Understanding the Renters' Rights Act 2025: What Landlords and Tenants Need to Know

Understanding the Renters' Rights Act 2025: What Landlords and Tenants Need to Know


The rental industry has undergone significant transformation with the Renters' Rights Act 2025, which received Royal Assent on 27 October 2025. This represents the biggest reform to the private rented sector since the late 1980s and will fundamentally change how tenancies work in England. As responsible property managers, we believe it's essential to keep our landlords and tenants informed about these changes and what they mean in practice.

## What is the Renters' Rights Act 2025?

The Renters' Rights Act implements commitments from the 2024 Labour Party manifesto to reform how the private rented sector is regulated and to give greater rights and protections to people renting their homes. While much of the media coverage has focused on the abolition of Section 21 "no fault" evictions, there are several other crucial aspects that affect both landlords and tenants.

The act builds on the previous Conservative government's Renters (Reform) Bill, which was introduced in May 2023 but fell when Parliament was dissolved before the July 2024 general election.

## Implementation Timeline

Although the act has received Royal Assent, most provisions are not yet in force. The government is implementing the reforms in three phases:

**Phase 1 - 1 May 2026 (CONFIRMED):**
The new tenancy regime comes into force, applying to both new and existing tenancies:
- All assured shorthold tenancies convert to periodic assured tenancies with no end date
- Section 21 "no fault" evictions are abolished
- New possession grounds under Section 8 come into effect
- Limits on rent paid in advance
- Ban on rental bidding
- Strengthened rights around pets
- Enhanced anti-discrimination measures

**Phase 2 - Late 2026:**
- New Private Rented Sector Database launches
- Landlord Ombudsman scheme becomes mandatory

**Phase 3 - No earlier than 2028:**
- Decent Homes Standard for private rented sector
- Awaab's Law (dealing with damp and mould)

Additionally, from 27 December 2025, local authorities have new investigatory powers to inspect properties and demand documents from landlords.

## Key Changes for Landlords

### Abolition of Section 21 Notices

From 1 May 2026, landlords will no longer be able to use Section 21 notices to regain possession of their property after a fixed-term tenancy ends. This notice allowed landlords to evict tenants without providing a reason, which many felt created insecurity for renters.

It's important to note that Section 21 notices can still be served until 1 May 2026, and landlords who serve a notice before this date will have up to three months to initiate possession proceedings under transitional provisions.

### New Possession Grounds

Instead of Section 21, landlords will use reformed Section 8 possession grounds, which require specific reasons for eviction. The act strengthens some existing grounds and introduces new ones:

**Existing grounds that remain:**
- Rent arrears (with enhanced protections for tenants)
- Anti-social behaviour
- Breach of tenancy agreement

**New and reformed grounds:**
- Landlord needs to sell the property (with 4 months' notice and protections against abuse)
- Landlord or close family member needs to move in (with 4 months' notice and restrictions on re-letting)
- Redevelopment of the property
- Student accommodation (reformed ground applying to all properties, not just HMOs)

**Important safeguards:**
- Landlords cannot use the "moving in" or "selling" grounds within the first 12 months of a tenancy
- After using these grounds, landlords cannot re-let or use the property for holiday lets for 3 months
- Tenants have the right to challenge possession claims they believe are not genuine

### Rent Increases

The act reforms how rent increases work:

- Rent can only be increased once per year using Section 13 notices
- Rent review clauses in tenancy agreements are not permitted
- Tenants have the right to challenge excessive above-market rent increases at the First-tier Tribunal
- If a tenant challenges a rent increase, they will never pay more than what the landlord originally proposed
- Backdating of rent increases is abolished - new rent only applies from the date of the Tribunal decision
- In cases of undue hardship, the Tribunal can defer rent increases by up to 2 further months

### Rent in Advance

From 1 May 2026, landlords can only require a maximum of one month's rent in advance (or one week's rent for weekly tenancies). This replaces previous practices where multiple months' rent upfront were common.

### Rental Bidding Ban

The act bans the practice of rental bidding, where prospective tenants offer more than the advertised rent to secure a property. This practice had been driving up rents in competitive markets.

