Renters’ Rights Act 2025: Key Changes You Need to Know

(England and Wales)

Written by Danyal Hussain

AC1 1968

The Renters’ Rights Act 2025 introduces reforms that will take effect on 1 May 2026, replacing fixed-term Assured Shorthold Tenancies (AST’s) with rolling periodic tenancies and abolishing the use of Section 21 ‘no fault’ evictions. 

This new legislation marks the most substantial overhaul of the private rented sector in decades. For landlords the changes now demand greater attention on documentation and compliance as well as revising strategies for taking possession of the properties. For tenants the changes aim to give them greater security, transparency and fairness. 

 

Key Changes from 1 May 2026 

 

Abolition of Section 21 

From May 2026, landlords will no longer be able to rely on Section 21 of the Housing Act 1988 to evict tenants. Currently, landlords can serve a Section 21 notice to recover possession at the end of a fixed term, giving at least two months’ notice without specifying a reason. 

Under the new reforms, landlords will now only be able to terminate a tenancy by using one of the revised grounds in Section 8  of the Housing Act 1988, such as selling the property or moving themselves or close family into the property. Several grounds now carry extended notice periods (for example, four months’ notice for sale and occupation grounds), and a new twelve-month protected period applies at the start of every tenancy during which the sale and occupation grounds cannot be used at all. 

 

End of Fixed Term Tenancies 

From May 2026 essentially all private fixed term residential tenancies will automatically convert into periodic tenancies. This means that the tenancy will now not end on the date agreed by the parties at the outset but rather will continue on a rolling monthly basis until terminated by either party in accordance with the Act. Tenants may end the tenancy with two months’ notice, while landlords must rely on statutory grounds mentioned above. 

 

Rent Reviews and Restrictions on Upfront Rent Requests 

From May 2026 rent increases will be limited to once every 12 months and must comply with the revised statutory procedure under Section 13 of Housing Act 1988 and contractual rent review clauses can no longer be used. This is a change from the current rules which allow rent review clauses in tenancy agreements as the landlord deems fit, such as making use of fixed or open market rent reviews clauses or indexed increases. Tenants can agree to the new increased rent or if they deem it excessive they can challenge it in the First Tier Tribunal, which has the power to determine the market rent. 

Landlords are also prohibited from requesting more than one month’s rent in advance when a new tenancy is agreed. Once the tenancy has begun, a tenant may choose to pay more than one month at a time, and the landlord may accept such payment, but it cannot be made a requirement of the tenancy. 

 

Pets 

From May 2026 the Renters’ Rights Act 2025 will imply into all new private periodic tenancies the right for the tenant to keep a pet at the property with the landlords consent, such consent which is not to be unreasonably withheld. This request must come in writing from the tenant and include details of the pet giving the landlord 28 days to grant or refuse the consent. This timeline is extended where a superior landlords consent is required or if more information is required or if the parties agree to a longer period. 

 

Other Key Provisions Landlords Should Be Aware Of 

Beyond the headline reforms above, the Act introduces several further changes that materially affect how landlords operate their portfolios: 

  • A ban on rental bidding, meaning landlords and letting agents can no longer invite or accept offers above the advertised rent.
  • A ban on discrimination against prospective tenants on the basis that they have children or are in receipt of benefits, including indirect discrimination through blanket “no DSS” or “professionals only” policies.
  • Mandatory registration on a new Private Rented Sector Database. Failure to register will prevent a landlord from validly serving a notice seeking possession. Further information on this will be provided by the government in due course. 
  • A new Private Landlord Ombudsman providing a free route for tenants to resolve disputes without court proceedings. 

 

Phased Rollout 

 

The reforms will not all take effect on 1 May 2026. Phase 1 on that date brings in the tenancy reforms set out above. The PRS Database is expected to launch on a regional basis in late 2026 with full roll-out in 2027. The Private Landlord Ombudsman is anticipated to follow in 2028. 

 

What Landlords Should Do Before 1 May 2026 

 

The period between now and commencement is a narrow window in which existing rights can still be exercised and documentation brought into line with the new regime. Landlords should consider the following: 

  • Review any tenancies where possession is likely to be sought. Section 21 notices can still be served up to 30 April 2026, but any possession claim based on that notice must be issued at court by the earlier of six months from service or 31 July 2026.
  • Exercise any existing contractual rent review clauses before 1 May 2026, as they will cease to have effect thereafter.
  • Issue the government’s Information Sheet to all existing tenants by 31 May 2026. Non-compliance carries a civil penalty of up to £7,000.
  • Review and update tenancy agreement templates to remove fixed terms, break options, contractual rent review clauses and blanket pet prohibitions.
  • Ensure compliance records are in order for PRS Database registration, including gas, electrical and EPC certificates and deposit protection information. 

 

Please contact our team for more information on the below:  

  • Simon Dawes (Senior Associate) – sdawes@acandco.com 

  • Idrees Naeem (Senior Solicitor) – inaeem@acandco.com 

  • Danyal Hussain (Solicitor) – dhussain@acandco.com