The Renters’ Rights Act 2025 changes private renting in England, with major reforms taking effect from 1 May 2026. The headline change is stronger protection for tenants, including the abolition of section 21 “no-fault” evictions for most private renters and a move to periodic tenancies.

For mortgage borrowers, the question is more practical: does the Act change when you can buy, how much you can save, how a lender assesses you, or whether a buy-to-let still works financially?

The short answer is: it may affect your planning, but it does not replace normal mortgage criteria. Lenders still assess income, expenditure, credit history, deposit, loan-to-value, property suitability and affordability.

This guide explains what the reforms mean for tenants, first-time buyers, landlords and buy-to-let borrowers, and what to check before making a mortgage decision.

What does the Renters’ Rights Act mean in practice?

The Renters’ Rights Act is designed to strengthen the position of private tenants in England. According to official government guidance, the Act introduces a simpler tenancy structure and ends section 21 evictions for most assured tenancies.

In practical terms, the main changes include:

• most private tenancies moving to periodic assured tenancies
• section 21 “no-fault” evictions being abolished for most private renters
• landlords needing to use valid legal grounds if they want possession
• changes to how rent increases are handled
• stronger rights to challenge certain rent increases
• a right for tenants to ask to keep a pet, with landlords needing to consider requests reasonably
• a one-month limit on rent in advance in many cases
• stronger protections for tenants who receive benefits or have children
• further rules around standards, landlord conduct and the private rented sector database

Shelter’s guidance confirms that many private tenants have new rights from 1 May 2026, although not every type of occupier is covered in the same way. Lodgers, social tenants and some specialist arrangements can be treated differently.

From a mortgage planning point of view, the Act may help some renters feel less rushed. If you have more security in your tenancy, you may have more time to build a deposit, repair credit issues, prepare documents and apply when your finances are stronger.

However, the Act does not mean a lender will lend more, ignore debts, accept weak income evidence or treat rent payments as proof that a mortgage is affordable.

Does the Renters’ Rights Act affect existing tenancies?

Yes, many existing private tenancies are affected from the relevant commencement date, but the exact impact depends on the type of tenancy and your circumstances.

For most private renters in England, the move from assured shorthold tenancies to periodic assured tenancies is one of the biggest changes. Shelter explains that, from 1 May 2026, most private tenants no longer have an assured shorthold tenancy in the old sense and instead have an assured tenancy.

That matters because tenants generally have more security than before, and landlords need a legal reason to evict using the relevant possession process.

For mortgage planning, the key point is not just whether your tenancy label has changed. It is whether your housing position gives you enough time and certainty to make a good financial decision.

Ask yourself:

• Can I stay where I am while I save?
• Has my rent increased, or is an increase expected?
• Do I know how much notice I need to give before moving?
• Could my planned purchase timetable clash with my tenancy obligations?
• Would I still be able to afford a mortgage if my rent rises before completion?

If you are dealing with a legal dispute, eviction notice or rent challenge, take housing or legal advice. A mortgage adviser can help with borrowing strategy, but cannot decide your legal tenancy position.

How do the new tenant protections affect mortgage planning?

The Renters’ Rights Act can affect mortgage planning indirectly. It may change your timetable, confidence and cash flow, but it does not change the basic affordability test.

public guidance’s mortgage guidance explains that borrowers need to think beyond the headline mortgage payment. A realistic buying budget should include the deposit, monthly repayments, insurance, bills, maintenance, fees and moving costs.

For tenants saving to buy, the biggest mortgage planning points are:

A more secure tenancy can be helpful if it gives you breathing space. It can be harmful if you use that extra time without a plan and arrive at your mortgage application with the same deposit, the same credit issues and no documents ready.

How much can a landlord increase rent in 2026?

There is no single fixed percentage that applies to every private tenancy. The Renters’ Rights Act changes the process and strengthens routes for tenants to challenge some rent increases, but rent outcomes still depend on the tenancy, market evidence and the relevant legal process.

For renters planning to buy, the practical question is: what happens to your savings plan if rent increases?

