The Renters’ Rights Act 2025: What UK Landlords and Investors Need to Know

The UK property market is entering a new era. On 27 October 2025, the Renters’ Rights Bill officially received Royal Assent, becoming the Renters’ Rights Act 2025 — a landmark reform reshaping England’s private rental sector.

This legislation marks one of the most significant changes to UK housing law in over three decades. The majority of existing rules date back to the late 1980s, and many property investors, homeowners, and landlords have long awaited reform. But what do these new laws actually mean for the market and for your investments?

At Luxe Living International, we help clients cut through the noise with expert guidance, ensuring continued success in the evolving UK rental landscape.

Why the Renters’ Rights Act Matters

The Act aims to modernise the UK rental market, enhance fairness, and raise housing standards across the board. Its primary objectives are to:

• Improve property conditions in the private rental sector

• Increase long-term security for responsible tenants

• Introduce fairer and more transparent tenancy procedures

While much of the media coverage has sparked uncertainty, it’s important to view the Act from a balanced, professional perspective. The reforms are designed to strengthen tenant protection while preserving landlords’ ability to manage their assets responsibly and efficiently.

Key Changes for UK Landlords and Tenants

1. Shift to Assured Periodic Tenancies (APTs)

The traditional Assured Shorthold Tenancy (AST) will be replaced by an Assured Periodic Tenancy, doing away with fixed-term agreements such as 6- or 12-month leases.

• Every tenancy will operate on a rolling monthly basis with no fixed end date.

• Tenants must give at least two months’ notice to leave.

• Landlords can regain possession, but only with legitimate grounds (explained below).

This change aims to make the rental system more flexible for tenants while maintaining fair procedures for landlords.

2. Annual Rent Reviews via Section 13

From 2025 onward, landlords can only increase rent through a Section 13 notice, once per year.

• A minimum of two months’ notice is required for any increase.

• Tenants can challenge unreasonable rent hikes through a First-tier Tribunal, ensuring rent levels stay aligned with market value.

This process enhances transparency and keeps rental price growth sustainable, protecting both landlords and tenants from volatility.

3. Limits on Advance Rent Payments

Under the new rules, landlords can only collect one month’s rent in advance, and cannot accept payments above the marketed price of a property.

This aims to maintain fair access to rental properties, preventing wealthier applicants from outbidding others unfairly.

Section 8 Updates: Regaining Possession Fairly

Since all tenancies will now renew monthly, landlords will rely on Section 8 Notices to recover possession.

The Renters’ Rights Act expands the list of lawful grounds for eviction, including:

• Landlord or family occupation

• Persistent rent arrears or unpaid rent

• Plans to sell the property

• Proven antisocial behaviour

The government has also pledged to modernise the court process, minimising delays and ensuring genuine cases are handled swiftly and fairly.

What Happens Next: Implementation Timeline

The official roll-out timeline for the Renters’ Rights Act will be published in the coming weeks. Current expectations suggest a phased implementation from early 2026, allowing landlords to prepare for compliance at a realistic pace.

At Luxe Living International, our property management and investment teams are already implementing new systems to ensure full compliance across our clients’ portfolios, maintaining the professionalism and efficiency our landlords expect.

Luxe Living International: Your Trusted Partner in a Changing Market

This reform represents progress, not panic. Landlords with high-quality homes and responsible property management practices will welcome the clarity and modernisation the Act brings.

As UK rental demand continues to outpace supply, the long-term fundamentals for property investment remain exceptionally strong — particularly in major cities such as London, Manchester, and Birmingham.

Whether you are a Hong Kong-based investor, an existing UK landlord, or a first-time overseas buyer, Luxe Living International provides strategic guidance tailored to your needs, from portfolio reviews to property sourcing and tenant management.

Need Guidance on the Renters’ Rights Act?

Download our latest “Renters’ Rights Act 2025 Guide” for a full breakdown of key changes and recommended action points.

Or contact Luxe Living International today to speak with our UK property experts about how this legislation may affect your investment portfolio — and how to stay ahead in a market that rewards knowledge, agility, and professional insight.