Real estate focus: October 2025

Renters Rights’ Act becomes law

Introduction

Over a year after its introduction to parliament in September 2024, the highly anticipated Renters’ Rights Act 2025 (the Act) has received Royal Assent and became law on 27 October 2025.

The Act represents a significant change in the way the private rental market operates in England, introducing sweeping changes aimed at strengthening tenant protections. Landlords will be subjected to greater regulation and constraints in the way that they operate private rented assets, and can in turn face tough sanctions and criminal liability for non-compliance.

It should be noted that, whilst having received Royal Assent, the Act will not come into force immediately. Government has indicated it will outline how the reforms will be rolled out in the coming weeks.

Here we highlight the key provisions of the Act and explore the potential impact on stakeholders across the rental market.

Application

The Act applies to private rented sector landlords generally, including private registered providers of social housing, supported accommodation and landlords providing temporary accommodation to homeless households on behalf of local authorities. The Act does not apply to local authority secure tenancies. The position is more complex regarding Purpose Built Student Accommodation (PBSA) providers and landlords letting to full time students, as considered below.

Key features

• Abolition of section 21 evictions: since the introduction of the Housing Act 1988 (the 1988 Act), the most common form of tenancy was the assured shorthold tenancy (AST), “shorthold” by virtue of the fact that a landlord could evict a tenant by serving a “section 21 notice” without having to provide any reason, giving the tenant two months’ notice to vacate provided this was consistent with the terms of the AST. The court would then be required to make a mandatory order for the tenant to leave if it did not do so within the notice period.

The Act has axed section 21 evictions for new and existing tenants, meaning landlords will need to use one of the (now expanded) grounds under section 8 of the 1988 Act to recover possession (more on that below).

• Tenant’s right to terminate: by contrast, tenants will be able to end their tenancies by giving two months’ notice (at any time from the start of the tenancy) with the end date aligning with the end of a rent period.

• Abolition of fixed terms: the Act abolishes fixed term tenancies, meaning that existing and new tenancies will become periodic, continuing from month to month until terminated under one of the section 8 grounds. This amendment does not apply to certain types of student tenancies, as explained below.

• Other grounds for possession: landlords will be able to end tenancies, but only in specific circumstances set out in section 8 of the 1988 Act. In an attempt to strike a balance between the interests of landlords and tenants, the “section 8 grounds” have been expanded under the Act. Additional grounds for possession include:
  • where a tenant is at fault, for example damaging the property, being in substantial arrears of rent or committing anti-social behaviour; and
  • where a landlord reasonably requires possession of the property for the purposes of selling or moving into the property. If a landlord relies on this ground, they are prohibited from re-letting the property (other than to family members) or marketing it for re-letting for a period of 12 months, starting from the date the notice to seek possession is served.
• Restrictions on obtaining possession: except in relation to tenant anti-social behaviour, landlords will not be able to gain possession if they have not complied with obligations in respect of rent deposit protection or registering their property on the private rented database (see below).
• Further protections for tenants: tenants will benefit from a 12-month protected period at the beginning of a tenancy. During this time, a landlord will not be able to evict them, move in or sell the property. There are also new protections for tenants who fall into rent arrears, with an increased threshold that the tenant must have at least three months’ arrears both at the time the notice is served and at the possession hearing (previously it was two months).
• Advance rental payments: there is a prohibition on landlords requesting multiple months’ rent in advance of occupation. Instead, landlords can only request a tenant pay in advance for the next rental period, i.e., one month. The prohibition will exist even where the tenant voluntarily offers multiple months’ rent in advance to secure a tenancy.
• Rental bidding to cease: the Act will prohibit landlords and agents from rental bidding, or accepting offers above the advertised rent, with local authorities having the power to impose civil penalties of up to £7,000 for breaches.
• Appeals to increased rent: under the Act, landlords can continue to increase rent to market rate on a yearly basis, but to do this, they will need to serve a “section 13” notice setting out the new rent and giving two months’ notice for it to take effect. Tenants will then have the right to appeal rent increases through an independent tribunal if they believe the proposed rent exceeds market rate. The tribunal will determine the open market rent and consequent level of rent payable and will be able to require tenants to pay backdated rent increases, but only from the date specified in the landlord’s original section 13 notice.
• Landlord redress scheme: the government intends to introduce a new Private Rented Sector Landlord Ombudsman designed to provide quick, impartial and binding resolutions to tenants’ complaints against their landlords. Once established, all private landlords renting their properties by assured or regulated tenancies will be required to join this landlord redress scheme. Local authorities will have powers to act against those who do not join, or who market a private rented sector property without being members of the scheme. This will include civil penalties up to £7,000 for initial breaches, and up to £40,000 or criminal prosecution for continued breaches.
• Private Rented Sector Database: all landlords of assured and regulated tenancies will be required to register themselves and their properties, along with certain required information, on a new Private Rented Sector Database. Again, there will be civil and criminal penalties available for initial and continuous non-compliance.
• Requesting a pet: any request by a tenant for a pet in the property cannot be unreasonably refused and must be responded to in writing within 28 days. Landlords will not be able to require the tenant to provide insurance for pet damage or increase the initial deposit to cover such risks.
• Tenants with children or in receipt of benefits: the Act makes it illegal for landlords or agents to discriminate against prospective tenants in receipt of benefits or those who have children. This also provides that any terms in mortgages and superior leases restricting the letting of a property to private renters without children or who are on benefits, are of no effect.
• “Awaab’s Law”: Awaab’s law was put in place by the previous government following the tragic death of toddler Awaab Ishak, but this only applied to social landlords. The Act extends Awaab’s law to the private rented sector and sets out clear timeframes within which landlords must inspect and repair hazards in order to make homes safe.
• Decent Homes Standard (DHS): the DHS set the minimum standards that social homes are required to meet and has been in place since the early 2000s. The Act applies DHS requirements to private rented sector properties, with the local authority having a range of enforcement mechanisms available.
• Rent re-payment orders: these allow tenants to claim a repayment of rent where a landlord commits certain offences under the Housing and Planning Act 2016. They are designed to deter landlords from non-compliance and give tenants a potential remedy against landlords. Under the Act, they are extended to superior landlords and applicable to a wider range of requirements, with the penalty being doubled to two years’ rent and repeat offenders having to repay the maximum amount.
• Student accommodation: the position on student accommodation is complex and (beyond university-owned student lettings which are already outside the scope of the assured tenancy/AST regime of the 1988 Act) depends on the type of student accommodation being let.

