The Renters Rights Act and portfolio landlords: sell, hold or grow

The Renters Rights Act 2025 received Royal Assent on 27 October 2025. Its main tenancy reforms took effect in England on 1 May 2026. For portfolio landlords it is the largest change to private renting in decades.

What changed

  • Section 21 no fault possession has ended; possession now rests on the section 8 grounds

  • Fixed term assured shorthold tenancies have been replaced by assured periodic tenancies

  • Rent increases are generally limited to once a year through the section 13 process

  • A private rented sector database and wider council enforcement powers follow in later phases

Student houses

Purpose built student accommodation is outside the new regime, but student HMOs are not. A new Ground 4A lets landlords of student HMOs recover possession in line with the academic year, provided strict conditions are met, including written notice before the tenancy begins and every occupant being a full time student.

Sell, hold or grow

For some owners the extra management burden is the moment to sell, while institutional buyers are actively looking. For others, professional management and the right paperwork make holding straightforward. For well capitalised operators, smaller landlords leaving the market is a chance to grow. The right answer depends on your portfolio, your tax position and your plans for the family.

To talk it through, call James Innes on 020 7850 4760 or email james.innes@chrystalcapital.com.

This article is general information and is not advice.