Renters' Rights Act 2025: What Changed for Overseas Landlords — Section 21 Abolished, No More Fixed Terms

As of 1 May 2026, the Renters’ Rights Act 2025 has fundamentally changed how residential tenancies in England work. Section 21 — the so-called no-fault eviction route — is abolished. Fixed-term tenancies no longer exist as a legal product. The entire framework that most overseas investors understood at the time of purchase has been replaced.

For buyers based in Taiwan, Hong Kong, Singapore and elsewhere in Asia who hold UK residential investment property, these changes carry real urgency. IREIS Properties works with overseas investors at every stage of the property cycle, from acquisition through to ongoing letting — and this article sets out, precisely, what has changed and what action is required now.

What exactly changed on 1 May 2026?

Three interlocking reforms came into force simultaneously on 1 May 2026.

First, Section 21 of the Housing Act 1988 — which permitted landlords to end a tenancy without giving any reason, provided minimum notice was served — was repealed in full. A Section 21 notice served on or after 1 May 2026 has no legal effect. Landlords who began Section 21 proceedings before that date had until 31 July 2026 to have issued their court possession claim; any proceedings not issued by that deadline were extinguished.

Second, assured shorthold tenancies with a fixed term are no longer available as a tenancy type. Every new tenancy that would previously have been an AST is now, by statute, an assured periodic tenancy — rolling from period to period (typically month to month) indefinitely, until either party serves valid notice to end it.

Third, existing fixed-term ASTs that were mid-term on 1 May 2026 converted automatically to periodic tenancies upon their natural expiry. No new agreement, no re-signing of documents — conversion was statutory and automatic.

These three changes together represent the most far-reaching restructuring of English residential tenancy law since the Housing Act 1988. Full official guidance is published at GOV.UK, and the full text of the Act is at legislation.gov.uk.

How landlords regain possession — the new Section 8 grounds

From 1 May 2026, landlords must use Section 8 grounds under the Housing Act 1988 (as substantially amended) whenever they need their property back. There is no discretionary or no-reason route.

The Act reformed and expanded the Section 8 grounds considerably. The most relevant for overseas landlords are:

Serious rent arrears — mandatory ground. If a tenant is three or more months in arrears (increased from two months under the previous law), the court must grant a possession order once this is established. The notice period is four weeks. Courts have no discretion to refuse if the ground is proved. This remains the most reliable route when a tenant stops paying.

Landlord or family moving in — discretionary ground. A landlord who needs the property as their own principal home, or for an immediate family member (spouse, civil partner, children, parents, or siblings), may seek possession on this basis. Four months’ written notice is required. The ground cannot be used in the first twelve months of a tenancy. Courts have discretion to decline if it is not reasonable in the circumstances.

Sale of the property — discretionary ground. A landlord who genuinely intends to sell can seek possession. Four months’ notice is required; the ground cannot be used in the first twelve months. Once possession is granted, the landlord faces a twelve-month re-let restriction — the property cannot be re-tenanted within twelve months of the possession date without risk of a legal challenge from the former tenant.

Anti-social behaviour and property damage. Strengthened mandatory and discretionary grounds exist for persistent nuisance, criminal behaviour, and damage beyond fair wear and tear.

Critical compliance precondition — deposit protection. From 1 May 2026, courts generally will not grant possession on most Section 8 grounds unless the tenancy deposit is held in a government-approved scheme and the prescribed deposit information was properly served at the start of the tenancy. If there is any doubt about deposit compliance for a property you hold, verify with your managing agent or solicitor immediately.

Fixed-term tenancies gone — the practical implications for overseas investors

Because all tenancies are now periodic, tenants can serve two months’ written notice to quit at any point — there is no contractually guaranteed minimum occupation period.

This is a structural shift for investors who purchased expecting tenants to commit to one or two years. In practice, professional and family tenants in most London and commuter-belt markets still prefer stable, continuous occupation. The demand-side pressure for long-term tenancies has not changed; only the legal compulsion has. But the guarantee of minimum rent duration that landlords could price into their financial models no longer exists.

