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December 11, 2025

Why landlords should welcome improved rights for renters

The Renter’s Rights Act 2025 is coming into force from May 2026, and it has been cast as a problem for landlords – but is that really the case? While it is true that some measures in the Act will increase the powers and rights of tenants, overall, it is a positive for the rental sector as a whole, including landlords.

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The benefits for landlords include:

  • Rent certainty – not rent controls
  • Expanded Section 8 repossession criteria
  • New landlord database to combat rogue landlords
  • Longer tenancies, lower void periods

Read on to learn more about how the Renters Rights Act 2025 can offer some positives for landlords in the UK.

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Rent certainty – not rent controls

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Before the election, there was speculation that the incoming Labour government would seek to introduce rent controls, otherwise known as a rent cap. That has been avoided, and the government has confirmed there are no plans to introduce this measure in the future.

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That is a win for landlords, although there are provisions in the new Act to ensure that rents can’t be raised excessively. No more than one rent rise in a year is allowed via a Section 13 notice. However, this can be beneficial for landlords.

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Firstly, you will need to plan and set a rent at the start of a 12-month period, which accounts for market rent increases and costs. That is likely to mean you can set a higher initial rent than before at the start of a new tenancy, increasing potential income.

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Secondly, as the market grows over 12 months, your next rent rise is also likely to be higher to meet the new market rates. Even if the tenant challenges the proposed rent increase at a tribunal, market growth ensures that higher rent rises are more likely to be seen as reasonable and be passed through.

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Finally, all of this will give landlords income certainty. You will be able to plan knowing exactly what you are earning and when you will next be able to uplift your income. Property is a long-term game, and landlords will now be able to plan more clearly for the future.

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Expanded Section 8 repossession criteria

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One of the big concerns landlords have about the Renters’ Rights Act 2025 is the removal of Section 21. ‘No fault’ evictions have been made illegal, and instead, you can only remove a tenant in certain circumstances. The good news for landlords is that those circumstances have been expanded with new Section 8 criteria. These include:

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  • If you want to sell the property – Ground 1A – Mandatory – Four months’ notice
  • You or your family want to move into the property – Ground 1 – Mandatory – Four months’ notice
  • If you want to redevelop the property – Ground 6 – Four months’ notice
  • If the tenant has committed ‘serious anti-social behaviour’ – Ground 7a – Immediate
  • If the tenant is in serious arrears – Ground 8 – Four weeks’ notice
  • If the tenant is in arrears of any amount – Ground 10 – Four weeks’ notice

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There are more grounds for possession, and each has certain conditions and clauses. These include discretionary grounds where a landlord can argue the case in court. You can see the full details of Section 8 grounds for possession here.

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Landlords will still be able to remove a problem tenant in all legitimate circumstances through Section 8. It is better for tenants, and most landlords will not have a problem as long as you plan.

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Landlord database to combat rogue landlords

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One of the biggest problems landlords face is a lack of trust, thanks to the actions of a small number of rogue landlords whose behaviour affects all landlords.

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The Renter’s Rights Act 2025 moves to combat this by the creation of a new database for the Private Rented Sector. All landlords of assured and regulated tenancies will be legally required to register themselves and their properties on the database, and could be subject to penalties if they market or let out a property without doing so.

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This is something that your lettings and management agent can do on your behalf, so it won’t add extra administration. The most important effect will be an increase in trust and the removal of rogue landlords from the sector. That is likely to lead to higher rents, longer tenancies, lower void periods and less disruption – all of which are good for business and should be welcomed by landlords.

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Longer tenancies, lower void periods

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Finally, the Renters Rights Act 2025 is changing the structure of a basic tenancy. Fixed-term tenancies are out, and periodic tenancies will be the new normal. This means that tenancies will now be ongoing until the tenant decides to give notice, rather than either the tenant or landlord being stuck in a contract for a minimum period of time.

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As discussed above, this does not rule out rent rises to keep your income competitive in the market. However, it does mean that longer tenancies will become more commonplace. Fixed-term tenancies incentivised tenants to move around every 12 months as their term came to an end. That made an annual void period more likely for landlords.

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Now, tenants will be incentivised to work with their landlords and stay put for the long term. As with the new rent certainty that landlords can benefit from, this enables greater certainty that your income will be protected for the long term. There will always be tenants who leave as they need to move to a different area or they buy a home of their own.

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However, the majority of people rent long-term and would rather not move home or to a different area. This enables them to stay put, and it gives the landlord reassurance that a good tenant will likely continue paying rent and looking after their property for years rather than months.

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The Renters Rights Act 2025 is far from a problem for landlords

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There is always noise when changes are made to the rental market. Landlords are understandably worried about their businesses and the effect new legislation could have on their income.

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However, the Renters Rights Act 2025 is likely to offer positive changes for landlords in many ways, including:

  • Greater certainty and confidence in the market
  • More secure long-term income
  • Fewer void periods
  • More stable growth in the market as a whole

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These are all good things, and landlords can enjoy the benefits for years to come. If you want to learn more about the Renters Rights Act 2025 and how to navigate it, contact our property lettings and management experts today.

Arrange a call with our team today.

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0161 388 7848
contact@northbankresidential.com
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