What it means for the Private Rental Sector.
The long-anticipated Renters’ Rights Act 2025 has now received royal assent, signalling one of the most significant overhauls of rental law in England and Wales for a generation. The Act aims to make renting fairer and more secure while setting new standards for both tenants and property owners.
With implementation expected to be phased in from 2026, it’s important to understand what’s changing and how it may affect the way properties are let and managed in the future.
1. Section 21 “no-fault” evictions to be abolished
The most talked-about reform is the removal of Section 21 under the Housing Act 1988. Once the new regime begins, property owners will no longer be able to seek possession without providing a statutory reason.
Instead, possession will be possible only under updated Section 8 grounds, which include selling the property, moving in personally or for a family member, serious rent arrears, or antisocial behaviour.
While this change increases tenant security, it also brings greater clarity and structure to the possession process. Landlords will need to ensure that notice procedures and documentation are correctly handled from the outset of each tenancy.
2. All tenancies to become periodic
Fixed-term assured shorthold tenancies (ASTs) will be replaced with rolling periodic tenancies. This means that tenancies will continue until either party gives notice, rather than ending automatically at a fixed date.
The shift is designed to simplify the system and give greater consistency. However, it also places renewed importance on maintaining good communication and keeping tenancy paperwork up to date.
3. A new Decent Homes Standard
For the first time, the Decent Homes Standard will apply to the private rented sector. This requires rented homes to be safe, warm, and free from serious hazards such as damp or mould.
Although many landlords already meet or exceed these expectations, it’s advisable to carry out a property audit now to identify any areas requiring attention before the standard becomes enforceable. Local authorities will have stronger enforcement powers once the Act is fully in force.
4. Limits on upfront payments
Under the new framework, the amount of rent that can be requested in advance will be capped, generally at one month’s rent. Other upfront charges will be restricted to improve affordability for tenants.
This means lettings arrangements will need to be reviewed to confirm they meet the new limits and remain compliant with wider legislation such as the Tenant Fees Act 2019.
5. New Ground 4A for student HMOs
Ground 4A applies where a property is a HMO (house in multiple occupation) let wholly to full-time students, and the landlord requires possession in order to re-let to a new group of full-time students. The tenancy must not have been entered into more than six months in advance of the occupancy start date if the landlord is to rely on Ground 4A. A notice period of four months is required.
Importantly, Ground 4A is limited to HMOs and does not apply to smaller properties let to students outside the HMO definition; landlords of those properties will need to rely on the standard possession grounds.
For those operating in the student accommodation or shared-house HMO market, this ground offers a route to maintain the academic year turnover model; albeit with increased documentation and notice obligations. Given that most tenancies will convert to periodic tenancies, the ability to rely on Ground 4A will depend on strict compliance with its qualifying criteria.
6. Preparing for change
Although the Act has passed into law, most provisions will take effect in phases from 2026 once the necessary regulations are made.
Those with rental portfolios – whether a single property or several – should begin reviewing:
Tenancy templates and possession procedures;
Property standards and maintenance policies;
Advertising and application processes; and
Communication arrangements with agents and tenants.
Taking proactive steps now will help avoid disruption later and ensure smooth compliance once the new rules apply.
For clear, practical advice on how the Renters’ Rights Act 2025 may affect your property interests, get in touch on 0345 900 5401, email enquiries@sweeneymiller.co.uk or visit www.sweeneymiller.co.uk
