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.
AI estimate in 60 seconds. No callback queue. No follow-up unless you want one.
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 statutory possession routes — including for saleThe Act introduces a specific possession route for landlords who genuinely intend to sell their property. Defined notice periods now apply, the tenancy must have been in place for a minimum duration before the route is available, and post-possession re-letting and re-marketing restrictions are in force. The landlord must demonstrate genuine intention to sell. If the tenant does not leave voluntarily, court proceedings may be necessary. The specific notice periods, durations, and procedural requirements are matters for qualified legal advice — your solicitor will advise on the current rules applicable to your tenancy.
- Rent increases now formalised and limitedRent increases are now limited in frequency and subject to a formal statutory notice process. Tenants have a new statutory route to challenge proposed increases. Rent increases via lease renewals or tenancy-clause mechanisms are no longer permitted. Specific notice periods, statutory forms, and tribunal procedures are matters for qualified legal advice.
- 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 new post-possession re-letting restriction 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.
The mechanic that makes Option 3 work
Why a tenanted property is a feature with Howsold — not a bug.
Traditional estate agents prefer vacant listings because their typical buyer is an owner-occupier — and owner-occupiers want to move in. Howsold's auction network is heavily weighted towards investor and cash buyers who specifically want income-producing stock. For these buyers, a tenanted property means immediate rental income from completion — no void period, no marketing, no tenant referencing, no rent-up risk. It's an asset they can hold or trade. They actively prefer it.
What this means for you, the landlord
- 1.You don't need vacant possession. You don't need to issue notice, navigate the statutory process, wait the notice period, or risk court proceedings if the tenant disputes. Skip the entire legal route.
- 2.The tenant keeps their home. Their tenancy transfers to the new landlord on completion. No notice, no eviction, no disruption. Many tenants prefer this to the alternative.
- 3.You exit faster. Skip the statutory notice period entirely. List, market, sell — typical Howsold sale timeline is 8–12 weeks total, vs the months you'd add by pursuing possession first.
- 4.You avoid the re-letting restriction risk. If you pursue possession to sell vacant and then the sale doesn't complete, you face a re-letting restriction window. Selling tenanted sidesteps this entirely — no possession means no re-letting restriction to worry about.
If your tenant is reasonable, the property is in decent condition, and your buyer is happy to inherit the tenancy — this is by some distance the simplest exit available to a UK landlord post-Act. The tenancy obligations transfer, the rent stream continues, and the new owner takes the property on terms they've reviewed before bidding.
Tenancy-transfer paperwork is handled by your conveyancer as part of the sale. We coordinate but cannot advise on the specific legal mechanics — that's a matter for your solicitor.
Three routes, three outcomes
Landlord exit routes — compared on a £200,000 BTL property.
Illustrative comparison. Property an honest market estimate puts at £200,000, currently tenanted. Outcomes depend on tenant cooperation, prevailing market demand, and timeline flexibility — individual results will vary.
Continue letting
Outcome
Ongoing rental income
minus rising compliance costs
- ✓Property retained as long-term asset
- ✓Continued rental income stream
- ✗New compliance burden (PRS database, ombudsman, etc.)
- ✗Reduced flexibility on rent increases and possession
- ✗Future regulation likely (rent controls debated)
Sell vacant via estate agent
Approximate net on £200k
~£196.4k
after 1.5% + VAT · months of possession process first
- ✓Familiar route — wide owner-occupier buyer pool
- ✗Must pursue statutory possession first — solicitor fees, notice periods, possible court proceedings
- ✗Months of statutory delay before listing
- ✗Re-letting restriction risk if sale doesn't complete
- ✗1.5%+ commission plus VAT on sale
- ✗26% UK fall-through rate (private treaty)
Howsold tenanted sale
Approximate net on £200k
~£200k
market price · £0 seller fees
- ✓No possession process required — tenant stays
- ✓8–12 weeks total to complete (vs months of possession first)
- ✓Multiple investor buyers compete — market sets the price
- ✓Buyer commits via non-refundable reservation fee
- ✓£0 commission · £0 seller fees
- ✓No re-letting restriction risk (no possession sought)
Honest figure based on live UK sold-price data · 60 seconds · No obligation
Illustrative comparison on a £200,000 UK tenanted property. Estate agent fees based on commonly-published terms (1.5% commission plus VAT at 20%) which most individual sellers cannot reclaim. Sellers cover their own conveyancing as standard with any UK property sale; an auction legal pack also required (typically £300–£450). Possession process costs (legal fees, court fees, void rent) not included in Option 2 net figure — these would further reduce net proceeds. Individual results vary. Not legal or financial advice.
