The Renters Rights Act 2025 (“the Act”) represents the most substantial reform of England’s private rented sector in a generation. With Royal Assent already granted, phase 1 of commencement will begin from 1 May 2026, the focus for private landlords has now shifted from political debate to practical compliance.
Much like earlier housing reforms, the headline changes are widely understood: the end of fixed term assured shorthold tenancies (“AST’s”), the abolition of section 21, tighter rent controls, and stronger enforcement. What is becoming clearer, however, is the scale of the compliance burden and the financial risk attached to getting it wrong.
From commencement, all new private tenancies (with limited exceptions such as qualifying Purpose Built Student Accommodation (“PBSA”)) will be assured periodic tenancies. Existing ASTs will transition automatically. The shift is not simply contractual; it reflects a deeper change in regulatory approach.
Landlords will no longer be able to rely on informal arrangements, legacy clauses, or “industry standard” practices that sit outside statute. Compliance will instead be judged against prescribed processes, supported by written evidence and subject to scrutiny by local authorities, tribunals, and the new landlord ombudsman.
This is particularly evident in three areas:
• prescribed information and documentation;
• rent setting and increases;
• enforcement and penalties.
From 1 May 2026, landlords must provide tenants with prescribed information in writing. For new tenancies, this will normally be satisfied by using an updated compliant tenancy agreement. For existing tenancies, landlords will need to issue a government information sheet by the required deadline.
Local authorities will be able to impose civil penalties of up to £7,000 for non-compliance, and repeated failures may be treated as aggravating factors in later enforcement action.
Importantly, this requirement also acts as a gateway obligation. Where a landlord has failed to provide the prescribed information or to register on the Private Rented Sector (“PRS”) database, their ability to rely on certain possession grounds may be restricted.
Rent increases will now follow a single statutory route. Landlords may increase rent once per year using the section 13 procedure, giving at least two months’ notice. Rent review clauses will no longer be enforceable.
Tenants may refer both annual increases and the initial rent within the first six months to the First-tier Tribunal. Where a challenge is made, the increased rent will take effect only from the date of the Tribunal’s determination, not retrospectively.
This structure is likely to increase the volume of rent challenges and place further strain on the Tribunal system, particularly in high-demand areas. For landlords, the practical implication is clear: rent evidence and comparables must be robust, current, and well documented.
Perhaps the most underappreciated aspect of the Act is the strengthening of enforcement powers.
Local authorities will operate a two-tier civil penalty regime:
• up to £7,000 for initial or less serious breaches;
• up to £40,000 for serious or repeated non-compliance.
In parallel, authorities retain the option to prosecute in the Magistrates’ Court for the most serious cases, where unlimited fines remain available, and rent repayment orders may require repayment of up to two years’ rent.
Civil penalty decision-making is a quasi-judicial process. Authorities must gather evidence, follow internal procedures, and justify penalty levels, but recent guidance confirms an expectation that these powers will be used actively, not as a last resort.
In the second phase of the legislation’s commencement (late 2026, exact dates unconfirmed); all private landlords will be required to:
• register themselves and their properties on the national PRS Database;
• join a mandatory Landlord Ombudsman Scheme.
Letting or advertising an unregistered property may attract a civil penalty of up to £7,000 and may prevent a landlord from obtaining possession, except on limited grounds such as serious anti-social behaviour.
The Ombudsman will have the power to require apologies, remedial action, and compensation. While not a court, its findings will carry reputational weight and are likely to inform local authority enforcement decisions.
Local authorities are expected to adopt a data-led approach. Complaints from tenants, information sharing between departments, PRS database cross-checking, and inspection activity under Decent Homes and Awaab’s Law will all feed into enforcement pipelines.
Once an authority identifies a pattern of non-compliance, penalties may escalate quickly. This is why many commentators are urging landlords to treat the Act not as a one-off adjustment, but as an ongoing compliance regime.
In light of the above, landlords should already be working through the following:
Audit tenancy agreements to identify unenforceable clauses and remove rent review provisions;
• Prepare compliant templates for new periodic tenancies;
• Plan information sheet delivery for existing tenants prior to 01 May 2026;
• Formalise rent-setting evidence in anticipation of Tribunal scrutiny;
• Review data and documentation requirements for the PRS database;
• Review complaint handling procedures ahead of the Landlord Ombudsman Scheme;
• Risk assess exposure to fines across portfolios, particularly where historic practices may no longer be lawful.
The Act does not simply rebalance landlord and tenant rights. It restructures the private rented sector around transparency, enforceability, and regulatory oversight.
For professional and well-prepared landlords, the Act is manageable. For those who delay, rely on outdated agreements, or underestimate enforcement risk, the financial consequences could be severe.
The coming months will therefore be decisive. Early preparation will not only reduce the risk of fines and possession difficulties but will also place landlords in a stronger position as the sector adapts to a more formalised and closely regulated future.
Should you require any further information regarding the Renters Rights Act or property law generally, please do not hesitate to contact Mr Bill Dhariwal (E: bill.dhariwal@lawcomm.co.uk) or Mr Sam Nolan (E: sam.nolan@lawcomm.co.uk).
