Renters’ Rights Bill becomes Renters’ Rights Act – 15 key points you need to know
14 November 2025: The Government has confirmed that the implementation date for the first phase of changes is 1 May 2026. This phase will include the abolition of assured shorthold tenancy agreements, contractual rent review provisions and Section 21 notices. It will also implement the ban on advance rent and rental bidding, anti-discrimination provisions, increased fines and the changes to pet consent. It is anticipated that the PRS Ombudsman and PRS database will be introduced in late 2026 as a second phase. No definite timings have been given regarding Awaab’s Law and the Decent Homes Standard.
The Renters’ Rights Act (“Act”), which gained Royal Assent today, comprises the biggest change in decades to the residential private rented sector in England. Royal Assent is the culmination of an extended legislative process which we have analysed in previous Law-Nows (see Renters’ Rights Bill: Current Status, Amendments and Timeline). The fundamental aim of the Act is to provide greater security and protection for the homes of residential tenants, but it remains to be seen what, if any, adverse impact this has on the property market and on landlord confidence. The changes under the Act are retrospective so will affect existing and new tenancies. We set out below 15 key takeaway points from the Act.
1. Abolish section 21 evictions: The most widely used residential tenancy has been the assured shorthold tenancy (“ASTs”). The effect of the Act is that ASTs will no longer be able to be created and existing ASTs will cease to function as such. They will no longer be able to be terminated on the shorthold (“section 21”) ground, taking away the main advantage of this tenancy for landlords. Instead, landlords will need to use a section 8 possession ground under the Housing Act 1988 (as amended) and, reflecting the abolition of section 21, the section 8 grounds will be expanded to enable landlords to recover their property when reasonable, for example, to sell or move in. Despite these additional possession grounds, removal of the section 21 ground of termination will make it more difficult for landlords to regain possession of the premises. It is considered that the removal of section 21 will happen very shortly after Royal Assent of the Act.
2. Fixed term assured tenancies become assured periodic tenancies: Most residential tenancies will no longer be able to be granted for a fixed term. Both new and existing residential tenancies will be periodic tenancies that will continue until terminated under a section 8 ground (such as where the tenant is at fault or if the landlord needs to sell). So, ASTs will become assured periodic tenancies and existing tenancies will convert to the new system. Tenants will benefit from a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property, though it will still be possible to seek possession on other grounds if the tenant is in breach of its tenancy obligations.
3. Changes to section 8 grounds: There are changes to some of the section 8 grounds (mandatory and discretionary grounds) and to the notice period for such grounds which can be up to 4 months. Landlords will be prevented from gaining possession if for example they have not properly protected a tenant’s deposit or registered their property on the private rented sector database, but this can be rectified to enable possession to be obtained. The mandatory threshold for eviction for arrears is increased to 3 months’ arrears from 2 months and the notice period is increased from 2 weeks to 4 weeks.
4. Requirement for section 13 notice to increase rent and tenant’s ability to challenge and defer when increased rent payable: Landlords will be able to increase rents once per year to the market rate (the price that would be achieved if the property was newly advertised to let), but to do this they will need to serve a “section 13” notice, setting out the new rent and giving at least 2 months’ notice of it taking effect. If a tenant believes the proposed rent increase exceeds market rate, they can challenge this at the First-tier Tribunal, who will determine what the market rent should be. This can cause delays and tenants may be inclined to challenge as a matter of course since any increase is not backdated and will only apply from the date of the Tribunal determination. Rent increases by any other means – such as rent review clauses – will not be permitted. The Act seeks to avoid unnecessary ‘cliff edges’ by maintaining the validity of rent increases and notices served prior to implementation of the Act. The Act does not introduce rent controls - nothing in the Act restricts landlords raising rents in line with market prices, but the section 13 process must be followed.
5. Tenant’s ability to end tenancy on 2 months’ notice: A tenant will be able to end the tenancy by giving 2 months’ notice. This tenant’s right to end the tenancy is an important concern for landlords/investors, since it provides tenants with an opportunity to leave at a very early stage and the rental income from those premises will cease. It also needs to be taken into account when carrying out financial forecasting.
