Why this new law should matter to you

The UK’s rental market is undergoing one of its biggest shakeups in the last 30 years. Media headlines may sound dramatic, with some stating, ‘No-fault evictions abolished!” “Fixed-term contracts gone!”

If you are an Indian investor, the new laws under the Renters’ Right Act 2025 may make you wonder if you will lose control over your UK property. You may also be concerned about the new tenant rights risking your investment.

Let us make this clear from the start: No, you are not losing any type of control over your London property and income!

The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, aims to professionalise and modernise the private rental sector in England. It is not here to punish landlords.

The new policies will make the system more structured, transparent and fair. It will also ensure responsible, well-managed landlords remain protected.

Overview: What is the Renters’ Right Act 2025?

The Act replaces the long-discussed Renters' (Reform) Bill and is now a law.

Implementation will be rolling out in phases and Propertymark, the UK’s professional body for estate agents, is expecting some provisions to extend into 2026 or 2027. The goal of this bill is to make renting in England fairer, safer and higher-quality for both landlords and tenants.

Under this new law,

1. All fixed-term tenancies (ASTs) will be replaced with periodic tenancies.

2. The “no-fault” Section 21 eviction process is abolished.

3. Rents can be increased only once per year and not due to inflation.

4. Rental discrimination is banned.

5. Pets are allowed unless explicitly banned by the building’s head lease.

6. New national Ombudsman and Private Rented Sector Database registrations are mandatory.

7. Decent Homes Standard and Awaab’s Law are extended to private rentals.

What has changed?

Change Renters’ Reform Bill
(Proposed)		 Renters’ Rights Act 2025
(Now Law)		 What does this mean for landlords?
Section 21 or no-fault eviction Abolished after the court reform Abolished without court reform Possession of the property must rely on valid grounds and NOT convenience
Grounds for possession (Section 8) Expanded Expanded further Clearer, structured routes to regain possession
Fixed-term tenancies Removed Removed All tenancies become periodic
Rent increments Once per year Once per year Predictable reviews, which will lead to fewer disputes
Rental bidding wars Allowed Banned The rent you advertise must be realistic
Rental discrimination Prohibited Prohibited Ensure tenant selection is evidence-based
Renting with pets Easier Easier (cannot unreasonably refuse) Conditions are allowed, but blanket refusals are not
Landlord Ombudsman Introduced Introduced Will help with faster dispute resolution & less court reliance
PRS database Introduced Introduced Registration is mandatory before marketing the property.
Decent Homes Standard Applied Applied plus Awaab’s Law Faster action is required on serious hazards.
Enforcement powers Strengthened Strengthened further Non-compliance will lead to higher penalties.

Five key changes Indian landlords should understand

1. End of fixed-term tenancies & Section 21 evictions

All tenancies will now be open-ended. This means tenants can rent month-to-month and give two months’ notice at any time, even on day one.

For landlords, Section 21 no-fault evictions are abolished and they can no longer ask a tenant to vacate just because.

Open-ended tenancies’ flexibility can attract long-term tenants who prefer stable, well-managed homes; a feature that London landlords will benefit from.

2. Stronger grounds for possession (Sector 8)

The UK Government has enhanced the Section 8 system, giving landlords fair but equal structured rights to repossess properties.

These rights are categorised into two: Mandatory Grounds and Discretionary Grounds.

Mandatory Grounds require the court to grant possession if proven. This means that if a landlord decides to:

  • Sell their property
  • Move into the property or
  • Place the property in major redevelopment

They are required to give tenants a four-month notice period after the tenancy has been in place for at least eight months.

Under Discretionary Grounds, again, the court will decide whether eviction is reasonable and justified based on the evidence landlords provide.

Issues covered under this category are:

  • late payment or persistent arrears,
  • breach of tenancy terms,
  • property damage or
  • some sort of nuisance or false application given during the application

3. Rent increments

Under the new law, rent increments can only be done once a year and with a two-month notice. Landlords are required to present evidence of current market rents.

In case the tenants dispute the increase, they can be taken to a Tribunal and until a decision is made, rent remains unchanged. The Tribunal possesses the authority to decide a fair market rent. This policy ensures predictable rental reviews and reduces disputes for landlords.

4. New compliance bodies and standards

The Private Rented Sector Ombudsman:

All landlords are required to join this new scheme, designed to handle disputes quickly and fairly. Failure to join can result in civil fines.

The Private Rented Sector Database:

Every landlord with properties in the UK must register on this digital platform before marketing a property. This system records property details, ownership and compliance status.

The Decent Homes Standard and Awaab’s Law:

Private rentals must meet minimum living standards and landlords must fix serious issues like damp and mould within strict timeframes.

5. New rules on pets & rental discrimination

All tenants can request to house pets and landlords cannot unreasonably refuse. They can, however, require pet insurance or specific conditions for approval.

Landlords cannot impose blanket bans on tenants with children or those on benefits. Equality laws apply to private rentals, too.

Students and upfront rent

Landlords cannot request upfront rent at the start of tenancy. Additionally, all students should now have guarantors.

Parents may still have the choice to pay a full year’s rent after the child moves in; however, this doesn’t replace the guarantor requirement.

When do these changes apply?

These changes will be implemented gradually and not as overnight shocks!

Understanding timing removes unnecessary anxiety.

Starting from May 2026

  • Section 21 will be abolished.
  • Periodic tenancies will be introduced.
  • Rent increases will be limited to once per year.
  • Rental bidding wars? Completely banned!
  • Anti-discrimination rules will be enforced.

Late 2026 to 2028

  • The PRS Database will be gradually rolled out region by region.
  • Ombudsman membership will be required.

From 2030 onwards

  • Decent Homes Standard will be applied to private rentals across the UK.
  • Awaab’s Law will be enforced.
  • A minimum EPC C certification will be introduced, unless exempt.

What does this mean for your London investment strategy?

MYTH REALITY
‘‘The UK may get too tenant-friendly; as a landlord, I will have no power.’’ The rules are stricter now, but the outcomes will be strategic. The new laws target poor practices and not professional landlords.
“It will be harder to manage my property from India.” That’s not true. Onboarding a qualified agent will offload tedious processes like registrations, tribunals and tenant relations and you still remain fully in control.
“This is the end of landlord profitability.” Not at all! Mortgage rates are easing, tenant demand is continuously rising and such structured policies will reduce rogue competition.

The bigger picture?

The Renters' Rights Act 2025 will push out slum landlords and short-term operators. This policy will create a cleaner, more stable property market. Higher-quality properties are definitely set to see quality, consistent tenant demand and stronger yields.

Why does your choice of managing agents matter?

This new regime can feel complicated if you try to self-manage your property from India. A professional property managing agent, a firm that is ARLA-regulated, experienced with international clients and well-equipped with the new rules, is crucial.

Benham & Reeves, backed with over six decades of experience, has offices worldwide, including India (Delhi and Mumbai). Our experienced agents offer assistance with compliance, Ombudsman membership, database registration and handling legal notices.

In coordination with the London office, we ensure tenant selection for your investment property is done in line with the new anti-discrimination and pet rules.

Conclusion

Despite the clickbait headlines around London property every now and then, it’s ideal to sit back and relax. The UK, especially London, stands as a solid investment market. This is due to factors such as chronic housing shortage, consistent rental demand, healthy yields and education, lifestyle and culture.

As an Indian landlord, you can discuss the effects of the Renters’ Rights Act on your London portfolio by setting up a free, no-obligation consultation with Benham & Reeves India Desk today.

Get in touch

Sign up to our newsletter