The Renters’ Rights Act 2025

On 1 May 2026, phase 1 of the new regime will come into force, on which date the majority of the more significant changes to tenancies, existing and new, will take effect and all tenancies will automatically transfer onto the new system. Phase 2 is to follow from late 2026 and phase 3 is subject to consultation with a current proposal of it coming into force in either 2035 or 2037.

It is important that landlords use the time between now and May 2026 to familiarise themselves with the changes wrought by the Act and the impact they will have on the renting of their properties.  They should also consider what, if any, steps they can take in readiness (serving notices before they become redundant and/or commencing possession claims under the “old system”).

The Act is described by Housing Minister Matthew Pennycook as “landmark legislation” to “transform the experience of private renting” and will certainly alter a lot of existing practices of private landlords.

While the picture is, to some extent, still evolving, for now, we highlight some of the key changes below, in order of their commencement roll out.

Phase 1: Commencement date – 1 May 2026

1. No fixed term tenancies: all tenancies will automatically become assured tenancies, and new tenancies will be assured periodic tenancies, both of which will be rolling on a monthly basis. Accordingly, all existing fixed contractual terms will be converted by the Act.
2. Initial Protected Period: tenants will benefit from a twelve-month protected period at the commencement during which certain grounds for possession (such as the landlord’s intention to sell or occupy the property) cannot be exercised.
3. No Section 21 Notices and “no fault” evictions: landlords will no longer be able to serve a section 21 notice at the end of the fixed term (there will be no fixed term) to bring the tenancy to an end. Instead, landlords will need to prove a ground to recover possession. Landlords can, though, still serve a section 21 notice before 1 May 2026.  The last date on which landlords can bring a possession claim based on a section 21 notice is the earlier of either 6 months from the date of the section 21 notice or 31 July 2026 (three months beginning with the commencement date).
4. New grounds for possession: New grounds for possession have been added and the notice periods of certain existing mandatory grounds have been extended. For example, under the new ground 8 (tenant rent arrears); the threshold for being able to serve a notice is now three months of arrears (compared to the pre-Act two months of arrears provision) at the date of the notice and the hearing of the claim.  the period of notice of the intention to commence proceedings for possession to be given in the notice has been extended to four weeks from two weeks. Some of the grounds cannot be exercised by the landlord within the first twelve months of the tenancy (such as the landlord’s intention to move into the property or sell the property).
5. Tenant ability to serve a notice to terminate: a tenant will be entitled to terminate the tenancy by giving two months’ notice to the landlord at any time after the commencement of the tenancy, without providing any reason.
6. Rent bidding is prohibited: landlords will not be permitted to accept higher rents than the rent marketed.
7. Limit to upfront rent payment: landlords cannot require tenants to pay rent in excess of one month upfront. Existing tenancy agreements that have provisions for payment of advance rent (such as quarterly in advance intervals) shall not be affected.
8. Rent Review: rent can be increased by landlords once every twelve months, to the open market rent only, by following the prescribed procedure (to include the service of a notice at least two months in advance giving details of the proposed increase), which the tenant can challenge in the First-tier Tribunal. Existing rent review clauses will be void and unenforceable.
9. Renters who have children or receive benefits: it will be illegal for landlords to discriminate against such renters and landlords will not, for example, be able to stop such renters from viewing the property or refuse to grant them a tenancy.
10. Pets: Tenants will have the right to request they rent with a pet and permission cannot be unreasonably withheld by the landlord. Landlords cannot require insurance to cover pet damage or increase the deposit for additional risk.

