Thinking of buying a property? What the Renters’ Rights Act means for you

If you’re planning to buy a property, whether to live in or as an investment, the Renters’ Rights Act 2025 brings some important changes to be aware of. Some simplify the process, while others mean you’ll need to plan more carefully before committing. Here’s what you need to know.

Leasehold purchases are now simpler

Previously, some leasehold properties had a legal complication known as the “AST trap,” where unpaid ground rent could, in certain cases, allow a landlord to reclaim the property. This often worried lenders and caused delays.

The new law removes this issue entirely, meaning:

• Fewer delays for leasehold purchases.
• Less chance of last-minute lender concerns.
• A more straightforward buying process overall.

Tenanted properties require extra care

From May 2026, landlords cannot evict tenants without a valid legal reason. If you buy a property with someone already living in it, you inherit the tenancy. You can only ask a tenant to leave under specific legal grounds, and the process may take time.

Key points for buyers:

• Never assume a property will be vacant on completion.
• Agree with the seller in advance if vacant possession is required.
• Always view the property before exchange to confirm the tenant has vacated.
• Your solicitor will help ensure these arrangements are legally documented.

Understanding tenant rights and necessary checks

Tenancies are now open-ended, meaning tenants can leave at any time, provided they give proper notice. This adds flexibility for tenants but may affect buyers:

• Rental income could be less predictable.
• Timing for moving in may be uncertain.

If the property is rented out, your solicitor will now carry out more detailed checks, including:

• Whether rent is being paid consistently.
• Any ongoing tenancy issues.
• Potential ways to regain possession if required.

This ensures there are no surprises after purchase.

Buying as an investment

If you plan to rent out the property, the law provides tenants with more security. This may make ending tenancies harder and rental income less predictable, but it doesn’t prevent buy-to-let investments; it just requires careful planning.

Bottom line

The Renters’ Rights Act is designed to give tenants greater stability. For buyers, it means being prepared and informed.

Key takeaways:

• Leasehold purchases: simpler and faster.
• Tenanted properties: require careful review.
• Vacant possession: never assume.

Our advice:

• Check early if a property is tenanted.
• Clarify if vacant possession is required.
• Take legal advice before committing.

A little preparation at the start can make the entire process smoother and less stressful.

Written by Dan Hickey, Chief Risk Officer, PLS Solicitor