants to maintain stability and prevent unnecessary early terminations.
  • Consider adopting a corporate lease or Guaranteed Rent arrangement, which provides reliable income and security even without fixed-term agreements.

Our Guaranteed Rent Scheme operates via corporate leases rather than ASTs, ensuring landlords receive full rent every month, regardless of tenant changes or legislative reforms.

3: Rent Controls, Payment Terms, and Market Transparency

The Renters’ Rights Act 2025 introduces measures to improve transparency, fairness, and affordability within the rental sector. While it does not impose universal rent caps, it significantly alters how and when rent can be increased and limits the financial obligations for tenants starting a new tenancy.

The reforms aim to provide tenants with greater stability by standardising rent review procedures and enhancing their ability to challenge excessive increases, using the statutory Section 13 notice process.

Annual Limit

Rent may only be increased once every 12 months, measured from either the tenancy start date or the date of the last increase. Any clauses permitting more frequent rises are unenforceable.

Mandatory Notice

Landlords must notify tenants of any proposed increase using the prescribed Section 13 form, providing at least two months’ notice before the change takes effect.

Tenant Challenge

Tenants may challenge increases they consider excessive or above the local market rate through the First-tier Tribunal (FTT). The FTT sets a fair market rent, and the revised rent only applies from the Tribunal’s ruling.

Abolition of Contractual Clauses

The Act removes all contractual rent review clauses, making the Section 13 notice the sole legal mechanism for increasing rent.

A key transparency measure prohibits accepting or encouraging offers above the advertised rent, creating a fairer market and preventing tenants from paying inflated rents due to competition.

Advertising Requirement

Landlords and agents must legally display a clear asking rent for each property.

Prohibition

It is unlawful to invite, encourage, or accept any offer above the advertised price. Such practices are considered prohibited payments, with local authorities authorised to impose fines on non-compliant landlords or agents.

Fair Access

This ensures the final rent reflects the advertised amount, enabling tenants to make informed decisions based on the published cost rather than their ability to outbid others.

The legislation sets clear limits on the amount of rent landlords can require upfront, ensuring large initial payments do not act as a barrier to housing, particularly for low-income tenants or students.

One-Month Limit

Landlords cannot demand more than one month’s rent in advance as a mandatory condition to secure a tenancy.

Voluntary Payments

Tenants may voluntarily offer to pay more than one month’s rent upfront (e.g., three or six months) to suit their own financial or referencing needs. Landlords must record that such payments are made voluntarily and without coercion.

Prohibited Pre-Tenancy Rent

Rent cannot be requested or accepted before the tenancy agreement is formally signed, as doing so constitutes a prohibited payment under the Tenant Fees Act.

Our Guaranteed Rent scheme provides protection against these complexities, ensuring full compliance with new rent collection rules while safeguarding landlords from payment uncertainty.

4: Enhanced Property Standards and Landlord Accountability

The Renters’ Rights Act introduces higher standards for property quality and landlord responsibilities within the private rented sector.

For the first time, many of the standards previously applied only to social housing will also apply to private landlords. These reforms aim to improve tenant living conditions and foster a more professional and transparent rental market.

The following areas outline the key compliance priorities under the new legislation.

The Renters’ Rights Act extends the Decent Homes Standard (DHS), previously applied only to social housing, to all private rented properties. This reform aims to provide tenants with safer, higher-quality homes.

The DHS requires that a property meets the following criteria:

Safety

The home must be free from serious health and safety hazards, particularly Category 1 hazards under the Housing Health and Safety Rating System (HHSRS).

State of Repair

The property must be maintained in a reasonable state of repair.

Facilities

The home should include reasonably modern facilities and services, such as updated kitchens and bathrooms.

Thermal Comfort

Properties must offer adequate thermal comfort, including effective heating and insulation.

Damp and Mould

A key update requires homes to be free from damp and mould, ensuring healthier living conditions.

The Act also incorporates principles from Awaab’s Law, setting legal timeframes for landlords to address serious hazards promptly once reported.

The Act introduces a national digital Private Rented Sector (PRS) Database to enhance transparency and enforcement across England.

Mandatory Registration

All landlords of privately rented properties must register themselves and each property before marketing or letting.

Information Held

The database will include landlord contact details, property addresses, information on any letting agents, and evidence of compliance with safety checks such as Gas Safety, Electrical Safety, and EPCs.