### Pet Ownership

Tenants now have the right to request permission to keep a pet, and landlords cannot unreasonably refuse. However:

- This is framed as a "right to request" rather than an automatic right to have pets
- Landlords can refuse for reasonable grounds
- Landlords cannot require larger deposits due to the cap under the Tenant Fees Act 2019
- Tenants may be required to have pet insurance
- Landlords can charge reasonable "pet rent" if it doesn't take the overall rent above market rate

### Discrimination Protections

The act makes it illegal for landlords or agents to:
- Impose a blanket ban on renting to tenants receiving benefits
- Discriminate against families with children
- Refuse tenancies based on these factors

This aims to create a fairer, more inclusive rental market.

## Key Changes for Tenants

### Greater Security

From 1 May 2026, all private tenancies become periodic (rolling) tenancies with no end date. This means:

- No more fixed-term contracts that end, requiring renewal
- No more uncertainty about whether your landlord will renew
- You can stay in your home as long as you meet your tenancy obligations
- You still need to give 2 months' notice when you want to leave

### Protection from Retaliatory Evictions

The act strengthens protections against landlords evicting tenants in retaliation for:
- Reporting maintenance issues
- Requesting repairs
- Making complaints
- Exercising their rights

Landlords must wait 6 months after addressing a complaint before they can use certain possession grounds.

### Right to Challenge Rent Increases

Tenants can challenge rent increases they believe are above market rate at the First-tier Tribunal. Importantly:
- You'll never pay more than the landlord asked for
- There's no backdating - new rent only starts from the Tribunal decision
- The Tribunal can defer increases in cases of hardship

### Access to Ombudsman

From late 2026, all landlords and agents must be members of an ombudsman scheme. This provides tenants with:
- Free, impartial dispute resolution
- Compensation where appropriate
- An alternative to court action for many disputes

### Decent Homes Standard

By 2028, all private rented properties must meet the Decent Homes Standard (the same standard that applies to social housing). This ensures:
- Properties are in a reasonable state of repair
- Have reasonably modern facilities
- Provide effective heating and insulation
- Meet health and safety standards

## Impact on the Rental Market

### For Good Landlords

Professional landlords who already maintain their properties well, treat tenants fairly, and follow the law should find the transition relatively straightforward. The changes:

- Create a more level playing field by weeding out rogue landlords
- Attract more stable, long-term tenants
- Reduce tenant turnover (which saves money)
- May actually reduce court usage as disputes are resolved through the ombudsman

### For Tenants

Most tenants will benefit from:
- Greater security and stability in their homes
- Better recourse when things go wrong
- Protection from unfair evictions
- Ability to challenge unreasonable rent increases
- Higher property standards

### Potential Challenges

The reforms may create some challenges:

- Court capacity to handle possession cases under the new system
- Some landlords may exit the market due to increased regulation
- Initial adjustment period as the industry adapts to new rules
- Potential for unintended consequences that emerge over time

The government is working with the Ministry of Justice to monitor court capacity and is committed to ensuring the system works effectively.

## What Should You Do Now?

**If you're a landlord:**
- Familiarise yourself with the new possession grounds
- Review your tenancy agreements and processes
- Consider moving to periodic tenancies after current fixed terms end
- Join a landlord association for ongoing support and updates
- Work with a professional letting agent like PropHome who understands the new regulations

**If you're a tenant:**
- Understand your new rights under the act
- Keep records of all communications with your landlord
- Know how to access the ombudsman when it launches
- Remember that your rights come with responsibilities - pay rent on time and maintain the property

## PropHome's Commitment

At PropHome, we're committed to helping both landlords and tenants navigate these changes. We provide:

- Up-to-date advice on compliance with the Renters' Rights Act
- Professional tenancy management that protects both parties
- Support with the transition to the new system
- Mediation and dispute resolution
- Property maintenance to meet evolving standards

The Renters' Rights Act 2025 represents a significant shift in the rental landscape, but with proper understanding and professional support, both landlords and tenants can benefit from a fairer, more transparent rental market.

For more information about how these changes affect you, or for professional property management that keeps you compliant, call 0345 8686868 or email info@prophome.co.uk.