The Renters’ Rights Act 2025 is now law, although the changes contained in it won’t all become effective immediately. Several of them, however, will come into force on 1st May 2026 and you will need to be aware of these if you operate in the property rental sector.
So what’s changing – and what’s new?
The end of Section 21 notices
From 1st May, if a landlord wants to evict a tenant, they’ll no longer be able to use a Section 21 notice (otherwise known as a no-fault eviction), as the Act abolishes them. Instead, they will need to serve tenants with a Section 8 notice. Schedule 1 of the Act also introduces additional grounds for eviction and makes changes to existing grounds, so you’ll need to familiarise yourself with these.
Written tenancy agreements
From 1st May, tenants must be given a written agreement before they enter into a tenancy. This should include the start date of the tenancy, rent, deposit and responsibilities on both sides. It’s expected that the government will produce a template which will contain all the information needed for the agreement to be legally compliant.
Assured Periodic Tenancies
From 1st May, Assured Shorthold Tenancies (ASTs) will no longer exist. Instead, all new and existing tenancies will become Assured Periodic Tenancies (ASPs). They will be on a rolling or ‘periodic’ basis, meaning they have no fixed end date and continue to renew automatically (e.g. monthly) as long as rent is paid.
Tenants will be able to stay in their property as long as they want and then give 2 months’ notice to the landlord when they wish to vacate (up from the current one month’s notice). If the landlord wishes to evict the tenants, they must serve them with a valid Section 8 notice.
Keeping pets in a rental property
The Act gives tenants the implied right to keep a pet in the property. The tenant will need to make their request in writing and provide a description of the pet. The landlord should not refuse unreasonably. They can request additional information about the pet and must provide their response in writing within 28 days of the request (subject to certain exceptions)
They can require that the tenant has insurance that covers the risk of pet damage. Alternatively, the landlord can take out insurance themselves, and the tenant will pay the (reasonable) costs.
Rent increases
From 1st May, landlords will only be able to increase rent through a Section 13 notice, roughly once a year, to the market rate. The market rate is the current property price, if it has been newly advertised to let.
Landlords will have to give at least two months’ notice of an increase in rent.
If a tenant doesn’t agree with a rent increase and wants to challenge it, they can do so through a body known as the First-Tier Tribunal, which will assess the facts of the matter and determine what the market rent should be.
Before the Act, tenants faced the risk that the Tribunal might increase rent beyond what the landlord initially proposed, but now the tenant will never be expected to pay more than the amount that the landlord originally proposed.
Rent in advance
The Act says that landlords can no longer ask for more than one month’s rent in advance when signing up new tenants. Currently, landlords can accept offers of various months’ rent in advance.
Rental ‘bidding wars’
Rental bidding wars are competitive situations where tenants compete by offering higher rent than the listed price. This process pushes rental costs far above the initial asking rent.
From 1st May, a property can’t be advertised unless the rent is a specified amount and the advert states that amount. Landlords and agents won’t be able to encourage, invite or accept offers of rental payments higher than the advertised price. Landlords and/or agents who are found to have breached the law in this area can face a fine of up to £7,000 for a first offence.
Rules on disrepair in the private sector
The Act will extend the Decent Homes Standard (DHS) and changes imposed by the Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025 (also known as Awaab’s Law) to the private rental sector. At the moment, they only apply to social housing. Landlords must comply with the minimum requirements and if they don’t do so, enforcement measures in the Act will be applied.
Preventing discrimination in the private rented sector
From 1st May, landlords and letting agencies won’t be able to discriminate against potential tenants who have children or who claim benefits.
Discriminatory practices, such as putting ‘no DSS’ in adverts (used to exclude tenants who receive benefits from renting a property) will no longer be allowed.
Landlords won’t be able to prevent those with children or on benefits from:
- enquiring about or viewing their property;
- accessing information about their property;
- viewing the property in order to consider it for rental; or
- entering into a tenancy agreement.
However, the landlord will still have the final say on who they let their property to and can still carry out referencing checks relating to affordability.
The private rental sector Ombudsman service
This will be introduced under the Act. All private landlords with assured or regulated tenancies, including those using a managing agent, will be legally required to join.
This will let tenants raise issues such as unfair actions and/or behaviour by the landlord. The ombudsman will have the power to investigate and provide binding resolutions, which will compel landlords to:
- provide information;
- issue an apology;
- take remedial action; and/or
- pay compensation.
The service is expected to start in late 2026, but no firm date is available yet.
The private rented sector database
The Act brings in a new database for all residential landlords and private rented accommodation. The database will be accessible to landlords, tenants and local authorities. It will be rolled out gradually by area from late 2026.
All landlords will need to register themselves and their properties in the database, which will also record landlord offences and list things like banning orders and financial penalties.
Enforcing the new rules
Sanctions have been strengthened for unlawful eviction and harassment. The Act amends the Protection from Eviction Act 1977, so there is now a clear statutory route for:
- criminal prosecution for unlawful eviction/harassment, and
- financial penalties of up to £40,000 imposed by local authorities.
Local authority enforcement powers
- Civil penalties and rent repayment orders are being extended, placing a new duty on councils to take enforcement action and enhancing their powers of investigation to make that easier.
- Local councils will be able to issue civil penalties against landlords who fail to comply with the rules; for example if they fail to register on the Private Rented Sector Database or with the ombudsman or abuse the new grounds of possession.
- First or minor non-compliance will incur a civil penalty of up to £7,000 and serious or repeat non-compliance a civil penalty of up to £40,000.
- For serious and repeat non-compliance, local councils will alternatively be able to pursue a criminal prosecution with an unlimited fine.
- Local councils will also be able to issue civil penalties against landlords who evict their tenants illegally.
- Councils will get a range of new investigatory powers which will allow them to enforce the new reforms, including powers to require information from relevant persons and any persons and powers of entry to business and residential premises.
- The Act also provides a power to require information from third parties such as banks, accountants and client money protection schemes, as an additional route to get vital evidence to build cases.
Financial penalties
Section 16 of the Act sets out the new rules on financial penalties and how they’ll be imposed, including the right to appeal.
Before imposing a financial penalty, the local housing authority must give the person notice of its proposal to do so. A person who receives a notice of intent may make written representations to the local housing authority about it but they must do so within a 28-day period.
After that, the local housing authority must decide whether to impose a financial penalty on the person, and – if it decides to do so – decide the amount. If it decides to impose a financial penalty, it must give the person a final notice imposing that penalty, detailing the amount, reasons, how to pay and how to appeal. The penalty must be paid within a 28-day period, unless appealed.
Appeals
A final notice can be appealed at the First-tier Tribunal. The appeal must be brought within 28 days. If a person appeals, the final notice is suspended until the appeal is finally determined, withdrawn or abandoned. On appeal, the First-tier Tribunal may confirm, vary or cancel the final notice.
Recovery of financial penalty
If a person fails to pay the whole or any part of a financial penalty which they are liable to pay, the local housing authority can recover the whole (or part) of the penalty on the order of the county court.
