Insight

The Renters’ Rights Act 2025: Key Implications for Landlords

Image of WrothamPark108

The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, introduces the most significant overhaul of the private rented sector since 1988.

Its purpose is to strengthen tenant protections and modernise the sector, while placing greater regulatory and administrative obligations on landlords. These reforms will apply from 1 May 2026 and will impact almost every private tenancy in England and will apply to both new and existing tenancies.

Renters’ Rights Act Overview

Under the new system, Assured Shorthold Tenancies and fixed terms will be abolished, replaced entirely by Assured Periodic Tenancies. Section 21 “no-fault” evictions will end, and landlords will instead use revised Section 8 grounds to regain possession. Rent increases will be limited to once per year through a formal Section 13 process, and rental bidding will be prohibited. Restrictions on advance rent payments will also apply, alongside new protections preventing discrimination against tenants with children or those receiving benefits. Tenants will gain the right to request pets, and landlords will be required to consider such requests reasonably.

Key Changes from 1 May 2026

Phase one All existing tenancies will convert to the new system. Landlords must use updated written tenancy agreements for all new tenancies and must issue compliant written terms for any existing tenancy that currently lacks one. Landlords will also need to provide tenants with a government-issued information sheet explaining the reforms. Phase two will be brought in from late 2026 and will introduce mandatory registration of Landlords on the Private Rented Sector Database and require membership of a government-approved Landlord Redress Scheme.

End of Fixed Terms and New Possession Grounds

Fixed-term tenancies will no longer be available, with all tenancies becoming monthly periodic agreements from the outset. Tenants can end their tenancy at any point by giving two months’ notice, including from the first day of occupation. Landlords, however, will be restricted from serving notice in the first 12 months unless the tenant has breached the agreement.

Possession will be sought entirely through strengthened Section 8 grounds. Landlords will be able to regain possession if they intend to sell, need the property for themselves or close family members, or require it for an employee or carer. Grounds relating to rent arrears, anti-social behaviour and redevelopment have also been expanded. Notice periods are being revised: selling or moving in will require four months’ notice and cannot occur within a tenant’s first eight months.

Rental Payments

Rental bidding will be banned, ensuring a more transparent approach to setting rents. Rent must be paid monthly, and landlords will not be permitted to request advance rent before a tenancy agreement is signed, though tenants may still choose to pay in advance voluntarily. Deposits may be taken before the tenancy start date, but they must be protected before possession action can begin.

Rent Reviews

Rent reviews will follow a more regulated process. Landlords may increase rent once every 12 months using a Section 13 notice, giving tenants two months’ notice of the proposed increase. Any rent adjustment must be in line with local market values, and tenants may request evidence to substantiate the proposal. Tenants retain the right to challenge increases at the rent tribunal, and landlords should be aware that rent cannot be applied retrospectively under any circumstances.

Tenant Discrimination and Pets

The Act prohibits landlords from refusing tenancies on the basis that applicants have children or are in receipt of benefits. Tenants will also have the right to request permission to keep pets, and landlords must not unreasonably refuse.

Landlord Ombudsman and PRS Database

From late 2026, landlords will be required to register themselves and their properties on the Private Rented Sector Database. Membership of the new Landlord Ombudsman will also be compulsory. These measures form part of a wider effort to improve standards, increase transparency and accountability and ensure a consistent approach to dispute resolution across the sector. Failure to register or comply may result in significant financial penalties.

Housing Standards Reforms

The Decent Homes Standard will be extended to the private rented sector, requiring landlords to meet minimum property standards. Awaab’s Law will also be expanded to include private landlords, imposing strict timeframes for resolving serious hazards once implemented following consultation between 2035 and 2037. These changes are expected to raise expectations around property maintenance and compliance.

Other Key Changes

The Act also affects student lettings, including Non-Purpose Built Student Accommodation. Student tenants will have the same right to end their tenancy with two months’ notice, which may impact typical academic-year letting cycles. To rely on certain Section 8 grounds, landlords must ensure tenancy agreements clearly state that the property is intended for student use.

Exceptions will apply for company lets and tenancies with annual rents over £100,000.

Mitigation and Compliance for Landlords

In light of more stringent regulation, landlords will need to prioritise compliance, improve referencing processes and maintain clear, accurate records. Ensuring that properties meet required standards and that all documentation is up to date will be essential. Failure to comply may result in fines of up to £7,000 for initial breaches, rising to £40,000 for repeated or serious offences.

Likely Market Consequences

The reforms are expected to influence market behaviour, with many predicting upward pressure on rents as landlords adjust to increased regulation and reduced flexibility. Referencing may become stricter due to limits on advance rent, and rent reviews will likely require or rely on stronger supporting evidence. Increased property inspections and earlier intervention in cases of breach are anticipated. Some smaller landlords may decide to exit the market, creating opportunities for larger or more professional landlords and potentially narrowing the supply of rental property.

Contributors:

Get in touch

501851

Jo Gadd

Associate, Rural

Jo keeps her finger on the pulse of the ever-changing world of property management and the associated myriad of regulations

Read more
300204

Helen Brockington

Senior Rural Surveyor

Helen is a Senior Rural Surveyor within our rural department.

Read more

Contributors:

Search Bidwells