As a London law firm specialising in residential conveyancing, we understand that legislation affecting the private rental market is no longer only relevant to landlords and tenants. We previously covered the Renters’ Rights Bill as a guide for landlords and tenants here. However, with the Renters’ Rights Act 2025 now on the statute books, it also carries meaningful implications for residential property transactions – whether you are buying, selling, or investing.
Here’s what home buyers and sellers need to know about the Renters’ Rights Act – and how we can help you navigate the changes.
Why this matters for conveyancing
The Act marks one of the most significant reforms in the private rented sector in England in decades. It received Royal Assent recently and will be brought into force shortly. For conveyancing clients, this means: a property that is let may have a different tenancy profile, different risks around vacant possession and exit strategy, and different compliance obligations for current or prospective landlords/sellers.
What sellers of rental properties should consider
If you are going to sell a residential property that is, or has been, let to tenants, the Act amplifies the need for careful vendor due diligence:
- Existing assured shorthold tenancies (ASTs) and fixed-term tenancies may automatically convert to periodic assured tenancies under the new regime.
- The abolition of “no-fault” evictions (so-called section 21) means regaining vacant possession may become more complex for landlords.
- Sellers must disclose to potential buyers any tenancy arrangements, especially those which may restrict the ability to regain possession or affect future income/exit strategy; this influences marketability and may affect timing of sale (for example, whether to sell with vacant possession or with tenant in situ).
- If we are advising a vendor landlord, it’s important to highlight that letting property in the transition phase may carry heightened regulatory and compliance risks (e.g., increased enforcement powers for local authorities).
What buyers (owner-occupiers & investor buyers) should watch for
For a buyer, acquiring residential property in the current climate:
- If you are buying a property with tenant in place or as a buy-to-let investment, you should ask: what type of tenancy is in place? What rights has the tenant? How easily can vacate possession be achieved in future under the new regime?
- The shift to periodic tenancies means planning your exit strategy requires greater transparency and forethought – this could affect valuation, yield expectations and timing of future disposal/sale.
- For owner-occupiers purchasing a property that is currently let (or lettable) but intended to be your main home after completion, you should be aware of whether the tenant can stay longer under the new protections, which may affect your completion/move-in timeframe.
- Investors must factor in that compliance obligations on landlords are being expanded: increased safety/standard requirements, stricter enforcement powers and limitations on things like advance rent and rent-bidding. These may translate into cost, risk and liability of investor buyers.
How we can assist our clients
As an experienced law firm, we help position our conveyancing clients ahead of the curve by:
- Updating precedents and contract documentation: ensuring sale contracts, vacant-possession schedules and tenancy disclosure forms reflect the new rental regime.
- Seller and buyer advice: alerting sellers (particularly those exiting the rental market) to the implications of the Act and guiding buyers on how to assess tenancy risk and structuring their acquisition accordingly.
- Timing strategies: advising on whether to market a property with tenant in situ or offer vacant possession, taking into account potential delays or constraints under the new legislation.
- Risk management: highlighting regulatory and compliance risks for clients entering or exiting the rental sector, and supporting searches/assessments in transactions to identify potential liabilities for past landlord conduct.
- Client-focused disclosure: for selling letting property, we recommend sellers providing clear information to property agents and buyers about tenancy type, service of notices, compliance history and likely conversion of tenancy type, so the buyer can make an informed decision and your sale is kept transparent and professional.
Looking ahead
While the Renters’ Rights Act is now law, many of its provisions will come into effect only once the Government issues commencement regulations and secondary legislation. That said, from a conveyancing perspective the time to prepare is now. Whether you’re disposing of a rental property or acquiring one, the legislation changes the playing field for tenants, landlords and property-transaction professionals alike. For both future sellers and buyers, working with a conveyancing firm that understands how the rental reforms ripple into transaction risk means greater certainty, smoother process and fewer surprises.
We would be happy to guide you through the implications of the Renters’ Rights Act 2025 and ensure you are fully prepared for the emerging rental-landscape in your conveyancing journey.
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