PBSA is exempt from the new rules, meaning PBSA providers can offer new fixed-term tenancies to students aligned with the academic year, provided they have registered with a government approved code (current approved codes include the ANUK/Unipol and UUK codes, but more can be authorised by future regulations). Existing PBSA tenancies will, however, convert to periodic tenancies under the Act, along with all other ASTs. However, PBSA landlords can use the new ground 4A (as described below).

Lettings of non-PBSA student accommodation will be periodic tenancies, whether granted before or after the Act comes into force. However, landlords of non-PBSA student accommodation will be able to rely on a new ground 4A to regain possession at the end of an academic year, provided the property is re-let to a new student or group of students in line with the academic year. To rely on this ground, landlords must give tenants a written statement of their intention to do so before entering into the tenancy. For existing student tenants under assured tenancies, this requirement is modified: landlords must issue the written notice of intention within one month of the new rules coming into effect.

Practical impacts

• Courts

With landlords needing to prove the requisite circumstances to evict tenants under section 8 grounds and tenants’ ability to challenge rent increases and other aspects of landlords’ non-compliance, there is concern that the courts will not be able to cope with the projected increase in claims arising following implementation of the Act. Indeed, whilst the Act was introduced by the previous government, there was reluctance to proceed until it was satisfied the courts had the necessary processes in place to deal with claims under the Act. It remains to be seen how much additional resource will be needed to tackle this issue.

• Landlords and tenants

The overarching aim of the Act is to provide tenants with stronger legal protections, improved housing conditions and fairer treatment. Tenants will benefit from greater flexibility to end tenancies when needed, including when landlords fail to meet their obligations under the tenancy, and a ban on rental bidding will shield tenants from inflated prices in the rental market.

Many of the reforms introduced under the Act are expected to increase costs and reduce flexibility for landlords. The abolition of fixed term tenancies and section 21 evictions, combined with a blanket ban on rental binding and more limited possession grounds, will make it more difficult for landlords to evict tenants and control rents. Additional reforms, such as the requirement to comply with DHS standards and fees associated with the Private Rented Sector database registration, are likely to add to increased running costs for landlords. Landlords will also be subject to new sanctions and potentially large financial penalties for non-compliance.

Whilst it is widely agreed that the reforms will give greater protection for tenants, there remain significant concerns that the reforms could lead to an increase in individual buy-to-let landlords exiting the market. This could lead to a reduction in supply in rental properties and, ultimately, increased rental prices for tenants, thereby having an adverse impact on the rental market and ultimately undermining the Act’s objectives.

• Investors

For investors, the changes bring greater operational complexity. The loss of fixed term tenancies and the ability for tenants to end tenancies on two months’ notice could affect staggered lease-ends and lead to increased void periods. Furthermore, the tenant’s ability to challenge increases in rent could lead to delays in cyclical rent uplifts and greater uncertainty around income, which could affect rental growth in the short term, at least.