Accountability

Replacing fragmented “rogue landlord” registers, the database provides a single national record, enabling enforcement bodies such as Local Housing Authorities (LHAs) to target inspections and enforcement actions effectively.

Non-Compliance

Failure to register may result in civil penalties and could prevent landlords from relying on the new Section 8 possession grounds in court. Registration is also required for mandatory membership of the new Private Rented Sector Ombudsman scheme.

The Act significantly enhances the enforcement authority of Local Housing Authorities (LHAs) to ensure landlords comply with new standards and obligations.

Increased Civil Penalties

LHAs can impose substantial fines for a wider range of breaches without lengthy court proceedings:

  • Initial or minor breaches, such as failure to register on the PRS database, breaching the Decent Homes Standard, or misusing possession grounds, can incur fines of up to £7,000.
  • Serious, persistent, or repeated non-compliance may result in penalties of up to £40,000.

Strengthened Rent Repayment Orders (RROs)

  • Tenant rights to reclaim rent from non-compliant landlords are expanded:
  • Maximum repayment is increased from one year’s rent to two years’ rent.
  • RROs now cover a broader range of offences, including providing false information on the PRS database.
  • Orders can be enforced against superior landlords in the rental chain, holding all beneficiaries accountable.

Enhanced Investigatory Powers

LHAs can demand information from landlords or agents and access properties to investigate suspected breaches of housing law.

Landlord Responsibilities, Risks & Impact

The Renters’ Rights Act reshapes the obligations of landlords within the private rented sector.

Beyond altering tenancy structures, it redefines operational requirements, including registration, compliance, record-keeping, and tenant communication.

A clear understanding of these responsibilities is vital to avoid penalties and ensure a profitable, legally secure property portfolio.

1: New Legal Responsibilities

The UK private rented sector is experiencing substantial legislative change under the Renters’ Rights Act. These reforms introduce new duties for landlords, prioritising tenant protections and necessitating a proactive approach to compliance.

All landlords must now register on a mandatory national landlord database to confirm compliance with legal obligations. This administrative requirement is essential for private landlords, with failure to register exposing them to civil penalties. Proper organisation of property records and compliance documents, including safety certificates, is necessary to complete registration successfully.

The new legislation raises the bar for property conditions, introducing a legally defined “Decent Homes Standard” for the private rented sector. Landlords must ensure their properties are safe, well-maintained, and compliant with all regulatory requirements.

Key responsibilities include:

  • Keeping up-to-date and readily accessible records for all property certifications, such as Gas Safety Certificates, Energy Performance Certificates (EPCs), and Electrical Installation Condition Reports (EICRs).
  • Complying with enhanced safety and repair obligations, including deadlines imposed by legislation such as Awaab’s Law for addressing hazardous conditions.

The new legislation promotes more secure and equitable tenancies, fundamentally altering the landlord-tenant relationship.

Abolition of Section 21

Landlords can no longer issue ‘no-fault’ evictions. Possession must be sought using the revised Section 8 grounds, which are statutory and must be proven in court.

Pets

Tenants have the right to request a pet, which landlords cannot unreasonably refuse. Blanket bans on pets are prohibited, though landlords may require tenants to obtain pet insurance to cover potential property damage.

Ombudsman

A new Private Rented Sector Landlord Ombudsman will offer a faster, binding resolution service for tenant complaints, including disputes relating to pet requests or maintenance issues.

Compliance with current legislation requires careful and long-term record maintenance.

Tax Compliance

Landlords exceeding specific income thresholds must maintain digital records and submit quarterly updates to HMRC under the Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) programme, starting in 2026/2027.

Legal & Financial Records

It is recommended to retain all tenancy agreements, safety certificates, maintenance invoices, and financial records for at least six to seven years to satisfy tax requirements and protect against potential tenant claims.

Tenancy Records

Comprehensive records of all communication and maintenance interactions with tenants are vital to support possession claims under the updated Section 8 process.

It remains a legal obligation for all landlords (or their appointed agents) to conduct Right to Rent checks on all adult occupiers before a tenancy can begin.

Process

Checks must be conducted on all adults, regardless of nationality. For most UK/Irish citizens, a physical document check is used. For others, an online check using a Home Office 'share code' is the preferred method.

