Buying to let? Here's what the Renters' Rights Act actually means for you
The rules around renting out a property have changed significantly in recent times, and if you are considering buying to let, it is worth understanding what those changes mean before you commit to a purchase, not after. None of this should put you off, but it does change how a rental property needs to be managed.
No more Section 21
So-called 'no-fault' evictions, where a landlord could ask a tenant to leave without giving a reason, have been abolished. Tenancies now run as rolling periodic agreements rather than fixed terms, and if you need to regain possession of a property, you will need a specific, legally recognised ground to do so, such as wanting to sell the property or move back in yourself, rather than simply choosing not to renew.
This does not mean you lose control of your own property. It means the process for regaining possession is more structured, and it is worth understanding the available grounds properly before you need to rely on one.
Rent increases now go through a formal process
You can no longer simply inform a tenant that the rent is going up. Increases must be proposed through a formal notice, and tenants have the right to challenge an increase they consider unreasonable. In practice, this means rent reviews need to be planned and evidenced properly, based on genuine local comparables, rather than decided informally.
Advertised rent is the rent, not a starting point
Properties must now be advertised at a fixed rent, and landlords are not permitted to accept, or invite, offers above that figure. If you are used to letting a property to the highest bidder, this changes that approach, the rent you advertise is the rent you are expected to let it at.
Wider protections for tenants
New rules also prevent landlords from refusing tenants simply because they have children or receive benefits, and tenants generally have a stronger right to request keeping a pet, which a landlord cannot unreasonably refuse, though reasonable conditions, such as pet damage insurance, can still apply.
A landlord register is coming
A new private rented sector database is being introduced, which will require landlords to register themselves and their properties, along with compliance information. This is intended to raise standards across the sector and give tenants more confidence before they commit to a tenancy. It is worth factoring the registration process into your plans as a new landlord, rather than treating it as an afterthought.
What this means practically
None of this makes buying to let a bad decision, but it does mean the administrative and legal side of being a landlord carries more weight than it used to. Good record-keeping, a properly drafted tenancy agreement, and a clear understanding of the current possession grounds are no longer optional extras, they are the basics of letting a property responsibly under the current rules.
A good letting agent can handle much of this on your behalf, but it is still worth understanding the framework yourself before you buy, so you know what you are taking on.
We are happy to talk it through
We are not legal, financial or tax advisers, and we would always recommend getting independent professional advice on the detail relevant to your own circumstances. What we can offer is local market knowledge: what tends to let well in a particular road or village, and what genuine tenant demand looks like in the areas we cover. If you are thinking about buying to let, your local associate is happy to talk it through.