Is This the End of Buy-to-Let? Surviving the Renters Rights Act 2025
- DNB Future Properties
- 12 hours ago
- 4 min read
Prefer to read the full guide? Download the full guide here.
For decades, Buy-to-Let (BTL) was the "gold standard" of UK investment. The formula was boring but effective: buy a property, find a tenant, cover the mortgage, and wait for capital appreciation while gaining a little cash flow in the meantime.
But as of 2026, that landscape isn't just shifting—it is being bulldozed. We ask how to survive the renter's rights act 2025.
The introduction of the Renters Rights Act 2025 represents a fundamental transfer of power from the landlord to the tenant. If you are a portfolio landlord, you are likely already feeling the squeeze of interest rates, but the regulatory changes coming down the track are arguably more dangerous to your long-term wealth.
Here is the full breakdown of what is changing, and why "business as usual" is no longer an option.
1. How To Survive The Renters Rights Act 2025
The headline change is the total abolition of Section 21 "no-fault" evictions (discussed in a previous blog post).
In the old world, regaining possession of your asset was a procedural right. You issued a notice, and (provided your paperwork was in order) you got your property back.
In the new world, possession becomes a "legally contested, discretionary hurdle."
To remove a tenant, you will now be forced to rely on Section 8 grounds (discussed in a previous blog post).
This requires you to:
• Provide extensive evidence of a breach (e.g., arrears or anti-social behavior).
• Wait for court dates in an already backlog-ridden legal system.
• Risk the judge ruling in favour of the tenant, leaving you with legal bills and a tenant you cannot evict.
2. The "Forever Tenant" & The 12-Month Block
Under the new rules, fixed-term tenancies are being abolished.
All tenancies will become Assured periodic Tenancies (discussed in a previous blog post).
While tenants can leave with just two months' notice, you cannot ask them to leave without a specific legal reason.
Even if you want to sell the property or move a family member in, new restrictions apply:
• You cannot use these grounds in the first 12 months of a tenancy.
• If you successfully evict a tenant to sell, you are essentially blocked from re-letting or re-marketing the property for a further 12 months.
This freezes your liquidity and locks you into a strategy that you might no longer want.
3. Mandatory Bureaucracy & The £40k Risk
The Act introduces a new layer of government oversight. All landlords will be legally required to:
1. Join the new Private Rented Sector (PRS) Ombudsman scheme.
2. Register every property on a new government property database.
This isn't just admin; it’s liability. The Ombudsman will have the power to issue binding resolutions against you, forcing you to pay compensation or undertake remedial works.
Repeated non-compliance carries fines of up to £40,000.
Is There an Escape Route?
This "new reality" makes traditional Buy To Let (BTL) an asset class with high compliance costs and low control. However, smart investors aren't leaving or selling their property; they are just changing their model.
There is a strategic pivot available that is explicitly exempt from Section 21 bans and the new tenancy traps: Furnished Holiday Lettings (FHL) / Short-Term Rental also known as Serviced Accommodation.
Furnished Holiday Lettings (FHL’s) operate on commercial license agreements rather than Assured Shorthold Tenancies or Periodic Tenancies, you retain full control over your asset.
Want to see how the pivot works?
We have broken down the legal and financial differences in our new guide.
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