The Renters Reform Act: What it means for landlords considering selling

The Renters Reform Act is set to introduce the biggest changes to the private rented sector in England in decades.

The UK Government’s Renters Reform Act aims to strengthen tenant rights, improve housing standards and change how tenancy agreements work. For many renters, the changes promise greater security and fairness.

For private landlords, however, the reforms introduce new legal obligations, compliance requirements and limits on how rental property is managed.

If you own a rental property, it’s important to understand how the Renters Reform Act could affect you, and why some landlords are reviewing whether they want to remain in the sector.

The Renters Reform Act is proposed legislation introduced by the UK Government to reform tenancy law in England.

Its core aim is to rebalance the relationship between landlords and tenants by strengthening tenant rights while improving standards across the rented sector.

Key proposals include:

• Ending Section 21 evictions (so-called “no-fault evictions”)
• Replacing fixed assured shorthold tenancies with periodic tenancies
• Introducing a new landlord ombudsman
• Creating a landlord redress scheme
• Applying the Decent Homes Standard to rental property
• Stronger local authority enforcement powers

The reforms are expected to be implemented in stages, with many commentators suggesting full implementation could occur around late 2026.

One of the most widely discussed parts of the Renters Reform Act is the proposed abolition of Section 21 eviction notices.

Under current tenancy law, Section 21 allows landlords to regain possession of a property without providing a specific reason once the tenancy term ends.

The new legislation would remove this mechanism.

Instead, landlords would need to rely on defined grounds for possession, such as:

• selling the property
• moving into the property themselves
• serious rent arrears
• anti-social behaviour

For many landlords, the removal of Section 21 represents a significant shift in how rental property is managed.

While legitimate eviction grounds will still exist, the process could become more formal and regulated.

Another major reform is the removal of fixed-term assured shorthold tenancies. Under the proposed system, most tenancies will automatically become periodic tenancies. This means tenants can stay in the property indefinitely, provided they continue paying rent and meet the terms of the tenancy agreement.

Landlords would still be able to regain possession under certain legal grounds, but the structure of the tenancy relationship would change.

For landlords used to managing fixed-term tenancy agreements, this represents a fundamental shift in tenancy law.

The Renters Reform Act also includes provisions affecting rent increases and tenant protections. The government has proposed limiting the way rent increases are introduced within a tenancy.

Landlords may be required to use formal notice procedures, such as a Section 13 notice, to raise rent. Tenants may also gain the ability to challenge rent increases they believe are unfair through a tribunal.

Additional changes include:

• stronger rules preventing rental bidding wars
• improved protections for tenants on benefits
• clearer rights regarding pets in rental properties

These reforms are designed to create greater stability for renters within the housing sector.

The reforms will also extend the Decent Homes Standard to the private rented sector. This means rental properties will be expected to meet minimum quality and safety standards similar to those applied to social housing.

Local authorities will have greater powers to enforce property standards and take enforcement action against landlords who fail to comply.

For responsible landlords who already maintain their properties well, these requirements may not introduce significant change. However, landlords with older properties or limited resources may face increased compliance costs.

The Renters Reform Act forms part of a wider trend of regulatory changes affecting landlords.

In recent years, the sector has already seen:

• tax changes affecting mortgage interest relief
• stricter energy efficiency standards
• increased compliance and licensing requirements

For some property owners, these cumulative changes make the rental sector feel increasingly complex. While many landlords continue to operate successfully, others are reviewing whether they want to remain in the market long term.

This has led to some landlords choosing to exit their buy-to-let property, particularly where:

• compliance costs are increasing
• tenants have long-term security of tenure
• managing the property has become time-consuming

If you own a tenanted property, selling is still possible. However, the structure of the sale can affect how quickly the transaction completes.

Traditional open-market sales may involve:

• viewings with tenants in place
• mortgage lender restrictions
• buyer chains

For landlords who want to exit the rental sector quickly, some consider selling directly to a cash house buyer. A direct buyer can purchase the property with tenants in place, without relying on mortgage finance or lengthy marketing periods.

Companies such as Sell Up specialise in buying rental property directly, offering landlords a clear completion timeline and removing many of the delays associated with traditional property sales.