For investment planning purposes, rental income projections should reflect modestly higher potential turnover risk. Void periods, if they occur, are market-dependent and broadly unchanged. What has changed is the value of proactive property management — agents who monitor notice periods, re-market immediately, and have pre-qualified tenant pipelines mitigate this risk substantially.

Overseas investors considering whether to remain in buy-to-let under the new framework, or to re-assess their ownership structure, can find a detailed tax and cost overview at our UK Property Costs and Taxes Overview. Note that for individual landlords, mortgage interest relief was replaced by a 20% basic-rate tax credit (Section 24) with full effect from the 2020/21 tax year — it is not a deductible expense. Consult a qualified UK tax adviser before making structural decisions.

Tenant right to keep pets — what landlords must do

The Renters’ Rights Act 2025 gives tenants a statutory right to request permission to keep a pet. Landlords must respond in writing within 28 days. Blanket contractual pet bans are no longer enforceable as general prohibitions — a refusal must be grounded in a reasonable basis specific to the property or circumstances.

Landlords can require tenants to take out pet damage insurance as a condition of consent. Standard tenancy deposit rules still apply — no additional pet deposit may be charged. The forthcoming Private Rented Sector Ombudsman (expected to be compulsory for landlords from late 2027 or 2028) will have jurisdiction to handle disputes about pet request refusals.

For overseas landlords operating through managing agents, ensure your agents have a documented process for receiving and responding to pet requests within the 28-day window. An undocumented or late refusal could be treated as an unlawful denial — and compliance gaps compound risk at the possession stage.

Compliance priorities for overseas landlords in 2026

The Renters’ Rights Act 2025 creates no special legal category for overseas landlords. But geographic distance amplifies every compliance obligation it creates.

Prescribed information — £7,000 per property penalty. Landlords were required to ensure all tenants received the official Renters’ Rights Act information sheet by 31 May 2026. Non-compliance carries a financial penalty of up to £7,000 per property. This deadline has passed. If you are not certain your managing agent fulfilled this obligation, request written confirmation as a matter of urgency.

Private Rented Sector Database registration. A compulsory national landlord database is being phased in during late 2026 and into 2027. Certain Section 8 possession grounds will require confirmed registration. This is, in most cases, a personal action that cannot be completed by an agent on your behalf. Overseas landlords should monitor GOV.UK for commencement dates and be prepared to register directly.

Non-Resident Landlord Scheme. If you spend more than six months per year outside the UK, you are likely classified as a non-resident landlord for tax purposes. Your managing agent or tenant may be required to deduct UK income tax at source from rental payments unless you hold HMRC gross payment approval. This is separate from the Renters’ Rights Act but directly connected to running a let property from abroad. For a full explanation, see our guide on the Non-Resident Landlord Scheme and withholding tax.

Property management quality. Overseas investors who self-manage — interacting with tenants directly across time zones — face significantly higher compliance risk under the new framework than under the previous AST model. The combination of shorter effective notice periods, mandatory response timescales (pet requests, deposit queries), and upcoming PRS Database obligations makes professional property management a practical necessity for most overseas owners, not an optional cost.

For a comprehensive landlord guide — yields, compliance, agent selection, and the broader tax context — see the London Buy-to-Let Landlord Guide 2026 and the full Renters’ Rights Act 2026: Overseas Landlord Guide.

IREIS Properties advises overseas clients across every aspect of UK property ownership — from initial acquisition in London and the South East, through letting strategy and agent selection, to resale. Clients who purchased before the Renters’ Rights Act came into force are actively reviewing their compliance position. IREIS Properties can refer clients to experienced property solicitors and managing agents who specialise in non-resident landlord requirements. Contact the team at IREIS Properties to discuss your portfolio.

For further landlord guides covering yield analysis, compliance obligations, and letting strategy, visit the IREIS Properties Landlord Guides resource centre.