Renters' Rights Act Explained: The Biggest Rental Reforms in Decades

Renters' Rights Act 2025 Explained

The Renters’ Rights Act 2025 reshapes England’s rental system—ending fixed-term tenancies and Section 21 evictions while introducing new rules on rent, pets, and landlord responsibilities. This article outlines the key changes and what they mean for tenants and landlords.

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By RentalBux
December 8, 2025

Picture this: you're one of 11 million private renters or 2.3 million landlords in England, and the biggest reforms to rental laws since 1988 has just landed on your doorstep. The Renters' Rights Act 2025 received Royal Assent on 27 October 2025, and whether you're collecting rent or paying it, your rental world is about to change fundamentally, so you’d better brace for impact.  

But worry not, O weary traveller! For I shall guide you through this labyrinth. Think of me as your guide through this legislative maze, answering both the questions you already have and the ones you have not yet thought to ask. We'll start with what changes when, then explore each reform in detail, using scenarios to show exactly how these new rules affect both sides of the tenancy agreement. 

First question you're likely asking: when do I need to worry about all this? The changes roll out in phases. Some investigatory powers kick in this December 2025, but the main event arrives on 1 May 2026. Mark that date in your diary because that's when tenancy agreements transform overnight. 

The End of Fixed Term Tenancies 

Your tenancy agreement is about to change, as the previously standard six-month or twelve-month fixed-term tenancies are now being phased out. 

From 1 May 2026, all private Assured Shorthold Tenancies (ASTs) in England will automatically convert into a new type of Assured Periodic Tenancy (APTs) created by the Act. (Define ASTs and APTs)  

This change applies to mainstream private-rented sector agreements. There will be no fixed term or minimum period for tenancies, even for students. If a tenancy is in the middle of a fixed term when the Act starts, it will convert to a periodic tenancy immediately. This won’t require renewals and is applicable to situations where tenants rent a property that is their sole or main home, are not a lodger, and the rent is not above £100,000 per annum.  

What This Means for Tenants 

Let's say you're Milo, renting a flat in Manchester on a twelve-month contract that runs until August 2026. When May arrives, your tenancy automatically converts. Meaning: no more annual renewal stress, no more negotiating new contracts every year. Your tenancy simply continues rolling month by month. You gain security, but remember, you still need to give two months' notice when you want to leave. 

What This Means for Landlords 

If you are Sarah, with three properties in Birmingham, the idea of no longer chasing renewal paperwork might sound appealing. But there is important work to do. 

By 31 May 2026, you must: 

  • Give each tenant a government Information Sheet explaining their new rights and obligations (the information sheet will be published in March 2026, so mark your calendars, you might miss it! If you’re an early bird, the government will publish a draft in January 2026, so that you can prepare yourself well before the implementation of this Act)  

  • If you have a verbal agreement with the tenant, you will need to have a written statement of the main terms to any tenant  

Missing the deadline can lead to civil penalties, and councils have the power to impose significant fines for non-compliance. So, stay on the safe side, get your paperwork in order early as it will make the transition far easier later.  

Section 21 Abolition & New Possession Grounds 

The infamous Section 21 "no fault" evictions end on 1 May 2026 for private rentals. If you're a landlord with a Section 21 notice already served, you have until 31 July 2026 to start court proceedings.  

How Landlords Can Still Regain Their Properties 

Although the Act removes “no-fault” evictions, landlords can still recover possession in a range of situations. These fall under fault-based grounds, mandatory grounds and grounds linked to specific types of accommodation. The most common reasons a private landlord can rely on are set out below. 

  • You Want to Move Back Into the Property - You can take the property back if you need it as your own home or for certain close family members. You can only use this once the tenant has been in the property for at least 12 months. 

  • You Plan to Sell the Property - If you intend to put the property on the open market, you can seek possession. This is also only available once the tenancy has run for at least 12 months. 

  • The Tenant has Serious Rent Arrears - There is still a mandatory ground for possession where the arrears reach the legally defined level. If that threshold is met, the court must grant possession. 

  • The Tenant Regularly Pays Late or Has Ongoing Arrears Problems - Even if the arrears do not reach the mandatory level, you can still apply for possession. This is a discretionary ground and the court will decide if it is reasonable. 

