The Renters’ Rights Act represents one of the biggest reforms to the UK private rented sector in decades. If you currently let a property under an Assured Shorthold Tenancy (AST), the new legislation will introduce significant changes to how tenancies operate, how landlords regain possession of their property, and how rents can be increased.
The Act received Royal Assent on 27 October 2025 and officially became law. Some measures began taking effect on 27 December 2025, while the most significant changes are expected to come into force on 1 May 2026. Additional reforms, including new landlord registration requirements and minimum housing standards, are expected to be introduced later in 2026.
Landlords should start preparing now to ensure they fully understand the changes and remain compliant once the new legislation is enforced.
How the Renters’ Rights Act Changes Assured Shorthold Tenancies
One of the most significant changes introduced by the Renters’ Rights Act is the end of fixed-term Assured Shorthold Tenancies. These will be replaced by Assured Periodic Tenancies that run on a rolling monthly basis.
This means tenancy agreements will no longer have a fixed end date. Instead, tenancies will continue month-to-month until either the tenant chooses to leave or the landlord regains possession using a valid legal ground.
Tenants will be required to provide at least two months’ notice if they wish to leave the property. For landlords, ending a tenancy will require following the correct legal process and using a valid ground for possession.
During the first 12 months of a tenancy, landlords will generally not be able to regain possession in order to sell the property or move back into it themselves. This creates a protected period for tenants, although tenants can still choose to leave during this time.
The legislation will apply to both new and existing tenancies at the same time. Once implemented, any break clauses or options to renew included in current tenancy agreements will no longer be valid.
Abolition of Section 21 ‘No-Fault’ Evictions
The Renters’ Rights Act will abolish Section 21 notices, commonly known as “no-fault evictions”. This means landlords will no longer be able to regain possession of a property without providing a specific legal reason.
Instead, landlords must use a Section 8 notice and rely on one of the statutory grounds for possession.
Commonly used grounds are expected to include landlord or family occupation of the property, selling the property, rent arrears, breach of tenancy terms, and anti-social behaviour.
Each possession ground has its own notice requirements and evidence thresholds. For example, if a landlord wants to sell the property or move into it themselves, they must give at least four months’ notice. The notice also cannot expire within the first 12 months of the tenancy.
If a landlord regains possession under these grounds but does not sell the property or move into it as stated, they will not be able to re-let the property for 12 months following the expiry of the notice.
Tenant Security and Notice Periods
Under the new legislation tenants will benefit from greater security within the private rented sector. Tenancies will continue on a rolling basis until the tenant decides to leave or the landlord meets one of the legal grounds for possession.
Tenants must provide two months’ notice to leave the property and this notice must align with the rent payment date.
Although landlords lose the ability to end a tenancy without reason, tenants still have the flexibility to move if their circumstances change.
How Rent Increases Will Work
The legislation also changes how rent increases can be applied. Any pre-agreed rent increases written into tenancy agreements will no longer be valid.
However, landlords will still be able to increase rent once per year by serving a Section 13 notice.
The proposed rent must reflect the local market rate and tenants must receive at least two months’ notice before the increase takes effect.
If a tenant believes the proposed rent is above the market level, they can challenge the increase through the First-tier Tribunal before the new rent begins.
Restrictions on Advance Rent Payments
The Renters’ Rights Act will also restrict the use of advance rent payments.
For new tenancies, landlords will generally not be able to request several months’ rent upfront. Rent payments will normally be limited to monthly instalments.
Tenants who are already paying rent quarterly, six-monthly or annually under an existing agreement will be able to continue this arrangement until their tenancy ends. However, such payment structures will not be allowed for new tenancies.
If a tenant cannot demonstrate affordability for monthly rent payments, they may still be able to provide a private guarantor.
Rental Bidding Will Be Prohibited
The Act also introduces a ban on rental bidding. Landlords and letting agents will be required to publish a clear asking rent for the property.
They will not be allowed to encourage or accept offers above the advertised rental price. This measure is designed to improve fairness and transparency within the rental market.
New Rules for Pets in Rental Properties
Existing “no pets” clauses will no longer automatically apply once the legislation comes into force.
Landlords may still advertise a property as not suitable for pets, but once a tenancy has begun they will only be able to refuse a pet request under certain conditions.
These may include restrictions contained within a head lease or other legitimate reasons such as severe allergies. Landlords should clearly state any genuine restrictions when marketing a property.
Measures to Prevent Tenant Discrimination
The legislation also aims to reduce discrimination within the private rental sector.
Landlords will no longer be able to refuse tenants simply because they receive benefits or have children.
However, properties must still be suitable for the household size. For example, a small one-bedroom property would not normally be suitable for a large family.
Stronger Local Authority Enforcement Powers
From 27 December 2025, local councils received stronger investigatory powers to identify and penalise landlords who fail to comply with housing regulations.
These enhanced powers make it easier for authorities to investigate potential breaches and enforce the new legislation.
Higher Penalties for Non-Compliance
Penalties for landlords who breach the legislation will increase significantly.
Minor or first-time breaches may result in civil penalties of up to £7,000. Serious or repeated breaches could lead to fines of up to £40,000 and may result in criminal prosecution.
Private Rented Sector Database
A national Private Rented Sector database will be introduced as part of the reforms.
Landlords will be required to register themselves and all rental properties on the database before advertising or letting them.
This will allow tenants, landlords and local authorities to access important information and help improve transparency across the sector.
It will also be an offence for letting agents to market or let a property that has not been properly registered on the database.
Mandatory Ombudsman Scheme for Landlords
All landlords will be required to join a new ombudsman scheme, even if they use a letting agent.
The ombudsman will provide an independent and binding service to resolve disputes between landlords and tenants. The aim is to offer faster and more cost-effective dispute resolution and reduce reliance on the courts.
Awaab’s Law and Property Safety
Awaab’s Law will be extended to the private rented sector. This legislation introduces strict timeframes for landlords to investigate and resolve serious property issues such as damp and mould.
The law is intended to ensure that rental homes remain safe and that hazards are dealt with quickly.
Decent Homes Standard for the Private Rented Sector
The Decent Homes Standard will also be applied to privately rented homes. This means rental properties must meet minimum standards for safety, condition and freedom from serious hazards.
The aim is to ensure that all tenants have access to safe and secure housing.
Energy Performance Certificate (EPC) Requirements
Landlords must already provide a valid Energy Performance Certificate when letting a property.
Currently, rental properties must achieve a minimum EPC rating of band E. However, the government intends to raise this requirement to band C by 2030.
An EPC provides information about a property’s energy efficiency and typical energy costs, along with recommendations for improvements. Certificates remain valid for 10 years.
Landlords may wish to begin improving the energy efficiency of their properties now in order to meet the future requirements.
Preparing for the Renters’ Rights Act
The Renters’ Rights Act will fundamentally reshape how the private rented sector operates in the UK. While many landlords already follow best practice, the new legislation will require changes to tenancy agreements, compliance procedures and property management processes.
Understanding these reforms early will help landlords prepare for the transition and remain compliant once the new rules come fully into force.
If you are unsure how the Renters’ Rights Act will affect your property or existing tenancies, seeking professional advice can help ensure you are fully prepared for the upcoming changes.
Need advice?
If you need help or advice then contact Benwell Daykin today. We’re always happy to explain things in more detail, whether over the phone or in person in our estate agency office.