The Renters Rights Act has changed the rules.93,000 landlords have already left. Here's what you need to know.
The Renters Rights Act 2025 received Royal Assent on 27 October 2025. Phase 1 came into force on 1 May 2026, abolishing Section 21 no-fault evictions and converting every assured shorthold tenancy in England to a periodic tenancy — overnight. The private rental sector has not seen a change of this scale in over 30 years.
This page sets out what changed, what the industry is saying about it, what the data shows, and — if you're one of the landlords now considering whether to stay or sell — what your options are. We've included perspectives from both landlord and tenant advocacy groups, because this is a debate with genuine arguments on both sides.
Important: This page is not legal, financial, or tax advice. It is a summary for general information only. Always seek independent professional advice specific to your situation before making any decisions.
The five changes every landlord needs to understand.
The summary below covers the key provisions relevant to landlords considering selling. It is not a comprehensive account of the Act.
- Section 21 no-fault evictions — abolishedThe Section 21 possession route no longer exists. Landlords can now only seek possession through the statutory grounds set out in the Act. Any Section 21 notice served before 1 May 2026 required court proceedings to be issued by 31 July 2026 to remain valid.
- All tenancies are now periodic — no more fixed termsEvery existing assured shorthold tenancy automatically converted to an assured periodic tenancy on 1 May 2026. New tenancies must also be periodic. There are no fixed end dates. Tenancies continue indefinitely until the tenant gives 2 months' notice, or the landlord obtains possession through a statutory ground.
- New Ground 1A — possession for sale of propertyA new mandatory ground allowing landlords to seek possession when they genuinely intend to sell. Requires 4 months' notice. Cannot be used in the first 12 months of the tenancy. If possession is obtained, the landlord is prohibited from re-letting or marketing the property for 12 months. The landlord must demonstrate genuine intention to sell. If the tenant does not leave voluntarily, court proceedings may be necessary.
- Rent increases limited and regulatedOnce per year maximum. Must be at market rate. Requires 2 months' formal notice via Section 13. Tenants can challenge at the First-tier Tribunal, which cannot set a rent higher than the landlord proposed. Rent increases through lease renewals or tenancy clauses are no longer possible.
- Further obligations in later phasesA PRS landlord database (mandatory registration), a PRS Ombudsman (mandatory membership), the Decent Homes Standard, and Awaab's Law (mandatory hazard response timescales) are all expected from late 2026 onwards. Details via secondary legislation are still awaited.
Sources: Renters' Rights Act 2025 (legislation.gov.uk), MHCLG implementation roadmap (November 2025), GOV.UK landlord guidance. This summary may not reflect the most recent legal developments. Always seek independent legal advice.
The data that tells the story.
The English Private Landlord Survey, published by the Ministry of Housing in December 2025, found that 31% of landlords plan to reduce their portfolio and 16% intend to sell all their properties within two years. The NRLA reports that 41% of landlords indicated they are likely to sell some properties in the next year — up from 19% in the previous survey.
For many, the Renters Rights Act is the final factor in a decision already shaped by rising mortgage costs, higher Capital Gains Tax rates, increased regulatory obligations, and — for smaller landlords in particular — a growing sense that the environment has become structurally hostile to individual property ownership as a business. If you're one of the landlords now considering selling, understanding your options is the first step.
Two sides of the same debate.
The Renters Rights Act has drawn strong reactions from both landlord and tenant advocacy groups. Here's what the leaders on each side have said publicly.
The landlord perspective
The NRLA's Ben Beadle has described landlords selling up as "the single biggest challenge renters face" — a striking statement from the UK's largest landlord body, acknowledging that the exodus is now a problem for tenants, not just landlords. He has also warned that the court system is "on its knees" and raised concerns about capacity to handle the increase in contested possession cases that the Act is expected to generate.
Propertymark's Timothy Douglas, Head of Policy and Campaigns, has warned that the Act forces landlords into a binary choice: "Landlords tend to do one of two things: they either sit back and wait and see, or they conclude it's not for them and leave the sector." Propertymark's CEO Nathan Emerson described the Act as "one of the most significant structural changes the industry has ever faced" — calling 1 May 2026 a "watershed moment" for the private rented sector.
Property118, the UK's largest online landlord community, has reported that the government confirmed via a written parliamentary question that no formal impact assessment was carried out on how the abolition of Section 21 might affect rental supply. For a sector that houses 11 million people, the absence of any analysis on what happens when landlords leave in significant numbers has been described across the industry as a serious policy blind spot.
Property lawyer David Smith has warned that the 12-month re-letting restriction under Ground 1A could "unintentionally reduce the availability of rental properties" — noting that around a quarter of properties listed for sale under possession grounds never actually sell and would, under the new rules, have to sit empty for a year before being re-let.
The tenant perspective
Generation Rent's Ben Twomey has called the Act "a vital step towards re-balancing power between renters and landlords" — describing Section 21 as a leading cause of homelessness. Shelter's research found that before the Act, someone approached a local authority as homeless due to a Section 21 notice every 21 minutes.
Shelter's Sarah Elliott has strongly defended the Act against calls to repeal it, arguing that scrapping it would "condemn thousands to the conditions they have endured for decades." The charity frames the Act as essential protection for 11 million private renters in England.
Whether you believe the Act is overdue protection or regulatory overreach, the data tells the same story: landlords are leaving, and the pace is accelerating. The question is what that means — for landlords still in the market, for the tenants living in their properties, and for the rental sector as a whole.
The question nobody in the industry wants to answer.
