The Renters’ Rights Act: What Does It Mean for Brokers and Landlords?

The Renters’ Rights Act has changed the way landlords operate in England’s private rented sector.

For landlords, the changes affect everything from tenancy structures and rent increases to possession and how properties are advertised. For mortgage brokers, the legislation may appear to sit outside the traditional mortgage conversation, but its impact on landlord clients could be much wider.

As landlords review their portfolios and adapt to the new rules, some may reconsider which properties they retain, where they invest and how future purchases or improvements are funded. This gives brokers an opportunity to have broader conversations with their landlord clients and identify finance requirements that may otherwise be missed.

Understanding the Renters’ Rights Act impact on landlords is therefore not about becoming an expert in housing law. For brokers, it is about understanding how changing landlord priorities could influence future borrowing decisions.

The Renters’ Rights Act: What Has Changed?

The Renters’ Rights Act 2025 received Royal Assent in October 2025, with the first major phase of reforms coming into force in England on 1 May 2026.

One of the biggest changes is the abolition of Section 21 ‘no-fault’ evictions. Landlords can no longer use Section 21 to regain possession and instead need to rely on the relevant possession grounds where they have a valid reason.

The tenancy system has also changed. Existing assured short hold tenancies have moved to assured periodic tenancies, while new tenancies are generally created on the same periodic basis. These tenancies run without a fixed end date.

There are also new rules around rents. In the private rented sector, rent increases are generally limited to once a year and landlords must follow the revised Section 13 process. Rental bidding has been banned, meaning landlords and agents cannot ask for, encourage or accept an offer above the advertised rent. There are also restrictions on rent in advance.

Landlords must consider requests from tenants who want to keep a pet and can only refuse where they have a valid reason. The Act has also introduced protections against discrimination where prospective tenants have children or receive benefits.

Further reforms will be introduced in phases. The government plans to begin rolling out the mandatory Private Rented Sector Database from late 2026, while mandatory membership of the new PRS Landlord Ombudsman is expected in 2028. Further reforms relating to property standards, including the extension of Awaab’s Law and a Decent Homes Standard to the private rented sector, will follow, with implementation timings subject to consultation.

For landlords, this represents a substantial change in the regulatory environment in which their portfolios operate.

What Does It Mean for Landlords?

The Renters’ Rights Act will affect landlords differently, but for many it may mean taking a closer look at how their portfolio is managed.

Landlords need to understand how the new tenancy and possession rules affect existing properties and future investment decisions. They may also need to review tenancy processes, rent-setting practices and how they manage properties and tenants.

For some, the changes could prompt a wider portfolio review.

Does every property still fit the landlord’s long-term strategy? Are there properties they intend to sell? Could capital released from one property be reinvested elsewhere? Are they considering expanding into a different part of the market?

The answers will vary considerably between landlords. Some may decide to retain and expand their portfolios, while others may consolidate or restructure.

This is where the legislation begins to become relevant to the finance conversation.

Why This Matters for Mortgage Brokers

Landlords do not make buy to let mortgage decisions in isolation. Regulation, property performance, financing costs and longer-term investment plans can all influence what they decide to do next.

A landlord reviewing their portfolio in response to the Renters’ Rights Act may also decide to refinance an existing property, release equity, fund improvements or finance another acquisition.

For brokers providing buy to let mortgage advice, asking about these wider plans can help uncover borrowing requirements before the client approaches them with a specific product in mind.

The conversation does not need to become legal advice. In fact, brokers should avoid presenting themselves as legal or regulatory advisers where that is outside their role.

Instead, the opportunity is to ask what the changes mean for the client’s plans.

A simple conversation about whether a landlord intends to retain, sell, refinance or expand their portfolio could reveal a completely separate finance requirement.

Could Regulation Create New Financing Opportunities?

New regulation can create additional costs and considerations for landlords, but it can also prompt investment decisions.

A landlord may decide to sell one property and use the proceeds towards another acquisition. Another may want to release equity from an existing property to fund improvements or expand their portfolio.

A property requiring work before it is suitable for the landlord’s intended strategy could also create a role for bridging finance, providing short-term funding to complete a purchase or carry out works before moving onto an appropriate longer-term mortgage.

There may also be opportunities where landlords restructure portfolios or diversify into HMOs, mixed-use property or other specialist property types, subject to the relevant legal, planning and lending requirements.

The key point for brokers is not to assume that regulation automatically creates a particular finance need. It is to understand what the landlord plans to do in response to the changing environment.

