A colossal shake-up is right the horizon for the UK private rental market. The now-familiar AST, the backbone of the market, is set to be outlawed entirely in the new 2025 Renters’ Rights Bill.
The AST (or Assured Shorthold Tenancy) offered the advantage of fixed-term, guaranteed income for landlords. Alongside it, Section 21 provided flexibility and a quick route to repossess properties.
From Spring 2025, these will be no more. The nature of private renting in the UK is about to become unrecognisable, with no-fault evictions outlawed and rolling contracts made mandatory.
Here, we outline a host of disadvantages with the new Renters’ Rights Bill, and what you can do as a landlord to prepare. Fortunately, there are ways to lessen the impact and even increase your rental income.
1. The end of no-fault evictions under ASTs
Have you ever needed to move back into a property or sell at short notice? It’ll now take a lengthy legal battle to evict tenants without a valid reason. Without Section 21, there is almost no room for flexibility within property ownership, despite the ever-shifting housing market.
2. Removing problem tenants will become a huge hassle
A major worry for all landlords is problem tenants. Without substantial proof of anti-social behaviour or late payments, it will no longer be possible to act upon complaints. Section 8 can still be used, but usually requires an extremely time-consuming court process, even for an issue which may be urgent.
3. Evictions will become hugely expensive
If the delays weren’t bad enough, removing tenants under Section 8 can prove a huge financial burden. If tenants withhold rent, or legal fees mount, these costs can become crippling for any landlord.
4. Loss of AST flexibility
The loss of Section 21 may prevent making renovations or even moving back into your own home. Without a time-consuming barrage of evidence, the law will firmly be on the side of tenants.
5. Tenants can easily withhold rent without consequences
Knowing that they cannot be evicted quickly, tenants will have far less motivation to keep up with rent payments, even if they aren’t struggling financially. You could suffer from extreme rent arrears, and then the additional financial burden of the lengthy Section 8 eviction process.
6. Tenants can easily exploit the eviction process
Alongside the extreme length of the Section 8 eviction process, tenants will be able to deliberately stall proceedings further by making false counter-claims. As the law will be heavily weighted in their favour, it will be possible for tenants to effectively postpone eviction indefinitely.
7. Time will be wasted on extra admin
The barrage of new rules is difficult for anyone to get their head around, meaning landlords will have to spend more time coming to terms with the changes and understanding what it means for them. For those who own multiple properties, this can add up into an extremely time-consuming admin process. Renegotiating multiple ASTs, ensuring compliance and navigating the new legal requirements will be laborious and challenging.
8. Damage or unauthorised use will be harder to deal with
Every landlord’s worst nightmare is a tenant using the home unlawfully, whether that’s illegally subletting, cramming extra beds into rooms, or causing serious property damage. These time-sensitive, urgent issues will now take months and potentially years to resolve, assuring further damage and non-compliance.
These sweeping changes are impossible to ignore, and the best time to prepare for abolished ASTs is as soon as possible.
At Stay & Escape, we can offer an easy way out. We help landlords and homeowners navigate the 2025 Renters’ Rights Bill by offering fully managed short-term lets & corporate stays.
This means much higher rental yields, ongoing maintenance & cleaning, and a hands-off experience – no more worrying about revised tenancy agreements, legal compliance and problem tenants.
Get in touch with us to join the numerous London homeowners we’ve already helped over the last decade. Our friendly team will provide a free, no-strings valuation and rental projection for your property – either online or in person.
Send us a friendly message at www.stayandescape.com/contact – or give us a call or WhatsApp message on +44 7457 404458.