  • The Tenant Has Damaged the Property or Broken Key Tenancy Obligations - This covers damage, unauthorised subletting, poor behaviour towards neighbours or ignoring important tenancy terms. These are discretionary grounds, and the court decides whether possession is appropriate. 

  • Nuisance, Harassment, Criminal Behaviour or Serious Disturbance - The Act strengthens this area, allowing quicker action where the tenant has caused nuisance, harassment or criminal activity. Courts can act more swiftly and the notice period can be shorter. 

  • The Tenant Gave False Information to Get the Tenancy - If the tenant knowingly provided misleading or false details when applying for the tenancy, you can seek possession. This remains a discretionary ground. 

  • Student-Specific Situations (House in Multiple Occupation) - Where a property is an HMO and the tenants meet the student test, landlords can use a special mandatory ground if the conditions are met. The landlord must have given a statement of intent and must plan to re-let to another student. 

  • Situations Linked to Enforcement Action - If continuing to let the property would put the landlord in breach of a banning order or licensing requirement, the Act provides a mandatory ground for possession. 

  • Redevelopment or Major Building Works - If you need to demolish or carry out major works that cannot be done with the tenant in place, you can rely on the redevelopment ground.  

Take Emma, who owns a Leeds property she rents out while working in Dubai. She plans to return in 2027 and wants her house back. She can use Ground 1 but must wait until the tenant has lived there twelve months. She needs to give two months' notice and cannot re-let or market the property for twelve months after getting it back. This protects tenants from false claims whilst giving landlords a legitimate route to reclaim their homes. 

What Tenants Gain 

You get genuine security. But remember, you can still be evicted for legitimate reasons. Pay your rent on time, look after the property, and avoid antisocial behaviour, and you've got real long-term security. 

Rent: New Rules for Everyone 

No More Bidding Wars 

From 1 May 2026, rental bidding becomes illegal under Sections 55 and 56. 

Picture Marcus advertising his London flat for £1,500 monthly. Jessica, desperate to secure it, offers £1,600. Marcus legally cannot accept that offer. He faces fines up to £7,000 if he does. 

For landlords, this means pricing correctly from the start. You can't test the market with bidding wars. For tenants, it means competing on references and reliability. The playing field levels, but properties might be advertised at higher initial prices as landlords can't gauge demand through bidding. 

Advance Rent: Protection and Practicality 

The new one month maximum advance rent rule protects tenants whilst presenting challenges for landlords dealing with higher risk applicants. 

Tom has no UK credit history but found the perfect flat. Previously, the landlord might request six months upfront as security. Now, only one month is allowed, and only after signing. For Tom, this opens up properties previously out of reach. For the landlord, it means potentially taking greater risks or being more selective with tenant vetting. 

Landlords, breach this rule and face £5,000 penalties plus forced repayment. Tenants, remember landlords might become stricter with reference requirements since they can't mitigate risk with larger deposits. 

Rent Increases 

Rent can only increase once yearly, requires two months' notice via Form 4A (available from 1 May 2026), and can be challenged at tribunal. 

Let's examine Rachel's situation from both angles. She pays £1,200 monthly in Bristol. Her landlord wants £1,300 from August 2026, so serves Form 4A by 1 June. 

For Rachel, she can challenge this. The Tribunal cannot increase above £1,300, removing the previous risk that deterred challenges. If they determine £1,250 is fair, that's what she pays. 

For the landlord, whilst the process is more structured, it provides a clear legal framework for legitimate increases. You must justify increases based on market rates, not arbitrary decisions. 

Anti-Discrimination Laws: Clear Lines for Everyone 

Benefits Recipients 

The "no DSS" ban protects benefit claimants whilst allowing landlords to assess affordability properly. 

James receives £1,000 wages plus £600 Universal Credit, totalling £1,600 monthly. For £1,400 rent, a landlord cannot reject him for claiming benefits but can still assess whether £1,600 income adequately covers £1,400 rent plus living costs. 

This gives tenants on benefits equal consideration whilst allowing landlords to maintain financial prudence. Hence, treating all income equally, whether from employment or benefits. 

Families with Children 

Families gain protection from blanket bans whilst landlords retain legitimate refusal rights. Meaning: for families, more properties become available. For landlords, you can't use children as an easy refusal but can still protect property suitability and comply with regulations. 