Use three budget versions:

If a rent increase means you stop saving altogether, buying may become harder unless your income rises, your deposit is helped by another source, or you adjust the property price you are aiming for.

If you are unsure whether a proposed rent increase is valid or challengeable, use official housing guidance or take legal advice. If you want to know how the increase affects your mortgage affordability, speak to a mortgage adviser.

A common trap: rushing a purchase after a rent increase

A private renter is told their rent may rise later in 2026. They have paid rent on time for years, have a stable job and feel that buying now must be better than accepting another increase. On paper, the monthly mortgage payment on a modest flat looks similar to the new rent.

The mortgage problem is the detail. Their deposit is partly from savings, partly from a recent family gift, and some of their savings have been topped up by using a credit card for everyday spending. They also need to give notice on the tenancy, but do not yet know whether completion could line up with that notice period. If it does not, they may face rent and mortgage costs overlapping, plus legal fees, removals and initial repairs.

A lender will not simply compare rent with the proposed mortgage payment. The application may turn on several points:

• whether the gifted deposit is properly evidenced
• whether credit card balances reduce affordability
• whether bank statements show sustainable spending
• whether the purchase price still works after legal and moving costs
• whether the tenancy notice period creates a cash-flow gap
• whether the chosen property is acceptable security for the lender

The practical lesson is that a rent increase can be a reason to review your plan, not necessarily a reason to make an offer immediately. Before committing to a purchase, it is sensible to check affordability using the higher rent, clear up deposit evidence, understand your notice position and keep enough cash back for the costs of buying.

Do tenants get extra mortgage rights after 10 years?

No. Being a long-term tenant can show stability, but it does not create automatic mortgage rights.

A lender will not usually approve a mortgage simply because you have rented the same home for many years or paid rent on time. Those points may support the wider picture, but lenders still need to assess:

• income
• employment or self-employment evidence
• committed expenditure
• debts and credit commitments
• credit history
• deposit size
• source of deposit
• loan-to-value
• property type and condition
• affordability now and under lender stress testing

Long-term renting can still be useful. It may show consistent address history and regular housing payments. But it is not a substitute for formal affordability checks.

Who should pay attention to the Renters’ Rights Act?

The reforms may be relevant if:

• you rent privately and are saving to buy your first home
• you are deciding whether to keep renting or apply for a mortgage
• your rent has changed and you are worried about saving a deposit
• you want to understand whether your rent history helps your mortgage case
• you are self-employed and need time to prepare income evidence
• you have credit issues and need a realistic purchase timetable
• you are a landlord with one or more buy-to-let mortgages
• you are considering buying a rental property
• you are remortgaging a buy-to-let
• you are helping a family member move from renting into ownership

For renters, the Act is mainly about housing security and planning time. For landlords, it is about tenancy management, legal obligations, property standards, rental income and whether the property remains commercially workable.

For both groups, the mortgage decision still comes down to numbers, evidence and lender criteria.

What the Act does and does not change for borrowers

The strongest mortgage decisions separate the legal position from the lending position. The law may affect your housing circumstances, but the lender still has to decide whether the mortgage is affordable and whether the property is acceptable security.

Which mortgage risks still matter under the Renters’ Rights Act?

The biggest risk is assuming that stronger tenant protections automatically improve your mortgage options.

They may improve your stability as a renter, but they do not remove mortgage underwriting. Lenders will still look at the facts of your case.

For residential borrowers, the main risks are:

• applying before your deposit is properly evidenced
• relying on rent history instead of formal income evidence
• carrying high credit card balances or personal loans
• underestimating buying costs
• changing jobs without checking how lenders may treat the new income
• ignoring credit file errors until a lender finds them
• choosing a property that creates valuation or lending concerns
• rushing because rent feels expensive

For buy-to-let borrowers, the risks are different:

• rental income not meeting the lender’s stress test
• underestimating maintenance, insurance, letting and compliance costs
• assuming all lenders treat tenancy types in the same way
• buying a property with licensing, condition or use issues
• relying on optimistic rent rather than valuation-supported rent
• ignoring tax or ownership-structure questions
• having no fallback if the preferred lender does not accept the case

A declined or badly placed application can waste time. In some cases, it can also make a purchase more stressful if deadlines are tight.

