On 1 May 2026, the most significant reform to private renting in a generation takes effect. The Renters’ Rights Act 2024 — commencing in stages from that date — abolishes Section 21 no-fault evictions, converts every assured shorthold tenancy into a rolling periodic one, caps rent increases, brings the private rented sector under the Decent Homes Standard for the first time, and establishes a mandatory landlord database plus a sector ombudsman.
Alongside already-existing pressures — Section 24 tax changes on mortgage interest, higher additional-dwellings stamp duty, rising interest rates, tighter selective licensing, and the proposed EPC C minimum standard — a meaningful share of the UK’s 2.3 million landlords are asking themselves, honestly for the first time, whether the economics still work.
This guide is for landlords in that position. It covers what the Act actually does, why landlords are exiting, what the realistic options are, and — if you decide to exit — how to do it well.
What the Renters’ Rights Act changes
The Act is long and technical. The consequential changes for existing landlords are these:
1. Section 21 abolition
From commencement, Section 21 ‘no-fault’ eviction notices can no longer be served. Ending a tenancy requires specific grounds under a revised Section 8 process — rent arrears, anti-social behaviour, landlord selling, landlord moving back in, and a handful of others — with evidence required and, in most cases, longer notice periods than Section 21 provided. See our dedicated post on Section 21 abolition for the procedural detail.
2. Fixed-term ASTs become rolling periodic
Assured Shorthold Tenancies with fixed terms — the 6-month, 12-month, and longer initial terms most landlords currently use — effectively end as a structure. All tenancies convert to rolling periodic structures from day one. Tenants can give two months’ notice at any time; landlords can only end tenancies using the new grounds.
3. Rent increase cap and tribunal
Rent can be increased once per year via a statutory Section 13 notice. Tenants have the right to challenge increases at the First-tier Tribunal. Tribunals cannot uplift the proposed figure — so the landlord’s downside is a reduction, not a further rise.
4. Decent Homes Standard extended to private rented sector
The Decent Homes Standard, previously applying only to social housing, applies to the PRS for the first time. Properties must meet minimum standards for disrepair, modern facilities, and thermal comfort.
5. Mandatory landlord database
Every landlord must register on a central database. Not registering = penalties. Registration data is shared with local authorities.
6. Private rented sector ombudsman
A single ombudsman scheme for PRS complaints. Mandatory membership for landlords. Replaces the patchwork of existing dispute routes.
7. Ban on rental bidding and discrimination
Landlords cannot encourage bidding above the advertised rent. Discrimination against prospective tenants with children or on benefits is banned.
Why some landlords are exiting
Rational people land on opposite conclusions about the Act, which is part of the reason the landlord debate is so heated. Reasons landlords give us most often for deciding to sell:
- Loss of exit flexibility. The inability to serve Section 21 — especially in parts of the market where informal, consensual tenancy endings are common — changes the risk profile of holding.
- Possession through grounds takes longer and costs more. Where a problem tenant would have faced a Section 21 notice, the landlord now needs grounds, evidence, and often a court hearing. Slower, more adversarial.
- Compliance fatigue. Decent Homes Standard + database registration + ombudsman + EPC C proposals + selective licensing = multiple overlapping regulatory obligations that didn’t exist five years ago. For small landlords with one or two properties, the overhead outweighs the return.
- Tax arithmetic. Section 24 removed mortgage interest deductibility for higher-rate taxpayers in 2020; higher rates and higher house prices have made the cumulative effect much worse. See our Section 24 post.
- Asset allocation. For landlords whose rental income underperforms their alternatives (ISAs, pensions, index funds), the Act is the trigger to do the calculation that was always going to come.
Other landlords are staying, adapting, or even buying more — believing prices will soften as small landlords exit. This guide doesn’t take a side. It explains the options honestly.
If you’re staying: what adapting looks like
The easier exit options aren’t available to every landlord. Portfolio size, mortgage structure, and long-term goals all affect the calculation. Landlords who’ve decided to stay typically do one or more of:
- Move to longer periodic tenancies with reliable tenants and formalise rent review mechanisms in advance.
- Incorporate the portfolio into a limited company structure to partially mitigate Section 24. Not universally beneficial; speak to an accountant.
- Improve properties to meet and exceed the incoming Decent Homes Standard, particularly if EPC C requirements tighten.
