Business

The Renters' Rights Act: Ten Changes Explained

Issue 124

By George Cohen, Brodies LLP

The Renters’ Rights Act 2025 marks a significant shift in the legal landscape of the private rented sector in England – but what are the headline reforms and what impact will they have?

Designed to enhance tenant protections and modernise rental practices, the Renters’ Rights Act received Royal Assent on 27 October 2025 and introduces sweeping reforms in stages – with the first phase taking effect on 1 May 2026.

Some of the most significant changes include:

1. Abolition of fixed-term tenancies: Fixed term assured and assured shorthold tenancies are abolished. All new tenancies will be periodic.

2. End of Section 21: Landlords are no longer able to evict tenants without giving a reason. Possession must instead be sought under specific statutory grounds.

3. Revised grounds for possession: The grounds on which landlords can seek possession have been updated.

4. Rent increase controls: Tenants must be given at least two months’ notice of proposed rent increases. Rent review clauses and informal agreements to increase rent will be void, and tenants have enhanced rights to challenge increases.

5. Ban on rent in advance: Landlords and agents are prohibited from requiring rent before a monthly tenancy agreement is signed. Once signed, they may require no more than one month’s rent before the tenancy starts.

6. Right to request pets: Tenants have a statutory right to request permission to keep a pet. Landlords must not unreasonably refuse and must generally respond in writing within 28 days.

7. Private Rented Sector (PRS) database: A national database of landlords and rented properties will be introduced in stages from George Cohen late 2026, starting with a regional roll-out for landlords and local authorities. Registration will become mandatory once requirements are brought into force.

8. Landlord redress scheme: A new PRS Landlord Ombudsman will be introduced after the PRS database. Expected in 2028, membership will become mandatory for private landlords.

9. Anti-discrimination measures: New provisions prohibit discrimination against prospective tenants on the basis that they have children or receive benefits. Discriminatory terms in tenancy agreements, superior leases, mortgages and insurance contracts will be of no effect.

10. Decent Homes Standard: A statutory framework for a “Decent Homes Standard” will be introduced, setting requirements for qualifying residential premises by regulation, covering state of repair, safety, and maintaining suitable temperatures. This is expected to be implemented later following consultation.

For landlords, investors and managing agents, the immediate focus will be preparation following the 1 May 2026 tenancy reforms:

The most urgent step is to provide the government’s Renters’ Rights Act Information Sheet by 31 May 2026 to existing named tenants. Failure to comply can result in a civil penalty of up to £7,000.

New tenancy agreement templates should be reviewed to reflect the move to periodic tenancies. Remove fixed-term wording, Section 21 assumptions and rent review clauses, and include the written information required for new tenancies, including the landlord’s details, rent, deposit, repair responsibilities, and tenant bills.

Rent increases should be planned for each property, as landlords will need to use the amended Section 13 process and will no longer be able to rely on oral or written agreements, or rent review clauses.

Policies for pre-tenancy payment requests should be checked to avoid seeking prohibited upfront payments or advance rent beyond what the Act permits.

Adverts, application forms and letting criteria should be reviewed to remove any discriminatory wording, such as “no children”, to ensure decisions are based on suitability.

The reforms may also affect investment assumptions, including those about vacant possession, sale, redevelopment, re-letting timescales, rental growth and enforcement risk.

For more information, or to contact George, visit Brodies.com

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