RENTERS’ RIGHTS ACT 2025 – FULL GUIDE FOR LANDLORDS AND TENANTS
Thursday December 11, 2025
Effective from 1 May 2026
The Renters’ Rights Act 2025 will officially come into force on 1 May 2026, marking the most significant reform to England’s private rented sector in more than 30 years. Designed to create a fairer, more transparent rental system, the Act will fundamentally reshape the way tenancies operate, how landlords can manage and regain possession of their properties, and the level of protection afforded to tenants.
Overview
The new legislation replaces the long-standing Assured Shorthold Tenancy model with open-ended agreements, removes “no-fault” evictions, strengthens council enforcement powers, regulates rent increases, and introduces new rules on discrimination and pet ownership.
Its aim is to balance the relationship between landlords and tenants, ensuring stability and fairness while still allowing landlords to recover their properties when they have legitimate reasons to do so.
The Act affects every private rented property in England — whether owned by individual landlords, corporate landlords, or managed through agents — and will have a phased implementation period leading up to 2028.
Key Implementation Dates
- 27 October 2025 – The Act received Royal Assent, making it law.
- 27 December 2025 – Local councils gain new enforcement and investigatory powers.
- 1 May 2026 – Core reforms come into force, including the abolition of Section 21, new tenancy structures, rent increase limits, and fair access measures.
- Late 2026–2028 – The rollout of the new Landlord Database and the Private Rented Sector Ombudsman.
- 2035 onwards – Expected introduction of the Decent Homes Standard for all privately rented properties.
Major Changes from 1 May 2026
- End of Section 21 “No-Fault” Evictions
The most publicised reform is the complete removal of Section 21. From 1 May 2026, landlords will no longer be able to evict tenants without giving a valid legal reason.
- Any Section 21 notices issued before May 2026 must have court proceedings initiated by 31 July 2026 to remain valid.
- Thereafter, possession can only be sought under the new, reformed Section 8 grounds — which require specific justification, such as rent arrears, anti-social behaviour, or the landlord’s need to sell or move back in.
- All future tenancies will be governed by a single open-ended tenancy system, removing the concept of fixed-term ASTs.
This means tenants will have significantly greater security, while landlords will need to ensure that all possession claims are properly evidenced and legally justified.
- Move to Open-Ended Periodic Tenancies
The Assured Shorthold Tenancy (AST) model — in use since the late 1980s — will be abolished. All tenancies will automatically convert into Assured Periodic Tenancies, creating a new norm of open-ended renting.
- Tenants will be free to end their tenancy at any point by providing two months’ written notice.
- Landlords will only be able to end a tenancy using approved statutory grounds.
- There will be no fixed end date or renewal period; tenancies will roll on automatically.
- Landlords are no longer permitted to charge renewal fees, as “renewals” will no longer exist.
This reform is intended to provide tenants with genuine housing stability and flexibility while maintaining landlords’ rights to recover their properties for legitimate reasons.
- Reformed Grounds for Possession
With Section 21 gone, the Act introduces new and amended Section 8 possession grounds, creating a clearer, evidence-based framework for regaining possession.
These include:
- Serious or persistent rent arrears – where tenants repeatedly fail to pay rent or accrue significant arrears.
- Anti-social behaviour – where tenants cause persistent nuisance or engage in behaviour that impacts others.
- Landlord’s need to sell or move into the property – allowing landlords to recover possession if they intend to sell or move in themselves (or house a close family member).
- Breach of tenancy obligations – such as property damage or unauthorised subletting.
The process for applying for possession will remain court-based, but landlords will need detailed documentation and evidence to support their case. This makes strong record-keeping and communication essential.
- Rent Increase Regulations
The Act introduces strict controls on how and when rent can be increased:
- Rent can only be increased once every 12 months.
- Landlords must give a minimum of two months’ written notice before an increase takes effect.
- Rent increases must follow a standard procedure and use prescribed government forms.
- Tenants may challenge unreasonable increases that do not reflect fair market value.
This is designed to prevent unexpected rent hikes and encourage transparent, predictable rental pricing across the sector.
- Ban on Rent Bidding and Advance Rent Limits
To prevent unfair competition between tenants and inflated market pricing:
- Rent bidding — where landlords or agents encourage tenants to offer more than the advertised rent — will be illegal.