Discrimination

Checks must be carried out in a consistent manner for all prospective tenants to ensure compliance with the Equality Act 2010 and avoid unlawful discrimination.

Penalties

Failure to conduct the checks correctly or renting to a person without the legal right to rent can result in significant civil penalties (fines) and, in serious cases, a criminal conviction.

2: Operational and Financial Impact

Recent legislative and fiscal changes, including the Renters’ Rights Act and the full implementation of Section 24 tax rules, are transforming the financial landscape of property investment in the UK. These reforms increase operational complexity, reduce income predictability, and raise costs for landlords, significantly altering the overall risk profile.

The shift from fixed-term tenancies to periodic (rolling) contracts is a key factor increasing cash-flow uncertainty.

Increased Void Risk

Tenants can now end their tenancy with just two months’ notice, eliminating the income security previously provided by six- or twelve-month fixed terms. This may result in higher tenant turnover and longer, less predictable void periods, directly affecting the stability of rental income.

Complex Possession Process

With the removal of no-fault Section 21 evictions, landlords must rely on specific Section 8 grounds to regain possession, such as selling the property or addressing rent arrears. This process is typically more complex and time-consuming, potentially prolonging periods of non-payment and further impacting cash flow.

New legislation places strict limits on how and when landlords can raise rents, restricting the ability to respond quickly to rising costs or market demand.

Annual Limit

Rent may only be increased once per year using the Section 13 process, with a minimum of two months’ notice required.

Tenant Challenge Rights

Tenants can contest any proposed increase they believe exceeds the market rate by appealing to the First-tier Tribunal (FTT), introducing potential delays and uncertainty in implementing justified increases.

Ban on Rental Bidding

The practice of rental bidding wars is prohibited, making it illegal for landlords or agents to invite or accept offers above the advertised rent, limiting flexibility in high-demand markets.

The new legislation limits the financial demands landlords can place on tenants at the start of a tenancy, reducing the use of large upfront payments as a risk management tool.

One-Month Limit

The Renters’ Rights Act prohibits clauses requiring tenants to pay more than one month’s rent in advance before the tenancy agreement is signed and legally effective.

Impact on Risk

Landlords can no longer use large lump-sum payments (e.g., six or twelve months’ rent) to offset perceived tenant risk, making it more challenging to mitigate financial uncertainty for tenants with limited financial history or those receiving benefits.

New regulatory requirements are expected to substantially increase the cost of managing and maintaining rental properties, particularly older properties.

Stricter Compliance

The extension of the Decent Homes Standard and enforcement of Awaab’s Law introduce mandatory deadlines for addressing hazards such as damp and mould, requiring proactive maintenance schedules and non-discretionary spending to remain compliant.

Rising Costs

Landlords face rising expenses for property insurance, materials, and labour. Combined with new legal obligations, this compresses profit margins and necessitates greater financial provisioning for both routine and unexpected works.

Administrative Burden

Mandatory registration on the Private Rented Sector database and membership of the new Ombudsman increase administrative and regulatory responsibilities, potentially leading to higher management fees or internal compliance costs.

The profitability of the Buy-to-Let (BTL) model has been significantly affected by changes in tax law and tighter financing conditions resulting from new tenancy legislation.

Taxation (Section 24)

Restrictions on mortgage interest relief under Section 24 prevent landlords from deducting mortgage interest and other finance costs from rental income before calculating tax. Landlords can now only claim a 20% basic rate tax credit on interest paid, increasing overall tax liability for higher-rate taxpayers, reducing net cash flow, and making highly leveraged properties less viable.

Financing Risk

The introduction of periodic tenancies and the more complex eviction process have increased perceived lending risk. Lenders have responded by:

Tightening Affordability Tests

Requiring higher Rent Coverage Ratios, meaning rental income must cover a greater proportion of mortgage repayments.

Adjusting Criteria

Potentially lowering maximum Loan-to-Value (LTV) ratios and demanding larger financial reserves to mitigate increased void risk.

3: Key Risks for Landlords

The combined impact of the Renters’ Rights Act and existing fiscal changes has transformed the risk landscape for UK landlords, shifting operational balance in favour of tenants. Key risks now focus on reduced income predictability, heightened regulatory scrutiny, and increased financial exposure.

The abolition of Assured Shorthold Tenancies (ASTs) means that all new and existing tenancies will automatically convert to periodic (rolling) contracts.

