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 incur civil penalties that can reach 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.

How Could Property Standards Affect Refinancing?

A lender’s valuation considers whether a property is suitable security.

Serious condition issues may lead to:

• valuation concerns;
• retention of mortgage funds;
• reduced lending;
• repair requirements;
• rejection by some lenders;
• the need for short-term refurbishment finance.

Landlords should identify damp, mould, structural concerns and safety issues before applying.

Cases involving unusual properties or ownership structures may need a wider lender search. Our Complex Buy-to-Let Mortgages guide explains how advisers can prepare specialist cases.

Renters’ Rights Act Checklist for BTL Advisers

Before recommending or submitting a mortgage, consider asking:

• What tenancy arrangement is currently in place?
• Is the property occupied, vacant or awaiting possession?
• Are there rent arrears or tenant disputes?
• Is the proposed rent supported by market evidence?
• Could repairs affect the valuation?
• Does the landlord hold enough cash for voids and maintenance?
• Is a sale or remortgage planned?
• Does the wider portfolio remain financially sustainable?
• Has the landlord obtained legal or tax advice where required?
• Could upcoming compliance costs affect affordability?

These questions do not replace legal advice. They help establish whether the mortgage application reflects the property’s current position.

The Adviser’s Role Under the New Framework

Mortgage advice and landlord legal advice serve different purposes.

A mortgage adviser can assess borrowing capacity, lender criteria, rental coverage, and product suitability.

A solicitor, letting professional or housing specialist should explain tenancy law and possession procedures.

The distinction matters. Professional advice is not about having all the answers. It is about recognising which answer belongs to which qualified person.

Landlords seeking mortgage support can use Connect Experts to find a buy-to-let mortgage adviser.

Connect Experts is the adviser directory connected with Connect for Intermediaries. Mortgage advice is provided by the adviser or firm selected by the customer.

How Connect Supports Buy-to-Let Advisers

Connect for Intermediaries supports appointed representative firms working across mainstream and specialist buy-to-let cases.

Support can include:

• lender access;
• case placement;
• compliance guidance;
• training;
• specialist mortgage knowledge;
• technology and business support.

The Renters’ Rights Act does not determine whether a mortgage will be approved. However, its practical consequences may influence the information an adviser presents to a lender.

Advisers exploring wider support can learn more about the Connect mortgage network.

FAQ: Renters’ Rights Act and Buy-to-Let Mortgages

Is the Renters’ Rights Bill now law?

Yes. It received Royal Assent on 27 October 2025 and became the Renters’ Rights Act 2025.

When did the main tenancy reforms begin?

The first main phase took effect in England on 1 May 2026.

Has Section 21 been abolished?

Yes. Landlords covered by the reforms must use an applicable possession ground.

Can landlords still increase rent?

Landlords can propose a market rent increase through the prescribed process, normally once each year.

Does the Act change buy-to-let mortgage contracts?

It does not directly rewrite mortgage contracts. However, tenancy, income and property risks can affect mortgage planning.

Should mortgage advisers give advice on possession?

No. Possession and tenancy law should be handled by an appropriately qualified legal or property professional.

Can the Act affect a buy-to-let remortgage?

It can affect the information supporting the application. Rental income, arrears, property condition and possession plans may all be relevant.