The 1st of May 2026 marked a turning point for every landlord operating in England. The Renters’ Rights Act 2025 introduced its main tenancy reforms, bringing the most significant overhaul of the private rented sector in a generation. For Southampton landlords – from HMO operators in Portswood to family let investors across Chandlers Ford, Romsey and the New Forest corridor – the rules have fundamentally changed.
The good news? Landlords who are informed, prepared and professionally supported are exceptionally well-placed to thrive. Southampton’s average private rent has risen 3.4% year-on-year to £1,257 per month as of August 2026, and the city holds the highest gross rental yield in the Southeast at approximately 6.42%. The fundamentals remain strong. What matters now is compliance.
What the Renters’ Rights Act 2025 actually means
The Act has introduced several landmark changes that affect every landlord in Southampton, regardless of portfolio size, property type or location.
Section 21 is gone – permanently.
Since 1 May 2026, Section 21 ‘no-fault’ evictions have been abolished. Landlords can no longer serve a Section 21 notice to recover possession of a property without providing a legally valid reason.
This applies to all tenancies – new and existing. Every Assured Shorthold Tenancy (AST) in existence before the commencement date has automatically converted to an Assured Periodic Tenancy. The main reforms apply to most assured private tenancies, with limited exceptions and transitional provisions for notices served before commencement.
Possession is still possible. Landlords can use the updated Section 8 process, which now includes a broader set of grounds – including a new mandatory ground for landlords wishing to sell or move into the property. However, the process requires proper notice, correct documentation and, in many cases, a court hearing. Getting this wrong can be costly.
How rent increases now work
The revised Section 13 process governs all rent increases for Assured Periodic Tenancies. The key rules are straightforward:
Landlords may only increase rent once per year. A minimum of two months’ written notice must be given to the tenant, using the prescribed government form. Tenants retain the right to challenge proposed increases at the First-tier Tribunal if they believe the increase exceeds the market rate.
Informal rent increase clauses written into older tenancy agreements are no longer valid. If you have been relying on a contractual rent review mechanism rather than the Section 13 process, this needs to change immediately.
What this means for Southampton’s key rental submarkets
Southampton is not a single, uniform rental market. It is a city of distinct neighbourhoods, each with its own tenant profile, demand drivers and compliance considerations.
Student HMO landlords in Portswood (SO17)
Portswood is home to one of the most active student rental markets in the South East, sitting adjacent to the University of Southampton’s campus and serving a student population of approximately 24,000. HMO landlords here face a layered compliance picture.
The Renters’ Rights Act applies to all HMO tenancies, including student lets. The abolition of fixed-term tenancies – a cornerstone of the student letting model – means landlords can no longer guarantee vacant possession at the end of a fixed term. Students will now have the right to give two months’ notice to leave, but landlords cannot force them out via a Section 21.
HMO landlords in Portswood should review their licensing obligations, tenancy agreements and possession strategy with a specialist lettings agent without delay.
Professional let landlords in Bitterne Park (SO18)
Bitterne Park has seen some of the strongest rental growth in Southampton, with house rents surging 17.6% year-on-year. Professional tenants in this area tend to be longer-term, and demand remains robust.
For landlords here, the Section 13 rent increase process is particularly relevant. With rents rising at this pace, it is essential that any increase is served correctly – using the right form, with the right notice period – to avoid a challenge at the tribunal or, worse, an invalid notice that delays a legitimate rent review.
Family property landlords across the wider Southampton area
Across Chandlers Ford, Hedge End, Romsey, North Baddesley, Totton, Hythe, Marchwood and into the New Forest corridor – including Lyndhurst, Lymington, Beaulieu and Ashurst – family rental properties are in consistent demand.
These longer-term tenancies may feel lower-risk, but they are equally subject to the Act’s requirements. Landlords with properties across Eastleigh, Bursledon, Netley, Hamble, Botley and West End should ensure all tenancy documentation has been reviewed and updated to reflect the new legislative framework.
The Private Rented Sector database: the phased rollout planned from late 2026
Alongside the Act’s tenancy reforms, the PRS Database is planned to roll out in phases from late 2026. In September 2026, the government has not set a universal December registration deadline or confirmed a £65 annual fee; check the applicable local timetable and final fee guidance.
This is not optional. Failure to register will affect a landlord’s ability to serve valid possession notices and could result in financial penalties. If you own multiple properties across areas such as Rownhams, Nursling, Chilworth, Otterbourne or Ampfield, each property will need to be registered individually.
Martin & Co Southampton is already preparing clients for this requirement. We will guide you through the registration process and ensure your portfolio remains fully compliant when the registration requirements apply locally.
Why landlord exits are creating an opportunity for those who stay
Approximately 39% of Southampton landlords have paused or exited the private rented sector in response to legislative and tax pressures. That is a significant reduction in supply at a time when tenant demand across Southampton – from Portswood to Plaitford, from Awbridge to Applemore – remains exceptionally strong.
For compliant, professionally managed landlords, this represents a genuine competitive advantage. Fewer properties mean lower void periods, stronger tenant choice and sustained rental growth. The landlords who remain and who manage their portfolios correctly are in a powerful position.
The risk is not the legislation itself – it is being unprepared for it.
How Martin & Co Southampton supports landlords through every change
Martin & Co has been supporting landlords for over 30 years. Across our national network, we manage more than 41,000 properties and let 370 new properties every week. Our Southampton team combines that national expertise with genuine local knowledge of every postcode we serve – from SO17 to the New Forest.
Compliance built into everything we do
Our lettings service is built around compliance. We operate with government-approved tenancy deposit schemes, full client money protection insurance, and state-of-the-art tenant background checks. When legislation changes – as it has significantly with the Renters’ Rights Act – our team ensures your tenancy agreements, notices and processes are updated immediately.
We also offer guaranteed rental income and no legal bills as part of our premium managed service, giving landlords across Southampton complete peace of mind.
Service options tailored to your portfolio
Whether you own a single family home in Chandlers Ford or a portfolio of HMOs across Portswood and Hedge End, Martin & Co Southampton offers a service level to match your needs:
Premium Managed covers full management with rent and legal protection. Managed provides 24/7 peace of mind, compliance oversight, maintenance coordination and regular property inspections. Rent collection combines tenant finding with monthly rent collection. Tenant Find covers referencing, marketing and tenancy agreement preparation.
Every service includes access to our dedicated local team – your sole point of contact – who understand Southampton’s rental market from the inside out. Many of our lettings experts are landlords themselves.
Act now – the legislation is already in force
The Renters’ Rights Act 2025 is not on the horizon. It is already here. Every tenancy you hold, every rent increase you plan, and every possession you may need to seek is now governed by the new rules.
Southampton’s rental market remains one of the most rewarding in the South East, but it rewards those who are prepared. Whether you are an experienced portfolio landlord or someone letting a single property for the first time, the right support makes all the difference.
Martin & Co Southampton is here to make this straightforward. We will work with you every step of the way – reviewing your tenancy agreements, preparing you for the PRS Database registration, managing your rent increase notices correctly, and ensuring your portfolio is protected.
Get in touch with Martin & Co Southampton today to discuss your portfolio and find out how our fully managed lettings service can keep you compliant, stress-free and in a strong position for the years ahead.
Ready to understand what your property is worth in today’s market? Book a free, no-obligation valuation with Martin & Co Southampton and get expert insight from a team that knows your local area inside out.
