The Renters' Rights Act 2025: what UK landlords need to do

The Renters' Rights Act 2025 (citation 2025 c. 26) is the most significant reform of the private rented sector in England since the Housing Act 1988. It has ended the Assured Shorthold Tenancy as a fixed-term contract, abolished Section 21 “no-fault” evictions, restructured the grounds for possession, and introduced new statutory protections for tenants around rent increases, pets, and bidding wars.

Several key reforms commenced on 1 May 2026; others arrive in stages, so this guide is structured around what changed and when. Throughout, where the Act applies to England only, Scotland, Wales and Northern Ireland have their own separate regimes that are NOT changed by this legislation.

Section 21 has been abolished — since 1 May 2026

Since 1 May 2026, no further Section 21 notices may be served. Possession actions must use Section 8 grounds with proper notice and (where mandatory grounds aren't met) a court hearing on the merits.

Transitional rule for Section 21 notices already served:

• Last valid Section 21 notice servable: 4:30pm on 30 April 2026 (cliff passed).
• Hard longstop for issuing possession proceedings on a pre-existing Section 21: 31 July 2026. After that date, the notice is dead.

Landlords holding a pre-1-May Section 21 notice have until 31 July 2026 to translate it into a court claim; miss the longstop and the notice is gone. Everyone else is now in the new regime and must use Section 8.

All assured tenancies are now periodic

On 1 May 2026, every existing AST and assured tenancy in England automatically converted to a periodic tenancy. New tenancies created after that date are periodic from day one. The fixed-term concept has disappeared for assured tenancies. Practical consequences:

• Tenants can leave with two months' noticeat any time. The pre-Act minimum 6-month commitment didn't survive.
• Landlords cannot end tenancies without a Section 8 ground.The “just wait for the term to expire” option is gone.
• Rent increases follow the statutory Section 13 mechanism only (see below) — clauses in tenancy agreements purporting to allow other rent-review processes are unenforceable.

The new Section 8 grounds for possession

The Act has amended Schedule 1 of the Housing Act 1988 to add new grounds and modify existing ones. The headline grounds for landlords:

Ground 1A — Selling the property (mandatory)

• Notice period: 4 months
• Protected period: Cannot be used in the first 12 months of the tenancy.
• Re-letting ban: 12 months following the notice expiry / claim filing. The property cannot be marketed or re-let during this period.
• Evidence: Genuine intention to sell. A landlord who serves Ground 1A and then re-lets within the 12-month ban faces civil penalties.

Ground 1 — Landlord or close family moving in (mandatory)

• Notice period: 4 months
• Protected period: 12 months at the start of the tenancy.
• Definition of “close family”: spouse, civil partner, cohabitee, parent, grandparent, sibling, child, grandchild — including step- and in-law equivalents.

Ground 8 — Serious rent arrears (mandatory)

Materially tightened. Pre-Act position: 2 months arrears, 2 weeks notice. New position:

• Threshold: 3 months of arrears (or 13 weeks where rent paid weekly / fortnightly), required at BOTH the date of notice AND the date of the hearing. A tenant who clears the arrears below threshold before the hearing defeats the ground.
• Notice period: 4 weeks (was 2 weeks).
• Universal Credit carve-out: the ground is not satisfied where the arrears are due to delayed Universal Credit payments. Landlords pursuing Ground 8 against a UC-receiving tenant should expect the carve-out to be tested.

There are other new and amended grounds — anti-social behaviour gets a faster route, and new specialist grounds cover student housing in higher-education contexts. The Schedule 1 numbering for less-discussed grounds varies between commentators; verify the final Act text before relying on a specific ground.

Rent increases: once a year, statutory route only

Since 1 May 2026, the only route to a rent increase is a statutory Section 13 notice (Form 4) with at least two months' notice. Increases are limited to once per 12-month period.

The tenant has a right to challenge the proposed increase at the First-tier Tribunal (Property Chamber). The Tribunal can:

• Confirm the proposed rent
• Reduce the rent if it exceeds open-market value, OR
• Defer the increase by up to two further months for tenant undue hardship

Critically, the Tribunal cannot set the rent above the landlord's proposed figure. This is a change from the previous Section 13 process where Tribunals could increase rent to the open-market level. The new rent will be the lower of open-market rent and the proposed rent — which means a landlord who under-prices a Section 13 notice cannot recover that mistake at Tribunal.

In practice: be deliberate about the proposed rent. Use real comparables. Don't propose a low number expecting the Tribunal to bring it up to market.