How might lenders assess renters after the reforms?

For a residential mortgage, lenders commonly assess:

• basic income
• variable income, such as overtime, bonus or commission
• employment status and length of employment
• self-employed accounts or tax documents
• regular expenditure
• debts and credit commitments
• childcare or maintenance payments
• credit history
• deposit and source of deposit
• loan-to-value
• property type, tenure and condition
• whether the mortgage appears affordable under lender rules

Your rent history may be useful context, especially if it shows you have managed housing costs consistently. But it is not normally enough on its own.

For example, someone paying £1,300 a month in rent may feel confident about a £1,200 mortgage payment. A lender may still reduce borrowing if that person has high credit commitments, variable income, dependants, recent missed payments or limited deposit.

The FCA sets expectations around regulated mortgage advice and consumer protection. In practice, suitable mortgage advice should consider your circumstances rather than simply pointing you towards a product with an attractive headline rate.

How might lenders assess landlords and buy-to-let borrowers?

For buy-to-let mortgages, lenders often focus on:

• expected rental income
• interest coverage ratio calculations
• property value and loan-to-value
• borrower income, depending on lender criteria
• landlord experience, where relevant
• portfolio size and background, where relevant
• property type and condition
• tenancy type and letting model
• whether the property is suitable security
• wider risk, including location, use and valuation comments

The Renters’ Rights Act does not mean buy-to-let mortgages disappear. It does mean landlords should test the numbers carefully.

A buy-to-let property should not be judged only by the monthly mortgage payment. You may also need to consider:

• repairs and maintenance
• insurance
• letting agent fees
• void periods
• compliance costs
• service charges and ground rent, where relevant
• licensing, where relevant
• tax position
• future remortgage options

For tax or legal questions, use an appropriately qualified professional. A mortgage adviser can help you understand how lenders may view the borrowing, property and rental income.

Tenant, buyer or landlord: what should you do next?

What documents make the mortgage conversation easier?

You do not need every document before asking for guidance, but a clear summary helps avoid wasted time.

For renters planning to buy, prepare:

• last three months’ payslips, if employed
• latest P60, where available
• employment contract if income has recently changed
• two or more years’ accounts or tax calculations if self-employed, where available
• recent bank statements
• deposit evidence
• gifted deposit details, if relevant
• credit report from the main credit reference agencies
• current rent and regular commitments
• target purchase price or area
• expected timescale

For landlords or prospective buy-to-let borrowers, prepare:

• property value or purchase price
• current or expected rent
• mortgage balance, if remortgaging
• tenancy details, where available
• property type and condition
• service charge and ground rent, if leasehold
• portfolio schedule, if you own other rental properties
• ownership structure, such as personal name or limited company
• evidence of personal income, where required
• details of any licensing, HMO or non-standard letting use

The cleaner the evidence, the easier it is to identify lender routes that may be worth considering.

Common mistakes to avoid

Assuming rent payments prove mortgage affordability

Paying rent on time is positive, but lenders need more than that. They will usually assess income, expenditure, debts, credit conduct, deposit and the proposed mortgage payment.

Ignoring the cost of buying

GOV.UK’s home-buying guidance highlights that buyers need to prepare for the wider cost of purchasing a home. Your deposit is only one part of the budget. Legal fees, surveys, removals, mortgage fees and urgent repairs can all matter.

Treating the Act as a reason to rush

If renting feels uncertain or expensive, buying can feel urgent. But buying before you are financially ready can create bigger problems. You need to be comfortable with mortgage payments, bills, maintenance and possible rate changes.

Using outdated rate assumptions

Mortgage rates can change quickly. The Bank of England’s Bank Rate influences the wider interest rate environment, but individual mortgage rates are set by lenders. Do not rely on old examples when deciding what you can afford.

Landlords focusing only on rent

A higher rent does not automatically mean a strong buy-to-let case. Lenders may use their own rental assessment, and landlords still need to account for costs, voids, tax, compliance and property condition.

Applying to the wrong lender first

Different lenders can treat income, credit history, property type and buy-to-let cases differently. A lender that looks competitive may not be suitable for your circumstances.

