THE RENTERS’ RIGHTS ACT 2025: KEY LEGAL REFORMS

The Renters’ Rights Act 2025 (the “Act”) came into force on 1 May 2026 and represents a significant reform of the private rented sector in England. It introduces a comprehensive restructuring of residential tenancy law by amending the Housing Act 1988 and establishing a more regulated framework governing the relationship between landlords and tenants. The legislative objective is to enhance tenant security, improve transparency, and introduce consistency across the private rented sector.

Reform of Tenancy Structure

A fundamental feature of the Act is the removal of fixed-term assured shorthold tenancies. From 1 May 2026, all private residential tenancies are assured periodic tenancies which operate on a continuous, rolling basis. Any provision within a tenancy agreement purporting to create a fixed term has no legal effect. Existing tenancies have automatically transitioned into this new regime.

An assured periodic tenancy continues indefinitely unless and until it is terminated in accordance with the statutory provisions. The duration of the tenancy is determined by the rent payment period, which is typically monthly. This change simplifies the contractual structure but removes the certainty historically associated with fixed-term agreements, thereby requiring landlords to place greater reliance on statutory mechanisms to regain possession.

Statutory Information Requirements

The Act imposes enhanced information obligations on landlords in relation to both existing and new tenancies. Landlords of tenancies granted before 1 May 2026 were required to provide tenants with a prescribed information sheet (or, in the case of previously unwritten agreements, a formal written statement) by 31 May 2026. These provisions were introduced to ensure that tenants are fully informed of their rights under the new regime.

For tenancies entered into on or after 1 May 2026, landlords are required to provide a written statement of terms before the tenancy commences. This statement may be incorporated into the tenancy agreement or provided as a separate document. The requirement introduces a statutory baseline of transparency and ensures that tenants are aware of the essential terms and legal framework governing the tenancy.

Regulation of Rent

The Act establishes a fully statutory regime for rent increases and removes contractual flexibility previously found in rent review clauses. From 1 May 2026, landlords may only increase rent in accordance with section 13 of the Housing Act 1988, which requires formal notice to be given to the tenant.

Rent increases are limited to once in any twelve-month period, and a minimum of two months’ notice must be provided before any increase takes effect. Tenants have the right to challenge proposed increases by referring the matter to the First-tier Tribunal if the increase is considered to exceed market levels. These changes apply to both new tenancies and existing tenancies that have converted into assured periodic tenancies.

Termination of Tenancies and Possession

The Act abolishes the use of section 21 notices, thereby removing the mechanism for so-called “no-fault” evictions. As a result, landlords must now rely exclusively on the statutory procedure set out in section 8 of the Housing Act 1988 in order to recover possession of a property.

In order to obtain possession, landlords must establish one or more prescribed statutory grounds. These grounds have been revised and expanded and include circumstances such as the intention to sell the property, occupation by the landlord or a family member, rent arrears, and anti-social behaviour.

Pre-conditions to Possession Proceedings

The Act introduces additional safeguards in relation to possession proceedings. A court will not grant an order for possession unless the landlord has complied with the statutory requirements relating to tenancy deposit protection. This includes ensuring that the deposit is held within an authorised scheme and that all scheme requirements have been satisfied.

While late compliance may still be remedied prior to the hearing, failure to comply with these requirements may result in delays or the refusal of possession. Certain exceptions apply in cases involving serious anti-social behaviour.

Restrictions on Landlord Practices

The Act introduces a range of new prohibitions and duties regulating landlord conduct. Landlords must not purport to create fixed-term tenancies, terminate tenancies outside the statutory framework, or rely on possession grounds without a reasonable belief that the grounds are applicable.

In addition, the Act regulates rental marketing practices. Landlords are required to advertise properties at a stated rent and are prohibited from inviting or accepting offers above that amount. This effectively removes the practice of rental bidding and is intended to promote fairness and transparency in the market.

The legislation also prohibits discrimination against prospective tenants on the basis that they receive benefits. Blanket policies that restrict access to rental accommodation on this basis are unlawful, and local authorities have the power to impose financial penalties for non-compliance.

The Act further introduces provisions concerning pets, granting tenants the right to request permission to keep a pet. Landlords must not unreasonably refuse such requests, although refusal may be justified in certain circumstances, including where consent from a superior landlord cannot be obtained.

Deposit Protection and Financial Restrictions

The Act reinforces existing financial protections for tenants by maintaining the requirement for tenancy deposits to be held in an authorised scheme. In addition, restrictions have been placed on rent in advance, with landlords generally limited to requesting no more than one month’s rent following the execution of the tenancy agreement.

These provisions are intended to reduce financial barriers to accessing rental accommodation and to promote affordability within the private rented sector.

Future Regulatory Developments

The Act forms part of a broader programme of reform, with further measures expected to be introduced in subsequent phases. These include the establishment of a Private Rented Sector database, which will require landlords and properties to be formally registered, and the introduction of a Landlord Ombudsman scheme to provide an independent dispute resolution mechanism.

In addition, it is anticipated that the Decent Homes Standard and Awaab’s Law will be extended to the private rented sector, thereby imposing further obligations on landlords in relation to property condition and maintenance.

Conclusion

The Renters’ Rights Act 2025 represents a fundamental restructuring of residential tenancy law in England. The Act removes fixed-term tenancy certainty, introduces greater reliance on statutory processes for rent and possession, and imposes enhanced compliance obligations on landlords.

Landlords and investors should undertake a thorough review of their tenancy documentation, operational procedures, and asset management strategies to ensure alignment with the new regulatory framework. Early adaptation will be essential in mitigating risk and ensuring compliance in what is now a significantly more regulated sector.

Contact FG Solicitors today on 08081 729 322 or complete our quick contact form for a no obligation discussion!

Do not miss our latest updates! Follow us on LinkedIn.  

 Explore our Commercial, Corporate, Employment, Global Mobility and Commercial Real Estate legal services that will benefit your business

  This update is for general guidance only and advice should be taken in relation to a particular set of circumstances.