For landlords in South East London, the practical question is not whether to react, but how to run a compliant, well-documented tenancy that still protects a valuable investment. Good preparation should make the change more manageable, particularly for landlords who would rather not spend evenings dealing with paperwork, repairs and difficult conversations.

Rental reform updates: the changes now in force

The Renters’ Rights Act has brought major changes to renting in England. From 1 May 2026, assured shorthold tenancies have been replaced by assured periodic tenancies. This applies to new tenancies and, importantly, existing qualifying tenancies have moved into the new system too.

A periodic tenancy does not have a fixed end date. Tenants can generally leave by giving two months’ notice, while landlords must rely on a valid legal ground if they need to recover possession. This is the change most people associate with the end of Section 21, often called ‘no-fault’ eviction.

The aim is to give tenants more security. For responsible landlords, it also creates a stronger reason to get the tenancy, property condition, communication and record keeping right from the first viewing onwards. A possession case is much easier to manage when there is a clear paper trail.

Possession is still possible, but the route matters

The end of Section 21 does not mean a landlord can never regain their property. Landlords can use reformed possession grounds where there is a legitimate reason, including serious rent arrears, anti-social behaviour, a breach of tenancy, selling the property or moving in themselves or allowing a close family member to move in.

However, the grounds have specific conditions and notice requirements. In particular, landlords using the selling or moving-in grounds face restrictions at the beginning of a tenancy and may need to give a longer notice period than under the old system. These measures are designed to prevent the new grounds being used as a substitute for an unrestricted Section 21 notice.

This is where professional management becomes valuable. Before serving any notice, landlords should check the precise ground, evidence needed, correct notice period and all relevant tenancy paperwork. A procedural mistake can cause delay and additional cost.

Rent increases and rental bidding

Rent can be reviewed, but the process is more controlled. A landlord may normally propose one increase in a 12-month period through the formal Section 13 process, giving the required notice. The proposed rent must reflect the local market, and the tenant can challenge it through the tribunal if they believe it is above market level.

For landlords, that makes an evidence-based valuation more useful than ever. Comparable lets, property condition, presentation, transport links and demand in the immediate area all matter. In SE18, SE28 and SE2, rents can vary substantially between streets and property types, so broad London averages are rarely enough to support a pricing decision.

Rental bidding has also been prohibited. Letting a property for the advertised rent is now the safer starting point, rather than inviting applicants to offer more. This does not prevent landlords from selecting the most suitable applicant, subject to fair and lawful referencing, but it does mean advertised rents should be realistic from day one.

Landlords should also be mindful of restrictions on excessive rent in advance. Asking for large upfront payments to compensate for concerns about affordability can create compliance issues. Proper affordability checks, guarantor arrangements where appropriate and clear referencing are usually the more sensible route.

Pets, families and fairer access

The reforms strengthen tenants’ ability to request permission to keep a pet. Landlords must consider a written request and cannot refuse unreasonably. They can still assess the property, the type of pet and legitimate concerns such as lease restrictions, overcrowding or a risk of damage.

A blanket ‘no pets’ policy is therefore unlikely to be the best approach. A considered pet policy is more practical: establish what information is needed, respond within the legal timeframe, check the superior lease where relevant and record the decision clearly. In some cases, landlords may request suitable pet damage insurance or rely on tenancy deposit protection rules, but they should not assume every cost can simply be passed on.

The legislation also addresses discriminatory practices affecting renters with children and people receiving benefits. Landlords and agents should review adverts, application processes and instructions to ensure decisions are based on lawful, consistent criteria such as affordability, references and the suitability of the home.

What landlords should do now

The most effective response is to treat reform as an operational review, not a one-off document exercise. Start with every active tenancy. Confirm the tenancy type, rent, deposit protection, prescribed information, gas safety record, electrical safety report, Energy Performance Certificate, smoke and carbon monoxide alarms, repair history and communication records are in order.