What could the Renters’ Rights Act look like in real mortgage situations?

Example 1: tenant saving to buy

You rent privately and want to buy within the next 12 to 18 months. Greater tenancy security may give you more time to save and prepare, but your mortgage position still depends on income, deposit, credit profile and affordability.

A sensible plan is to check your credit file, estimate buying costs, understand your likely deposit requirement and ask how lenders may treat your income before you start making offers.

Example 2: renter with high commitments

You have always paid rent on time, but you also have car finance, credit cards and childcare costs. A lender may still restrict borrowing because your committed expenditure is high.

The issue is not whether you are a reliable tenant. The issue is whether the proposed mortgage fits the lender’s affordability model.

Example 3: self-employed tenant

You are self-employed and renting while saving to buy. Your business may be doing well, but lenders usually need formal evidence. That might include accounts, tax calculations, tax year overviews, business bank statements or accountant details, depending on the lender.

The Renters’ Rights Act may help with housing stability, but it does not remove the need to evidence income properly.

Example 4: landlord reviewing a buy-to-let

Your fixed rate is ending and you are reviewing the property. You need to know whether the rental income supports the loan, whether the property still fits lender criteria and whether the investment remains sensible after costs.

This is where a rent figure alone is not enough. You need to look at the mortgage payment, stress testing, maintenance, insurance, management costs, tax position and future exit options.

When should you speak to a mortgage broker?

Consider speaking to a broker if:

• you rent and plan to buy in the next 6 to 24 months
• your rent has increased and you are unsure how it affects affordability
• you want to know what purchase price may be realistic
• your income is variable, self-employed or recently changed
• you have credit issues or high commitments
• you are using a gifted deposit
• you are deciding whether to buy now or wait
• you are remortgaging a buy-to-let property
• you are thinking about becoming a landlord
• you want to avoid applying to a lender that is unlikely to fit your case

A broker cannot guarantee an approval or a particular rate. The useful part of advice is often knowing what evidence is needed, which lender types may fit, and which routes may be weaker before you apply.

If you are renting and planning to buy, or if you are a landlord reviewing your mortgage position, you can speak to a mortgage adviser or make a finance enquiry.

What should you read next?

• Buy-to-let mortgage advice
• Is buying investment property as your first home feasible?
• Specialist lending options
• How long does it take to get a mortgage?
• Mortgage with no early repayment charge
• What is a lock-in agreement?
• Buying property in a limited company vs personal name
• Property finance hurdles in the UK
• Quick guide to UK mortgage types
• Seven reasons to use a property search agent

FAQs

What are the new laws protecting tenants?

The Renters’ Rights Act 2025 introduces major reforms for private renters in England. Key changes include the abolition of section 21 evictions for most private tenants, a move to periodic tenancies, revised possession grounds, rent increase changes, a right to request a pet, limits on rent in advance and stronger protections for certain renters.

Will the Renters’ Rights Act help me get a mortgage?

Not directly. It may give some renters more stability while they prepare to buy, but lenders still assess affordability, income, credit history, deposit, loan-to-value and property suitability.

Can my rent payment history replace a mortgage affordability check?

Usually not. Paying rent on time can support your overall profile, but lenders normally need formal income evidence, expenditure details, credit checks and affordability assessment.

Should I buy sooner because renting rules have changed?

Not necessarily. The right time to buy depends on your deposit, income, credit position, property plans, buying costs and comfort with long-term mortgage commitments. Stronger tenant protections may give you more time to prepare properly.

Does the Renters’ Rights Act apply across the UK?

This article focuses on England. Housing law differs across the UK, so check the rules that apply in your nation before making decisions.

Does the Act affect buy-to-let mortgages?

It can affect landlord planning, but it does not remove normal buy-to-let lending criteria. Lenders still consider rental income, loan-to-value, property type, borrower profile and suitability of the property as security.

Do I need legal advice as well as mortgage advice?

You may do. A mortgage adviser can help with borrowing and lender criteria. Legal or housing advice is needed for tenancy disputes, eviction notices, rent challenges or landlord obligations.