Article

The Renters’ Rights Act 2025

24 March 2026 | Applicable law: England and Wales | 10 minute read

The Renters’ Rights Act 2025 represents the most significant overhaul of England’s private rented sector in over a decade. The Act received Royal Assent on 27 October 2025, with the most far-reaching changes due to come into force on 1 May 2026.  

Background: The Existing Residential Tenancy Framework 

To understand the significance of the reforms, it is helpful to consider the current legal landscape for residential tenancies in England.

Assured tenancies (ATs) were introduced by the Housing Act 1988, which came into force on 15 January 1989. A tenancy granted on or after that date will generally be an assured tenancy provided that: 

  • the tenant is an individual;
  • the tenant occupies the dwelling-house as their only or principal home; and
  • the tenancy does not fall within one of the statutory exceptions. 

Those exceptions include (among others) student lettings, crown tenancies, lettings by resident landlords, holiday lettings, business tenancies, lettings to a company, and tenancies where the annual rent is below £1,000 or exceeds £100,000.

Since the introduction of the Housing Act 1997, any assured tenancy granted on or after 28 February 1997 has automatically taken the form of an Assured Shorthold Tenancy (AST). As a result, ASTs now account for the vast majority of private residential lettings in England. 

A defining feature of the AST regime has been the landlord’s ability to regain possession without proving fault. Under the Section 21 procedure, landlords have been able to terminate a tenancy at the end of the fixed term by giving at least two months’ notice, without providing a reason. It is this mechanism — commonly referred to as 'nofault' eviction — that sits firmly in the crosshairs of the new legislation. 

Key Provisions Taking Effect from 1 May 2026 

From 1 May 2026: 

  • all existing fixed-term assured tenancies (including ASTs) with a term of less than 21 years will automatically convert into periodic tenancies; and
  • any new residential assured tenancies will be governed by the new statutory regime. 

A periodic tenancy is a tenancy that runs from period to period with no fixed end date. Under the Renters' Rights Act, the period is determined by how often rent is paid — so if rent is paid monthly, the tenancy runs month to month.

For most landlords, very little changes about the day-to-day relationship. The tenant pays rent, the landlord provides the property, and standard obligations (repairs, quiet enjoyment, etc.) continue exactly as before. The practical difference lies entirely in how and when the tenancy ends. 

The tenancy does not expire. It simply rolls forward automatically each rent period. This means

  • No renewal process — there is no need to issue a new tenancy agreement at the end of a term, because there is no end of term.
  • No expiry notices — the landlord cannot simply wait for a tenancy to run out, because it never does.
  • The tenant has security of tenure for as long as they continue to pay rent and comply with the tenancy conditions and the landlord cannot remove them without a valid legal ground. 

Principle Reforms 

The principal reforms can be summarised as follows:

  •  the abolition of 'nofault' evictions and the introduction of revised grounds for possession; 
  • new limits on rent increases;
  • the introduction of anti-discrimination measures; and
  • a statutory right for tenants to request permission to keep a pet. 

Security of Tenure: A Fundamental Rebalancing 

One of the most consequential aspects of the Act is the reconfiguration of security of tenure in the private rented sector. 

Enhanced Protection for Tenants 

The removal of Section 21 evictions is the centrepiece of the reforms. In addition: 

  • tenants benefit from a 12month 'protected period', during which landlords cannot seek possession in order to sell the property or move in; 
  • the mandatory threshold for rent arrears possession has increased to three months; and
  • tenants may remain in occupation unless the landlord can establish a valid mandatory or discretionary ground for possession.

From a practical perspective, tenants will also be able to bring their tenancy to an end at any time by serving notice in accordance with the rules applying to periodic tenancies. In most cases, this will require at least two months’ notice, expiring at the end of a rent period, although this will not apply universally. 

Implications for Landlords

For landlords, the changes are likely to prove challenging. Even where a landlord has legitimate reasons to recover possession, the process is expected to be slower and more costly. Importantly, the new regime does not preserve any form of guaranteed minimum fixed term, even where both parties would prefer one. 

Landlords will therefore need to place far greater reliance on the statutory grounds for possession and ensure strict compliance with procedural requirements. 

Grounds for Possession: Key Changes

Although Section 21 is abolished, landlords retain the ability to regain possession through an amended and expanded set of statutory grounds

Amendments to Existing Mandatory Grounds 

The existing ground permitting possession for the landlord’s own occupation has been widened. It now extends to circumstances where the property is required for occupation by:

  • the landlord;
  • a parent, grandparent, sibling, halfsibling, child or grandchild of the landlord; or
  • the spouse or civil partner of any of the above. 