- Reduce portfolio size selectively — keep the best-yielding, best-located properties; dispose of the underperformers.
- Use professional letting agents to handle the increased compliance burden.
If you’re exiting: the four realistic routes
Route 1: Sell with tenants in situ
You sell the property to another investor (or to us) with the tenancy in place. The tenant stays in their home; rent redirects to the new landlord from the next payment date. No Section 21 needed. No void period. No eviction.
This is structurally the easiest route under the new Act — it doesn’t require you to end the tenancy, because the tenancy simply transfers. See our detailed sell tenanted property page for the process.
Price impact: tenanted property typically sells at 78–90% of vacant-possession market value, reflecting the investor market for yielding assets.
Route 2: Serve notice and sell with vacant possession
You serve notice under the new grounds — most likely the landlord-selling ground (Ground 1A, as introduced by the Act) or Ground 1 (landlord moving back in). Tenant moves out; you sell the property empty on the open market.
Timeline: significantly longer than pre-Act. Ground 1A requires four months’ notice and evidence that the sale is genuine. Where the tenant refuses to leave at notice end, court possession proceedings add 6–16 weeks. Total timeline from decision to exit: 6–12 months realistically.
Price impact: typically 0% discount — vacant-possession value is the open-market benchmark.
Route 3: Sell to your tenant
Sometimes overlooked. Where your tenant is long-standing, on speaking terms, and has any prospect of mortgage-funding a purchase, selling directly to them is often the least disruptive route — no vacancy, no marketing, no agent fees, often a slightly preferential price in exchange for the simplicity.
Route 4: Portfolio or part-portfolio sale
For landlords with multiple properties, selling the whole portfolio (or a sub-portfolio of worst-yielding units) to a single investor or cash buyer can be more efficient than selling individual properties. Specialised portfolio buyers exist; we consider portfolio sales case by case.
The tax picture
Capital Gains Tax applies to the gain on disposal. 2026 rates on residential property disposals: 18% (basic-rate taxpayers), 24% (higher-rate). Annual exempt amount is £3,000.
Section 24 continues to affect income tax on rental profits during your final year of holding — factor that into the effective net return from continued holding vs. exiting now.
Stamp duty doesn’t apply to the seller, but the reduced demand from additional-dwelling buyers (3% surcharge kept in 2025 reforms) affects the buyer pool and pricing.
Full detail: Section 24 post. Speak to an accountant for your specific position.
The Welsh context
Welsh landlords are navigating a dual framework: the Renting Homes (Wales) Act 2016 (already in force, with its own grounds-based system) plus selective Renters’ Rights Act provisions as they apply. The interplay is specific to your jurisdiction; Welsh landlords need Welsh-specific advice. Cardiff’s buy-to-let market has been adjusting to the Welsh Act since 2022, and many of the Renters’ Rights Act concepts were trialled there first — which, paradoxically, makes Welsh landlords somewhat more prepared.
An honest note
We’re a cash buyer. We have a commercial interest in landlords deciding to exit. That conflict of interest means we’ve tried to be especially careful about this guide:
- We’re not recommending you exit. If your portfolio is profitable and you enjoy being a landlord, staying is a legitimate answer.
- We’re not saying the Act is bad. The case for stronger tenant protections is strong; the case against is mostly economic, and reasonable people disagree.
- We’re not offering tax advice. See an accountant. We’re not offering legal advice. See a solicitor.
What we are offering: if you’ve decided to sell, we can buy tenanted property directly for cash, typically within 7 days of acceptance, without requiring you to serve notice or evict. That’s a useful product for a specific situation; it isn’t the right answer for every landlord.
Related reading
- Section 21 abolition: what replaces it under the Renters’ Rights Act
- Section 24 tax: why UK landlords are exiting
- Landlord exit options compared: sell with tenants, serve notice, or hold
- EPC C standard for rental property
- Sell a tenanted property: in situ or vacant possession
- Renters’ Rights Act landlord exit calculator: compare 5-year stay vs sell-now scenarios for your specific property
Start a landlord-exit offer
If you’re considering selling — whether with tenants in situ or with vacant possession — we can provide a written, no-obligation offer within 24 hours. Share the property’s postcode and a short note on the tenancy type, rent, and your timeline.