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The Renters' Rights Act 2025 (the 'Act') represents a major milestone in the transformation of England's private rented sector.
Although the Act received Royal Assent on 27th October 2025, its provisions will not arrive all at once. Instead, the reforms will begin to take effect in stages throughout 2026, with the most transformative changes commencing on 1st May 2026.
Together, these measures reshape not only how tenancies begin and end but also how rent is set, how disputes are resolved, and the degree of administrative oversight required by landlords.
It is imperative therefore that landlords evaluate their residential rental portfolios now and assess whether they wish to terminate any tenancies or increase rents.
Abolition of Section 21 and the End of Fixed-Term Tenancies
On 1st May 2026, the long standing structure of assured shorthold tenancies and fixed terms will come to an end. From that point onward, all new and existing private tenancies will automatically become open-ended assured periodic tenancies. These tenancies have no fixed duration, continue indefinitely, and can be ended by tenants at any time with two months' notice. Landlords will no longer be able to end a tenancy without reason by way of a section 21 notice because the Act abolishes the entire 'no fault' eviction regime.
Instead, landlords seeking possession will have to rely on the amended section 8 Housing Act 1988 grounds, which include matters such as persistent anti-social behaviour, the landlord's intention to sell, or the need for the landlord to move in. The abolition of fixed terms removes the predictability landlords have relied on for decades, mirroring a system similar to the Scottish private rental model, where open-ended tenancies have already become the norm.
The end of section 21, however, is subject to a short transitional period. A landlord may still serve a section 21 notice before 1 May 2026, but if they do so, they must issue court proceedings no later than 31st July 2026. After that date, any section 21 notice where the landlord has not begun proceedings will be invalid and landlords must use the new grounds for possession.
This means that while 1st May 2026 marks the legal end of section 21 for new notices, the courts will continue to process cases for a limited time, bringing a definitive close to the familiar flowcharts and guidance that have governed possession practice for almost forty years.
Rent Reviews and Financial Planning
Major changes to rent regulation will also come into force on 1st May 2026. Rent can thereafter only be increased once per year and only through the statutory section 13 procedure. Tenants will have an explicit right to challenge a proposed increase at the First-tier Tribunal, a safeguard intended to prevent sharp or unjustified rent rises. While this system provides transparency for tenants, it introduces new delays and procedural steps for landlords, particularly as tribunal backlogs may slow down decisions. The reduced flexibility may affect financial planning, prompting landlords to reassess the timing of their rent reviews before the new restrictions apply.
From the same date, landlords will be unable to require more than one month's rent in advance, a measure intended to reduce financial barriers for renters. The practice of rent bidding wars, in which tenants compete by increasing the amount they offer above the advertised rent, will also be prohibited.
In addition, the Act makes clear that landlords may not refuse tenancies to applicants with children or those who receive benefits. Any contrary clauses found in tenancy agreements, mortgage conditions, or insurance policies will have no legal effect. Tenants will also gain a statutory right to request permission to keep pets. Landlords must consider such requests reasonably, although they may insist upon insurance to cover potential damage. These developments require landlords to adjust long-standing practices and familiar templates.
Compliance, Standards, and a Fairer Rental System
Improving the quality of private rented housing is another central element of these reforms. The Decent Homes Standard, previously limited to the social rented sector, will now extend to private tenancies, ensuring that homes are safe, warm and well maintained. Awaab's Law, with its strict deadlines for responding to damp and mould hazards, will also apply. Local authorities will receive strengthened enforcement powers, creating a more proactive regulatory environment and increasing the likelihood of compliance inspections and remedial action.
Alongside these substantive reforms, the Act introduces major administrative obligations. From late 2026, the government will begin rolling out a national private rented sector database, delivered in two stages across England. All landlords will be required to register both their own details and the particulars of each property they let. Around the same time, the new Private Landlord Ombudsman will be introduced, and a membership in this will become compulsory. The Ombudsman is intended to provide a quicker, more accessible route for resolving disputes without court involvement, though for landlords this adds another layer of record-keeping and compliance.
What Landlords Should Be Doing Now
Altogether, the reforms effective from 1st May 2026, followed by the database and ombudsman introductions later that year, amount to a thorough restructuring of the private rental system. Tenants gain greater security, consistency, and recourse, while landlords face a regulatory environment that demands more rigorous administration, clearer justification of decisions, and more proactive compliance with standards.
Preparing for these transitions well in advance, particularly the section 21 deadlines, the new rent review limits, and the forthcoming registration requirements, will be essential for avoiding disruption and maintaining lawful, well managed tenancies throughout this period of significant change.
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The Renters' Rights Act 2025 makes a fundamental shift in England's private rented sector. While many of the reforms are designed to strengthen tenant protections and professionalise the market, they will also transform how landlords manage their properties and engage with tenants on a day-to-day basis.
At Colman Coyle, we provide clear, commercially focused advice to landlords, investors, and property managers navigating these changes. Our Property Dispute team has extensive experience advising on possession strategies, tenancy compliance, and rent reviews. We can help ensure your portfolio is structured, compliant, and ready for the new regime.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