If landlords leaving the market reduces rental supply — and reduced supply drives rents higher and increases tenant homelessness — is the Act achieving the opposite of what it intended?
The NRLA's own data shows that landlord sales are now the single biggest cause of tenancy endings in the UK. Over 6,500 households qualified for homelessness prevention duties in Q1 2025 alone because their landlord chose to sell. According to research by TwentyCi, in January 2025, more than 25,000 homes listed for sale were previously rental properties — representing 17.4% of all new listings, up from 11.7% on average in 2024.
Meanwhile, the government has confirmed via a written parliamentary question that no formal impact assessment was carried out on how key elements of the Act might affect rental supply.
We're not taking a position on whether the Act is right or wrong. Both sides have genuine arguments. But the supply-side data is difficult to ignore — and for landlords trying to decide whether to stay or sell, it adds a layer of urgency. If nearly half of all landlords are planning to sell or reduce their buy-to-let portfolio, the market will have significantly more stock competing for investor buyers. The window to sell your rental property at today's prices may be narrower than many assume.
Goodlord's May 2026 rental index reported that rents fell month-on-month in April 2026 for the first time this year, with annual rental inflation at just 1.7% — the lowest since July 2025. William Reeve, Goodlord's CEO, described the market as being in a "defensive crouch, anticipating the impact of regulatory changes."
A note on estate agent advice.
If your estate agent or letting agent is advising you to hold rather than sell, consider their incentive structure.
A managing agent typically earns 8–12% of monthly rent as a recurring management fee. If you sell, that recurring income stops. On a property renting at £800/month, that's £960–£1,150 per year in management fees the agent loses the moment the property is sold.
This doesn't mean their advice is wrong. It may genuinely be in your interest to hold. But it does mean their financial interest is not perfectly aligned with yours when it comes to the question of whether to sell. The agent benefits from you staying in the market. You may or may not.
Independent advice — from someone who doesn't earn recurring income from your decision either way — may be worth seeking alongside your agent's view. If you suspect your agent may have also overvalued your property to win or retain the instruction, that's a second reason to seek a genuinely independent assessment.
Your options — and why Howsold may be worth considering.
We're not going to pretend this section isn't about us. If you've read this far and you're considering selling your buy-to-let property, here's what Howsold offers — and why our Modern Method of Auction may suit your situation. You can also read a full breakdown of how the Howsold process works.
We sell tenanted and vacant rental properties
Our buyer network includes professional investors who want income-producing stock. Tenants in situ are often an advantage for our buyers. You may not need vacant possession — which means you can sell your tenanted property and avoid the Ground 1A process entirely.
Zero seller fees
No listing fee, no commission, no hidden costs. At 1.5% + VAT on a £200,000 property, a traditional agent charges £3,600. That's £3,600 more in your pocket. The buyer pays the reservation fee.
Buyer committed from day one
The buyer pays a non-refundable reservation fee (typically 4.5% inc VAT, minimum £6,600). After months of compliance management, the last thing you need is a sale falling through. The reservation fee is designed to prevent this.
Target 56-day completion
A fixed auction date from day one and a target 56-day completion window. A defined exit timeline you can plan around. Individual timelines may vary.
Pre-qualified investor buyers from day one
We contact our buyer network immediately. Over 70% of our properties attract a buyer before auction day. Active outreach, not passive portal listings.
Honest advice — including when not to sell
If we don't think selling is the right move for your situation, we'll say so. We'd rather give honest advice than win an instruction that doesn't serve you. Property Redress Scheme member.
Everything you need to know.
The Act received Royal Assent on 27 October 2025, with Phase 1 coming into force on 1 May 2026. Key changes include: abolition of Section 21 no-fault evictions, all ASTs converting to periodic assured tenancies, new statutory grounds for possession (including Ground 1A for sale requiring 4 months' notice), rent increases limited to once per year, and new compliance obligations including a forthcoming PRS database and ombudsman.
Yes. Ground 1A allows landlords to seek possession when they genuinely intend to sell — requiring 4 months' notice and at least 12 months since the tenancy began. Alternatively, you may sell to an investor who retains the tenant, avoiding the possession process entirely. Independent legal advice is strongly recommended.
Ground 1A is a new mandatory ground for possession. Requirements: 4 months' notice, tenancy must have been in place for at least 12 months, landlord must demonstrate genuine intention to sell, and if possession is obtained, re-letting or marketing is prohibited for 12 months. If the tenant doesn't leave voluntarily, court proceedings may be necessary. Independent legal advice is strongly recommended.
Not necessarily. Many investor buyers actively prefer tenanted properties for the immediate rental income. Selling to an investor who retains the tenancy avoids the Ground 1A process entirely. If the buyer requires vacant possession, you'll need to follow the statutory process. Independent legal advice is recommended.
Zero Howsold seller fees. The buyer pays the reservation fee (4.5% inc VAT or £6,600 minimum), not you. Sellers remain responsible for their own legal and conveyancing costs, typically £1,000–£2,500.
According to LandlordBuyer, approximately 93,000 buy-to-let landlords exited in 2025. The MHCLG English Private Landlord Survey (December 2025) found 31% plan to reduce their portfolio and 16% intend to sell all properties within two years. Allsop's May 2026 survey found 48.4% planning to reduce or exit. The NRLA reports 41% likely to sell some properties in the next year.
No. This page provides a general summary of certain provisions of the Renters Rights Act 2025 for informational purposes only. It is not comprehensive, may not reflect the most recent developments, and does not constitute legal, financial, or tax advice. Every situation is different. We strongly recommend seeking independent professional advice before making any decisions.
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