Business

The Renters' Rights Revolution: What Landlords Need To Know

Issue 122

By Rob Winder, Senior Associate, Cartmell Shepherd

This is the biggest shake up of the private rental sector in nearly 40 years and understanding the new rules is going to be crucial for property owners.

The Renters’ Rights Act received Royal Assent in October 2025 and delivers the most wide-reaching reform of the private rented sector in decades.

It replaces fixed-term tenancies with rolling periodic arrangements, reshapes how rent can be set and reviewed, and introduces a much stronger regulatory framework for landlords, including a Private Rental Sector (PRS) database. The new legislation applies purely to rented homes. Defined licensed student accommodation is exempt, as are holiday lets.

Is this good news for tenants?

The legislation has many pluses for those renting their homes. They include ending fixed term tenancies and preventing discrimination against tenants with children and pets, as well as those on benefits, except in special circumstances.

What does this mean for landlords?

Though the Act takes positive action for renters, it’s giving landlords plenty to think about.

Under previous legislation, the Section 21 no fault eviction notice had created a system where tenants didn’t know if they’d be able to stay in a property. Now they can stay as long as they want. Should a property owner find themselves with a problem tenant, with issues like late rent or anti-social behaviour, they won’t have the option of using the Section 21 route as they had before. They will have to meet even more stringent grounds for eviction.

The new rules also control rent increases. They will only be able to happen once a year and in line with market levels. Tenants will be able to challenge them at a tribunal where a judge and surveyor will make the decision.

What are the key things to think about now?

The Renters’ Rights Act says tenants will have a periodic month-by-month tenancy, rather than the old fixed term contracts. If a tenant doesn’t want to leave, the landlord will, as they do now, need to go to court to get them out. In terms of what the courts will need, there are different mandatory grounds.

In relation to rent increases, the landlord won’t be able to evict a tenant if they refuse the new proposed rent. The tenant has an automatic right to appeal. However, if it does go to tribunal and the increase is agreed, the rent only increases at the point of the tribunal decision, and it can’t be backdated.

If the landlord is selling the property, they must give tenants at least four months’ notice – and then they have to sell it. Speculative evictions aren’t allowed. Meanwhile, if a tenant wishes to leave their rental property, they’re now expected to give at least two months’ notice.

Are there more phases of the new Act to come?

Yes. Firstly, the PRS database, likely to come into force in late 2026, which is currently out for consultation.

Then there are the Decent Homes Standard and Awaab’s Law which currently apply to social housing, tackling issues of emergency hazards, damp and mould. That will eventually apply to private landlords too. It’s due to feature in Phase Three of the legislation’s roll out, though no timeframe for this is yet in place.

Rob Winder is a Senior Associate at Cartmell Shepherd and heads up the firm’s Property Litigation team. Rob specialises in property law and has particular expertise in both residential and commercial landlord and tenant disputes.

If you need expert support with any property issue or dispute, get in touch with Rob and the team by calling 01434 603656 or emailing enquiries@cartmells.co.uk

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