What does the Renters’ Rights Act mean for residential landlords and tenants?
Marking the most significant overhaul of England’s private rental sector in decades, the Renters’ Rights Act 2025 was received by Royal Assent on 27th October. This new piece of legislation aims to enhance security for tenants whilst introducing new compliance requirements for landlords.
Below we have set out a summary of the key changes and their implications, though this is a framework legislation with many details still to be defined.
Abolition of Section 21 ‘No-Fault’ Evictions & Reformed Grounds for Possession
Landlords will no longer be able to evict tenants without a valid reason. All evictions will need to follow stricter grounds, under which landlords can reclaim possession of their properties.
Open-Ended Tenancies
Fixed-term and shorthold assured tenancies will now be replaced with rolling periodic tenancies, giving tenants more flexibility to leave with two months’ notice – once the Act is fully implemented.
Rent Increase Restrictions
Landlords can only increase the rent once a year using a Section 13 notice, though this may not apply immediately to existing tenancies. Subject to secondary legislation, bidding wars will be prohibited and tenants will have more rights to challenge unreasonable hikes.
Advance Rent Payments Capped
Tenants cannot be asked to pay funds in advance to improve affordability or access to a tenancy.
What This Means for Landlords
Tougher Evictions
Currently landlords can serve 2 months’ notice to evict a tenant through the Section 21 notice without having to provide a reason. There will be no more Section 21 no-fault evictions, but landlords will still be able to seek possession on other grounds, subject to the criteria being met – ie: rent arrears, anti-social behaviour, or if the landlord wants to sell or move into the property.
Annual Rent Reviews
Landlords will now only be able to increase rents in line with market values for their properties, in their current condition. A tenant will be able challenge rent increases through the 3rd Tier tribunal where they will consider market values of comparable properties in the area and the condition of the property. The tribunal have the power to increase or decrease the rental value based on their findings and the new rental figure will not come into place until their decision has been made.
Compliance and Risk Management
There are proposals for a new Private Rented Sector Ombudsman service to allow tenant/landlord disputes and complaints to be resolved, and proposals for a national database of landlords giving local authorities stronger enforcement powers. There will be harsher penalties for non-compliance, so audit trails, compliance and keeping up-to-date records will be more important than ever – though this isn’t likely to be implemented with immediate effect.
What This Mean for Tenants
More Flexibility and Certainty of Tenure
Tenants can now benefit from greater peace of mind, knowing they cannot be evicted without cause, whilst also having the freedom to serve 2 months’ notice at any point of their tenancy to vacate.
Improved Affordability
Landlords are now only permitted to increase the rent once every 12 months and only in line with the going market rate, meaning tenants will not be charged unreasonably or unexpectedly. In addition to this, upfront costs are restricted to one month’s rent in advance, making renting more accessible.
Empowered to Challenge Poor Conditions
Tenants are now better protected when raising concerns about property standards. The introduction of the new Private Rented Sector Ombudsman, which all landlords must join, will mean there is an impartial route to resolve complaints. The implementation of Awaab’s Law will require landlords to respond promptly to serious health and safety issues such as damp and mould, ensuring safer homes for tenants. This forms part of a related piece of legislation for social housing and the private rental sector rollout is subject to regulation and implementation.