Renters’ Rights Act 2025: What Landlords Need to Know Before May 2026

The Renters’ Rights Act 2025 is now law, and from 1 May 2026 it will introduce the most significant changes to the private rented sector in England in a generation.

As mortgage advisers in Birmingham working closely with landlords across the UK, we are already seeing concern around how these changes will affect portfolio stability, refinancing, and long-term investment strategy.

This is not just a legal update. It is a structural shift in how landlords manage tenancies, possession, rent reviews and financial risk.

Here is what you need to understand — and how to prepare.

The End of Section 21: No More “No-Fault” Evictions

From 1 May 2026, Section 21 notices will be abolished entirely.

This means landlords will no longer be able to regain possession of a property without providing a legally valid reason. All possession claims will need to proceed under Section 8 grounds.

What This Means in Practical Terms

• Fixed-term Assured Shorthold Tenancies will be scrapped. All tenancies will become rolling periodic tenancies from day one.
• You must provide a specific legal ground for possession.
• If selling or moving back into the property, you must provide four months’ notice.
• You cannot use “selling” or “moving in” grounds within the first 12 months of a tenancy.

From a financial perspective, this reduces flexibility. Landlords who previously relied on Section 21 to manage exit strategies or refinance timing will now need more forward planning.

At RM Mortgage Solutions, we are advising landlords to review their medium-term plans now rather than waiting until 2026.

Rent Increases: Tribunal Challenges and Cash Flow Risk

The Act introduces a more structured Section 13 rent increase process.

Under the new system:

• Rent can only be increased once every 12 months.
• A minimum of two months’ notice must be provided.
• Tenants can challenge increases at a First-tier Tribunal if they believe the rent exceeds market rate.

The key change that landlords need to understand is this:

If a tenant disputes the increase, the new rent does not apply until the Tribunal reaches a decision. That process can take months. During that time, the tenant continues paying the lower rent.

In addition, the Tribunal can now only set rent at or below the landlord’s proposed figure. Previously, there was a risk it could be set higher. That risk has been removed, meaning tenants may be more willing to challenge increases.

From a mortgage and cash flow perspective, this matters. If you are relying on rental increases to offset higher interest rates or refinance costs, delays could impact your affordability calculations.

We strongly recommend landlords stress-test their rental income projections ahead of refinancing.

Harder to Evict for Rent Arrears

Even eviction for non-payment becomes more restrictive.

• The mandatory ground for eviction now requires at least three months of arrears, increased from two.
• Notice periods for arrears-based eviction rise from two weeks to four weeks.

This effectively extends the period during which landlords may be receiving reduced or no rent while still covering mortgage payments.

For highly leveraged landlords, this presents increased exposure.

At RM Mortgage Solutions, we are reviewing lender criteria carefully, as some lenders may adjust affordability models in response to these regulatory changes.

Important Deadlines

There are three key dates landlords should mark clearly:

• 30 April 2026: Final day to serve a Section 21 notice.
• 1 May 2026: All existing Assured Shorthold Tenancies convert automatically to periodic tenancies.
• 31 May 2026: Deadline to provide tenants with the government information sheet outlining the new rules.

Failing to comply could invalidate notices or create legal complications.

What This Means for Buy-to-Let Investors

The private rental sector has already faced increased taxation, tighter regulation, and higher borrowing costs in recent years. Many smaller landlords have exited the market as margins narrowed.

The Renters’ Rights Act adds:

• Reduced control over tenancy timelines
• Greater exposure to arrears
• Delayed rent adjustments
• Increased administrative burden

However, this does not mean opportunity disappears. It means strategy becomes more important.

Professional landlords who structure portfolios correctly, refinance efficiently, and plan cash flow carefully can continue to operate successfully.

Strategic Actions to Consider Now

From our perspective as mortgage specialists, we recommend landlords take the following steps before May 2026.

1. Review Your Portfolio Structure

Limited company buy-to-let structures continue to grow in popularity due to tax efficiency and long-term planning advantages.

If you are operating as an individual landlord, now may be the time to review whether your structure remains suitable.

2. Assess Mortgage Products

• Are you on a competitive rate?
• Is your product due to expire before or shortly after May 2026?
• Would refinancing improve cash flow resilience?

With rent increases potentially delayed through Tribunal challenges, maintaining strong mortgage positioning becomes critical.

3. Build Financial Resilience

Landlords should consider maintaining stronger contingency funds to manage potential arrears or delays.

Lenders are increasingly scrutinising rental coverage ratios. Ensuring your portfolio can withstand temporary income disruption will protect future borrowing options.

4. Decide on Long-Term Intentions

Some landlords may choose to sell before the new framework fully beds in. Others may consolidate portfolios or focus on higher-yielding properties.

Whatever your decision, aligning mortgage strategy with legislative change is essential.

The Bigger Picture

The Renters’ Rights Act 2025 is designed to strengthen tenant protections. Whether one agrees with the direction of travel or not, it is clear that landlord flexibility will be reduced.

For investors, the response cannot be emotional. It must be strategic.

At RM Mortgage Solutions, we work with landlords to ensure their finance arrangements support their long-term goals, even in a tightening regulatory environment.

The landlords who adapt early will be in the strongest position.

Need Advice on How This Affects Your Mortgage?

If you are unsure how the Renters’ Rights Act will impact your affordability, refinancing plans, or portfolio structure, now is the time to act.

Speak to RM Mortgage Solutions about:

• Refinancing before May 2026
• Limited company buy-to-let options
• Portfolio restructuring
• Stress-testing rental income

The rental market is changing. Your mortgage strategy should evolve with it.