James Donohue, founder of Landlord Property Exchange, explains the impacts of the new law – including a potential £16,000 pitfall
The prospect of rental reform has been hanging over landlords for many years. The Conservatives promised major changes in their 2019 manifesto, but the long-awaited Renters (Reform) Bill ran out of steam and failed to progress before the last general election.
Now, finally, we have some clarity: Labour’s redrafted Renters’ Rights Bill was given Royal Assent in October and officially became the Renters’ Rights Act 2025. Much of it will come into force from May 1 2026, so landlords need to be prepared.
This will be the biggest shake-up in the UK private rented sector since the 1980s. One of the key changes is the end of assured shorthold tenancies (ASTs). From May, existing ASTs will automatically convert to periodic tenancies, which will renew each month until ended by the tenant or landlord.
Other new rules include a limit to rent increases to once per year; measures to stop discrimination against tenants; an end to bidding wars on rental costs; and limiting the amount of rent to be paid up front to one month.
Further into the future, the Act will introduce a PRS Database, expected to be rolled out from the end of 2026 – registration will eventually be mandatory. By 2028, an official ombudsman scheme will also be introduced, and again landlords will be obliged to sign up.
But as a landlord myself, and the founder of Landlord Property Exchange, which helps property investors buy and sell, I know that the change that has caused most concern is the end of Section 21 “no fault” evictions. Until now, this rule has allowed landlords to serve notice on tenants without giving a reason. The Renters’ Rights Act tears up Section 21 and instead requires them to give specific grounds for eviction.
Currently, if you have a tenanted property you can serve a Section 21 notice and secure possession in as little as two months, and can then do as you please with the property – sell it, for example.
However, from May 1, you will need to use the Section 8 eviction process, which only allows eviction on various “mandatory grounds”. To permit landlords to evict tenants in order to sell a property, the Act has added a new ground, known as Ground 1A, to Section 8. This comes with a minimum notice period of four months – double what was previously required under Section 28.
So, straight away this will add an extra two months to your timescale if you want to sell a vacant property. But there’s another catch, which could prove very costly. To address concerns that unscrupulous landlords might use Ground 1A to remove tenants when they had no intention of selling, the Act lays out a 12-month “restricted period” during which you cannot re-let the property or advertise it for rent.
What this means in practice is that if you decide to sell a property and evict your tenants but then find you can’t sell – or simply change your mind – you will be stuck with a vacant property that you cannot rent out for a whole year. With average UK rents now £1,344 per month, according to government figures, that could add up to £16,128 in lost income. (And don’t be tempted to risk it – anyone “knowingly or recklessly misusing a possession ground” could be hit with a rent repayment order of up to two years’ rent.)
There is an obvious solution to this dilemma, and that is to sell with tenants in place. That’s where Landlord Property Exchange comes in. I founded the company because I could see that the traditional way of selling property often didn’t serve landlords well. And the Renters’ Rights Act means that the old way of evicting tenants and selling vacant property makes less sense than ever.
Landlord Property Exchange does things differently. We don’t advertise on the portals, instead our unique platform discreetly matches sellers with motivated, vetted buyers who are looking for ready-made investments – often with tenants already in place. I’m delighted that the National Residential Landlords Association named us as its official sales partner earlier this year, recognising that our approach benefits everyone involved.
SELLERS avoid the delays and disruption of evicting tenants, renovating and so on. Their property is marketed discreetly to serious investors, and meanwhile they continue receiving rent right up to the point of exchange.
BUYERS save time finding tenants, and get a known yield on their investment from day one. With LP Exchange membership they get exclusive access to deals they won’t find anywhere else.
TENANTS get to stay in their home, with their tenancy moving seamlessly to the new owner. The property stays in the rental sector, which the NRLA warns is seeing a serious supply shortage.
Meanwhile, our team handles the sale process efficiently and discreetly – from a single unit to a whole portfolio. If you’re thinking of selling a rental property, or you’re looking for new investment opportunities, you can find out more at and book a chat with one of our advisors. You’ll also find buying and selling guides and the latest landlord news – including more updates on the Renters’ Rights Act as it becomes a reality in 2026.