Then review how you handle the moments that commonly lead to disputes: rent arrears, repair reports, access requests, complaints, pets and renewals. Under a periodic system, there is no routine fixed-term renewal date to prompt a conversation. Regular, respectful contact and timely maintenance become more significant.

For a landlord considering sale or future occupation of a property, planning also matters. Do not promise vacant possession to a buyer, book a move or rely on a possession timetable until you have taken advice on the appropriate ground and likely timescales. The right to seek possession is not the same as a guaranteed date for vacant possession.

It is also worth checking insurance and mortgage conditions. Some products were written around fixed terms or specific tenancy language. Providers may update their requirements as the market adjusts, and landlords should keep written confirmation of any changes.

The next stages of reform

Not every part of the new framework has arrived at once. Further measures, including the Private Rented Sector Database and a new landlord ombudsman service, are being introduced in stages. The Decent Homes Standard for the private rented sector and wider protections against serious hazards will also raise expectations around property condition.

The direction of travel is clear: landlords will need to show that their homes are safe, properly maintained and professionally managed. That should not be viewed solely as another compliance burden. Well-kept homes attract stronger applicants, reduce avoidable repair disputes and help protect long-term rental value.

The details and commencement dates for later measures can change through regulations, so landlords should avoid relying on old articles or social media summaries. Keep an eye on official announcements, and take tailored legal or property-management advice where a tenancy is complex.

A practical approach for tenants

Tenants should understand that greater security also comes with responsibilities. Pay rent on time, report repairs promptly and in writing, allow reasonable access for safety checks and repairs, and keep records of important conversations. If you wish to leave, check the notice required under your tenancy and give it clearly.

If a landlord proposes a rent increase or serves a possession notice, do not ignore it. Read the paperwork carefully and seek advice early if anything appears unclear. Acting quickly gives both sides more opportunity to resolve an issue before it becomes a formal dispute.

For many landlords, the reforms will reward the approach that already works best: fair rents, thorough referencing, well-maintained homes and calm, documented communication. Hi Residential can help local landlords put those habits into a dependable managed letting service, leaving them with a property investment that is easier to run and a tenancy relationship built to last.

That is particularly relevant in South East London, where values, tenant demand and property types can vary significantly between nearby streets. A well-priced flat close to transport may suit a professional tenant, while a family house with outside space can attract a very different market. The right investment is rarely the one with the loudest headline. It is the one whose numbers still make sense after the real costs are included.

Property investment London starts with a clear plan

Before arranging viewings, decide what the property needs to do for you. Are you aiming for dependable monthly income, long-term capital growth, a future family home, or a balance of all three? Each objective leads to different buying decisions.

An investor seeking income may prioritise a sensible purchase price, strong rental demand and low running costs. Someone focused on long-term growth may accept a lower initial yield for a location with enduring appeal, good connections and limited housing supply. There is no universal answer, but trying to pursue every goal at once often results in compromise.

Your ownership structure matters too. A personal purchase, a joint purchase and a company purchase can have different lending, tax and administrative implications. Speak to a qualified mortgage adviser and tax professional before committing, especially if this is not your first property. The cheapest-looking option at the point of purchase is not always the most suitable over several years.

Start with the tenant or future buyer

A useful question is simple: who will choose to live here, and why? Good investment decisions begin with the everyday experience of the occupier. They may value a manageable commute, reliable broadband, storage, nearby green space, schools, shops or a parking space. These practical points influence demand far more consistently than a newly painted feature wall.

In areas such as Woolwich, Plumstead, Abbey Wood, Thamesmead, Charlton and Eltham, buyers should look beyond broad area averages. Transport access, the condition of the immediate road, property layout and proximity to local amenities can all affect achievable rent and resale appeal. Viewing at different times of day can reveal traffic, parking pressure and noise levels that a daytime appointment may miss.

Look past the headline rental yield

Gross yield is a useful first filter. It is calculated by dividing the annual rent by the purchase price, then multiplying by 100. For example, annual rent of £21,600 on a £360,000 purchase produces a gross yield of 6 per cent.

