Credco

The Renters’ Rights Act 2025 took effect on 1 May 2026. After eighteen months of consultation, drafting, and amendments, the most significant overhaul of the private rented sector in a generation is now in place. If you own a buy-to-let property, the regulations you initially bought the property under are no longer applicable to your current operations.

Section 21 no-fault evictions no longer apply. Assured shorthold tenancies have been replaced, with all existing ASTs converting into assured periodic tenancies. Tenants now have the right to give two months’ notice at any time. Landlords selling under Ground 1A are restricted from marketing the property for re-letting for twelve months from the date it becomes eligible. Additionally, lenders are quietly changing how they determine interest cover ratios, as the usual rental income used for ICR calculations now appears far less predictable on paper.

The knock-on effects are already evident. Auction listings are now over 20% higher than last year, as portfolio landlords reduce their holdings. We’re observing more remortgage and refinance inquiries on existing buy-to-let properties, along with a steady increase in auction finance requests from buyers moving quickly to acquire stock. Structuring has become more important than ever — lender appetite varies across the market, and a deal will close if it reaches the right desk; otherwise, it stalls. Currently, most active rebalancing happens in bridging and short-term lending, where speed and flexibility are crucial as everyone adapts to the new rules.

HIRAN’S TAKE

“The Act itself isn’t the curveball — we’ve all known the dates for over a year. The curveball is how lenders are reading rental income now that AST predictability has gone. Borrowers who walk in with a stress-tested case and a clear exit are still moving quickly. The ones who haven’t done that homework are the ones getting held up at credit.”

— Hiran, Co-Founder & Director, Credco