Unilateral Flexibility for Tenants

Tenants can terminate the contract at any time with just two months’ notice, eliminating the income security previously provided by fixed-term agreements.

Increased Void Risk

Landlords face higher tenant turnover and less predictable income, with potentially longer and more frequent void periods. This has significant implications for cash flow planning and mortgage affordability assessments.

The removal of the ‘no-fault’ Section 21 eviction power significantly limits a landlord’s ability to regain possession quickly.

Reliance on Section 8 Grounds

Landlords must now rely on an expanded set of Section 8 grounds, each requiring clear evidence and compliance with legal procedures. Grounds include serious rent arrears, anti-social behaviour, or the landlord’s intention to sell or move in.

Legal and Time-Consuming

The Section 8 process is generally more complex, lengthy, and costly than a Section 21 notice, prolonging the period landlords must carry the financial burden of non-compliant or non-paying tenants.

Re-letting Restrictions

When possession is sought for sale or personal occupation, landlords are legally prohibited from re-letting the property for at least 12 months, limiting flexibility if circumstances change.

New safety and quality standards impose mandatory, time-sensitive obligations, increasing operational demands and associated costs for landlords.

Awaab’s Law and Decent Homes Standard

The extension of the Decent Homes Standard to the private rented sector, along with requirements under Awaab’s Law targeting hazards such as damp and mould, enforces stricter and faster remediation of maintenance issues.

Regulatory Framework

Landlords must manage increased administrative responsibilities, including mandatory registration on the Private Rented Sector database and membership of the new Ombudsman for dispute resolution. Non-compliance can result in penalties and restrict access to possession grounds.

Recent legislation increases landlords’ financial pressures through taxation and potential legal challenges.

Tax Burden (Section 24)

The restriction on mortgage interest tax relief means higher-rate taxpayers are taxed on gross rental income before mortgage interest deductions, reducing net profits and cash flow.

Legal Costs

Tenants can challenge rent increases they believe exceed the market rate through the First-tier Tribunal (FTT), leading to additional costs and delays in defending possession claims or rent disputes.

Rising Costs

Higher maintenance standards and increasing expenses for services, labour, and insurance further compress profit margins, reducing financial buffers for voids, repairs, or refinancing.

The new legislation limits a landlord’s control over occupancy and property use.

Bans on Discrimination

Landlords can no longer enforce blanket bans against specific groups, such as families with children or benefit recipients, restricting their ability to screen tenants based on perceived risk.

Pets as a Right

Tenants have the right to request a pet, which landlords cannot unreasonably refuse. While pet insurance may be required, this reduces landlords’ autonomy in setting tenancy conditions.

Reclaiming Property

Landlords can only regain possession using the statutory Section 8 grounds, replacing the previous ability to end a tenancy for any reason at the conclusion of a fixed term.

The combined effects of tax changes, rising costs, and reduced control have contributed to increased market volatility, partly driven by landlords exiting the sector.

Portfolio Offloading

Many landlords, particularly those with smaller portfolios or high mortgage debts, are selling properties to mitigate rising tax liabilities and compliance risks.

Impact on Supply

This trend reduces available housing stock in the private rented sector, potentially supporting rent prices but also increasing market instability and limiting opportunities for professional investors, especially in areas with already constrained housing supply.

4: How Landlords Should Prepare

Following the legislative changes, landlords need to transition from a purely transactional approach to a proactive, compliance-focused, and highly professional strategy. Preparation should focus on mitigating the increased risks of income volatility, maintenance obligations, and legal exposure.

A thorough review of your property portfolio is essential to ensure long-term financial sustainability under the new legal and tax environment.

Financial Stress Test

Recalculate profit margins for each property, taking into account Section 24 restrictions on mortgage interest relief and potential rises in operational costs and taxes.

Sell vs. Retain Analysis

Identify underperforming properties or those requiring substantial capital investment to meet new standards, and determine whether selling is more prudent than retaining them.

Leasing Structure Review

For retained properties, assess existing tenancy agreements to understand the transition to periodic contracts and the associated risk of higher tenant turnover and void periods.

With the extension of the Decent Homes Standard to the private rented sector and stricter enforcement under Awaab’s Law, landlords must prioritise higher property quality and maintenance.

Address Damp and Mould

Identify and remedy hazards such as persistent damp, mould, or inadequate heating. Non-compliance may result in penalties and restrict the use of Section 8 possession grounds.

