Tuesday, 28 October 2025
The long-debated Renters’ Rights Bill has now become law, gaining Royal Assent and officially transforming into the Renters’ Rights Act 2025. The legislation represents the most significant reform of England’s private rental housing system in decades, introducing sweeping changes aimed at strengthening tenant protections while redefining the framework for landlords.
The Act applies retrospectively, meaning that both new and existing tenancies will fall under its provisions. Its declared objective is to increase tenant security and improve housing standards, although the long-term impact on landlord confidence and investment remains a key question for the property sector.
At the heart of the reform is the abolition of “no-fault” evictions under Section 21 of the Housing Act 1988. Landlords will no longer be able to terminate tenancies without providing a valid reason. Existing Assured Shorthold Tenancies (ASTs) — once the mainstay of England’s rental market — will be replaced by assured periodic tenancies, effectively ending the fixed-term model.
Landlords seeking possession will now have to rely on expanded Section 8 grounds, such as intending to sell the property or move in themselves. However, analysts expect this to make regaining possession slower and more complex, putting further strain on the already burdened court system.
Under the new law, landlords can raise rents only once a year and must follow a formal process by serving a Section 13 notice with at least two months’ warning. Tenants can challenge the proposed increase at a First-tier Tribunal, which will determine the fair market rent. This process could delay rent adjustments, and the outcome will not be backdated.
Rent controls are not being introduced, but the Act standardises the way rent increases are made. All other rent review mechanisms — including contractual clauses — will be invalid once the legislation takes effect.
Tenants, meanwhile, gain the right to end their tenancy with two months’ notice, a feature that offers flexibility but also introduces uncertainty for landlords and investors relying on stable cash flows.
The Act incorporates several new tenant-friendly provisions. Landlords will be barred from requesting multiple months of rent in advance, a practice often used to secure tenancy agreements. Tenants will also have the right to keep pets, and landlords will be unable to refuse requests unreasonably or demand additional deposits or insurance coverage.
The law introduces the Decent Homes Standard and Awaab’s Law into the private rented sector, requiring landlords to maintain minimum housing standards and promptly address health hazards such as damp and mould. Non-compliance could trigger enforcement action from local authorities, who will retain the proceeds from fines.
To support implementation, the Government will establish a Private Rented Sector Landlord Ombudsman Service. All private landlords — including those using managing agents — must register and join the scheme. Tenants will be able to file complaints free of charge, and the Ombudsman will have the authority to compel landlords to issue apologies, take corrective measures or pay compensation.
In addition, a new Private Rented Sector Database will require landlords to register their properties before marketing them. Failure to do so could lead to financial penalties or prosecution.
The Act makes an exception for new tenancies within Purpose Built Student Accommodation (PBSA), provided the operator belongs to an approved code of practice such as ANUK/Unipol or Universities UK. Existing PBSA tenancies, however, will transition into the new system over time.
Tenancies not classified as “assured” — such as company lets or properties rented at more than £100,000 per year — remain outside the Act’s scope. The Tenant Fees Act 2019 also continues to apply, meaning that existing limits on deposits and prohibitions on extra charges remain unchanged.
Although the legislation has received Royal Assent, most provisions will not take effect immediately. A transition period of approximately six months is expected, suggesting that the majority of the new rules could apply from Spring 2026. The Government retains the power to stagger implementation across different sections, but the abolition of Section 21 evictions is expected to be among the first measures enforced.
Local authorities will play a central enforcement role. Minor breaches may result in civil penalties of up to £7,000, while serious or repeated offences could attract fines of up to £40,000 or criminal prosecution.
Industry observers describe the Renters’ Rights Act as a turning point that shifts the balance of power toward tenants. Proponents argue that it creates a fairer and more stable rental market, while critics warn it could discourage private investment and reduce housing supply.
Whether the Act succeeds in improving housing security without damaging landlord confidence will depend largely on how swiftly the Government addresses court backlogs and implements the new enforcement mechanisms.
For now, both landlords and tenants are preparing for a new era in the English rental sector — one defined by greater regulation, longer tenancies and stricter compliance expectations.
Source: CMS