6. Increased pressures on court system and increased delays: The changes will put increased pressure on the court and tribunal system (through the increased rental challenges and the increased use of section 8 grounds for possession). It is feared that this will lead to significant delays and it remains to be seen how much extra resource is provided by Government to tackle this.
7. Prohibition on multiple months’ advance rental payments: Landlords will be prohibited from requesting that tenants pay multiple months’ rent in advance. Instead, the legislation will only allow a landlord to request a tenant pays in advance for each rental period, i.e. monthly rent payable in advance on a specific day of the month. This may prejudice tenants who previously were able to secure a tenancy by paying multiple months’ rent in advance of entry into the tenancy. It will be unlawful even if the tenant voluntarily offers to pay advance rent. Existing agreements in place (pre-implementation) for advance rent (such as payment at yearly intervals) will not be affected.
8. Tenant’s right to have a pet: The Act will ensure that landlords cannot unreasonably withhold consent when a tenant requests to have a pet. Landlords are not able to require insurance covering pet damage or increase the deposit to cover the additional risk.
9. PBSA tenancies are an exception for new tenancies but not existing ones: PBSA (Purpose Built Student Accommodation) providers under new tenancies will be exempt from the Act. The exemption is contingent on either the landlord or its managing agent being a member of a Government-approved code of practice (currently ANUK/Unipol and UUK). Of concern, there will be a transition period during which assured shorthold tenancies which have already been granted by PBSA providers prior to commencement of the Act will be affected by the changes under the Act. PBSA providers should therefore plan for this transition period and note the ability of relevant tenants to, amongst other things, be able to terminate their tenancy on 2 months’ notice.
10. Decent Homes Standard and Awaab’s law: The Decent Homes Standard (DHS) and Awaab’s law will be applied to the private rented sector (DHS already applies to social housing and Awaab’s law applies to social housing from 27 October 2025). Regulations will be made setting out DHS requirements for private rented sector homes and will provide local authorities with effective and proportionate enforcement powers. Awaab’s law will be introduced to privately rented homes by measures in the Act that will impose new requirements on landlords to address hazards, such as damp and mould, within a specified time period, with enforcement if this is not done.
11. Tenancies that are not caught by the Act: The Act’s changes will not affect tenancies that are not assured tenancies such as common law residential tenancies, for example, where the tenant is a corporate or where the annual rent is more than £100,000. They will also not affect genuine licences to occupy.
12. Tenant Fees Act: The restrictions under the Tenant Fees Act 2019 continue to apply to the new assured periodic tenancies, including that there will be no changes to existing deposit caps.
13. New Private Rented Sector Landlord Ombudsman Service and Private Rented Sector Database: The Government will introduce a new Private Rented Sector Landlord Ombudsman Service, which all private landlords in England with assured or regulated tenancies will be required by law to join, including those who use a managing agent. Tenants will be able to use the service for free to complain about a landlords’ actions or behaviours. The service will have powers to compel landlords to issue an apology, provide information, take remedial action and/or pay compensation. The Act will introduce a new Private Rented Sector Database. All landlords of assured and regulated tenancies will be legally required to register themselves and their properties on the database and could be subject to penalties if they market or let out a property without registering it and providing the required information.
14. No rental bidding. New anti-discrimination provisions: The Act will outlaw rental bidding and include stronger anti-discrimination provisions.
15. Implementation: While the Act has gained Royal Assent, it does not come into effect immediately. Although no specific implementation period has yet been provided, we believe that it would be reasonable for the Government to allow a six-month implementation period, which would result in the majority of provisions taking effect from Spring 2026. However, these timings are uncertain and the Government retains the power to vary the implementation period for different parts of the Act. It is likely that the Government will seek to abolish section 21 Notices at the earliest opportunity, which may be some time before full implementation of the Act. Local authorities are likely to be more proactive in enforcing the Act as they retain the financial penalties that they collect. Initial or minor non-compliance will incur a civil penalty of up to £7,000 and serious, persistent or repeat non-compliance a civil penalty of up to £40,000, with the alternative of a criminal prosecution.
