Renters' Rights Act 2025: key implications for landlords, tenants and property investors

Introduction

The Renters' Rights Act 2025 changes how private renting works in England. From 1 May 2026, new rules apply to possession, rent increases, the type of tenancy and landlords' compliance duties.

The changes are significant. Section 21 "no fault" evictions are abolished, assured shorthold tenancies are replaced by assured periodic tenancies, the grounds for possession are revised, rent increases are more tightly controlled and landlords have further compliance duties.

Landlords and investors should now check their tenancy agreements, possession plans, rent arrangements and compliance procedures against the new rules. Tenants have greater security, but they must still comply with the tenancy, and a landlord can still recover possession where a statutory ground applies.

Key changes at a glance

In summary, the main changes are:

• the abolition of section 21 "no fault" evictions;
• the replacement of assured shorthold tenancies with assured periodic tenancies;
• revised and expanded statutory grounds for possession;
• new rules governing rent increases and advance rent payments;
• a ban on rental bidding;
• stronger protections for tenants with children or in receipt of benefits;
• a new right for tenants to request permission to keep a pet;
• enhanced landlord information and compliance duties;
• stronger enforcement powers and financial penalties; and
• further measures to follow in later phases, including the private rented sector database and mandatory landlord redress scheme.

Abolition of section 21 notices

The abolition of section 21 is the change with the greatest effect on landlords.

Landlords can no longer end a tenancy on a "no fault" basis. Possession must now be sought under section 8 of the Housing Act 1988, relying on one or more specific statutory grounds.

In practice, a landlord will need evidence to prove the ground relied on.

End of assured shorthold tenancies

The Act ends the use of assured shorthold tenancies for most private lettings. Existing private sector assured tenancies convert into assured periodic tenancies, subject to transitional provisions.

Landlords can no longer rely on a fixed term to secure rent for a set period. Tenants gain greater flexibility to end a tenancy by giving notice, while landlords must rely on statutory possession grounds if they wish to recover the property.

Possession grounds and notice periods

Without section 21, landlords must rely on the statutory grounds for possession.

The Act amends and expands the grounds available to landlords, including grounds relating to sale, occupation by the landlord or family members, redevelopment, rent arrears, anti-social behaviour and other specific circumstances. Notice periods vary depending on the ground relied upon.

Rent increases and advance rent

The Act introduces a revised approach to rent increases, including greater scope for tenant challenge. Landlords should check whether historic rent review clauses remain effective under the new regime before relying on them.

The Act also restricts rent in advance. This matters in London, where landlords have often taken rent in advance from overseas tenants, students and tenants with little UK credit history.

Payment structures should be reassessed before agreeing new lettings, and existing arrangements may need to be adjusted.

Pets, children, benefits and rental bidding

The reforms introduce wider tenant protections that affect day-to-day lettings practice, staff training, marketing materials and communications with applicants.

Requests to keep pets must be considered reasonably. Blanket refusals, or standard terms prohibiting pets in all circumstances, will become difficult to justify. The Act also restricts discriminatory practices affecting tenants with children or tenants who receive benefits.

Rental bidding, where prospective tenants are invited or encouraged to offer more than the advertised rent, is restricted.

Compliance and enforcement

The Act adds to landlords' compliance duties and gives local authorities stronger enforcement powers.

Professional landlords and portfolio investors should keep full records. Tenancy documents, prescribed information, notices, deposit protection records, rent increase notices and possession files should be complete and up to date.

Transitional arrangements

The Act includes transitional provisions for existing tenancies, section 21 notices, section 8 notices and ongoing possession proceedings.

How they apply depends on the facts. Landlords who served notices before 1 May 2026, or who are contemplating possession proceedings, should take advice before assuming that an existing notice remains valid or that a previous strategy can safely be continued under the new rules.

What landlords should do now

Landlords should consider taking the following steps:

• review and update existing tenancy agreements and template documents;
• audit any section 21 or section 8 notices already served;
• reassess possession strategies in light of the revised statutory grounds;
• review rent increase procedures and payment structures;
• update policies relating to pets, benefits, children and marketing practices;
• ensure full compliance with deposit protection and prescribed information requirements;
• improve record-keeping for arrears, complaints, breaches and tenant communications; and
• prepare for further reforms, including the private rented sector database and redress scheme.

What tenants should know

The Act strengthens security of tenure and limits the circumstances in which a landlord can recover possession.

However, tenants remain bound by their contractual and statutory obligations. Rent arrears, anti-social behaviour, significant breach of tenancy terms and other statutory grounds may still lead to possession proceedings.

What property investors should consider

For investors, the changes affect portfolio management, valuations, refinancing and exit plans.

Without section 21, and with tenancies now periodic, it may be harder to obtain vacant possession for a sale or redevelopment. Investors should review their assumptions about voids, rent growth and redevelopment timetables.

Buy-to-let and portfolio acquisitions should now include careful review of tenancy status, notices, arrears history, deposit compliance, rent increase history and any potential possession issues.