Pets: a tenant right to request

Since 1 May 2026, tenants have an implied statutory right to request to keep a pet. The landlord must:

• Respond in writing within 28 days
• Have reasonable grounds for any refusal

Reasonable grounds include head-lease prohibition, the property being unsuited (e.g. small flat, no outdoor space), or building insurance refusal.

Important — the pet insurance provision was REMOVED. Earlier drafts of the Bill allowed landlords to require pet damage insurance from tenants who kept pets. This provision was struck out during Lords report stage and is NOT in the final Act. Landlords:

• Cannot require tenants to take out pet damage insurance
• Cannot charge an additional pet deposit (the Tenant Fees Act 2019 cap of 5 weeks' rent applies)
• Cannot impose a pet-rent surcharge

This is the single most common factual error in third-party content — a lot of practitioner commentary still references the dropped pet-insurance provision because it appeared in early drafts. If you read it elsewhere, verify against the final Act.

Ban on rental bidding wars

Sections 55–56 of the Act, in force since 1 May 2026, require landlords and letting agents to:

• Publish an asking rent in any property advertisement
• NOT accept offers above the published asking rent

Civil penalties: up to £7,000 for a first breach; up to £40,000 for repeated or serious breaches. The same penalty scale applies to the new discrimination protections.

Discrimination: blanket bans prohibited

Since 1 May 2026, landlords and letting agents may not impose blanket bans on tenants with children or those receiving benefits (“No DSS” clauses). The Act prohibits discriminatory advertising, terms, and refusal patterns.

Important nuance: this does NOT require landlords to accept every applicant. Affordability checks and reference-based decisions remain lawful provided they are applied non-discriminatorily. The test is whether the criterion or refusal is genuinely about affordability/risk versus a class-based exclusion.

Other reforms — coming, not yet in force

Several headline provisions in the Act commence after the 1 May 2026 big-bang:

• Decent Homes Standard for the PRS.Government published its response on 28 January 2026 confirming the standard, but PRS application doesn't bite until 2035. Enforcement is by local councils.
• Awaab's Law for the PRS.Mandatory damp/mould response timeframes currently apply to social housing only (from 27 October 2025). Extension to the PRS comes via secondary legislation, expected from 2027 at the earliest. Don't assume the social-housing timeframes (e.g. 24 hours for emergency hazards) apply to PRS yet — they don't.
• Mandatory PRS Database. Phase 2 rollout from late 2026. Annual registration fee — amount not yet announced. Registration will become a precondition of serving valid possession notices, with limited exceptions.
• PRS Ombudsman.Mandatory landlord membership expected from 2028. The operator hasn't been appointed yet.

What landlords should actually do now

1. Audit existing tenancies. Identify any that were in their first 12 months at the point of 1 May 2026 — Grounds 1 and 1A cannot be used during that protected period.
2. Review tenancy agreements. Any rent-review clauses other than statutory Section 13 are now unenforceable. Update templates for new lets.
3. Tighten reference checking.The new periodic regime with no fixed term means tenant quality matters more — you can't rely on a 12-month commitment. Affordability and reference checks need to be defensible.
4. Manage any live pre-1-May Section 21 notices. If you served a notice before 30 April 2026, the 31 July longstop on issuing proceedings is a hard date — get the claim filed before it lapses.
5. Reset rent-review expectations. Section 13 once-a-year, with Tribunal downside risk, materially changes the dynamics of holding a rental property in a rising market. Model this into your underwriting on new acquisitions.
6. Watch the secondary legislation.The Database, Ombudsman and Awaab's Law extension for PRS will arrive via SI in the next 1–3 years and each will impose new compliance steps. Subscribe to a UK landlord briefing service (NRLA, Propertymark) so you don't miss commencement dates.

The honest take

The Renters' Rights Act materially tilts the balance toward tenants — in eviction process, in rent-increase mechanics, in the obligation to consider pets and avoid blanket bans. For most professional landlords with well-screened tenants, decent stock and non-discriminatory practices, the operational change is manageable. For landlords who relied on Section 21 as a route around defective Section 8 grounds, or who managed portfolios on assumptions about fixed terms and unrestricted rent reviews, the underwriting of new deals needs to change.

The lasting effect, by most practitioner estimates, is a slower-churn, more-regulated private rented sector with somewhat higher operating costs and somewhat lower exit flexibility. Whether that's a good or bad market depends on your strategy. For long-hold landlords with good tenants, the Act is largely procedural housekeeping. For short-hold or arbitrage strategies, it's a meaningful headwind.

Guidance only — not legal or tax advice. The Renters' Rights Act 2025 includes secondary-legislation triggers and transitional rules not covered in full here. Verify against the final Act and applicable Statutory Instruments, and take legal advice before relying on any specific provision in a possession action or contractual decision.

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