Understanding the Renters’ Rights Act - What the new tenancy rules mean for landlords
The Renters' Rights Act 2025 represents the most significant reform of the private rented sector in England in more than 30 years.
The legislation introduces major changes to tenancy structures, rent increases, eviction processes, and landlord compliance requirements. Many provisions are expected to begin from May 2026, with additional measures introduced in phases afterwards.
Landlords and letting agents should begin preparing now to ensure they understand the new framework and remain compliant once the reforms come into force.
PHASE 1: FROM 1 MAY 2026
The following measures are expected to take effect from 1 May 2026.
ABOLITION OF “NO-FAULT” EVICTIONS
One of the most significant changes introduced by the legislation is the removal of Section 21 “no-fault” eviction notices.
Previously, landlords could regain possession of their property without providing a specific reason. Under the new legislation, this will no longer be possible.
Instead, landlords must rely on Section 8 notice, which requires a valid legal ground for possession, such as:
- Serious rent arrears
- Anti-social behaviour
- The landlord intending to sell the property
- The landlord or a close family member moving into the property
- Major redevelopment or refurbishment works
This reform is intended to increase security for tenants while maintaining legitimate routes for landlords to recover their property when necessary.
END OF FIXED-TERM TENANCIES
Traditional Assured Shorthold Tenancies (ASTs) will be replaced with Assured Periodic Tenancies (PRS).
This means:
- Tenancies will run indefinitely on a rolling basis
- Tenants will be able to leave by giving two months’ notice
- Landlords must rely on Section 8 possession grounds to regain possession
The aim is to provide tenants with greater stability and flexibility within the private rented sector.
SECTION 8 POSSESSION GROUNDS
With the removal of Section 21, Section 8 possession grounds will become the primary legal route for landlords to recover their property.
Below are some of the most common grounds.
- Rent arrears
Rent arrears remain one of the most frequently used grounds for possession.
Under the reforms:
- The threshold for mandatory eviction will increase to three months of rent arrears
- The notice period will increase to four weeks
Landlords may also rely on discretionary grounds for persistent late payment, even if arrears fall below the mandatory threshold.
- Landlord intends to sell the property
A new possession ground will allow landlords to regain possession where they genuinely intend to sell the property.
Key points include:
- Four months’ notice period
- The ground cannot be used during the first 12 months of a tenancy
- The property generally cannot be re-let for 12 months after possession, unless genuine sale efforts are underway
- Landlord or family member moving into the property
Landlords may recover possession if they or a close family member intend to move into the property.
Conditions include:
- Four months’ notice period
- The ground cannot be used within the first 12 months of the tenancy
- Evidence may be required to demonstrate genuine intention to occupy
- Anti-social behaviour
Serious anti-social behaviour remains one of the strongest possession grounds.
Examples include:
- Criminal behaviour
- Violence or harassment
- Persistent nuisance affecting neighbours
In serious cases, landlords may begin possession proceedings immediately without notice.
- Breach of tenancy agreement
Landlords may also apply for possession if a tenant breaches the tenancy agreement, for example by:
- Causing damage to the property
- Subletting without permission
- Allowing overcrowding
These cases are generally discretionary, meaning the court will determine whether possession is justified.
TRANSITION FROM EXISTING TENANCIES
When the legislation comes into force, existing tenancies will gradually transition into the new periodic system.
This means that:
- Current fixed-term tenancies will automatically convert into periodic tenancies
- Existing tenancy agreements will continue but terms inconsistent with the new law will no longer apply
- Section 21 notices will no longer be valid once the reform is fully implemented
Landlords should therefore review their tenancy documentation and ensure it aligns with the new legal framework.
RENT INCREASES
Rent increases will be more tightly regulated under the new legislation.
Under the new rules:
- Rent can only be increased once every 12 months
- Landlords must use the Section 13 statutory process
- A minimum of two months’ notice must be given
- Tenants may challenge the increase at the First-tier Tribunal if they believe it exceeds market value
Rent review clauses within tenancy agreements will no longer be valid as a mechanism for increasing rent.
