Renters’ Rights Act 2025: A New Framework for Private Renting

Introduction

The Renters’ Rights Act 2025, which took effect for most private rented tenancies in England on 1 May 2026, represents one of the most significant reforms to residential landlord and tenant law in decades. Its central aim is to move the private rented sector away from insecurity and “no fault” eviction, and towards a system in which tenants have greater stability while landlords retain defined routes to possession where there is a proper reason. 

The end of section 21

The main reform is the abolition of section 21 “no fault” evictions. Under this provision, a landlord could recover possession of an assured shorthold tenancy (AST) without proving breach or any substantive reason, provided the statutory notice requirements had been satisfied. That route is now removed.

In future, private landlords must rely on statutory possession grounds. If a tenant does not leave after notice is served, the landlord must go to court and prove that the relevant ground is made out. This is intended to address the insecurity caused by section 21 and reduce the risk of retaliatory eviction, where tenants are discouraged from complaining about disrepair or poor management because they fear being removed without reason.

Periodic tenancies are the new default

The Act removes fixed-term assured tenancies from the private rented sector. Instead, all assured tenancies are now periodic. Existing tenancies convert into the new system, and new tenancies granted after commencement are governed by it from the outset.

This means that tenants are no longer locked into fixed terms which may require them to continue paying rent even if their circumstances change or the property is unsuitable. A tenant may now end the tenancy by giving two months’ notice. For landlords, the expiry of a contractual term is no longer enough. If they want possession, they must rely on one of the statutory grounds.

The policy intention is to avoid a two-tier system and give tenants immediate protection. It also simplifies the legal landscape by moving away from the distinction between fixed-term and periodic assured shorthold tenancies.

Reformed possession grounds

To be clear, the abolition of section 21 does not mean that landlords cannot recover their properties. The Act preserves possession grounds where there is a legitimate reason.

Some grounds are tenant-fault based. These include serious rent arrears, persistent late payment, anti-social behaviour, property damage, breach of tenancy covenants and false statements made to obtain the tenancy. In serious anti-social behaviour cases, landlords may be able to begin proceedings immediately.

Other grounds reflect the landlord’s own circumstances. These include cases where the landlord or a close family member wishes to move into the property, where the landlord intends to sell, where a mortgagee exercises a power of sale, or where redevelopment is required. There are special grounds for agricultural workers, ministers of religion, student accommodation, temporary accommodation and other purpose-specific housing.

The main point is that possession now depends on reason and evidence. The landlord must serve the correct notice, identify a recognised ground and satisfy the court.

Extended occupation safeguards

The sale and landlord grounds are likely to be important in practice. The Act recognises that landlords’ circumstances may change and that they may genuinely need to sell or move themselves, or close family members, into the property.

However, these grounds are subject to safeguards. They cannot be used during the first 12 months of a tenancy. Once available, they require four months’ notice. This gives tenants both an initial protected period and a longer period to find alternative accommodation.

The Act also seeks to prevent misuse. A landlord who relies on the sale or occupation grounds is restricted from re-letting or marketing the property for a period afterwards. That restriction is designed to stop landlords using these grounds as section 21 by another name.

Rent arrears and tenant fault

The Act rebalances the treatment of rent arrears. The mandatory rent arrears threshold increases from two months to three months, and the notice period increases from two weeks to four weeks. This gives tenants more time to address temporary financial difficulty before facing mandatory possession.

That said, landlords remain protected where arrears are serious or persistent. Discretionary grounds continue to apply where rent is repeatedly late or where there are arrears below the mandatory threshold. The court will therefore retain a role in assessing whether possession is reasonable in less clear-cut cases.

Rent increases

The Act does not introduce general rent control. Landlords may still increase rent to market level. What changes is the process. Rent increases must be made through the statutory section 13 procedure. Landlords may increase rent once per year to the market rate and must give at least two months’ notice. If the tenant believes the proposed rent exceeds market rent, they may challenge it before the First-tier Tribunal.

The Tribunal will determine the market rent, but will not be able to set rent above the amount proposed by the landlord. Rent increases will also not be backdated in the same way, reducing the risk of tenants being unexpectedly pushed into arrears. Rent review clauses and other alternative contractual mechanisms are restricted, reflecting the Act’s concern with rent increases being used as a “backdoor eviction”.

Rent in advance 

The Act also addresses practices affecting prospective tenants. It limits rent in advance by preventing landlords and agents from requiring or accepting large upfront payments before the tenancy is entered into. Once the tenancy agreement has been signed, the landlord may generally require up to one month’s rent, or 28 days’ rent for shorter rental periods, before commencement.

Rental bidding is also prohibited. Landlords and agents must publish an asking rent and must not ask for, encourage or accept offers above that figure. This is intended to stop renters being forced into bidding wars in an already competitive market.

Discrimination, pets and tenant choice

The Act prohibits landlords and agents from discriminating against prospective tenants because they receive benefits or have children. Blanket “No DSS” or “no children” policies are targeted, although landlords may still assess affordability and suitability on an individual basis.

Further, landlords must consider requests to keep a pet reasonably and cannot refuse arbitrarily. This is not an absolute right to keep any pet in any property: refusal may be justified, for example, where a superior lease prohibits pets or where the property is unsuitable. But blanket opposition to pets will be harder to defend.

New ombudsman service, database and property standards

The Act creates a new Private Rented Sector Landlord Ombudsman, which private landlords with assured or regulated tenancies will be required to join. Tenants will be able to complain for free, and the ombudsman will be able to require apologies, information, remedial action and compensation. A new Private Rented Sector Database will also require landlords to register themselves and their properties. Failure to register may attract civil penalties, and restrict a landlord’s ability to obtain possession except in serious cases of anti-social behaviour. The Act also extends the Decent Homes Standard to much of the private rented sector and extends Awaab’s Law, requiring landlords to address serious hazards such as damp and mould within specified timeframes.

Enforcement and rent repayment orders

The Act strengthens local authority enforcement. Councils receive broader investigatory powers and may impose civil penalties for non-compliance. Initial or minor breaches may attract penalties of up to £7,000; serious or repeated breaches may attract penalties of up to £40,000 or criminal prosecution.

Rent repayment orders (RROs) are also expanded. They apply to additional offences, may reach superior landlords and company directors in relevant cases, and the maximum repayment period doubles from 12 to 24 months. This gives tenants and local authorities a more powerful financial remedy against non-compliant landlords.

Conclusion

The Renters’ Rights Act 2025 is a comprehensive restructuring of private renting in England. For tenants, it promises greater security, more transparent rent increases, stronger redress and improved housing standards. For landlords, it creates a more compliance-heavy system, but preserves routes to possession where there is a genuine and evidenced reason. 

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