The Renters’ Rights Act 2025 represents the most significant overhaul of the private rented sector in England for a generation. For landlords who have built portfolios under the framework of assured shorthold tenancies and Section 21, the changes are substantial — and the adjustment period has already begun.

The end of Section 21

The most consequential change is the abolition of Section 21 “no-fault” evictions. Under the previous framework, landlords could end a tenancy at the end of a fixed term or during a periodic tenancy by serving a Section 21 notice, without providing a reason. The Renters’ Rights Act removes this entirely.

All evictions now require a specific ground under Section 8. While the legislation has expanded and strengthened several grounds — including for genuine sale of the property and for the landlord or a family member moving in — the process is more prescribed and the timelines are longer.

Periodic tenancies only

The Act also abolishes fixed-term assured shorthold tenancies. All new tenancies become periodic from the outset, running on a rolling basis. Existing fixed-term tenancies will convert to periodic tenancies when the fixed term ends.

This removes the certainty of a fixed end date, which many landlords used as an exit mechanism. For landlords with short-term strategies or those managing portfolios with regular tenant turnover, this changes the planning horizon significantly.

Strengthened tenant protections

The Act introduces several additional tenant protections:

  • Landlords must give four months’ notice before taking possession for sale or owner-occupancy (up from two months under equivalent grounds).
  • There is a three-month moratorium on re-letting after a ground-for-sale possession, to prevent abuse of the ground.
  • Rent increases are limited to once per year and must follow a prescribed process with a minimum two-month notice period.
  • Tenants gain a right to request pets, which landlords can only refuse on reasonable grounds.

What this means for landlords

For portfolio landlords, the changes add complexity to exit planning. The inability to serve a Section 21 notice means that vacant possession — a precondition for some sale routes — requires either a ground-based eviction or the tenant vacating voluntarily.

For landlords who want to sell without involving the tenant in their plans, this creates a tension. A buyer who requires vacant possession will face a longer and less predictable timeline than before.

Selling with tenants in situ

One practical response is to sell with the tenancy in place. Firedstone regularly acquires tenanted properties from landlords looking to exit. We do not require vacant possession, and we work with the existing tenancy arrangement as part of the acquisition. For landlords who want to exit cleanly and discreetly without serving eviction notices, this is often the most straightforward path.

The timeline

The Renters’ Rights Act 2025 received Royal Assent and is being implemented in stages. Landlords should seek up-to-date advice from a property solicitor or specialist letting agent regarding the specific provisions that apply to their tenancies and the dates on which they come into effect.

This article contains general information only and does not constitute legal advice. Please consult a qualified solicitor regarding your specific circumstances.