Private Rented Sector:
Landlord Guide 2025

The private rented sector (PRS) refers to residential properties that are owned by private landlords and rented to tenants on a commercial basis. It is distinct from social housing (owned by local authorities or housing associations) and owner-occupied housing. The PRS accounts for approximately 19% of all households in England — around 4.6 million households — making it the second largest tenure after owner-occupation.

The Renters' Rights Act 2025 introduced the most significant reforms to the private rented sector in a generation. Key changes include: abolition of Section 21 no-fault evictions (from 1 May 2026); abolition of fixed-term assured shorthold tenancies (all tenancies become periodic); new mandatory possession grounds under Section 8; rent increase restrictions (once per year, 2 months' notice, Section 13 procedure); a new Private Rented Sector Ombudsman; a new Privately Rented Property Portal; and new anti-discrimination rules preventing landlords from refusing to let to tenants on benefits or with children.

The Privately Rented Property Portal is a new national database of private rented properties introduced by the Renters' Rights Act 2025. Landlords will be required to register their properties on the portal before letting them. The portal will contain information about the property, the landlord and compliance with legal requirements. Failure to register will be a criminal offence. The portal is expected to be operational in 2026.

The Private Rented Sector Ombudsman is a new dispute resolution service introduced by the Renters' Rights Act 2025. All private landlords in England will be required to join the ombudsman scheme. The ombudsman will handle complaints from tenants about landlords and can award compensation of up to £25,000. Landlords who fail to join the scheme or comply with ombudsman decisions face fines of up to £40,000.

Under the Renters' Rights Act 2025, it is unlawful for landlords and letting agents to refuse to let to prospective tenants solely because they receive benefits (such as Universal Credit or Housing Benefit) or because they have children. Blanket "no DSS" policies are prohibited. Landlords can still carry out affordability checks and referencing, but cannot refuse solely on the basis of benefit receipt or family status.

The main risks for private landlords in 2025 include: non-compliance with the Renters' Rights Act 2025 (fines up to £40,000); failure to register on the Privately Rented Property Portal; failure to join the PRS Ombudsman; rent arrears and the longer possession timescales under Section 8; EPC compliance (proposed minimum C rating); and tax changes affecting buy-to-let profitability. We advise landlords on managing these risks and maintaining compliance.