Curious what your BTL is worth in this market?
Live UK sold-price estimate in 60 seconds. Tenanted or vacant — same tool.
Three landlords. Three exits.
What the tenanted-sale route actually looks like.
Three illustrative scenarios based on Howsold sales — landlords who exited their rental properties without pursuing possession. Names anonymised for client privacy. Figures and timelines representative.
Daniel · 3-property BTL portfolio · exited over 4 months
Long-term BTL investor. Section 24 + RR Act + compliance burden = exit decision. 2 tenanted sales, 1 vacant.
Portfolio total
£620k
Total time
~4 months
Howsold fees
£0
Saved vs agent
£11,160
inc. VAT
Daniel had built a 3-property BTL portfolio over 15 years. By 2026, the combination of Section 24 mortgage interest restrictions, the new compliance burden, and direction-of-travel concerns made the model untenable for him. Two of his properties had long-term tenants who wanted to stay — we sold both to investor buyers from our network, tenants in situ, no possession process. The third was vacant when he came to us; sold via standard auction route. All three completed over a 4-month sequence. Saved approximately £11,160 in commission vs a high-street agent on the portfolio total.
Sarah · 2-bed flat · accidental landlord, single property
Inherited a tenanted flat. Didn't want to be a long-term landlord. Sold tenanted to investor.
Howsold sale price
£165,000
Days to complete
62 days
Howsold fees
£0
Saved vs agent
£2,970
inc. VAT
Sarah inherited a tenanted 2-bed flat from her father. She lived 200 miles away and had no appetite to manage a tenancy long-term, especially with the new regulatory framework. The tenant — a single professional — wanted to stay. We listed at a £160k reserve, two investor buyers from our network competed, sold to the higher bidder at £165k with tenant in situ. Completed in 62 days. Tenant kept their home; new owner kept the rental income from day one of completion.
Mark · 3-bed semi · wanted to sell, tenant didn't want to leave
Originally wanted vacant possession. Didn't want to pursue the statutory process. Sold tenanted instead.
Howsold sale price
£218,000
Days to complete
54 days
Howsold fees
£0
Saved vs agent
£3,924
inc. VAT
Mark had originally wanted to sell the property with vacant possession — but his tenant of 6 years made clear she didn't want to leave, and Mark didn't want to navigate the statutory possession process or risk court proceedings. We reframed the sale as tenanted-to-investor. Listed at £210k reserve, sold at £218k to a buy-to-let investor from our network. Completed in 54 days. Tenant stayed, Mark exited cleanly, no possession process required.
All seller names anonymised for client privacy. Figures based on Howsold sales. Outcomes representative of typical landlord-exit scenarios — individual results will vary based on property type, condition, postcode, prevailing market demand, tenant cooperation, and the specific terms of the existing tenancy. "Saved vs agent" compares Howsold's £0 seller fees to standard high-street estate agent terms (1.5% commission plus VAT at 20%) which most individual sellers cannot reclaim. Not legal or financial advice.
Considering an exit?
See what your BTL would realistically net — in 60 seconds.
Live UK sold-price data for your specific postcode. Use it to inform the stay-or-sell decision before you commit time and legal costs.
An honest filter
When staying as a landlord still makes sense.
Not every landlord should sell. The Act has changed the framework, but it hasn't made BTL universally unworkable. Four scenarios where holding remains defensible.
Your yield still works at the new compliance cost base
If the property is mortgage-free or low-leverage, in an area where rents support gross yields well above the new compliance overhead, and you've already invested in systems to manage the regulatory requirements — the maths may genuinely still work. Run the numbers honestly with your accountant.
Capital gains position makes selling tax-inefficient right now
CGT on residential property is currently 18% for basic-rate and 24% for higher-rate taxpayers. If you have substantial accrued gains and your tax position is suboptimal this year (e.g., other capital gains already realised, or upcoming income changes), waiting may make sense. A qualified accountant can model this — Howsold cannot give tax advice.
Your area has structural rent-growth tailwinds
In postcodes where reduced rental supply (other landlords exiting) is meaningfully outpacing tenant demand declines, rent growth may absorb the new compliance burden. London, the South East, and major regional cities have shown this dynamic. Local market knowledge matters more than national averages here.
You have a long-term hold strategy and the Act doesn't change your fundamentals
If you bought for long-term capital appreciation and the rental income was always secondary, the Act changes operational realities but not the underlying thesis. Many institutional BTL portfolios are continuing despite the changes. The decision is structurally different for capital-driven holders vs income-driven holders.