Phase 2: Commencement date from “late 2026” (date to be confirmed)

11. Private Rented Sector Database: Landlords will be required to register with the PRS Database (a new online database). Registration will be compulsory for landlords of assured or of regulated tenancies and a fee will be payable. Such landlord registration is a pre-condition to the service of valid possession notices (except in the circumstance of tenant anti-social behaviour). Local councils will be able to take enforcement action against landlords that fail to register and if a landlord advertises or lets a property without first being registered, fines can be issued up to £7,000. For repeated breaches or submitting fraudulent information on the database, a civil penalty up to £40,000 can be issued or criminal prosecution.
12. Private Rented Sector Landlord Ombudsman scheme: all landlords of assured or of regulated tenancies will be required to join (and pay for) the new PRS Landlord Ombudsman scheme which is planned to come into existence in 2028.  Tenants will be able to report landlords’ actions and behaviours to the PRS Landlord Ombudsman and it will also assist landlords in resolving tenant-initiated complaints. The Ombudsman will have the power to compel landlords to provide information and pay compensation to tenants. Local councils can take action against landlords that fail to join and agents will also face financial penalties for marketing a property where the landlord is not registered. Fines to landlords and agents will range from £7,000 for initial breaches up to £40,000 or criminal prosecution for continuing or repeat breaches. Rent repayment orders can also be sought if landlords fail to register.

Phase 3: Possibly in 2035 or 2037 (date to be confirmed)

13. Decent Home Standard (“DHS”) and Awaab’s Law: Regulations will be introduced setting out the DHS requirements and enforcement powers will be granted to local authorities. The new system will introduce a set of core quality standards for the condition of properties and new timeframes for completing remediation works.  Awaab’s Law will be introduced by imposing new requirements on landlords to address hazards (such as mould and damp) within a restricted time period, which can be enforced if not complied with.

NB – Secondary Legislation

The government is in the process of drafting secondary legislation (in the form of regulations) to add further detail to some of the provisions and to bring the Act measures into force. This secondary legalisation is expected to be published in draft in January 2026 so that landlords can begin preparing ahead of the changes coming into effect.

• Serving “Information Sheet” on tenants before 31 May 2026: for existing tenancies created before 1 May 2026, there will be a requirement for landlords to provide tenants with a copy of a government published “information sheet” on or before 31 May 2026, to inform them of the changes made by the Act. The information sheet is set to be published online in March 2026, before the changes come into effect on 1 May 2026.
• Oral Tenancies: If landlords have existing tenancies granted orally before 1 May 2026, landlords will be required to provide the tenant with a written summary of the main terms and the information sheet on or before 31 May 2026.

STEPS TO TAKE NOW

In advance of the commencement date, landlords are encouraged to

• Consider any lettings they have in place and whether they want these to continue. Section 21 notices can still be served up to the end of April 2026 – the transitional provisions referred to above will apply and advice should be sought to ensure compliance with the transitional deadlines for issuing a claim for possession after service of a section 21 notice.
• Consider exercising any rent review clauses in existing tenancies and seek to agree increased rent where possible. Rent increases and notices served in relation to the same under existing tenancies will remain valid if served before 1 May 2026.
• Diarise to serve the “information sheet” in March 2026 and issue a written summary of any existing oral tenancy agreement (where applicable) before 31 May 2026.
• Review tenancy template agreements, updating the provisions to reflect the upcoming changes (e.g. removing fixed term periods, rent review clauses, break options, and blanket pet exclusions).
• Ensure agents are informed of the new changes and are ready to implement the changes on commencement of the Act (particularly the new rent provisions).
• Records – registration on the PRS Database will be compulsory and failure to comply with registration will prevent landlords from serving a valid notice requiring possession (although such default can be remedied by late registration). Landlords should also ensure their records are readily available for registration which may require checking that electrical, gas and energy performance certificates and deposit protection information is up to date in readiness for registration
• Carry out inspections of the properties to assess the current state of repair in readiness for the new standard of condition being introduced. Knowing the condition of a property and if any works will be required in advance of the new Decent Home Standards (expected in Phase 3 in 2035 or 2037) will make the transition smoother.

This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.

Meet the team:

1. 

   • Aileigh Brough

   • Associate
   • Property Litigation

   Visit Aileigh's profile

View the whole team