The UK buy to let market is entering a new era. The introduction of the Renters’ Rights Act 2025 represents one of the most significant reforms to residential lettings in decades, fundamentally reshaping the relationship between landlords and tenants.
For property investors, the reforms introduce both challenges and opportunities. While increased regulation and compliance obligations may appear daunting, investors who undertake the right legal due diligence before purchase can still build resilient and profitable portfolios.
Conveyancers are now playing a far more strategic role in helping landlords identify legal risks, assess tenancy exposure, and future-proof investments before contracts are exchanged.
Written by Felix Otuoke, Company Director/Solicitor
Key Reforms Affecting Buy to Let Investors
The legislation introduces several major changes that directly impact landlords and property purchasers, such as:
Abolition of Section 21 “No-Fault” Evictions
The removal of Section 21 notices means landlords can no longer recover possession without relying on statutory grounds or a ground for possession. Thus, no more accelerated proceedings. Investors purchasing tenanted properties must therefore carefully assess the following:
- the status and terms of any existing tenancy;
- tenant payment histories;
- ongoing disputes or complaints;
- compliance with deposit protection rules; and
- whether possession may realistically be obtained in the future;
- removal of technical bars and that is, landlords will no longer be restricted from gaining possession via section 8 simply because they failed to provide a document such as gas safety certificate or EPC;
- separating safety from possession:- safety regulations still apply, but failure to provide paperwork will not prevent a landlord from regaining possession.
A problematic tenancy can significantly affect investment performance and exit strategy.
Periodic Tenancies Become Standard
No more fixed terms. “New and existing tenancies automatically become periodic tenancies from 1st May 2026. Fixed-term assured shorthold tenancies are expected to move towards periodic arrangements as standard. This may increase tenant mobility and reduce certainty for landlords seeking long-term occupation structures. “Tenant can serve 2 months’ notice to vacate to end the rent period.
Buyers should therefore review:
- current tenancy agreements;
- rent review mechanisms;
- break provisions; and
- guarantor enforceability.
Stronger Tenant Rights and Compliance Enforcement
Local authorities are expected to receive enhanced enforcement powers, with greater scrutiny of:
- property conditions;
- EPC compliance;
- licensing requirements;
- discrimination practices;
- rent increase procedures;
- retaliatory evictions; and
- disrepairs will be set off or counterclaim where applicable.
The Private Rented Sector (PRS) Database is mandatory, centralised register of landlords and properties in England introduced through the Renters’ Right Act 2025. Expected to launch in late 2026. It serves as one “one-stop shop” for tracking compliance, improving rental standards and providing transparency for tenants. By 2028 mandatory sign up for landlords to join the Private Rented Sector Landlord Ombudsman.
Mandatory registration: Landlord must register themselves and their rental properties before marketing or letting them. Information included: The database is expected to store the landlord’s contact details, property address, EPC rating, gas/electrical safety certificates, and if applicable Homes in Multiple Occupation (HOM) or selective licensing details.
Non-compliance could expose landlords to financial penalties, enforcement action, and difficulties recovering possession.
Purpose: It allows tenants to verify property standards before signing a tenancy, helps Landlords demonstrate compliance and assist local authorities in targeting rogue Landlords.
Why Conveyancing Due Diligence Matters More Than Ever
Historically, some buy to let investors viewed conveyancing as a largely procedural process. That approach is no longer sufficient under the new regulatory landscape.
Modern conveyancing due diligence should now extend beyond title checks to include a detailed review of tenancy and compliance documentation.
A prudent conveyancer should investigate:
- whether the property is lawfully let;
- HMO or selective licensing requirements;
- historic enforcement notices;
- tenancy deposit compliance;
- planning restrictions;
- building regulation issues;
- leasehold restrictions affecting letting;
- EPC ratings and future upgrade risks; and
- any ongoing tenant disputes.
For investors purchasing occupied properties, legal review of the tenancy agreement itself is increasingly critical.
Practical Solutions for Buy to Let Investors
Despite the tighter regulatory framework, there are several practical steps investors can take to reduce risk and maintain profitability:
-
Carry Out a Pre-Exchange Tenancy Audit
Before exchange of contracts, investors should request:
- tenancy agreements;
- deposit certificates;
- gas safety records;
- EPC certificates;
- electrical inspection reports;
- licensing documentation; and
- evidence of rent payment history.
Early identification of compliance gaps can prevent costly post-completion liabilities.
-
Prioritise Legally “Clean” Properties
Properties with vacant possession or fully compliant tenancies may command a premium, but they often reduce long-term legal exposure and management costs.
Where a property is sold subject to tenancy, investors should assess whether the existing arrangement aligns with their investment objectives.
-
Review Portfolio Structures
The reforms may encourage landlords to reconsider ownership structures, particularly where tax efficiency and liability management are concerns.
Some investors are exploring:
- limited company ownership;
- professional management arrangements; and
- portfolio consolidation strategies.
Specialist legal and tax advice should always be obtained before restructuring.
-
Budget for Compliance Upgrades
Landlords should proactively plan for:
- EPC improvements;
- licensing fees;
- safety upgrades; and
- evolving property standards.
Future-proofing assets early may preserve rental value and avoid enforcement difficulties later.
-
Work with Specialist Conveyancers
Buy to let transactions increasingly require specialist legal expertise. Investors should work with conveyancers familiar with:
- landlord and tenant law;
- licensing regimes;
- leasehold restrictions;
- lender requirements; and
- evolving rental sector regulation.
A thorough legal review at acquisition stage can significantly reduce future disputes and unexpected liabilities.
In substance, a Changing Market – But Not the End of Buy to Let
While the Renters’ Rights Act undoubtedly increases regulatory obligations for landlords, it also creates opportunities for well-advised investors who adopt a compliance-focused approach.
Professional landlords who invest in legally compliant, energy-efficient, well-managed properties are likely to remain well-positioned in a market where housing demand continues to exceed supply.
The key difference is that successful buy to let investment now depends as much on legal due diligence and regulatory planning as it does on location and yield.
Conveyancers are therefore no longer simply facilitating transactions – they are becoming essential risk advisers in the modern buy to let market.
Read our guide to the Renters’ Rights Act for both landlords and tenants here.
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