- Landlords will be prohibited from requesting more than one month’s rent in advance.
- Deposits will remain capped at five weeks’ rent for annual rents under £50,000, or six weeks’ rent for higher rents.
This ensures a level playing field in the market and prevents excessive upfront costs for tenants.
- Fair Access to Housing and Pet Ownership
New fairness provisions are designed to make renting more inclusive and accessible:
- Landlords and agents cannot refuse to rent to tenants purely because they have children or receive housing benefits.
- Tenants have a statutory right to request permission to keep a pet.
- Landlords must consider all pet requests and cannot unreasonably refuse.
- Landlords can, however, require tenants to take out pet damage insurance or agree to specific pet-related terms to cover any potential wear and tear.
These measures are aimed at reducing discrimination in the rental market and modernising attitudes toward family and pet-friendly housing.
- Strengthened Council Enforcement Powers
Starting 27 December 2025, local councils will have enhanced powers to enforce the new laws. These include:
- The ability to access and inspect private rented properties.
- Increased civil penalty limits for non-compliance.
- Expanded rent repayment orders for tenants affected by unlawful behaviour.
- Power to compel landlords to provide documentation and information upon request.
This represents a major step toward stronger local enforcement and higher professional standards across the sector.
- Future Reforms (2026–2035)
Beyond 2026, several other reforms will follow:
- Private Rented Sector Database – every landlord will be required to register their properties on a central database, providing key compliance and contact details.
- Private Landlord Ombudsman – an independent body offering free dispute resolution between landlords and tenants. Membership will be mandatory.
- Decent Homes Standard – expected to become law by the mid-2030s, introducing minimum housing quality requirements across all rented homes.
These measures aim to build a more transparent, accountable, and professional private rented market in the years ahead.
What Landlords Should Do Now
With less than a year until the main reforms begin, landlords should start preparing immediately.
- Review all tenancy agreements – Identify which tenancies will automatically convert to periodic and remove unnecessary fixed-term renewals.
2. Update documentation and procedures – Prepare new tenancy templates, updated notice forms, and rent review procedures.
3. End reliance on Section 21 – Familiarise yourself with the new Section 8 grounds and ensure you can evidence any future possession claims.
4. Train staff or agents – Everyone involved in lettings must understand the new compliance rules, notice procedures, and rent controls.
5. Check marketing and payment policies – Remove rent bidding practices and advance rent requirements exceeding one month.
6. Organise your compliance files – Keep all gas, electrical, and safety certificates readily accessible for potential council inspections.
7. Budget for upcoming registration fees – Prepare for mandatory database registration and ombudsman membership once launched.
Landlords who act early will adapt smoothly and protect their business from future enforcement risks.
What Tenants Should Expect
Tenants will experience a more secure, transparent, and balanced renting environment:
- No more arbitrary or “no-fault” evictions.
- Freedom to leave with two months’ notice.
- Controlled rent increases, with the right to challenge unfair rises.
- Greater protection from discrimination.
- The right to request a pet and receive a fair response.
Tenants are encouraged to maintain good communication with landlords, keep clear records of rent payments, and familiarise themselves with their new rights under the Act.
How Auckland Estates’ Lettings Team Can Help
The upcoming changes will reshape how the entire lettings process operates. At Auckland Estates, our experienced Lettings and Property Management team is already preparing for the transition to ensure our landlords and tenants are fully supported.
For Landlords
We will:
- Review and update tenancy agreements in line with the new legislation.
- Advise on correct notice procedures and possession grounds.
- Implement compliant rent review systems.
- Audit your portfolio to ensure all legal requirements are met before May 2026.
- Assist in preparing for council inspections and database registration.
- Provide ongoing training and guidance to ensure continued compliance.
For Tenants
We will:
- Explain your new rights and obligations in clear, practical language.
- Provide advice on rent reviews, notice periods, and tenancy security.
- Assist in resolving disputes or concerns under the new framework.
- Offer transparent guidance on deposits, rent payments, and fair access requests.
With over four decades of experience serving Potters Bar and the surrounding areas, Auckland Estates is ideally placed to guide both landlords and tenants through the transition to the Renters’ Rights Act with professionalism, expertise, and confidence.