Part 1 Chapter 1

Assured Tenancies

Chapter 1 of Part 1 of the Renters Rights Act 2025 makes significant changes to the way assured tenancies are structured, including abolishing assured shorthold tenancies and introducing more robust protections for tenants. The key changes are focused on the periodic nature of tenancies, ground for possession, rent increases, and tenant rights, such as the ability to request pets. It also revises the responsibilities of landlords, particularly around providing written terms and abiding by regulations that safeguard tenants from unfair practices.

The concept of assured tenancies is central to the Act. The Renters Rights Act 2025 modifies the structure and terms of assured tenancies, ensuring that they become periodic rather than fixed term, with clear guidelines around rent periods and rent increases.

Key Changes

  • Periodic Tenancies: Assured tenancies must now be periodic, with rent periods not exceeding one month. This removes the ability for tenants to have fixed-term tenancies under the assured tenancy agreement.
  • Rent Periods: The rent periods for assured tenancies must either be monthly or 28 days, with tenants having more consistent rent intervals.
  • Rent Payment Flexibility: The rent payment schedule can no longer be set in advance, except for the initial rent, providing tenants more flexibility and reducing the financial strain of paying large amounts upfront.

A key change brought by the Renters Rights Act 2025 is the abolition of assured shorthold tenancies (ASTs), which were previously a staple in residential renting.

  • Termination of ASTs: ASTs are now removed from the 1988 Housing Act entirely. This includes the removal of provisions related to demotion to an AST due to anti-social behavior.
  • Implications: This move aligns with the goal to make assured tenancies the standard form of rental agreement, offering tenants better protection and eliminating the automatic progression to ASTs based on tenant behavior.

Grounds for possession are revised to provide clearer and more stringent guidelines regarding tenant eviction.

Changes

  • Amendments to Possession Grounds: The schedule of possession grounds is updated. For example, tenants who have been served an agricultural notice to quit cannot be evicted on certain grounds under this Renters Rights Act 2025.
  • New Grounds for Possession: The Act introduces more specific conditions under which landlords can seek possession, ensuring that evictions are not done on unreasonable grounds.

A. Statutory Rent Increase Procedures

  • Periodic Rent Increases: Rent can only be increased based on a statutory process and the increase cannot exceed the previous rent for a specific period unless mutually agreed by the landlord and tenant or determined by the tribunal.
  • Clear Guidelines: The Renters Rights Act 2025 stipulates that tenants must be given clear notice before any rent increase is imposed, and the amount cannot exceed the statutory limits unless the tribunal orders otherwise.

B. Prohibition of Pre-Tenancy Rent Payments

  • No Advance Rent (Except Initial Rent): The Act introduces a prohibition on landlords requesting rent in advance unless it is part of the initial rent payment for a tenancy. This protects tenants from undue financial strain.

Requesting Permission for Pets

  • Implied Right to Request Pets: Tenants now have the implied right to request permission from the landlord to keep a pet. The landlord's refusal cannot be unreasonable.
  • Landlord's Obligations: The landlord must provide a written response within 28 days, either granting or refusing the request, with reasons. Delays are permissible if further information about the pet is requested.

Landlord's Written Statement

  • Written Terms Required: Landlords must provide tenants with written statements of tenancy terms, including the rent, rights, and obligations, before the tenancy begins. This aims to reduce disputes and ensure clarity.

Responsibility for Maintenance

  • Property Conditions: Landlords must ensure that their properties meet health and safety standards. Tenants can seek compensation if these standards are violated.

Landlord Penalties

  • Financial Penalties: Landlords who fail to comply with regulations regarding rent increases or pre-tenancy fees face financial penalties. Local housing authorities have the power to impose these penalties.
  • Enforcement: Landlords who violate the Renters Rights Act 2025 may be subject to penalties up to £7,000. Repeated offenses or failure to pay can result in further legal actions.

Tribunal Involvement

  • Rent Disputes: Tenants now have a clear right to dispute rent increases or lease terms through an independent tribunal, ensuring that the disputes are handled fairly and without bias.
  • Eviction Protection: A series of reforms prevent landlords from evicting tenants unfairly, ensuring the tenant's right to remain in the property is respected unless reasonable grounds for eviction are provided.

Impact on Previous Tenancies

  • Transitional Provisions: The Renters Rights Act 2025 includes provisions for tenancies that were established before its enactment, ensuring that these agreements are transitioned to comply with the new rules.
  • Guarantor Liability: Guarantors are no longer liable for rent payments after the tenant's death, offering further protection for individuals who co-sign tenancies.

Chapter 1 of Part 1 of the Renters Rights Act 2025 introduces significant reforms to assured tenancies, aiming to create a fairer and more secure rental market for tenants. By abolishing assured shorthold tenancies (ASTs) and establishing assured tenancies as the standard rental agreement, the Act enhances tenant protections. It transitions all assured tenancies to periodic tenancies, ensuring rent periods are consistent and no longer tied to fixed terms. The Act also introduces stronger controls on rent increases, prohibits rent payments in advance (except for initial rent), and grants tenants the right to request permission to keep pets, with reasonable restrictions on landlords' ability to refuse.

Additionally, the Renters Rights Act 2025 imposes new obligations on landlords, requiring them to provide tenants with written statements of tenancy terms, including the rent and their respective rights and responsibilities. Landlords are held accountable through financial penalties for non-compliance, and stronger safeguards are put in place to protect tenants from unjust evictions. Overall, Chapter 1 strengthens tenants' rights by providing clearer, more predictable terms and improving protections against unfair treatment, marking a significant shift toward a more transparent and equitable rental system.