• Lenders

The Act also creates new challenges for lenders. The abolition of section 21 evictions could result in slower recovery on enforcement and a longer period to re-gain possession of a property. In addition, the introduction of stricter compliance requirements may lead to increased instances of borrower non-compliance, potentially resulting in financial penalties or prosecution, while the tenant’s ability to challenge rent increases could tighten the borrower’s profit margins. Combined with the rising costs of compliance, this could impact a borrower’s ability to service their debt, thereby increasing default risk.

Comment

Proactive engagement with the reforms will be key for landlords to ensure compliance and avoid sanctions or financial penalties. To prepare, landlords should review their existing tenancy agreements and update them in line with the new requirements, ensure that regular inspections are carried out on their properties to ensure they meet the new DHS, register with the relevant schemes, and seek legal or professional advice where needed.

Reimagining home buying and selling: Bold moves towards a faster, more reliable system

Introduction

On 6th October 2025, the Ministry of Housing, Communities and Local Government (MHCLG) launched its consultation aimed at improving the home buying and selling process. The consultation includes two streams: one focused on broader reform, and the other on defining “Material Information” in property listings, with the outcome of both informing the publication of a roadmap outlining government’s plans.

Why is reform needed?

The home buying and selling process in the UK plays a vital role in the property market and the broader economy. However, it is often seen as overly complex and frustrating, with many issues arising after an offer has been accepted. These challenges can discourage participation in the market and create barriers to both buying and selling, ultimately affecting housing availability and affordability. Government wants to deliver a “faster, more reliable home buying and selling system, driven by informed consumers, innovative technology and high standard professional services”.

What are the key proposals for improvement?

• Upfront property information

Sellers and estate agents to provide “upfront information” at the point of listing, going well beyond what the law currently requires. Suggested categories referred to include tenure, title information, council tax band, EPC rating, property type, title information, seller ID, leasehold terms, building safety data and standard searches (e.g. local authority, drainage and water, environmental).

The aim is to provide buyers with clear and relevant information to support informed decision-making at the outset. Potential mechanisms to achieve this would involve using real-time data from HM Land Registry, offering free updates from search providers and introducing standard validity periods (e.g., six months for property searches).

• Professionalising property agents

Introduction of mandatory qualifications and a new Code of Practice to establish minimum standards for all residential property agents, including estate, letting and managing agents. Alongside this, efforts should be made to improve public understanding of agents’ roles through consumer education.

• Digital property packs

Introduction of digital property packs, containing current and historic information about a property, thereby streamlining the provision of upfront information. Digital packs would eliminate the need for conveyancers to gather data from scratch each time a property is marketed. These packs will be built around core sets of standardised data and integrated with a Unique Property Reference Number and Land Registry records. Over time, this could also benefit commercial transactions, particularly in portfolio sales and mixed-use developments, where access to reliable data is critical.

• Binding contracts

Introducing binding contracts (e.g., conditional contracts or reservation agreements) earlier in the transaction process, accompanied by financial penalties for withdrawal, is expected to bring greater certainty to property deals and help cut the number of transactions that fall through. This proposal would also better align with practices in jurisdictions such as Scotland and the United States.

• Increasing transparency and consumer education

Publishing clear information about estate agents and conveyancers, covering areas such as local expertise, service quality, speed and use of digital processes, to improve consumer understanding, increase transparency and help buyers and sellers choose the right services.

• Streamlining transactions

Streamlining and simplifying the conveyancing process to ensure consumers and professionals do not face unnecessary delays and duplication. For instance, revisiting the application of Anti-Money Laundering (AML) checks, ensuring that consumers are not subjected to repeated checks within a single transaction.

Looking ahead

MHCLG’s consultation marks a pivotal moment in reshaping how homes are bought and sold in the UK. By addressing long-standing inefficiencies (from incomplete data to unclear responsibilities), the proposed reforms aim to streamline transactions, reduce fall-through rates and empower consumers with better information. If implemented effectively, they could shorten average completion times by up to four weeks and save first-time buyers approximately £710.

That said, these reforms will require significant effort across the sector and will undoubtedly present challenges, with concerns that the aim to deliver speedier transactions will compromise quality of information and service which will ultimately benefit no-one. The potential rewards are, however, compelling: faster, more transparent transactions and a more resilient property market. Importantly, these changes could also set the stage for broader transformation, with implications not only for residential property but for commercial real estate as well.

Competence under construction: The Industry Competence Committee blueprint for safer buildings and smarter dutyholders

The UK’s building safety framework has seen significant changes in the past few years including the introduction of the Building Safety Act 2022 (the BSA) and amendments to the Building Regulations 2010. On 25 September 2025 the Building Safety Regulator’s Industry Competence Committee (ICC) released its consultation on the draft guidance “Setting Expectations for Competence Management (25 September 2025)” (the ICC Guidance), meaning property professionals face a new era of legal accountability, competence assurance and operational transparency.