Pets 

Section 10 operates differently from the anti-discrimination rules above. Landlords can still refuse prospective tenants with pets at application stage. However, once a tenancy begins, tenants gain the right to request a pet, which landlords cannot unreasonably refuse. Landlords have 42 days to respond and can require pet insurance. This gives existing tenants a pathway to pet ownership whilst protecting landlords' property interests. 

Enforcement 

From 27 December 2025, local authorities gain real investigatory teeth. They can demand information from landlords, banks, and accountants, enter business premises with notice. For compliant landlords, nothing changes.  

"Breaches" (up to £7,000) include discrimination and rental bidding violations. "Offences" (up to £40,000) include unlawful eviction and misusing possession grounds. 

Future Requirements: Preparing Both Parties 

The Database (Late 2026 Onwards) 

Every landlord must register properties with safety certificates and contact details. Annual fees apply. Without registration, you can't use most possession grounds. 

For landlords like Andrew with five properties, this means administrative burden but also professionalisation of the sector. For tenants, it means transparency about who owns your home and confidence in safety compliance. 

The Ombudsman (2028) 

Mandatory membership for all landlords provides independent dispute resolution. 

When Sophie has a repair dispute, she gets an independent arbiter after exhausting internal complaints. Landlords get clear resolution processes avoiding court action. Both parties benefit from structured dispute resolution. 

Decent Homes Standard (2035 or 2037) 

Properties must meet defined standards including freedom from damp and mould. 

Tenants get guaranteed minimum living standards. Landlords face investment requirements but gain clear compliance targets. The consultation continues on whether implementation is 2035 or 2037, affecting both parties' planning horizons. 

Critical Details Both Parties Must Know 

The twelve-month protected period prevents landlords from using "moving in" or "selling" grounds during a tenant's first year. This gives tenants initial security whilst requiring landlords to plan further ahead. 

Deposit protection becomes even stricter. Landlords who fail to protect deposits cannot obtain any possession orders. Tenants gain ultimate protection for their money. 

Form 4A only becomes available 1 May 2026, preventing premature rent increases. Both parties get clarity on timing. 

Social housing follows different timelines with Section 21 ending 2027. Private sector participants should focus on May 2026. 

Any discriminatory terms in mortgages, insurance, or superior leases become void. Landlords can't hide behind third party requirements. Tenants get consistent protection regardless of property ownership structure. 

Your Action Plan 

Whether you're paying rent or collecting it, preparation starts now. 

  • For Landlords - Review your portfolio strategy considering the twelve-month protection periods. Ensure all documentation is ready for May 2026. Plan for database registration and future compliance costs. Consider your approach to pets and rent increases under the new framework. 

  • For Tenants - Understand your new security but also your ongoing responsibilities. Perfect compliance with tenancy terms remains crucial. Document all interactions and keep records. Know your rights but also respect legitimate landlord interests. 

The government's implementation roadmap from 13 November 2025 brings draft regulations in January 2026, Information Sheets in March 2026, and guidance in April 2026. Both parties should monitor these releases. 

The New Reality 

The Renters' Rights Act 2025 fundamentally reshapes the rental landscape in England. For tenants, it delivers security of tenure, stronger protections against discrimination, and clearer processes for challenging unfair practices. For landlords, whilst the administrative burden increases and flexibility reduces, the new framework provides legal clarity and structured procedures that professional landlords can work within.

Success under this new regime requires preparation from both parties. Tenants must understand that greater security comes with continued responsibilities around rent payments and property care. Landlords need to embrace the professionalisation of the sector, ensuring compliance with registration requirements and adapting business models to work within the new periodic tenancy framework.

The phased implementation gives everyone time to prepare, but the message is clear: the days of informal arrangements and quick turnovers are ending. Whether you're collecting rent or paying it, understanding these changes isn't optional. The rental market of May 2026 will operate on fundamentally different principles from today.

Those who prepare now, understand their rights and obligations, and approach the new system with professionalism will find themselves best positioned when the new rules take effect. The Act doesn't just change the rules; it changes the entire relationship between landlords and tenants, creating a more balanced, transparent and professional private rental sector for the decades ahead.