Renters' Rights Act - are you ready for 1st May?

Renters’ Rights Act 2025 - are you ready for 1st May?

The Renters Rights Act 2025 received Royal Assent on 27 October 2025 and introduces major reforms to the private rented sector in England. Key changes include the end of section 21 ‘no fault’ possession, a move to periodic tenancies, updated section 8 grounds, tighter rules on rent increases and rent in advance, and new compliance and enforcement measures. Significant tenancy and possession provisions are due to take effect from 1 May 2026, with other measures expected to be phased in.

At a glance

• Section 21 ‘no fault’ possession is due to end from 1 May 2026; possession will generally require reliance on section 8 grounds.
• Periodic tenancies become the default; new fixed terms will no longer be enforceable.
• Rent increases are generally limited to once per year using the section 13 process, with enhanced tenant challenge rights.
• New rules restrict rent in advance and ban rent bidding.
• New compliance, property standards and enforcement measures will be phased in, including registration and redress requirements.

From 1 May 2026, section 21 of the Housing Act 1988 will be abolished. Landlords will need a statutory reason to recover possession and will generally have to rely on (amended) section 8 grounds. Most existing short-term tenancies will convert to periodic tenancies, and new fixed terms will no longer be enforceable. Tenants will be able to end a periodic tenancy by giving at least two months’ written notice, expiring at the end of a rent period.

This is a significant shift in the security of tenure framework. Assured shorthold tenancies (ASTs) will be abolished and replaced by periodic tenancies as the default, increasing tenant stability and requiring landlords to plan for less predictable end dates.

With section 21 removed, section 8 will become central. The Act expands and adjusts the section 8 regime, including new pre-conditions and amended notice periods for some grounds. Some grounds remain mandatory (possession must be granted) and others discretionary (the court decides whether it is reasonable). We recommend reviewing your standard processes now (for example, rent schedules, inspections, and written communications) so that evidence is readily available if possession proceedings become necessary.

Student lettings (key considerations)
Student housing raises additional issues under a periodic-tenancy model:

• PBSA: purpose-built student accommodation is expected to be treated differently from the general periodic tenancy regime (subject to the statutory conditions and any implementing regulations).
• Non-PBSA student lets: these will generally move onto periodic tenancies, which may increase the risk of mid-year notice and void periods.
• Student HMOs: the Act introduces a new Ground 4A intended to help some student HMO landlords recover possession for the academic year cycle, provided the statutory conditions are met.
• Joint tenancies: periodic status can create practical risk where notice served by one tenant may bring the tenancy to an end for all.

Rent increases and payments

• Rent increases: generally limited to once per year using the amended section 13 procedure. Tenants may challenge an increase in the First-tier Tribunal; the Tribunal cannot set a rent higher than the landlord’s proposal or backdate the increase.
• Rent in advance: for new periodic tenancies, rent periods are generally capped at one month and there are tighter limits on requiring rent in advance (including restrictions on taking rent before the tenancy is entered into, save for a permitted holding deposit).
• Pre-tenancy payments: you should not accept rent before the tenancy starts, other than a refundable holding deposit of up to one week’s rent.
• Rent bidding: the Act prohibits rent bidding and requires landlords to follow the advertised rent.

Discrimination and pets
The Act prohibits discrimination against tenants with children or those claiming benefits, subject to limited exceptions (for example, where necessary to comply with an insurance policy or as a proportionate means of achieving a legitimate aim such as avoiding overcrowding). Tenants will also have a right to request a pet; consent cannot be unreasonably withheld and landlords must respond in writing within the required timeframe.

Property standards and registration
The Act extends Awaab’s Law and the Decent Homes Standard to the private rented sector, increasing obligations to address hazards such as damp and mould and to meet defined minimum standards. It also creates a Private Rented Sector Database, requiring landlords to register themselves and their properties and keep entries up to date as required once the scheme is in force. Non-compliance may have enforcement consequences and may affect a landlord’s ability to use certain processes.

Redress and written terms
Landlords will be required to join a new landlord redress scheme to help resolve disputes. The Act also requires a written statement of terms before a periodic tenancy starts, with transitional arrangements for existing tenancies.

Enforcement
The Act strengthens enforcement through criminal offences and financial penalties. Fines may be up to £7,000 for initial or less serious breaches and up to £40,000 for serious or repeated breaches. Landlords should review documents and processes now, and keep good records to demonstrate compliance.

Conclusion
The Renters Rights Act 2025 will significantly change residential lettings in England. Landlords who plan for periodic tenancies, the end of section 21, updated section 8 grounds, and tighter rent and compliance rules will be better placed to manage risk and maintain compliant portfolios.

If you would like to discuss how the Renters’ Rights Act 2025 affects your portfolio or documentation, please contact our Property Litigation team.