But gross yield is not your return. Net yield is more meaningful because it allows for the costs of owning and letting the property. Those costs commonly include:

• mortgage interest and arrangement fees, where borrowing is involved
• management and letting fees
• service charges, ground rent and major works for leasehold homes
• insurance, maintenance, safety checks, voids and periods between tenancies
• tax, licensing or compliance costs where applicable

A higher gross yield can sometimes signal a property that needs frequent attention, attracts a narrower tenant pool or carries substantial service charges. Conversely, a home with a modest headline yield may be easier to let, simpler to maintain and better positioned for future resale. The important figure is the return after realistic costs, not the number used to market the opportunity.

Build a cautious forecast. Allow for repairs even if the property has recently been refurbished, and do not assume it will be occupied every day of the year. If the investment only works when rent rises immediately and nothing goes wrong, it is too finely balanced.

Check the lease before you fall for the flat

Many London investment properties are leasehold, so the lease deserves as much attention as the kitchen or view. Check the remaining lease term, annual service charge, ground rent provisions, planned works, restrictions on letting and the managing agent’s record. A building with major works on the horizon can alter your budget dramatically.

Ask for the relevant management information early in the process and have your solicitor review the detail. Short leases can affect mortgage availability and resale, while unusually high service charges can weaken the investment case. A cheaper flat is not necessarily better value if the ongoing commitments are difficult to predict.

Buy for demand, not just regeneration headlines

Regeneration can improve an area’s amenities, transport links and buyer interest, but it should support your decision rather than carry it. Large development plans can take years, change shape or already be reflected in local asking prices.

Instead, assess what is working now. Look at comparable rents for similar homes, the condition of available rental stock, how long suitable properties appear to remain advertised and whether the location appeals to the tenant group you want to reach. A local agent who is active in the area can help distinguish an ambitious asking rent from the rent a well-presented property is actually achieving.

For a buy-to-let, a practical layout often beats novelty. Two genuine bedrooms may offer more flexibility than one large bedroom and a box room marketed creatively. Natural light, usable storage, sensible heating and good condition all matter. If the property needs work, price the project with a contingency and consider the income lost while it is empty.

Finance, compliance and management are part of the investment

A property purchase does not end on completion. Mortgage affordability, deposit size and interest-rate changes should be tested before an offer is made. If you are using finance, ask whether the rent still covers the mortgage and core costs if rates rise or the property is empty for a period. Avoid relying on the lender’s maximum figure as proof that a purchase is comfortable.

Landlords also have legal responsibilities covering areas such as deposit protection, safety, repairs, right-to-rent checks and property standards. Requirements can change, and local licensing rules may apply depending on the property and tenancy arrangement. Keeping records, dates and certificates organised is essential, not optional.

Management is a commercial decision as well as a personal one. Self-managing can give you direct control, but it means dealing with maintenance, tenant communication, inspections and urgent calls yourself. A fully managed service adds a cost, yet can reduce the day-to-day burden and help keep compliance, repairs and tenancy administration on track. The best route depends on your time, confidence and distance from the property.

A property investment London checklist before offering

Before making an offer, bring the decision back to evidence. Confirm comparable sale prices rather than relying solely on the asking price. Obtain a realistic rental appraisal, understand every recurring cost and review the property’s tenure and condition. Then ask whether the property remains affordable if rent is lower than expected, a repair arrives early or a tenant leaves.

It is also worth checking the exit. Who is likely to buy this home in five or ten years? A property that appeals only to a very narrow group can be harder to sell when your circumstances change. Broad appeal, a sensible layout and a location with everyday convenience can protect flexibility.

Hi Residential can provide grounded local insight for investors considering homes across SE18, SE28 and surrounding South East London neighbourhoods, helping turn a listing price and projected rent into a more complete picture.

The most reassuring investment is not the one that promises perfection. It is the one you understand well: a property with genuine demand, costs you have allowed for and a plan that still feels workable when the market is less accommodating.