In addition, landlords are no longer required to show that a relevant mortgage predated the tenancy, nor to demonstrate that advance notice of the mortgage was given, in order to rely on the ground that a lender requires vacant possession

New Mandatory Grounds 

Two notable new mandatory grounds have been introduced:

  • a ground where a landlord intends to sell the property or grant a lease of more than 21 years (subject to four months’ notice and unavailable within the first 12 months of the tenancy); and
  • a ground permitting possession where required to comply with certain enforcement actions, such as remedying a breach of planning control.

Under the Act, landlords will generally be limited to one rent increase per year. Any increase must be implemented by serving a Section 13 notice specifying the proposed rent and giving at least two months’ notice. 

Tenants will have the right to challenge a proposed increase before the First-tier Tribunal if they consider the rent to exceed the market level. 

While these provisions can be varied by mutual agreement, any variation must not be used to circumvent the onceperyear restriction. 

Advance Rental Payments 

The Act restricts landlords from requiring rent to be paid more than one month in advance, except where the tenancy agreement is entered into before the tenancy term begins. These provisions are not retrospective. 

However, tenants are entitled — retrospectively — to a refund at the end of the tenancy for any rent paid covering days after the tenancy has ended. 

Prohibition on Rent Bidding 

Landlords and agents must specify a rent when advertising a property and must not invite or accept offers above the advertised figure. Local authorities are empowered to impose financial penalties for breaches. 

Information Requirements 

Landlords must provide tenants with a written statement of terms before the tenancy begins. While the prescribed content has yet to be confirmed, failure to provide the statement will have serious consequences. 

In particular, a landlord who has not complied will be unable to rely on certain 'advance notice' grounds for possession. Managing agents may discharge this obligation on a landlord’s behalf and will also have direct compliance responsibilities. 

Tenancies Outside the Scope of the Act 

Not all residential arrangements are affected. Tenancies that fall outside the assured tenancy regime remain unchanged, including: 

  • lettings to companies;
  • high-value tenancies (annual rent above £100,000);
  • low-value tenancies (annual rent below £250, or below £1,000 in London);
  • holiday lettings, business tenancies, student lettings, licensed premises, crown tenancies, and lettings by resident landlords or public bodies. 

Fixed-term tenancies exceeding 21 years are also excluded. From 27 December 2025, such lettings will no longer qualify as assured tenancies.

Certain historic assured tenancies are carved out, including those granted before 27 October 2025, or granted between 27 October 2025 and 26 December 2025 for terms of more than seven but less than 21 years. Agricultural farmhouses let as part of an agricultural tenancy arrangement are similarly unaffected. 

Conclusion 

The Renters’ Rights Act 2025 marks a turning point for the private rented sector in England. The abolition of nofault evictions, the shift to periodic tenancies, tighter rent controls, and increased procedural requirements collectively represent a substantial rebalancing of rights and obligations. 

Landlords will need to review their portfolios carefully, understand the revised possession regime, and ensure compliance with the new notice and disclosure requirements well in advance of 1 May 2026. 

Landlords Checklist: What Should You Do Now?

Review your existing portfolio 

  • Identify all assured tenancies and ASTs that will convert to periodic tenancies on 1 May 2026.
  • Check tenancy start dates to understand when the 12month protected period will apply.
  • Identify any tenancies that fall outside the Act (for example, company lets or high value tenancies). 

Reassess possession strategies 

  • Familiarise yourself with the revised mandatory and discretionary grounds for possession.
  • Consider whether any future plans to sell or occupy properties may be affected by the 12month restriction.
  • Review rent arrears procedures in light of the increased three month threshold. 

Update documentation and processes 

  • Prepare to issue a compliant written statement of terms before the start of each tenancy.
  • Ensure property agents understand and comply with the new information requirements.
  • Review notice templates (including Section 13 rent increase notices) to ensure accuracy. 

Rent and financial compliance 

  • Review rent review clauses and internal processes to ensure rent is increased no more than once per year.
  • Ensure advertised rents are fixed and that no bidding above the advertised rent is encouraged or accepted.
  • Check that rent is not being requested more than one month in advance (unless permitted). 

Pets and discrimination 

  • Update internal policies to reflect tenants’ statutory right to request permission to keep a pet.
  • Review tenant selection practices to ensure compliance with new antidiscrimination rules. 

Seek advice 

  • Take legal advice on contested possession scenarios or portfoliowide restructuring.
  • Monitor further regulations and guidance ahead of implementation. 

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.

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