A Comprehensive Oversight of the Major Changes Introduced by the Renters’ Rights Act 2025
13/02/26
The Renters’ Rights Act 2025 is the most significant overhaul of the UK’s private rented sector in decades. This landmark piece of legislation is designed to ‘rebalance’ the relationship between landlords and tenants by providing increased protections to tenants, and further liability on landlords to abide by the standards set out. As expected with any major upheaval, there has been a lot of noise and general uncertainty surrounding these changes, however, whilst the changes are significant, they do not warrant panic, and with the right preparation both landlords and tenants can adapt to these changes smoothly.
The roll out
As currently conveyed by the government, the legislation is due to be rolled out across three distinct phases. The first phase will come into effect as of the 1st of May 2026. This phase includes the core tenancy reforms. This phase will include the abolishment of section 21 ‘no-fault- evictions, and the replacement of all fixed-term tenancies with periodic Assured Tenancies.
The second phase is planned to be introduced in late 2026 onwards, with specific dates still to be confirmed. This phase will see the introduction of a Private Rented Sector (PRS) database, with mandatory landlord registration, allowing tenants to verify landlord compliance and view safety information before signing tenancies. Phase two will also see the introduction of a Private Landlord Ombudsman once the database is in place, providing free dispute resolution for landlords and tenants, handling complaints without court proceedings. Landlords are to fund this service through a “proportionate” charging model.
Finally, the third phase, with proposed implementation of 2035 or 2037. This phase is all about long-term standards, with such acts as: introducing the Decent Homes Standard to the PRS, extend Awaab’s Law to the PRS, and the increasing of minimum energy efficiency standards (EPC). Dates within this phase are all subject to consultation, along with the actual content and how it will be enforced.
The key reforms introduced by the Act (May 2026 onwards)
The major changes introduced by the Renters Rights Act can broadly be split into two categories. These are changes to tenancies and evictions, as well as changes to rent and the payment of rent.
Changes to tenancies and evictions
The most significant change is the abolishment of Fixed Term tenancies. Where in the past a property may have been let for a six or twelve month term, after the act comes into force all tenancies (new and existing) will become monthly periodic tenancies with no end date. If a tenant wishes to bring a tenancy to an end, they will be required to give no less than two months’ notice. Conversely a landlord will only be able to gain possession under one of the ‘grounds of possession’ which are detailed in the act.
Consequently, this has resulted in the abolishment of Section 21 notices, also referred to as ‘no-fault’ evictions.
The Act has also introduced changes aimed at reducing discrimination in the private rented sector. Landlords will now not be able to discriminate against tenants for certain reasons, for example if they have children or due to the fact they receive benefits. Applicants can still be refused if there is a ‘good reason’, for instance, the property is genuinely inappropriate for children or the applicants cannot afford the rent, even when taking their benefits into account. Tenants will now be able to ask to keep a pet using a statutory process, and the landlord will only be able to refuse if they have a good reason (although the government is yet to provide examples of such good reasons for refusal). Originally the proposal of the act included a stipulation to allow landlords to require the tenant to pay for pet insurance, however this was subsequently struck down by the house of lords prior to royal assent, and requiring a tenant to pay for pet insurance would be in breach of the Tenant Fees Act 2019.
Changes to rent and the payment of rent
The other key reforms introduced by the act cover rent, and the taking of monies for rent. From the first of May 2026, rent review clauses will cease to be valid, both in new tenancies and existing ones. Subsequently, landlords will only be able to increase rent yearly, to a maximum of the market rent of the property. If a landlord wishes to increase the rent, they must serve a ‘section 13’ (of the Housing Act 1988) notice at least two months in advance, detailing the proposed increase. The tenant may challenge this in the First Tier Tribunal, who will then assess whether the increase exceeds market rent. Crucially, the tribunal cannot increase the rent above the landlords proposed figure, only reduce or confirm it. This is important to note as there appears to be no downside risk to tenants challenging increases and even if the Tribunal agrees with the landlord’s proposed rent, it cannot back-date it, allowing tenants to delay rent increases just by contesting them.
The Renters’ Rights Act will also amend the Tenant Fees Act 2019 to prohibit landlords, or letting agents, from requiring or accepting any payment of rent in advance of the tenancy being entered into. Subsequently a landlord will only be able to require up to one months rent at a time, and only once a tenancy agreement has been signed, prior to commencement.
Changes have also been introduced regarding the rent when marketing a property. Landlords and letting agents will be required to publish an asking rent for their property. It will also prohibit them from asking for, encouraging, or accepting any bids above this price. This was introduced in an effort to stamp out the practice of ‘rental bidding’, which was becoming an increasing concern in areas of high demand such as London.
Grounds for possession
As section 21 ‘no-fault’ evictions will be abolished, any landlord wishing to gain possession of a property must do so under the new ‘grounds for possession’. These grounds are grouped into two categories. ‘Mandatory’ grounds, whereby a court must grant possession if a ground is established, and ‘discretionary’ grounds whereby a court may grant possession if they consider it to be reasonable. We have listed these grounds below
The following mandatory grounds for possession all have a four-month notice period:
- Occupation by landlord or family (cannot be used in first 12 months of tenancy)
- Sale of the property (cannot be used in first 12 months of tenancy and the property cannot be re-let for 12 months should the landlord decide not to sell.)
- Sale by mortgagee
- Possession when superior lease ends
- Compliance with enforcement action
- Properties rented to students, and the property is required for a new group of students
- Redevelopment (that cannot be carried out with tenant in situ)
Other mandatory grounds:
- Landlord requires possession to house an agricultural worker (2-month notice)
- End of employment by landlord (2-month notice)
- Severe ASB/Criminal Behaviour (Landlord can begin proceeds immediately)
- Rent arrears of at least 3 months, or 13 weeks if paid weekly/ fortnightly (4-week notice)
Discretionary grounds:
- Suitable alternative accommodation (2-month notice)
- Any rent arrears (4-week notice)
- Persistent arrears (4-week notice)
- Breach of tenancy, other than arrears (2-week notice)
- Deterioration of property/ furniture (2-week notice)
- Anti-Social Behaviour (Immediate)
- Tenant convicted of rioting (2-week notice)
- False statement by tenant that the tenancy was granted on (2-week notice)
Final thoughts
While the changes introduced by the Renters’ Rights Act are undeniably significant, they are not something landlords or agents need to fear. The legislation still provides clear grounds for possession in genuine circumstances where a landlord may need their property back, ensuring that reasonable rights are preserved on both the side of the landlord, as well as the tenant. In our personal experience, the majority of landlords are not increasing rent more frequently than once a year, and the act of ‘rental bidding’ doesn’t appear to be of a concern in our geographical coverage.
The new prescribed form of tenancy will allow both landlords and tenants over time to become more literate with its content and obligation. It is hoped this may reduce conflict.
There is no doubt that Landlords face high jeopardy in the form of civil fines for non-compliance. For those professional landlords and those that stay up to date it will create more due diligence and investment in systems. It is our view that one positive of this is that the noncompliant landlords will either choose to exit the market or improve their behaviour. In both case this is of benefit to tenants and the majority of landlords out there that already do the right thing.
If you would like to find out more about the Renters’ Rights Act 2025, or the residential management service on offer at Forge, then please contact us today.