Energy Efficiency

Audit properties for energy performance improvements to enhance EPC ratings, supporting both regulatory compliance and tenant demand.

Scheduled Maintenance

Implement a proactive maintenance schedule for key systems, including heating, electrical, and plumbing, to minimise emergency repairs and prevent tenant disputes or non-payment.

Comprehensive, easily accessible records are now a compliance requirement critical for legal protection.

Evidence of Compliance

Maintain a digital archive of all safety certificates (Gas Safety, EICR, EPC), insurance policies, and mandatory deposit registrations.

Dispute Readiness

Log all tenant communications, maintenance requests, and evidence of non-compliance (e.g., anti-social behaviour) with timestamps to support potential Section 8 possession claims.

New Database Requirements

Ensure systems are ready to meet mandatory registration on the upcoming Private Rented Sector Database.

With tenants granted greater rights and flexibility under new legislation, clear and professional communication is essential for retaining good tenants and managing disputes.

Rent Increase Transparency

Communicate proposed rent increases clearly, ensure they are justified by market rates, and provide adequate notice to reduce the risk of tenant appeals to the First-tier Tribunal (FTT).

Managing Pet Requests

Implement clear, documented procedures for tenant pet requests, including requirements for pet insurance to cover potential property damage.

Set Expectations

Clearly outline maintenance procedures and response times to ensure tenant standards are met, minimising complaints or potential rent withholding.

Landlords must adjust their financial forecasting to account for new sources of expenditure and greater income uncertainty.

Factor in Voids and Legal Fees

Increase contingency funds to cover longer and more frequent void periods (due to tenants’ flexibility) and the increased legal costs and delays associated with pursuing possession via the complex Section 8 process.

Tax Reserves

Ensure adequate reserves are set aside to cover the higher tax liability resulting from the Section 24 changes.

Compliance Capital

Allocate a specific capital expenditure budget for necessary upgrades to meet the Decent Homes Standard, Awaab's Law, and any future energy efficiency targets.

Engaging a professional management partner, such as a guaranteed rent scheme provider, is one of the most effective ways to mitigate the full range of new risks.

Eliminates Income Risk

Rent is guaranteed on the same day every month, even during void periods or if tenants fall into arrears, providing complete financial security.

Transfers Compliance Burden

The partner manages all compliance responsibilities, including Gas Safety Checks, Electrical Safety Tests, and EPCs, ensuring full adherence to landlord obligations and legislation.

Covers Maintenance and Refurbishment

A fully managed service with 0% commission, 24/7 in-house maintenance, and free minor repairs and refurbishments between tenancies reduces operational burden.

Removes Administrative Hassle

The partner handles all tenant-related issues, documentation, and pays council tax and utilities during void periods, creating a hassle-free experience for the landlord.

Long-Term Stability

Long-term leases, typically 2–5 years, help mitigate market volatility and the instability associated with short-term periodic tenancies.

Guaranteed Rent:
Your Protection Against the Renters’ Rights Act

The Renters’ Rights Act introduces wide-ranging reforms, including rolling tenancies and new compliance obligations, creating uncertainty for landlords.

Our Guaranteed Rent Scheme eliminates that uncertainty by offering:

  • Secure Income: Fixed monthly rent payments, irrespective of tenant arrears or void periods.
  • Full Property Management: Comprehensive management of all property-related responsibilities, including maintenance and compliance.
  • Complete Legal Protection: Operates under a corporate lease model outside Assured Shorthold Tenancy (AST) legislation, removing exposure to Section 21 changes, rent caps, or possession risks.

This provides landlords with reliable income and professional, worry-free management.

Security for Your Investment

How Our Guaranteed Rent Scheme Works

In response to the risks associated with Assured Shorthold Tenancies (ASTs) under evolving legislation such as the Renters’ Rights Act, our scheme provides a secure alternative. By entering a Corporate Lease Agreement for up to five years, we becomes your tenant rather than the occupier.

This commercial arrangement, contracted with a regulated company, legally circumvents AST complexities and new tenant rights legislation, ensuring your rental income is protected and offering maximum stability and certainty for your London and Essex property investment.

1

Valuation & Guaranteed Rent Offer

A local expert inspects your property and evaluates the market to provide a free, no-obligation valuation along with a formal Guaranteed Rent proposal.

