The Renters’ Rights Bill: What BTL Advisers Need to Know | By Liz Syms, Chair of the Society of Mortgage Professionals and CEO of Connect for Intermediaries
As the Renters’ Rights Bill nears its final parliamentary stage, the private rented sector is on the cusp of significant reform. With Royal Assent expected by November 2025, mortgage advisers must understand how these changes will reshape the buy-to-let (BTL) landscape and guide clients through the transition.
Although full implementation dates are still pending, the government has made it clear that once Royal Assent is secured, progress will be swift.
The End of Section 21
The most notable reform is the abolition of Section 21 ‘no fault’ evictions, a long-debated change now becoming reality. Importantly, the government has opted for a single-phase rollout, meaning all existing tenancies will move to the new framework on the same date, avoiding a complex two-tier system and creating consistency.
Under the new model, all assured tenancies will automatically become periodic, replacing fixed-term agreements. Tenants can give two months’ notice to leave, while landlords can regain possession only on specified grounds. For many landlords accustomed to the predictability of fixed-term tenancies, this will require a significant mindset shift.
Revised grounds for possession will still allow landlords to reclaim their properties in justified cases such as antisocial behaviour, property damage, or serious rent arrears. However, the threshold for mandatory possession due to arrears rises from 2 to 3 months, and the notice period extends from 2 weeks to 4. This aims to protect tenants facing short-term financial difficulty but will require greater patience from landlords.
For those needing to sell or move back in, a 12-month protected period will prevent these grounds from being used early in a tenancy. Afterwards, landlords must give four months’ notice, doubling the current timeframe, reducing disruption for tenants but lengthening the process for landlords. Advisers should encourage clients to plan strategically around these extended timelines.
Rent Increases
Rent increases will now follow a standardised national process. Landlords may raise rent once per year to match market rates, provided they give at least 2 months’ notice by serving a Section 13 notice. Tenants can contest increases they deem excessive via the First-tier Tribunal.
Tribunal reforms will make challenges more accessible: it can no longer raise rents above the landlord’s proposal, and new rents will start from the Tribunal’s decision date, not backdated. Where hardship exists, rent hikes can be deferred by up to two additional months. Mortgage advisers should help clients set realistic, evidence-based rent levels from the outset.
New Administrative Responsibilities
Every landlord must register themselves and their properties on the Private Rented Sector Database, which is currently in development. Failure to register will restrict access to possession routes and attract civil penalties potentially reaching thousands of pounds.
Landlords will also need to join the Private Rented Sector Ombudsman, offering binding dispute resolution. A small annual fee per property is expected, with non-membership resulting in further penalties or enforcement. These measures promote transparency and accountability, but they also add new compliance requirements that your clients must be ready for.
Property Standards and Pets
The Bill extends the Decent Homes Standard to the private rented sector and implements Awaab’s Law, setting firm deadlines for tackling issues such as damp and mould. Exact requirements are under consultation, but the message is clear: property quality expectations are rising.
Landlords must also consider tenant pet requests and can’t refuse unreasonably. Clear case law and guidance will soon define what counts as “unreasonable,” so advisers should help landlords prepare for a more flexible approach to tenant needs.
How Mortgage Advisers Can Add Value
These reforms reshape the BTL market but also create opportunities. Landlords who already maintain high-quality homes and fair tenant relationships will find the new framework aligns with their current standards. Those relying on short-term tenancies or Section 21 will face an adjustment period.
Advisers should now engage BTL clients in planning by discussing property sales, long-term investment goals, and compliance upgrades. Those considering selling may wish to act before the 12-month protection period applies. At the same time, landlords remaining in the market should prioritise tenant screening, referencing, and portfolio reviews to meet new standards efficiently.
Proactively assessing which properties might struggle to meet the Decent Homes Standard could prevent costly enforcement later. Advisers can play a pivotal role in identifying risks early and guiding clients through required upgrades or refinancing options.
The rental sector is evolving rapidly, and while some landlords may exit, demand for quality rental homes remains strong. The most successful investors will be those who adapt, modernise, and maintain professionalism. Mortgage advisers, in turn, must equip clients with the insight, strategy, and foresight to thrive under the Renters’ Rights Bill, ensuring they remain compliant, profitable, and competitive in a changing housing landscape.
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