The New Tenant Rights Law Is In – But What Will It Really Mean for Landlords?
🎯 Hook: The Law Is In – But the Unintended Consequences Are Just Beginning
The government’s long-awaited Renters Reform legislation has now passed into law.
Section 21 is gone. Fixed terms are out. All tenancies will be periodic. A new national register is being created. And landlords will be expected to meet strict property standards.
But while the law is designed to protect tenants, its impact on landlords and investors — especially hands-off landlords — is only just beginning.
In reality, this may lead to shorter stays, higher churn, increased costs, and rising rents — the very opposite of what was intended.
Here’s what’s actually changing, when it takes effect, how it affects HMOs, PBSA, and serviced accommodation — and what investors can do to stay compliant while maintaining control.
🔑 What’s Changing?
❌ Section 21 Abolished
You can no longer evict a tenant without grounds.
All evictions must now go through Section 8, with valid reasons such as:
- Serious rent arrears
- Anti-social behaviour
- Selling the property
- Repeated late payments
🔁 Periodic Tenancies for All
Fixed terms are being phased out. Every tenancy will be periodic — meaning:
- Tenants can give 2 months’ notice at any time
- Landlords can only end tenancies through Section 8
⚠️ This is a key issue for landlords: a tenant can sign today and leave in 60 days.
📈 Rent Increases Controlled
- Maximum of one increase per year
- Requires 2 months’ notice
- Can be challenged via tribunal if deemed unfair
🏚️ Decent Homes Standard Now Applies
Landlords must ensure properties are:
- Free from serious hazards
- Warm, dry, and in good repair
- Equipped with safe electrics and decent kitchens/bathrooms
Expect greater local enforcement — especially for older stock and self-managed properties.
📋 National Landlord Register (New Requirement)
All landlords must register on a national database (England-only).
Letting agents must check your registration before marketing or managing your property.
💡 This is a national scheme — not run by councils. But local licensing (e.g. HMO or selective) will still apply, so in some areas landlords may face dual registration.
🔍 When Does It All Come Into Force?
|
Reform Area
|
Effective Date
|
|---|---|
|
New tenancies follow new rules
|
From April 2026
|
|
Existing tenancies transition
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From October 2026
|
|
National landlord register opens
|
TBC – expected early 2026
|
|
Enforcement grace period ends
|
Likely March 2027
|
🧾 How Will Registration Work?
- Landlords will register via a GOV.UK portal (not yet live)
- Agents can handle this, but you remain legally responsible
- You’ll self-declare that your property meets legal standards
- No physical survey is required at registration, but penalties will apply for false declarations
Purpose: The register improves transparency, enforcement, and tenant safety, not just compliance box-ticking.
❓ Does the Law Apply to…
✅ HMOs?
- Yes — fully applies. HMO landlords must now follow the new periodic tenancy model, Section 8 rules, and registration process.
- HMO licensing is still a separate local requirement.
❌ PBSA (Purpose-Built Student Accommodation)?
- No — PBSA is exempt.
- Fixed academic-year contracts remain valid.
- Section 21 rules don’t apply, nor do periodic tenancy rules.
⚠️ Private student houses (HMOs) are covered by the new law.
⚠️ Serviced Accommodation?
If you’re offering true “serviced accommodation” — e.g. short-term lets with hotel-style services — you may not be subject to the new tenancy rules. But:
- If the tenancy is over 6 months, not fully serviced, or clearly a residential let in disguise — you will be covered
- To remain exempt, your unit must offer:
- Weekly cleaning/linen
- No security of tenure
- Daily/weekly rate model
- Hotel-style terms
✅ Yes, you can still request minimum stay periods or full payment upfront, provided it’s a genuinely exempt model.
💷 What About Deposits?
The maximum deposit (5 weeks’ rent) and how it’s protected remains unchanged.
However:
- You’ll need to reissue prescribed information if tenancy terms roll over
- Expect greater scrutiny on deductions, especially as tenants move more frequently
💡 Innovative Ways to Work With the New Rules
Even without fixed terms, landlords can encourage longer stays:
|
Strategy
|
Benefit
|
|---|---|
|
Offer a discount for 12+ month stays
|
Reduces turnover
|
|
Add in extras after 6 months (e.g. cleaning, Wi-Fi)
|
Builds loyalty
|
|
Use agent dashboards to monitor churn risk
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Enables faster re-letting
|
|
Structure welcome gift or renewal incentives
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Retains good tenants
|
✅ These incentives must be clearly written into contracts. Ask your agent to structure them properly.
📈 What’s the Likely Market Impact?
Let’s be honest about what this law may actually lead to:
- 🔁 Shorter average tenancies
- 💷 Higher rents, as landlords price in churn and risk
- 📉 Reduced supply, as some landlords exit
- 📈 Greater power for PBSA, BTR, and large operators
The government may have won on policy — but tenants may lose out on affordability and availability.
🧠 RIUK View
This isn’t the end of landlord viability — it’s a reset.
Good landlords (and agents) will adapt. Weak operators will fall away.
We see opportunity in three areas:
- Fully managed PBSA / BTR assets
- Well-located standard rentals with strong demand and agent oversight
- Smarter tenancy structuring — balancing compliance with incentives
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