2

Securing Your Income (Corporate Lease)

We establish a Corporate Lease (2–5 years), making us your tenant. This guarantees your rental income and legally shields you from risks under the Renters’ Rights Act.

3

Full-Service Management Takeover

Through our partnerships with over 30 local authorities, we source a tenant and manage all aspects of the tenancy, including maintenance and minor repairs.

4

Guaranteed Fixed Monthly Rent Payment

Receive a fixed, guaranteed rent payment on the 15th of each month, irrespective of occupancy or tenant payment status.

Why Guaranteed Rent is Ideal for Landlords

While the Renters’ Rights Act alters tenancy arrangements, it does not affect the security provided by a corporate lease. Guaranteed Rent is now the most strategic choice for landlords for the following reasons:

Not Impacted by the Renters’ Rights Act

Our corporate leases operate outside AST legislation, so reforms such as Section 21 abolition, rolling tenancies, and rent caps do not apply.

Fixed, Reliable Income

Receive a guaranteed rent payment every month, regardless of whether the property is occupied, vacant, or undergoing repairs.

No Void Periods or Arrears

We pay your rent even when the property is vacant, ensuring a consistent income regardless of tenant turnover.

Full Property Management Included

We manage all maintenance, safety checks, tenant relations, and inspections, allowing you to remain a hands-free owner with full oversight.

Legal and Compliance Protection

Our management and corporate leasing structure ensures full compliance with new property standards, safeguarding you from penalties and administrative burdens.

Long-Term Stability

Leases typically span 3–5 years, providing guaranteed income and predictable financial planning—perfect for landlords with multiple properties or buy-to-let portfolios.

Rent Comparison

Private Letting vs Guaranteed Rent: Understand the Real Return

Although private renting can appear to offer a higher monthly amount, it often fails to account for hidden costs and potential losses. Empty periods, tenant arrears, and unforeseen maintenance can substantially reduce your actual returns.

Our Guaranteed Rent programme delivers a fixed and dependable income, removing these uncertainties and ensuring you achieve the true value of your investment every month.

Private Rent £2,OOO Monthly Rent
Guaranteed Rent £2,OOO Monthly Rent
Annual Rent
£24,000
£24,000
Commission @10%
-£4,000
£0
Referencing / Set Up Fees
-£250
£0
Inventory / Check-In / Check Out
-£250
£0
1 Month Void Period
-£2,000
£0
Minor Maintenance Cost
-£1,000
£0

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Renters’ Rights Act FAQs

The Renters’ Rights Act is new legislation aimed at enhancing fairness and security in the private rented sector. It replaces the former Renters Reform Bill and introduces significant changes, including the abolition of Section 21 evictions, the end of fixed-term tenancies, the extension of the Decent Homes Standard, and the creation of a national landlord register.

The Bill is progressing through Parliament and is expected to receive Royal Assent in early 2026. Reforms will be introduced in phases throughout 2026, with full implementation by 2027. Landlords are encouraged to prepare now by reviewing tenancy agreements and ensuring properties comply with new standards.

All existing ASTs will automatically convert to rolling periodic tenancies once the legislation takes effect. Landlords will no longer be able to set a fixed term, and tenants may end the tenancy with two months’ notice.

Yes, but only under specific legal grounds set out in the revised Section 8 of the Housing Act. Valid grounds include selling the property, landlord occupation, persistent rent arrears, or serious anti-social behaviour. Each ground has defined notice periods and evidential requirements.

Rent may be increased only once every twelve months using the statutory Section 13 notice procedure. Tenants have the right to challenge excessive increases through the First-tier Tribunal, which can adjust rent to reflect current market levels.

The Act establishes a mandatory national register of landlords and properties. All landlords must register to ensure transparency and accountability. Failure to register may result in financial penalties or rent repayment orders.

Private rented homes must comply with the Decent Homes Standard, ensuring they are free from serious hazards, in good repair, and provide adequate heating, kitchen, and bathroom facilities. Local authorities have enhanced powers to inspect properties, enforce compliance, and issue fines for breaches.

Many landlords are turning to Guaranteed Rent Schemes or corporate lease models, such as those offered by us. These leases operate outside Assured Shorthold Tenancy law, providing protection from income disruption, legislative changes, and void periods, while ensuring guaranteed monthly rent and comprehensive property management.

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