The Renters’ Rights Act 2025 has now received Royal Assent, marking the most significant change to the private rented sector in decades. One of its headline reforms is the creation of a compulsory national database of landlords and their properties. Below, we explain what the Act establishes, how public authorities such as local councils and HMRC are expected to use it, and whether it’s time for landlords to maintain detailed, compliant tenant databases themselves.
1) What the Act actually creates
The Act introduces a Private Rented Sector (PRS) Database.
Every landlord of an assured or regulated tenancy will be required to register both themselves and each property they let. A landlord cannot legally market or let a property unless these entries are in place, and non-compliance will attract civil penalties.
Each registration will have a unique identifier for the landlord and for each property. These identifiers will need to appear on marketing materials and tenancy adverts. Importantly, a landlord will not be able to obtain possession through the courts (except for very limited grounds such as serious antisocial behaviour) unless their database entries are active.
The database replaces the current “rogue landlord” register and is intended to bring transparency and accountability across the sector.
Its primary objectives are:
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To help tenants verify that a landlord is legitimate.
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To give local authorities consistent intelligence for enforcement.
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To improve data sharing across central and local government.
2) Who will use the database—and why it will be irresistible
Local authorities:
Councils are expected to make extensive use of the new data. It will enable them to identify who owns or manages properties in their area and to target enforcement more efficiently. The Act strengthens local authorities’ investigatory powers, and the database will underpin this new enforcement model.
Tenants and advocacy bodies:
Renters will be able to check whether their landlord is registered and compliant. This transparency should improve standards and reduce the likelihood of tenants being misled or mistreated.
HMRC:
Although the Act does not explicitly grant HMRC direct access, the existence of a national, property-level record of landlords will inevitably attract attention. HMRC’s data systems already cross-reference Land Registry, Companies House and council tax information to identify undeclared rental income. The PRS database will provide another source of structured, verifiable data to support compliance work. It is almost certain that HMRC will use it to cross-check declared property income against what’s visible in the database.
Other potential users:
Redress schemes, ombudsmen and other regulators will use it to confirm landlord membership and compliance. Insurers, lenders and utility providers may also make lawful use of published data to verify ownership and occupation status.
3) What landlords should do now
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Get organised early.
Compile accurate property lists and ownership details so you can register quickly once the secondary regulations take effect. -
Check your tax position.
If any rental income has been under-declared in the past, consider making a voluntary disclosure. Once HMRC starts cross-checking database entries, inconsistencies will be easy to identify. -
Prepare your marketing materials.
Adverts will need to show your registration number and possibly other compliance details. Build this into your standard workflows. -
Review your redress and compliance memberships.
The new system will link landlord registration to mandatory redress and complaint schemes, so make sure your memberships are valid and up to date.
4) Should landlords create a detailed tenant database?
With regulators and tenants gaining access to better information, landlords should consider improving their own data management. A properly designed tenant database can replace or supplement traditional landlord referencing — but only if it complies with data protection law.
Information you can lawfully keep:
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Tenant identity and contact details.
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Right-to-rent verification and tenancy term details.
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Rent payment and arrears records.
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Maintenance or complaint histories.
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Deposit, safety and compliance certificates.
Lawful bases for processing typically include contract, legal obligation, and legitimate interests. You should record which applies to each category of data.
Information to avoid:
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Special category data such as health or religion.
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Subjective personal notes or unverified allegations.
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Data kept longer than necessary.
GDPR compliance essentials:
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Register as a data controller with the Information Commissioner’s Office (ICO).
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Maintain a record of processing explaining what you collect and why.
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Provide tenants with a clear privacy notice.
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Implement secure storage, encryption, and access controls.
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Be ready to handle subject access requests and deletion requests within statutory timeframes.
5) Tenant database vs traditional references
Traditional referencing relies heavily on previous landlord feedback and credit checks. While useful, these can be inconsistent or incomplete. A structured internal database gives you:
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Continuity between tenancies.
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Objective evidence of tenant conduct and payment history.
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Clear audit trails to defend decisions or respond to disputes.
However, third-party referencing still offers value in credit and affordability checks, fraud prevention, and verification against national databases. The best approach is a hybrid model — maintain your own compliant tenant records while using specialist services for credit and ID verification.
6) Key takeaways
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The Renters’ Rights Act 2025 makes landlord and property registration mandatory.
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Local authorities will use the data for enforcement, and HMRC is almost certain to use it for tax matching.
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Landlords should prepare by cleaning up records, checking tax compliance, and reviewing memberships.
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Building a GDPR-compliant tenant database can enhance professionalism and provide better continuity than traditional referencing alone — provided it is lawful, minimal, and secure.
Disclaimer: NetRent does not provide legal advice. This article represents our understanding of rental property law as at 4 November 2025. Always seek advice specific to your circumstances.
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