BAN ON RENTAL BIDDING AND ADVANCE RENT
The reforms also introduce measures designed to create a fairer and more transparent rental market.
Landlords and agents will:
- Be prohibited from encouraging offers above the advertised rent
- Be restricted from requesting excessive rent in advance
These measures aim to prevent bidding wars and reduce barriers for tenants entering the rental market.
TENANT RIGHTS REGARDING PETS
Tenants will have the right to request permission to keep pets.
Landlords cannot unreasonably refuse such requests but may require pet damage insurance to protect the property.
Reasonable grounds for refusal may include:
- Restrictions within a superior lease (headlease)
- Where the property is unsuitable for pets
ANTI-DISCRIMINATION RULES
Landlords and letting agents will be prohibited from discriminating against prospective tenants:
- With children
- In receipt of benefits
Applicants must therefore be considered fairly regardless of these factors.
STUDENT TENANCIES
The government has proposed specific provisions to ensure the student housing market continues to function effectively.
Universities and landlords will still be able to let properties to students in line with the academic calendar. Certain grounds for possession may allow landlords to recover properties for future student cohorts.
Further guidance on the operation of student tenancies is expected as the legislation is implemented.
GUARANTOR ARRANGEMENTS
Guarantors will continue to play an important role within the private rented sector.
Under the new system:
- Guarantor agreements will still be permitted
- The scope and duration of guarantor liability may need to be clearly defined within tenancy documentation
- Guarantors may remain responsible for tenant obligations such as rent arrears or property damage
Landlords should ensure guarantor agreements are carefully drafted to reflect periodic tenancies.
LOCAL COUNCIL ENFORCEMENT AND RENT REPAYMENT ORDERS
Enforcement powers will be expanded, with a new requirement for local councils to report on enforcement activity.
Changes include:
- Rent Repayment Orders extended to superior landlords
- The maximum penalty doubled
- Repeat offenders required to pay the maximum penalty
From 27 December 2026, new investigatory powers will allow local councils to:
- Inspect properties
- Demand documents
- Access third-party data
These powers are intended to help authorities identify rogue landlords and enforce housing standards more effectively.
PHASE 2: FROM LATE 2026
LANDLORD PROPERTY PORTAL
A new national landlord database will be introduced.
Landlords will be required to:
- Register themselves and their rental properties
- Confirm legal compliance
- Provide property information for enforcement purposes
- Pay an annual registration fee (to be confirmed closer to launch)
PRIVATE RENTED SECTOR OMBUDSMAN
All landlords will be required to join a new independent Private Rented Sector Ombudsman scheme.
The Ombudsman will resolve disputes between landlords and tenants without the need for court proceedings.
Implementation will follow the launch of the Landlord Database, and efforts are being made to integrate both systems to minimise administrative burden for landlords.
Development of the Ombudsman will take place in two stages:
Stage 1
Preparation and system development, expected 12–18 months before implementation.
Stage 2
Mandatory membership for landlords. This is currently expected around 2028, once the government confirms the service is ready to operate.
PHASE 3: FUTURE HOUSING STANDARDS (Indicative implementation between 2035 and 2037)
DECENT HOMES STANDARD
The Decent Homes Standard will be extended to the private rented sector.
This will require rental properties to meet minimum safety, condition, and quality standards, similar to those already applied to social housing.
MINIMUM EPC RATING C
The government has consulted on proposals requiring privately rented properties in England and Wales to meet Minimum Energy Efficiency Standards (MEES) of EPC rating C or equivalent by 2030, unless a valid exemption applies.
AWAAB’S LAW
Awaab’s Law will require landlords to address serious health hazards within rented properties within defined timeframes.
The legislation aims to ensure that tenants can take action where dangerous conditions, particularly damp and mould, are not addressed promptly.
Further consultation will determine specific response times and enforcement procedures.