Renters' Rights Act 2025: Should Older Landlords Consider Equity Release Instead?

What the Renters' Rights Act 2025 actually changes

The Act came into force on 1 May 2026. Its headline measures represent the most significant shift in the private rented sector since the Housing Act 1988. The key changes for landlords are:

• No-fault evictions abolished: Section 21 notices are gone. Landlords can only regain possession on defined grounds — non-payment of rent, breach of tenancy terms, or genuine intent to sell or redevelop, subject to process and notice periods.
• Open-ended tenancies: All new tenancies are periodic from the outset. Fixed-term tenancies no longer exist in the private rented sector.
• Rent increase restrictions: Landlords can increase rent no more than once per year and must give two months' written notice. Tenants have the right to challenge increases at a tribunal.
• Extended exit timelines for sellers: Landlords selling with sitting tenants face a minimum 12-month tenancy period plus a minimum four months' notice before a possession order can take effect. The time from decision to completed sale has lengthened materially.

These changes do not prevent landlords from selling. They make it slower, more process-dependent, and more costly — particularly for older landlords who may have hoped for a clean, prompt exit.

The landlord sentiment shift is significant

The change in sentiment among existing and potential landlords has been marked. According to Barclays research published in April 2026, 69% of homeowners said they would not want to become a landlord given the costs and complexity now involved in managing rental property.

For those already in the market, particularly older landlords who entered buy-to-let in the 1990s and 2000s as a retirement income strategy, the calculus has changed. Rising maintenance costs, mandatory compliance requirements (EPC ratings, smoke and carbon monoxide alarms, deposit protection, right-to-rent checks), and now extended exit timelines have made the ongoing management burden heavier.

Many older landlords are now asking a straightforward question: is there a way to access capital for retirement without managing property, navigating tenant disputes, or waiting 18 months to complete a sale?

How equity release could work as an alternative

Equity release is not a replacement for a sold buy-to-let portfolio in most cases. It is a separate product, secured against your primary residence, not a rental property. But for over-55 homeowners who own their main home outright or with a limited outstanding mortgage, it could release meaningful tax-free capital without requiring the sale or management of any additional property.

The two main products are:

• Lifetime mortgage: A loan secured against your home, with no mandatory monthly repayments. Interest rolls up over the life of the loan and is repaid, along with the capital, when you die or move into long-term care. You retain ownership of your home throughout.
• Retirement interest-only (RIO) mortgage: A mortgage where you pay only the monthly interest, with the capital repaid when the property is sold at the end of the term. Monthly payments remain manageable because no capital is being repaid.

Both products are regulated by the FCA. Both require a formal advice process from a qualified adviser before any recommendation is made. Neither requires you to manage tenants, deal with disputes, or navigate evolving tenancy legislation.

For an older homeowner who has been relying on rental income for retirement and is now weighing the costs and difficulty of continued landlord activity, equity release could release a lump sum or regular drawdown from primary property wealth — providing retirement income without the operational burden.

Inheritance tax and estate planning: factor these in

Equity release reduces the value of your estate. A lifetime mortgage with rolled-up interest will reduce what you leave to beneficiaries, and — depending on the size of your estate — this may or may not work favourably from an inheritance tax perspective. It is not automatically good or bad; it depends on your overall position.

If you are an older landlord with a buy-to-let portfolio, your estate may already be above the inheritance tax threshold. Equity release on your primary residence changes the estate value calculation further. This makes specialist advice essential, not optional.

A Verity Home adviser will not make a recommendation in isolation. We work with clients who have broader financial and legal advisers and can coordinate where needed to ensure the whole picture is considered. No obligation — and no recommendation without the information to make it properly.

Is equity release suitable for every older landlord considering their options?

No. Equity release is not suitable for everyone, and Verity Home will not recommend it where it is not the right solution. It requires owning an eligible primary residence, meeting lender age and property criteria, and having a clear picture of how the product fits your financial needs and estate wishes.

However, for older homeowners who own their main home with significant equity, who are finding continued buy-to-let management increasingly burdensome under the new legislative environment, and who want to access capital in later life without a forced or rushed sale, equity release is a regulated option worth properly understanding.

The point is not to sell one thing and replace it with another without thinking. The point is to ensure you are making an informed choice — with FCA-regulated advice — about how to manage your wealth in later life.