Legal foundations: BSA and Building Regulations 2010

A common misconception about the BSA and related secondary legislation is that it only applies to higher risk buildings, being buildings over 18m or 7 storeys with at least two residential units (HRBs). Although this legislation was introduced in response to the Grenfell tragedy and focuses heavily on HRBs, the dutyholder regime (effective from 1 October 2023 pursuant to the Building Regulations etc. (Amendment) (England) Regulations 2023 (the Building Regulations)) applies to all building work in the UK, not just HRBs. This includes a wide range of building activities, including the erection and extension or buildings, material alterations, installation of insulation and changes in energy status or use.

Dutyholders

The regime defines five dutyholder roles, which mirror those in the Construction (Design and Management) Regulations 2015 (the CDM) but focusing specifically on compliance with building regulations:

• Client: the person or organisation commissioning the building work. The client must ensure suitable arrangements are in place and appoint competent individuals.
• Principal Designer: responsible for planning, managing and monitoring the design phase.
• Principal Contractor: responsible for planning, managing and monitoring the construction phase.
• Designer: anyone preparing or modifying designs. The designer is responsible for ensuring design work complies with regulations.
• Contractor: anyone carrying out or managing building work. The contractor must carry out work in accordance with building regulations and cooperate with other dutyholders.

Key dutyholder competence management duties

The regime imposes 17 new regulations (11A–11Q) covering:

• Client duties: must make suitable arrangements for planning, managing, and monitoring projects to ensure compliance with all relevant requirements.
• Principal Designer and Principal Contractor roles: must be appointed in writing for all projects involving more than one contractor.
• Competence requirements: dutyholders must demonstrate appropriate skills, knowledge, experience and behaviours.
• Behavioural expectations: dutyholders must refuse to carry out non-compliant work and cooperate effectively across the project team.

These duties are enforceable by the Building Safety Regulator, with penalties including unlimited fines, prosecution and imprisonment up to two years for serious breaches.

Implications for commercial property professionals

• Expanded legal responsibilities: commercial developers, landlords and managing agents now have clear legal duties throughout the design, construction and occupation phases. These include ensuring that all appointed parties are competent and that building work complies with regulations.
• Golden Thread of Information: dutyholders must maintain a “Golden Thread” - a digital, accurate and up-to-date record of safety critical information.
• Increased scrutiny: refurbishments, structural alterations and fire safety upgrades in commercial buildings are now subject to greater regulatory oversight, especially where they affect fire strategy.
• Insurance and ESG pressures: insurers, investors and ESG frameworks increasingly require evidence of compliance with safety regulations. Failure to meet dutyholder obligations can impact insurability, asset value and occupier demand.

Competence management: ICC Guidance as a compliance tool

 The dutyholder regime represents a fundamental shift in how building safety is regulated in England. It introduces new legal duties, heightened accountability and a stronger emphasis on competence and collaboration. As dutyholders, “clients” such as developers are legally obliged (through monitoring and assessment) to ensure that all building work complies with regulations and that those involved are competent. This includes verifying the competence of contractors, designers and consultants.

The ICC Guidance provides a practical framework for organisations to meet their legal duties under the BSA and Building Regulations. This guidance is split into 15 principles across four phases, as summarised below, and is particularly relevant for those managing HRBs but applies proportionally to all building types and organisational sizes:

• Phase 1: Plan - define scope and legal obligations; establish and demonstrate leadership and commitment to the improvement and management of the competence of individuals and third parties under their control.
• Phase 2: Develop - set competence criteria using recognised frameworks such as BS 8670 and evidence assessment of risk; create repeatable processes and allocate resources appropriately.
• Phase 3: Operate - recruit and assign staff based on competence; monitor performance and address failures; respond to any failures to minimise impact on safety; maintain accurate information.
• Phase 4: Audit & Review - carry out periodic checks and reviews and initiate improvements where necessary; review post-project performance and lessons learned.

Ultimately, competence failures can lead to safety incidents, enforcement action and reputational damage. The ICC guidance provides tools to monitor and improve competence across teams and projects.

Conclusion: A new era of accountability

The ICC consultation ends on 6 November 2025. While no publication date for the final guidance has been confirmed, professionals across development, construction and property management will be eager for its release. Despite its draft status, many organisations are likely to begin referencing the ICC Guidance due to its practical value and the UK’s shift towards prioritising building safety. By embedding competence throughout every stage of a project, dutyholders can help deliver safer buildings and more capable teams — aligning with the core objectives of the BSA and Building Regulations.