The Renters Rights Act 2025: Now Live!

The Renters Rights Act 2025 represents the most significant overhaul of the private rented sector in decades. Designed to strengthen tenant protections and modernise rental practices, the Act introduces sweeping reforms that are reshaping landlord-tenant relationships across England.

The most transformative changes took effect on 1 May 2026. This article set out what these are with a brief look at what is to follow.

Enhanced enforcement powers

Local authorities have greater investigatory powers to tackle non-compliance with rented accommodation legislation. These include the ability to enter:

• Rental sector business premises, without prior notice, to request documents and seize evidence
• Residential properties suspected of being privately let on giving reasonable notice, in contravention of the database provisions of the Act.

Local authorities will be entitled to impose civil penalties of up to £7,000 against landlords who are found to be in 'breach' of obligations (e.g. discriminating against prospective tenants who have children or are in receipt of benefits; or encouraging the practice of rental bidding) & up to £40,000 for 'offences' (e.g. relying on a ground for possession where the landlord knows it cannot obtain a possession order based on the ground; if a landlord unlawfully evicts a tenant).

Removal of the AST trap

Leases with terms of more than 21 years can no longer be Assured Tenancies. This provision has closed the anomaly which blighted long leases in certain circumstances.

End of fixed-term tenancies

All ASTs automatically converted to Assured Periodic Tenancies (APTs) on 1 May 2026. This means:

• Tenancies roll on a monthly or weekly basis depending on how often the rent is paid eliminating fixed end dates. Rent payment periods are limited to no more than a month
• Tenants can terminate at any time, with two months’ notice, unless the tenancy provides a lesser notice period.

Rent regulation

• Increases are limited to once a year, using the statutory Section 13 process on giving two months’ notice
• The tenant has a right to challenge both the rent in the tenancy and any increase by an application to the court
• Rental bidding is banned – landlords cannot accept a higher offer than the advertised rent, even if multiple parties apply for the tenancy
• Payment of advance rent is capped at one month for tenancies which commence after 1 May 2026.

Termination

Abolition of Section 21 "No-Fault" Evictions

Landlords can no longer be able to serve Section 21 notices under the Housing Act 1988.

Revised grounds for possession

Landlords must now use a Section 8 notice and rely on one or more of the revised grounds. Some grounds have been amended; new grounds have been introduced, and generally, notice periods have increased. For example:

• Ground 1 (amended): Landlord or close family including common law partner, parents, grand-parents, siblings etc) wish to occupy the property. The tenancy must have begun at least a year before the notice. Notice period extended to four months
• Ground 1A (new): Intention to sell or grant a lease of more than 21 years. The tenancy must have begun at least a year before the notice. Notice period extended to four months
• Ground 4A (new): HMO let to full time students and is needed for new students in line with the academic year. Notice period of four months
• Grounds 8 (amended): tenant owes 13 weeks/3 months arrears at the time the notice is served and at the date of the hearing. Notice period extended to four weeks.

There are also additional/amended grounds which cover mortgage repossession, superior lease expiry, and compliance with enforcement action.

Sanctions for deposit non-compliance

• Existing Deposit protection rules apply to the assured tenancies and sanctions for non-compliance are reinforced by providing that a court cannot make an order for possession where the requirements have not been complied with.

Tenant rights

Tenant are protected in several further areas:

• Right to request a pet - landlords must not unreasonably withhold consent and are obliged to respond within 28 days
• Anti-discrimination provisions - prohibit blanket bans on tenants with children or those receiving benefits
• Written statement of terms/information sheet – new tenants must be given a written statement of terms ahead of entering into their tenancy. Existing tenants must be given a prescribed information sheet by 31 May 2026.

Still to come

• Mandatory membership of a Landlord Redress Scheme and participation in the forthcoming Private Rented Sector Ombudsman
• Preparation for the PRS Database, expected later in 2026, which will require landlord registration and property compliance data
• Decent Homes Standard and extension of Awaab’s Law to the PRS (post-2030).

Conclusion

The Renters Rights Act 2025 marks a decisive shift towards granting tenants greater rights. Landlords need to ensure compliance and mitigate risk.

Some people worry that these new rules could make it harder for smaller landlords to stay profitable, as the extra paperwork and higher costs might lead many to leave the market. This could cause fewer rental properties to be available, possibly leading to higher rents. On the plus side this may increase the number of properties available to purchase, drive up standards and reduce the number of rogue landlords. Others are concerned that the courts and tribunals may not be ready for the greater volumes of cases, and there is doubt about how well local authorities will be able to manage their increased enforcement powers.

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.