What did the Renters' Rights Act 2025 change?
It is the biggest change to the private rented sector in decades. Section 21 no-fault eviction is abolished and assured shorthold tenancies move to periodic tenancies, so possession requires a valid ground under a reformed Section 8. There are restrictions on how and how often rent can be increased, a new ombudsman and database for landlords, rules preventing blanket bans on tenants with children or on benefits, and a right for tenants to request a pet that cannot be unreasonably refused. Practically it shifts the whole business toward getting tenant selection and paperwork right at the start, because exit is harder.
What are the deposit rules and what happens if I get them wrong?
A tenancy deposit must be protected in an approved scheme within 30 days and the prescribed information served on the tenant. Getting it wrong exposes you to a penalty of one to three times the deposit and blocks certain possession routes until it is corrected. The Tenant Fees Act also caps deposits at five weeks' rent where annual rent is under £50,000, and bans most other fees. This is the most common compliance failure among new landlords and it is entirely avoidable.
What safety certificates do I legally need?
A gas safety certificate annually where there are gas appliances, an Electrical Installation Condition Report at least every five years, an EPC of at least E, working smoke alarms on every storey and carbon monoxide alarms in rooms with a fixed combustion appliance. Missing an EICR or gas certificate can attract civil penalties up to £30,000 per breach, and failure to serve the right documents at the start of a tenancy can block possession.
What is a rent repayment order?
An order requiring a landlord or property manager to repay up to twelve months of rent to the tenant, or to the council where housing benefit or universal credit was paid. It applies to offences including operating an unlicensed HMO, breaching a banning order, and unlawful eviction. Tenants can apply directly and there are organisations that help them do it. For a five-bed HMO at £550 per room this is a £33,000 exposure from a licensing failure that would have cost a few hundred pounds to avoid.
Do I have to do right to rent checks?
In England, yes, you must check that adult occupiers have the right to rent in the UK before the tenancy starts, keep evidence, and follow up where a right is time-limited. Penalties for renting to someone disqualified rose substantially and can reach thousands per occupier for repeat breaches, with criminal liability where a landlord knew or had reasonable cause to believe. Scotland, Wales and Northern Ireland do not operate the scheme.
What tax do I pay on rental income?
As an individual, rental profit is added to your other income and taxed at your marginal rate, with mortgage interest giving only a 20% credit rather than being deductible. As a company, profit is subject to corporation tax and finance costs are fully deductible, but extracting the money is taxed again. Furnished holiday letting had its own advantageous regime which has now been abolished, removing a benefit many serviced accommodation operators relied on. Get this modelled by an accountant on your figures, the difference between structures is frequently thousands a year.
Do I need a licence to let a normal single family home?
Sometimes. Beyond HMO licensing, many councils run selective licensing schemes covering all privately rented properties in designated areas, and these are expanding. The scheme is local, the boundaries can follow specific streets, and ignorance is not a defence, the penalties are the same as any unlicensed operation. Check the council's licensing page for the exact postcode before you let.
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