The Renters' Rights Act 2025 ("the Act") introduces significant changes to how the private rental sector operates in England. The legislation aims to improve tenant protections, while setting clearer expectations for landlords, and the first changes take effect from 1 May 2026.
For landlords, these changes will mean reviewing existing processes, tenancy agreements, and compliance requirements to ensure they remain legally valid once the new rules take effect.
This article provides an overview of the Act, when the changes take effect, and how landlords can prepare for them. For more information, you can visit the official government guide.
What is the Renters' Rights Act (2025)?
The Act is new legislation which introduces changes to tenancy rules in the private rented sector. The Act focuses on improving tenant security, strengthening rental property standards, and increasing oversight of landlord practices.
The changes affect how tenancies are structured. For example, many tenancies are structured under a fixed-term basis. However, with the Act in place, they now become open-ended or "assured periodic tenancies".
The Act can also affect how possession of a property can be regained, and what compliance responsibilities apply when letting a rental property.
When does the Act come into effect?
The key changes outlined in the Act take effect from 1 May 2026. From this point onwards, the new rules will apply to both new and existing tenancies.
What changes does the Act introduce?
The Act introduces several changes that landlords will need to be aware of, affecting tenancy arrangements, eviction processes and rental practices:
End of Section 21 "no-fault" evictions
From 1 May 2026, landlords will no longer be able to use the Section 21 process to end a tenancy without providing a reason under "no-fault" evictions. Instead, possession of a rental property must rely on valid legal grounds through the Section 8 process.
This means landlords will need to clearly demonstrate why they are seeking possession, such as rent arrears or other recognised grounds. As a result, accurate documentation and following the correct legal process will become much more important when serving notice.
Replacing fixed-term agreements with open-ended tenancies
Fixed-term "assured shorthold tenancies" are being removed, meaning new and existing agreements will operate as "assured periodic tenancies". Rather than ending automatically after a set period, these tenancies continue on a rolling basis. Tenants can remain in the rental property unless the landlord has a valid legal ground for possession and follows the correct procedure to enforce that.
Tenancy agreement & notice requirements are changing
The changes to tenancy rules mean some existing tenancy templates and notice documents may no longer be legally valid. Written information requirements are also being updated, which may affect the documents landlords provide when a tenancy begins or when serving notice.
Rent increases will be limited to once every 12 months
Under the Act, landlords can increase rent only once within a 12-month period. Any increase must follow the correct statutory process and be communicated using the appropriate notice. Tenants can challenge rent increases through the relevant tribunal process if they believe the increase is unfair.
Banning rental bidding wars
The Act introduces stricter rules around how rental properties are advertised and let. Landlords will not be able to accept offers above the advertised rent or encourage bidding between prospective tenants. Properties must be offered at the listed price rather than through competitive bidding. This change is intended to make the rental process more transparent and predictable for tenants.
New licensing expectations
It's expected that the enforcement of licensing requirements within the private rented sector will become stricter. As such, keeping licensing up to date will be an important part of remaining compliant.
Higher property standards
The Act places greater emphasis on property safety and quality within the private rented sector. Rental properties will be expected to meet higher standards under the Decent Homes Standard. This includes responding promptly to issues such as damp and mould, which are addressed under "Awaab's Law" .
Private Rented Sector Database and ombudsman
A new Private Rented Sector (PRS) Database and PRS Landlord Ombudsman are expected to launch later in 2026. Landlords will be required to register with the database, creating a central record of rental properties and their compliance status. The ombudsman service will provide a route for tenants to raise complaints and resolve disputes without going directly to court.
Requests for pets
Tenant requests for pets must be considered more reasonably under the new laws. While landlords are not required to approve every request, they must have a valid reason for refusing one. Tenants will also be given the opportunity to challenge unreasonable decisions.
Adding new non-discrimination requirements
The Act introduces clearer expectations around fair access to rental housing. Landlords will not be able to refuse applicants simply because they have children or receive benefits. Letting decisions will need to focus on factors such as affordability and suitability, rather than blanket restrictions during the tenant referencing phase.
What does the Act mean for landlords?
The Act shifts the private rented sector towards a more regulated, tenant-focused environment, where evidence, documentation and compliance become central to landlord responsibilities.
Here's what landlords can expect and how they should respond:
Stronger tenant security
Tenants can remain in the property indefinitely, unless a landlord has a valid Section 8 ground.
Landlords will need to plan for longer-term tenancies. This means landlords should ensure tenancy records and supporting documentation are kept up to date if possession is required.
Reduced flexibility for possession
Regaining possession of a property will be much more regulated and may take longer due to the removal of the Section 21 process.
Landlords must become familiar with the updated Section 8 possession process. Preparing clear evidence and following the correct notice procedures will be essential when seeking possession of a property.
More regulated rent reviews
The annual rent increase limit places greater scrutiny on rent changes.
Rent increases should be planned carefully, as they will be limited to once every 12 months and must follow the correct statutory notice process. Keeping records of market conditions and comparable rents may also help if increases are challenged.
Higher compliance expectations
Property standards, documentation, licensing, and record keeping are becoming more heavily enforced.
Landlords should review their properties, documentation and licensing status to ensure they meet the updated standards. Maintaining accurate records and addressing maintenance issues promptly, and being able to evidence this, will be important to remain, and show, compliance.
Greater accountability
Greater scrutiny and accountability through the PRS database and the new PRS Ombudsman system, empowering tenants to challenge bad practice.
Ensuring that tenancy practices and complaint-handling processes are clear may help reduce disputes.
More transparent advertising
Bidding wars will be prohibited, and there will be stricter rules on advertised rents.
Rental listings should clearly state the advertised rent, and landlords must not accept offers above that price. Landlords and letting agents can face multiple civil penalties for continually and repeatedly accepting offers above the advertised rental price.
What happens if landlords don't comply with the Act?
Failing to follow the requirements under the Act could expose landlords to financial penalties and legal disputes. Some of the potential consequences include:
- Invalid possession notices. Using outdated templates or failing to follow the updated legal process could result in notices being challenged in court or dismissed entirely, delaying possession proceedings.
- Fines and enforcement action. Local authorities will have stronger enforcement powers. Serious breaches (such as failing to meet property standards) could lead to financial penalties of up to £40,000.
- Licensing penalties. Operating a property without the correct licence (where one is required) may result in significant penalties, and even the possibility of Rent Repayment Orders.
- Tribunal challenges. Tenants may challenge rent increases or raise disputes through the First-tier Tribunal or the new PRS Ombudsman once it is introduced. Please visit the official government website for more information on how tenants can challenge rent increases.
- Inability to regain possession. If landlords do not follow the updated Section 8 process correctly, they may not be able to legally evict tenants.
- Potential civil penalties for discrimination. Refusing applicants solely because they have children or receive benefits may lead to enforcement action, if it breaches the updated rules.
What landlords need to do now
The Act introduces several important changes to how the private rented sector operates.
To stay compliant, now's the time for landlords to review tenancy agreements, notice procedures, and compliance processes ahead of implementation. If you're looking to cover your rental income, find out more about rent guarantee insurance.
For more landlord-friendly renting advice, visit the Direct Line for Business Landlord Knowledge Centre.