The Renters’ Rights Bill: What It Means for Landlords with Mortgages

The Renters' Rights Bill is set to return to the House of Commons on Wednesday, 22 October 2025, for its final reading and approval. This is the last step before the Bill receives Royal Assent, officially becoming law. Once granted, the changes could take effect almost immediately, bringing significant impacts to the private rental sector. Landlords will need to rethink how they manage their buy-to-let properties, tenants, and finances. These reforms are particularly important for Buy to Let investors, who may need to reassess their strategies in light of new tenancy rules, rental limits, and compliance obligations.

Periodic Tenancies Replace Fixed Terms

The Bill will convert all tenancies to rolling month-to-month agreements. Landlords cannot evict tenants during the first 12 months and must give up to four months’ notice to end a tenancy, depending on the reason. Tenants can leave with just two months’ notice at any time. This provides tenants with greater flexibility and security, while for landlords with mortgages, it may create uncertainty as the only certainty is tenant will be in situ for 2 months.

Removal of Section 21

Section 21 “no-fault” evictions will no longer be allowed. Landlords must rely on updated Section 8 grounds to evict tenants for valid reasons, such as unpaid rent, property damage, or if the landlord or a family member wants to move in.  

Landlords who plan to sell a property or move in themselves face restrictions. If a tenant is evicted for these reasons, the property cannot be re-let for 12 months from the end of the tenancy.

Rent Increases

Under the Bill, landlords can increase rent only once a year using a Section 13 notice, and any increase must align with local market rates. This could limit the ability to offset rising mortgage costs, particularly if interest rates rise along with other costs.

Pets in Rental Properties

The Bill makes it harder for landlords to ban pets. Tenants can now request to keep a pet, and landlords must consider requests fairly.

Student Tenancies

The Bill affects student rentals by converting fixed-term tenancies into periodic tenancies. University-owned accommodation is generally exempt, but private student housing may be impacted. Landlords can regain possession under Ground 4A, which allows taking back properties for the next academic year if all tenants are full-time students, advance notice is given, and the tenancy starts no more than six months before occupancy.

Landlord Database and Compliance

A national landlord database will require landlords to register properties and demonstrate compliance with safety, EPC, and maintenance standards.

Awaab’s Law

Awaab’s Law will require landlords to fix serious damp or mould problems within strict timeframes. It is also linked to EPC standards, so landlords with poor ratings may need to invest in upgrades sooner to avoid losing tenants or facing regulatory penalties.

Mortgage Strategy in the New Era

The Bill affects not just tenants’ rights, but also landlords’ finances and debt management. Landlords with mortgages should consider:

• Annual portfolio review: Check yields, rents, and mortgage terms.
• Plan for rent increases: Only one per year, so incorporate into affordability calculations.
• Property compliance: Good EPCs and timely maintenance protect value.
• Long-term fixes: A fixed-rate mortgage may provide stability in a more regulated market.
• Cash reserves: Extended notice periods, voids, and re-letting restrictions may create gaps in income.
• Planning for student turnover, pets, and re-letting restrictions.

Given the changing rental and mortgage landscape, expert guidance is more important than ever. A mortgage consultant can help navigate these changes and identify the best options for your needs.

Our experienced mortgage consultants provide personalised guidance on portfolio planning, cash flow, void periods, and property upgrades. For an initial consultation, speak with our experts or call 01628 56461.

The information contained within was correct at the time of publication but is subject to change.

Your home may be repossessed if you do not keep up repayments on your mortgage.