The Renters' Rights Act 2025: Transforming England’s private rental sector

The Renters’ Rights Act 2025 has officially received Royal Assent, representing a fundamental shift in how private rental housing is managed in England. This legislation has been a long time coming and will introduce wide-ranging reforms designed to modernise the sector, impacting tenants, residential landlords and property owners, investors, and property managers. Some of the headline changes are set out below.

Key changes to tenancy agreements

A key change is the abolition of assured shorthold tenancies (ASTs) and fixed-term assured agreements, which will be replaced by periodic assured tenancies with rental periods of no more than one month.

Existing ASTs and fixed-term contracts, unless they are exempt, will automatically convert to these new periodic tenancies at the enactment date. The exact commencement date and the roll out of the provisions is yet to be published, albeit there have been some indicators that full implementation could take around 6 months.

Landlords are advised to ensure that any notices served during this transition period are valid and served correctly and may need to quickly issue additional notices if they wish to preserve specific possession grounds or remedy any potential defects.

Removal of no-fault evictions

The legislation also ends the use of Section 21 notices, which have been a common route for landlords seeking possession of a property without cause. These are commonly known as ‘no fault’ evictions which the Government has hailed as a major selling point for this legislation, although it isn’t strictly speaking the case. Revised grounds under Section 8 of the Housing Act will allow landlords to evict on grounds of selling the property, or wanting to move in themselves which is not a ‘fault’ of the tenant. Therefore, tenants can still be evicted when they have not breached the terms of their agreement.

Although some existing proceedings may still continue temporarily and can be issued until a set cut off date, future possession claims will need to rely on the revised grounds under Section 8, which are being significantly overhauled.

As above, these include new grounds like the sale of the property (Ground 1A) and stricter thresholds for rent arrears – rising from two months’ overdue rent to a minimum of three months or 13 weeks for those paying weekly or fortnightly. Some of the notice periods required will also be changing.

Greater tenant rights & flexibility

Tenants will have the right to end periodic tenancies by giving just two months’ notice, offering them greater flexibility in managing their rental agreements. Rent increases will be strictly regulated, requiring landlords to follow a specific statutory procedure; they will not be allowed within the first year of the tenancy or within a year of a previous rent increase.

Additionally, tenants will have the right to challenge any proposed rent increase by application to the Tribunal. It is expected that the number of rent determination referrals will increase substantially under the new rules, and the Tribunal is gearing up for a significantly increased workload. Since the maximum rent that can be set is the landlord’s proposed amount – and the increase will not be backdated – tenants have nothing to lose by making a referral.

There will also be new restrictions on paying rent in advance, and rental bidding (where prospective tenants compete by offering higher rents) will be banned.

Keeping a pet

All renters will now have the right to keep a pet, subject to the landlord’s consent, which cannot be unreasonably withheld. This right can be overridden if a superior lease contains an absolute ban. However, further Government guidance is needed to clarify when it might be reasonable to refuse a pet request.

Regulations on rental practices & contracts

The Act will override any conflicting provisions found in superior leases, mortgage agreements or insurance policies, offering stronger protections for tenants. This means that where existing contractual terms might have previously limited tenants’ rights or imposed restrictions inconsistent with the law, those terms will now be overridden to ensure compliance with the new legal standards.

However, landlords will retain the ability to carry out income assessments when considering whether tenants can afford the rent, ensuring that financial viability and affordability are still taken into account. This balancing approach aims to strengthen tenant protections while allowing landlords to maintain responsible tenancy management.

Enforcement & anti-discrimination measures

The legislation explicitly prohibits discrimination based on whether children live or visit the property, or if the tenant claims or might claim benefits.

Additionally, landlords will be required to join recognised landlord redress schemes to resolve complaints efficiently. A new private rented sector database will be established, requiring landlords to register their properties and ensure their details are accurate and current at all times. Failure to comply could result in penalties, including restrictions on marketing properties and difficulty in recovering possession.

Raising property standards

The decent homes standard will be extended to include all properties within the private rental sector, significantly raising the baseline requirements for safety, maintenance, and overall quality. This means landlords will be legally obliged to ensure rental properties meet these higher standards, which cover essential aspects such as adequate heating, structural integrity, sanitation facilities, fire safety measures, and overall habitability.

The extension of these standards aims to enhance the living conditions for tenants throughout the private rental market, helping to ensure that homes are safe, healthy, and comfortable places to live.

Implementation & practical preparation

It also remains to be seen to what extent the County Court service will be equipped to handle the increase in possession hearings with the removal of the ‘accelerated possession’ paper claim process, and whether the Tribunal will become overwhelmed with referrals for rent determinations. This will remain under review.

While the full timetable for implementing the Act remains uncertain, and some provisions are yet to be supported by secondary legislation, we would encourage all stakeholders to start reviewing their existing arrangements and practices now. Staying informed on updates will be crucial for a smooth transition to the new legal landscape.

To support this transition, we have prepared a downloadable detailed checklist to make sure you are taking all necessary steps to comply with the new law and effectively manage your tenancies under the evolving regulations.

Click here to download the checklist