UK rent reforms and mortgage shifts reshape expat housing
The UK government’s Renters’ Rights Act 2025is a new law that makes big changes to how renting homes works. Official guidance published on 6 November 2025 says the Act will:
- move most assured tenancies to a periodic system (ongoing, rolling contracts instead of fixed terms),
- end Section 21 “no-fault” evictions (when landlords can ask tenants to leave without giving a reason).
Tenants will be able to remain in their home until they decide to leave, providing two months’ notice, giving them greater security. Landlords will still be able to recover properties for legitimate reasons through updated possession grounds.
Other measures include:
- Fairer evictions: Tenants get more time to find a new home if landlords want to sell the property or move in themselves.
- Decent Homes Standard: The standard will apply to private rentals, raising quality and safety.
- No unfair refusals: Landlords and agents cannot refuse tenants just because they have children or receive benefits.
- Ending rental bidding: Landlords must publish the asking rent and cannot accept offers above that advertised price.
- Landlord ombudsman and database: A new ombudsman will handle complaints, and landlords must register on a national database.
Parts of the Act will start to apply in 2026. The government will publish a detailed timetable later.
The reforms are meant to give England’s 11 million private renters more stability and give landlords clearer rules.
Impact on landlords and expat investors
Landlords and expat investors will have to follow stricter rules. A specialist mortgage provider explains:
- Rent can normally only be increased once per year with a formal Section 13 notice (a standard rent increase form). Tenants can challenge the increase at a tribunal (an independent panel that makes decisions).
- Section 21 evictions are being abolished. Landlords will now have to use updated possession grounds (official reasons) and give a clear explanation if they end a tenancy.
- Assured Shorthold Tenancies (ASTs) will be replaced with open-ended periodic tenancies. Tenants can leave by giving two months’ notice.
Higher property standards and new requirements—such as registering on the Private Rented Sector database and meeting the Decent Homes Standard—mean many landlords may need to spend money on repairs and upgrades.
Mortgage lenders are also tightening their checks. Expat borrowers may need to show more proof of income and details about the property’s condition. Lenders are looking closely at rental yield (how much rent a property can earn) to make sure the income covers the extra costs of meeting the new rules.
Mortgage and buy‑to‑let market updates
Expat housing costs are influenced by mortgage rates and product availability. According to a 2 December 2025 industry bulletin, Dudley Building Society launched new residential, expat and buy‑to‑let mortgages, with two‑year residential fixed rates starting at 5.45 % at 75 % loan‑to‑value (LTV).
Expat residential products start from 5.85 % at 65 % LTV and five‑year fixes from 5.65 %. The Society’s buy‑to‑let fix begins at 5.70 % and holiday‑let mortgages at 5.90 %. Cumberland Building Society cut rates on its holiday‑let range by 0.20 percentage points, with two‑ and five‑year fixes now starting from 4.78 %.
Meanwhile, buy‑to‑let lenders are adjusting policies to account for the Renters’ Rights Act. Some lenders have increased the maximum age at the end of the term from 80 to 99 years for buy‑to‑let borrowers and reduced fixed rates by up to 0.29 percentage points. These changes aim to make borrowing more attractive amid regulatory uncertainty.
Why this matters to expats
- Stronger tenant protection: Expats renting in England will enjoy more security, fewer arbitrary evictions and rights to challenge unfair rent increases.
- Compliance burdens for landlords: Overseas landlords must budget for property upgrades, registration fees and stricter lending criteria.
- Mortgage opportunities: New expat‑specific mortgage products and lower rates could make investing or returning to the UK more affordable.
- No more rent bidding: Expats searching for accommodation will benefit from transparent asking rents and an end to competitive bidding.
- Timeline still uncertain: Implementation will start in 2026, so investors and tenants should monitor updates to prepare for the transition.
Mini‑FAQ
Q: When will the Renters’ Rights Act take effect?
The Act received Royal Assent on 27 October 2025. A detailed implementation schedule has not yet been published, but the government expects the reforms to roll out in stages starting in 2026.
Q: How will the Act affect expat landlords?
Landlords must adjust to periodic tenancies, limited rent increases and higher property standards. Lenders may ask for more documentation and emphasise rental yields and property conditions.
Q: Are mortgage rates rising or falling?
Several lenders have recently reduced fixed rates and introduced expat‑friendly products. Dudley Building Society’s two‑year residential fix starts at 5.45 % and its expat products from 5.85 %. Cumberland Building Society has cut holiday‑let rates to 4.78 %.