That can turn a general conversation about the Renters’ Rights Act into a useful review of the client’s wider borrowing requirements.

When Should Brokers Consider Specialist Finance?

A straightforward buy to let mortgage may remain suitable for many landlords. However, specialist buy to let finance can become relevant where the borrower, property or funding requirement falls outside standard lender criteria.

A landlord may need to refinance a more complex portfolio, purchase an unusual property or raise capital for another investment. They may require bridging finance where a transaction needs to complete quickly or where work must be carried out before longer-term finance becomes appropriate.

Specialist options may also be worth exploring where the client has a complex income structure, owns property through a limited company or has circumstances that do not fit mainstream buy to let criteria.

The appropriate solution will always depend on the individual case.

For brokers, recognising complexity early is important. Approaching lenders without understanding their appetite can create unnecessary delays and increase the risk of a decline.

What Should Brokers Be Asking Their Landlord Clients?

The Renters’ Rights Act gives brokers a natural reason to check in with existing landlord clients.

Rather than starting with a product, start with their plans. Has the legislation changed how they view any properties within their portfolio? Do they intend to retain every property? Are they considering selling or purchasing? Do any properties require investment? Are they planning to refinance or release equity?

It can also be useful to ask whether their investment strategy has changed. A landlord who previously focused on standard single-let properties may now be considering a different type of property or reviewing how their portfolio is structured.

These conversations can be particularly valuable around an existing mortgage review. What begins as a discussion about the client’s current buy to let mortgage could reveal plans for another acquisition, refurbishment or capital raise.

Brokers do not need to predict how every landlord will react to regulatory change. They simply need to create the opportunity for clients to explain what they intend to do next.

The Bottom Line for Brokers

The Renters’ Rights Act has changed important aspects of the landlord and tenant relationship, but for brokers the most useful question is what those changes mean for each individual client.

Where a landlord’s plans create a more complex finance requirement, speaking to Crystal Specialist Finance early can help brokers understand lender appetite before submitting applications that are likely to get a decline.

Our experienced team review every case on its own individual merits, taking the time to understand your client, their portfolio, the property involved and what they are looking to achieve. We can then help identify suitable lending options tailored to your client’s needs.

With access to 50+ specialist lenders across specialist buy to let, bridging, commercial and other property finance solutions, we provide the ultimate speed, service and flexibility when it comes to completing complex cases.

You can choose to package a case yourself where you remain the client’s point of contact, or refer it to us while we handle the client relationship directly. Either way, you will earn 50% of the procuration fee upon completion.

If you have a landlord client reviewing their portfolio, looking to refinance, release equity or fund their next property investment, call our New Business Advisers on 01827 337710, email enquiries@crystalsf.com or submit your enquiry online through CrystalHUB.

FAQs

What is the Renters’ Rights Act?

The Renters’ Rights Act 2025 introduced significant reforms to England’s private rented sector. Major tenancy reforms came into force on 1 May 2026, including the abolition of Section 21 ‘no-fault’ evictions and the move to assured periodic tenancies.

Is it the Renters’ Rights Act 2025 or Renters’ Rights Act 2026?

The legislation is officially the Renters’ Rights Act 2025, as it received Royal Assent in October 2025. However, many of its major reforms took effect on 1 May 2026, which is why the Act is also commonly associated with 2026.

Has Section 21 been abolished?

Yes. From 1 May 2026, private landlords in England can no longer use Section 21 ‘no-fault’ evictions. Landlords seeking possession must use an appropriate possession ground and follow the relevant process.

How does the Renters’ Rights Act affect landlords?

The Act changes several areas of private renting, including tenancy structures, possession, rent increases, rental bidding, rent in advance and requests to keep pets. Further measures are being introduced in later phases.

Does the Renters’ Rights Act affect buy to let mortgages?

The Act does not itself affect buy to let mortgage lender criteria. However, changes to how landlords manage their properties and portfolios could influence decisions to buy, sell, refinance, improve or restructure investments, potentially creating new finance requirements.

When might a landlord need specialist buy to let finance?

Specialist buy to let finance may be worth considering where the property, borrower or funding requirement falls outside standard lender criteria. Examples could include complex portfolios, unusual properties, limited company structures or cases requiring a more flexible funding approach.

How can brokers support landlords following the Renters’ Rights Act?

Brokers can use regular client reviews to understand whether landlords plan to retain, sell, refinance, improve or expand their portfolios. Where those plans create more complex borrowing requirements, involving a specialist finance distributor early can help identify appropriate lender options.