By Parma Dhillon, Director at Martin & Co Reading
The UK rental market is on the brink of one of the biggest changes in decades. If you’re a landlord in Reading, understanding the new Renters’ Rights Act isn’t just useful — it’s essential.
This legislation aims to shake up how renting works, promising more security for tenants and clearer responsibilities for landlords. But what does that mean in practice? And more importantly, what does it mean for you, as a landlord in one of the most in-demand rental locations in the South East?
Let’s explore what the Renters’ Rights Act involves, why it’s being introduced, and how you can stay ahead of the curve.
Understanding the Renters’ Rights Act
What is the Renters’ Rights Act?
The Renters’ Rights Act is a landmark piece of legislation being introduced by the UK Government to overhaul the private rented sector.
It includes proposals to:
- Scrap Section 21 ‘no-fault’ evictions
- Introduce a single system of periodic tenancies
- Strengthen grounds for landlord repossession under Section 8
- Expand the Decent Homes Standard to the private sector
- Launch a new digital Property Portal for landlords
- Introduce a mandatory Ombudsman for all private landlords
Why is it happening?
According to government data, over 11 million people in England now rent their home. As renting becomes a longer-term living arrangement for many, the government wants to make sure the sector is fair, transparent and functional for both tenants and landlords.
Many of the reforms respond to increasing pressure from renters’ groups and housing charities, with the government aiming to “deliver a fairer private rented sector” and improve standards across the board.
Key changes landlords need to know
Section 21 will be abolished
For many landlords, Section 21 has long been a tool to regain possession of a property without giving a specific reason.
Under the new rules, this will no longer be an option.
Instead, landlords will need to rely on revised Section 8 grounds. These include:
- Tenant rent arrears
- Anti-social behaviour
- Breach of tenancy
- Landlords wishing to sell the property or move in
While this creates more paperwork, it doesn’t remove your ability to repossess — it simply formalises the process.
All tenancies will become periodic
The new law will remove fixed-term tenancy agreements and replace them with periodic ones.
Tenants will be able to leave at any time with two months’ notice, but landlords must give a reason and follow a formal route to end the tenancy.
In areas like Reading, where tenants often stay long-term due to work and education, this may not cause much disruption. But void periods could become harder to predict.
Strengthened grounds for possession
To balance the removal of Section 21, the Section 8 process is being updated with stronger grounds for landlords.
These include:
- Easier recovery of possession if you or close family want to move in
- Clearer criteria around selling the property
- Lower threshold for repeated rent arrears (even if cleared in between)
This is good news for landlords who manage their tenancies professionally but need flexibility in certain circumstances.
New Decent Homes Standard
Currently used in the social housing sector, the Decent Homes Standard will be extended to private rentals.
This means your property must:
- Be free from serious health and safety hazards
- Be in a reasonable state of repair
- Have reasonably modern facilities
- Provide a reasonable degree of thermal comfort (e.g. insulation and heating)
Most Reading landlords already provide good-quality homes. But if you’ve been putting off that damp-proofing or boiler replacement, now’s the time to act.
Property Portal and Ombudsman scheme
All landlords will be required to:
- Register on a digital Property Portal
- Join a government-approved redress scheme
The aim is to create a central place for tenants to verify landlords, raise complaints, and check compliance.
How will this affect landlords in Reading?
A thriving rental market with growing pressures
Reading has long been a hotspot for renters. Its excellent rail connections to London, vibrant economy and world-class university attract a steady stream of professionals, students and families.
According to Rightmove’s Rental Price Tracker, the average rent in the South East rose by 9.1% year-on-year in 2024, with Reading among the top-performing commuter towns.
Zoopla also reports that demand for rental homes continues to outstrip supply, especially for 2- and 3-bed homes suitable for young families and sharers.
What landlords stand to gain
- Longer, more stable tenancies: Many tenants prefer the security offered by periodic contracts.
- Improved transparency: The Property Portal helps you show you’re a reputable landlord.
- Professional recognition: With higher standards, conscientious landlords can stand out more easily.
The potential challenges
- Reduced flexibility: No-fault evictions have allowed landlords to react quickly to changing circumstances. This option will be gone.
- Higher compliance costs: Upgrading homes to meet Decent Homes Standards or new energy efficiency targets (like EPC band C in future) could be expensive.
- More paperwork: From tenancy agreements to ongoing maintenance logs, expect a heavier admin load.
These shifts may particularly affect accidental landlords or those managing a single property without professional help.
Action plan: what landlords in Reading should do next
Review your tenancy agreements
If you’re still using outdated fixed-term contracts, it’s time to modernise. Make sure your agreements are compatible with a periodic tenancy framework.
Understand Section 8 processes
Speak to a legal advisor or trusted lettings agent (like us) about how to use Section 8 effectively. Knowing your rights and preparing your evidence will save time if you ever need to regain possession.
Inspect your property for compliance
Don’t wait for new rules to be enforced. Carry out a full inspection of your property and fix any known issues. Common red flags include:
- Faulty electrics
- Mould or condensation
- Broken heating systems
Prepare for the landlord register
Gather your property documentation now:
- Gas safety certificate
- Electrical installation condition report (EICR)
- EPC
- Tenancy deposit scheme (TDP) details
These will likely be required to register with the new Property Portal.
Consider professional property management
If your portfolio is growing or you’re short on time, working with a local letting agent can make a big difference.
At Martin & Co Reading, we offer:
- Full property management and compliance monitoring
- Reliable tenant sourcing and referencing
- Rent collection and arrears management
- Support with legal processes and Section 8 notices
Book a free rental valuation or speak to our team.
Is property still a good investment in Reading?
Yes — and possibly more than ever.
Despite upcoming changes, Reading continues to offer strong fundamentals for landlords:
- A high proportion of renters (over 35% of households, according to Census 2021 data)
- Consistent rental growth
- Strong capital appreciation, particularly in family homes and HMOs
In fact, the new rules may push out less committed landlords, creating more opportunity for professional investors who offer high-quality homes.
For landlords willing to stay informed, adapt, and invest in their properties, the outlook remains positive.
Final thoughts
As a letting agent with over two decades of experience in Reading, I understand that change in the rental sector can feel daunting. But this reform doesn’t have to be a setback.
With the right guidance, the Renters’ Rights Act can be a chance to improve your lettings strategy, attract better tenants, and increase long-term returns.
At Martin & Co Reading, we’re already helping landlords prepare for what’s ahead. Whether you need a simple rental health check or full property management, our team is here to support you.
Book your free rental valuation today.
