What The Renters’ Rights Act 2025 means for Landlords

For landlords and across the private rented sector, the Renters’ Rights Act 2025 introduces major reforms.

While the legislation has now passed, many sections will come into force gradually, and landlords will need to prepare for a series of practical and legal changes over the coming years.

Below is a clear summary of the reforms most relevant to landlords, based on current Government guidance, industry updates and professional briefings.

Assured shorthold tenancies become periodic from 1 May 2026

From 1 May 2026, all existing Assured Shorthold Tenancies (ASTs) automatically convert to assured periodic tenancies.

These rolling contracts continue indefinitely until either the landlord or tenant ends them through the correct legal process.

Landlords do not need to issue new tenancy agreements, but the Government will publish an information sheet explaining the changes. This must be served on tenants by 31 May 2026 and is expected to become available by March.

A new tenancy structure for landlords

The Renters’ Rights Act 2025 means landlords will need to provide a written statement of terms at the start of every tenancy, while existing tenants will receive a Government summary explaining the changes.

One immediate procedural change is that rent cannot be taken before the tenancy agreement is signed and executed.

Deposits can still be collected in advance. Guarantor agreements remain valid, though landlords may want to clarify the expected duration of liability under ongoing periodic tenancies.

Ending tenancies: the shift to Section 8

When the relevant part of the Renters’ Rights Act comes into force on 1 May 2026, Section 21 will be abolished.

From that point onwards, landlords will only be able to end a tenancy by serving a Section 8 notice, relying on one or more statutory grounds for possession.

Transitional provisions apply to Section 21 notices

Any valid Section 21 notice served before 1 May 2026 will remain enforceable, provided the landlord issues court proceedings within six months of serving the notice or by 31 July 2026, whichever is earlier. After that point, no Section 21 notice can be used.

Under the new regime introduced by the Act:

Tenants gain a minimum 12-month period of security. A landlord cannot require a tenant to leave before the first 12 months of the tenancy have elapsed.
Landlords wishing to sell or move back in can give four months’ notice, but the tenancy cannot end before month twelve. The tenant’s right to the minimum 12-month occupancy remains protected even where notice is served earlier.
Redevelopment grounds remain available where proposed works would render the property uninhabitable. These require four months’ notice and must meet the statutory criteria.

Rent increases and rent bidding

The Renters Rights Act 2025 will result in rent increases being limited to one per year and they must be made via a Section 13 notice, giving tenants at least two months’ notice.

Tenants may refer increases they believe to be excessive to the First Tier Tribunal.

Rent bidding rules prohibit competition above the advertised rent. Landlords and agents must publish the asking rent, and applicants cannot be encouraged or permitted to offer more than this figure.

Greater rights for tenants to keep pets

Landlords will not be able to unreasonably refuse a tenant’s request to keep a pet and must respond within 28 days.

A head lease restriction remains a legitimate basis for refusal, and property size may be taken into account.

Concern about potential damage on its own is not considered reasonable grounds to deny permission.

Anti-discrimination measures

Once implemented, the Act prevents landlords from refusing applicants because they have children or because they receive benefits.

Affordability checks remain permissible. In limited circumstances, such as statutory overcrowding, landlords may still refuse an application.

Decent Homes Standard and property condition

Private rented homes must meet the Decent Homes Standard.

This includes being safe, well maintained, free from serious hazards and compliant with Awaab’s Law, which requires damp and mould issues to be addressed promptly.

Landlord registration and the new Ombudsman

All landlords will eventually be required to register with the Private Rented Sector Database and join the new Landlord Ombudsman.

The Ombudsman will handle complaints, award redress and require landlords to resolve issues.

Registration is not yet operational and is expected to take time to implement. Current guidance suggests the Ombudsman scheme is unlikely to become operational for at least a couple of years.

Enforcement and penalties for Landlords

Local authorities will gain expanded powers to enforce the new rules. Penalties start at £7,000 for a first offence and rise to £40,000 for repeat offences.

For many breaches, tenants may apply for a rent repayment order covering up to 24 months of rent.

If a landlord evicts a tenant in order to sell, the property cannot be re-let for 12 months. Breaking this rule may result in significant penalties.