What Is the Renters’ Rights Act?

The Renters’ Rights Act 2025 is a landmark piece of legislation reforming the private rented sector (PRS) in England. Its goal is to rebalance the power between landlords and tenants, giving renters greater security, fairness, and protection.

Rather than implementing everything at once, the government has committed to a three-phase rollout.

Phase One (From 1 May 2026): Key Changes

Here are the main reforms that take effect in Phase One:

        1. Abolition of Section 21 “No-Fault” Evictions

• Landlords will no longer be able to evict tenants under the Section 21 procedure, which historically allowed eviction without giving a reason.
• This change applies to both new and existing tenancies in the private rented sector.

• Assured Shorthold Tenancies (ASTs) will be abolished.

   2. New Tenancy Structure: Assured Periodic Tenancies

•  They will be replaced by Assured Periodic Tenancies, meaning tenancies become rolling (open-ended) rather than fixed-term.
• Tenants will be able to end their tenancy by giving two months’ notice.

       3. Reformed Grounds for Possession (Section 8)

• With no more Section 21, eviction must now rely on valid, statutory “grounds for possession” (i.e., section 8), which are also being reformed to be fairer for both parties.
• These reforms seek to make the system more balanced so that landlords can't evict arbitrarily, but also can regain possession for legitimate reasons (e.g., rent arrears, landlord selling, moving in).

        4. Limits on Rent Increases

• Landlords will only be allowed to increase rent once per year.
• They must use a revised Section 13 notice procedure, giving at least two months’ notice to tenants.
• Tenants will have the right to challenge rent increases: the guidance suggests that the First-Tier Tribunal may handle such challenges.

       5. Cap on Rent in Advance / Deposit-Type Payments

• After the tenancy agreement is signed, landlords can require no more than one month’s rent in advance.

       6. Ban on Rental Bidding

• “Bidding wars” for rent will be outlawed: landlords must advertise a proposed rent, and they cannot accept offers above that advertised amount.
• This change is intended to improve transparency and prevent aggressive rent inflation through competitive bidding.

      7. Anti-Discrimination Protections

• It will become illegal to discriminate against tenants because they have children or are receiving benefits.
• This applies to all assured and regulated tenancies from 1 May 2026.
• Even existing discriminatory terms in superior leases or mortgage agreements (e.g., a lease clause excluding tenants on benefits) will be cancelled from that date.

     8. Right to Request a Pet

• Tenants will gain the right to ask their landlord to keep a pet. Landlords will have up to 28 days to consider the request.
• If a landlord refuses, they must provide valid reasons for doing so.

     9. Stronger Enforcement Powers for Local Councils

• Local authorities will have expanded investigatory powers from 27 December 2025 (ahead of Phase One) — they will be able to inspect properties, demand documents, and access third-party data to tackle non-compliance.
• Civil penalties for offending landlords will be increased.
• Rent Repayment Orders (RROs) will be strengthened: they’ll apply to a wider set of landlords (including “superior landlords”), with higher maximum repayments, and repeat offenders may be penalised more heavily.
• Local councils will also be required to report on enforcement activity, improving accountability.

What Doesn’t Change in Phase One

• The social housing sector is not fully covered in this first phase. Some of the tenancy reforms initially apply only to the private rented sector.
• More ambitious reforms—like a mandatory Landlord Ombudsman, a PRS (Private Rented Sector) database, and a Decent Homes Standard for private renting—are reserved for Phase Two and Phase Three.

Why This Matters: Impact for Tenants and Landlords

• For Tenants: This is arguably the biggest expansion of security and rights in renting for decades. The removal of no-fault evictions means greater long-term stability. Protection from discrimination, limits on rent increases, and a cap on advance rent payments make renting fairer and more predictable.
• For Landlords: These changes require a shift. Landlords must adapt to a new default tenancy type (periodic), more regulated rent increases, and tighter limits on deposit-style payments. There's also increased risk (and cost) if they fail to comply, given enhanced enforcement powers.
• For Councils: The new investigatory and enforcement powers mean local authorities will play a more active role. But this also means they need resources and training to carry out inspections, issue civil penalties, and pursue rent repayment orders.

Preparing for May 2026

• Landlords and letting agents should start preparing now: updating tenancy templates, reviewing rent-in-advance policy, and building processes to assess pet requests.
• Tenants should familiarise themselves with their new rights so they can assert them confidently (e.g., understanding how to request a pet, challenge a rent increase, or spot discrimination).
• Local Authorities will need to ensure they have capacity in their housing enforcement teams to effectively utilise their new powers from the end of 2025 and beyond.

Tenancy agreements

New tenancies in the PRS created on or after 1 May 2026

· Landlords will need to provide certain information about the tenancy to their tenants in writing. This could be through a written tenancy agreement. It is understood that the detail of what information landlords must provide will be set out in secondary legislation. However the Government have indicated that such information will be published in time for landlords to prepare their new tenancy agreement templates ahead of the new changes coming into effect. It is anticipated that a draft will be published in January 2026, so that landlords can begin preparing.

Rules for tenancies created before 1 May 2026

· If an existing tenancy in the PRS already has a written tenancy agreement, then it will not be necessary to change it or issue a new one.

· Rather, landlords with existing tenancies will need to provide tenants with a copy of the government published ‘Information Sheet’ on or before 31 May 2026. This document will inform tenants about the changes made by the Act.

· The Government intends to publish the Information Sheet online in March 2026, before the reforms come into effect on 1 May 2026.

· If a landlord has agreed an existing tenancy verbally with a tenant, they will need to provide a written summary of the main terms. Landlords will need to do this on or before 31 May 2026.

Note

Landlords will be able to continue to pursue possession of properties through the current S21 procedure up to 30th April 2026 and will have until 31st July 2026 to commence possession claims in court.

If you have any queries regarding anything in this article, please contact our team on 01926 354704.