If any of these apply, the obvious answer may be to stay. If none of these apply — and the new framework feels like it's eroding the basic economics of your portfolio — exiting is worth considering carefully. Run our AI estimate as a starting point, then have an honest conversation with your accountant before deciding.
The Renters Rights Act 2025 received Royal Assent on 27 October 2025, with Phase 1 coming into force on 1 May 2026. Key changes for landlords include: abolition of Section 21 no-fault evictions, all assured shorthold tenancies converting to periodic assured tenancies, new statutory grounds for possession including specific provisions where the landlord intends to sell, rent increases limited to once per year via a formal process, and new compliance obligations including a forthcoming PRS database and ombudsman. This is a summary only — specific notice periods, possession routes, and procedural requirements are matters for qualified legal advice.
Yes. Two main routes exist for landlords selling a tenanted property. Route 1: use the statutory possession process where the landlord intends to sell — specific notice requirements apply, and a qualified solicitor will advise on the current process. Route 2: sell to an investor buyer who retains the tenant, avoiding the possession process entirely. The second route is often faster and removes legal risk. Independent legal advice specific to your tenancy is essential before serving any notice.
Not necessarily. If you sell to an investor buyer who will take on the tenancy, the tenant can remain in place — there's no need to pursue possession at all. Many professional investors actively prefer tenanted properties because they provide immediate rental income from day one. If the buyer does require vacant possession, you'll need to follow the current statutory process — your solicitor will advise on the specific notice and procedural requirements. Independent legal advice is strongly recommended before serving any notice.
According to LandlordBuyer, approximately 93,000 buy-to-let landlords exited the UK rental market in 2025. The English Private Landlord Survey (published December 2025 by the Ministry of Housing) found that 31% of landlords plan to reduce their portfolio and 16% intend to sell all their properties within two years. The NRLA has reported that 41% of landlords indicated they are likely to sell some properties in the next year. These figures should be verified against the most recent published data before being relied on.
Howsold uses the Modern Method of Auction. Multiple pre-qualified investor and cash buyers compete for your property — and the winning buyer signs auction terms and pays a non-refundable reservation fee directly to Howsold, committing them financially to complete within 56 days. Crucially for landlords, our investor network includes buyers who specifically want tenanted properties — so you may not need to pursue possession before selling. Howsold seller fees: £0.
Zero Howsold seller fees on every sale. No commission, no listing fee, no marketing fund. The buyer pays the reservation fee directly to Howsold — that's how we're compensated. You cover your own conveyancing as standard with any UK property sale, plus an auction legal pack (typically £300–£450 paid to your conveyancer).
Most Howsold sales complete within 8–12 weeks total. Listing goes live as soon as you've returned the property info forms (often same-day if photos are ready). Marketing runs until our next monthly auction — usually the last Thursday of the following month, though we can flex the date if needed. Completion target is 56 days from reservation. Many sales complete pre-auction. For tenanted properties sold to investors, this avoids the longer timeline of pursuing possession before sale.
Yes — if you sell to an investor buyer from our network who is taking on the tenancy. Many professional investors actively prefer this because they get immediate rental income from day one with no void period. The tenant keeps their home, you exit cleanly, no possession process. The tenancy transfers to the new landlord on completion. Your solicitor handles the tenancy-transfer paperwork as part of the sale.
No. This page is a general summary of the Renters Rights Act 2025 for informational purposes only. It is not comprehensive, may not reflect the most recent legal or regulatory developments, and does not constitute legal, financial, or tax advice. Every landlord's situation is different. Notice periods, possession routes, tenancy obligations, capital gains tax implications, and procedural requirements vary by circumstance. We strongly recommend seeking independent legal, financial, and tax advice specific to your tenancy, property, and circumstances before making any decisions or serving any notices.
Yes. Howsold is a member of the Property Redress Scheme — an independent redress provider authorised by National Trading Standards. Howsold is a trading name of Latomus Capital Limited (Company No. 15497250), registered in England & Wales. Finance referrals are introduced via Melius (FCA-authorised); any referral fee is disclosed to you. Independent legal and financial advice is always recommended before signing any property contract.
Find out what your rental property could be worth in the current market.
An honest, indicative estimate based on comparable sold prices. No obligation. Not a formal valuation.
Our AI-powered tool analyses live sold prices and local market data to give you an indicative estimate.
Indicative estimate only. Based on comparable sold prices and AI analysis — AI can make mistakes. Not a formal valuation or professional appraisal.