Renters' Rights Act 2025: are you ready?

The private rented sector has grown substantially over the past 20 years, now housing millions of households. Against this backdrop, the government has sought to transform the experience of private renting to give tenants greater security, stability and lower the risk of homelessness.

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 will reshape landlord-tenant relationships across England.

While some provisions are already in force, the most transformative changes take effect on 1 May 2026. This article explores what has changed so far, what is coming later this year and what landlords need to do to prepare.

Provisions already in force

Since 27 December 2025, these include:

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, and
• Residential properties suspected of being privately let on giving reasonable notice, in contravention of the database provisions of the Act.

Long tenancies

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

Key changes effective from 1 May 2026

1. End of fixed-term tenancies

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

• Tenancies will roll on a monthly or weekly basis depending on how often the rent is paid eliminating fixed end dates. Rent payment periods are also limited to no more than a month so if rent is due to be paid quarterly it will instead be payable monthly on a pro-rata basis
• Tenants can terminate at any time, with two months’ notice, unless the tenancy provides for a lesser notice period. This gives tenants greater flexibility.

Landlords will need to review tenancy agreements and plan for a more dynamic rental environment.

2. Rent regulation

The Act introduces tighter controls on rent:

• Increases are limited to once a year, via the statutory Section 13 process on giving two months’ notice. Any provisions to increase rent in the tenancy agreement cannot be used
• The tenant has a right to challenge both the rent in the tenancy and any increase by an application under section 14 of the Housing Act 1988 to the court.
• Rental bidding banned – landlords must adhere to the advertised rent and cannot accept a higher offer
• Payment of advance rent is capped at one month for new tenancies and must be payable before the tenancy begins. This only applies to tenancies which commence after 1 May 2026.

This framework is designed to promote transparency and predictability in rental pricing.

3. Termination

Abolition of Section 21 "No-Fault" evictions

From 1 May 2026, landlords will no longer be able to serve Section 21 notices under the Housing Act 1988. This marks the end of “no-fault” evictions, a cornerstone of the assured shorthold tenancy (AST) regime. This means that the last valid Section 21 notice must be served by 30 April 2026 and claims based on such notices, issued by 31 July 2026.

This change enhances security for tenants and requires landlords to rely on statutory grounds for possession instead.

Revised grounds for possession

With Section 21 abolished, landlords must use Section 8 mandatory grounds, which have been expanded and amended as follows with each of these grounds require 4 months' notice:

• Ground 1 (amended): Landlord or close family wish to occupy the property. This now includes a common law partner. The tenancy must have begun at least a year before the notice
• 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
• Ground 4A (new): HMO let to full time students and is needed for new students in line with the academic year.

Additional grounds 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.

These changes aim to balance tenant security with legitimate landlord needs.

4. Tenant rights

The Act strengthens tenant protections 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.

These measures reflect a broader commitment to fairness and inclusivity in the rental market.

Forthcoming Administrative and Compliance Measures

Landlords and agents will need to prepare for new administrative requirements coming in future implementation phases:

• Written statements of terms for all tenancies for which final regulations are awaited. Last week, the Ministry of Housing, Communities & Local Government published the regulations in draft form, which, although not yet final, are intended to give landlords and managing agents time to prepare ahead of implementation. For more information on these draft regulations, click here
• 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.

Failure to comply could result in financial penalties and reputational damage.

Practical implications for landlords and agents

The reforms demand significant operational changes. Key actions include:

• Reviewing tenancy agreements to ensure compliance with the periodic tenancy requirements
• Updating possession strategies to align with the revised Section 8 grounds
• Implementing systems for regulated rent increases and notice periods
• Preparing for enhanced enforcement and redress obligations.

Early preparation will mitigate risk and ensure a smooth transition.

Looking further ahead

• Decent Homes Standard and extension of Awaab’s Law to the PRS (post-2030).

These developments will continue to raise standards and accountability across the sector.

Conclusion

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

There are concerns that the provisions will affect financial viability by increasing administrative burdens and costs so that many smaller landlords who make up a large part of the market may elect to sell up instead. This may well then reduce rental stock, potentially raising rents. There are also fears that the court system is not prepared to cope with the additional burden, and questions about how effective the policing of the various new offences will be.

At Womble Bond Dickinson, we are advising clients on the practical and legal implications of these reforms. If you would like to discuss how the Act affects your business or portfolio, please contact our Property Disputes team.