The Renters Rights Act 2025 received Royal Assent on 27 October 2025, marking the most significant overhaul of England’s private rented sector, PRS, in decades.

Fixed term assured and assured shorthold tenancies, ASTs, are being replaced with periodic tenancies, section 21 “no fault” evictions are abolished, rent increases must follow a statutory process and can be challenged at the First tier Tribunal, and a new national PRS database and landlord ombudsman will become mandatory.

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Not all provisions will take effect immediately. The abolition of section 21 is expected early, while many other measures will depend on secondary legislation and phased commencement orders through 2026.

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What the Act changes, at a glance:

• From fixed term to periodic: Most assured tenancies, including existing ASTs, will convert to assured periodic tenancies. Tenants can end their tenancy with two months’ notice, and landlords must rely on statutory grounds to recover possession. A twelve month protected period limits the use of the “sell” and “move in” grounds at the start of a tenancy. Current tenancy agreements may soon have terms considered unfair and unenforceable.

• Section 21 is abolished: Landlords must now use amended section 8 grounds, such as serious rent arrears, anti social behaviour, or the intention to sell or occupy after the first year. Notice periods will be longer in some cases, and the mandatory arrears threshold will rise to three months. Courts are expected to face increased pressure and longer case timelines.

• Rent increases and challenges: Landlords may raise rent once per year by serving a section 13 notice, giving at least two months’ notice. Tenants can refer the increase to the First tier Tribunal. Tenants may also challenge the initial rent within the first six months, although evidence of market rates will be required and Tribunal backlogs are likely. Rent review clauses will no longer be enforceable in assured tenancies.

• No rental bidding wars: Letting advertisements must show an asking price, and landlords or agents are prohibited from soliciting or accepting offers above that advertised amount.

• Advance rent restricted: Landlords cannot require multiple months of rent in advance beyond the rent for each rental period. Existing long in advance arrangements will remain valid, but new ones will be unlawful even if a tenant volunteers.

• Pets: Tenants gain a right to request a pet, and landlords must consider such requests reasonably. There remains some uncertainty over whether landlords may require pet damage insurance. Some commentary suggests this will not be allowed, while others anticipate it may be permitted under regulations still to come.

• Decent Homes Standard and Awaab’s Law: The Decent Homes Standard will now apply to the PRS. Landlords must address hazards such as damp and mould within specific timeframes, and local authorities will have new enforcement powers.

• Anti discrimination: The Act prohibits “No DSS” and “No children” letting practices. Any discriminatory clause within tenancy, mortgage, or insurance documents will be void.

• PRS database and landlord ombudsman: All private landlords will have to register themselves and their properties on a national database, and must join an ombudsman scheme. The ombudsman can require apologies, remedial action, and compensation. Civil penalties will range from up to £7,000 for minor breaches to up to £40,000 for serious or repeated offences, alongside criminal sanctions in severe cases.

• Student accommodation: Purpose built student accommodation, PBSA, granted by approved providers will generally fall outside the new regime for new tenancies, provided the provider is part of a recognised code of practice. Existing PBSA ASTs will pass through a transition period and may still be affected, so operators will need to plan carefully.

• Geography: The Act applies to England, though some discrimination provisions will also extend to Wales.

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Timing, transition, and what to expect

Commencement will be phased. Although the Act has received Royal Assent, most provisions require commencement orders and further regulations. Legal commentators expect a general implementation window of around six months for many of the core measures, likely extending into spring 2026, with the abolition of section 21 expected to be prioritised earlier. Exact dates may be staggered by topic, such as rents procedure, the Decent Homes Standard, and the PRS database, as well as by tenancy type.

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Existing tenancies: Most existing ASTs will convert to the new periodic model when the relevant provisions commence. Rent increase notices and other actions taken before commencement will generally remain valid, which should soften the impact of transition. Where landlords plan to sell or occupy the property, the first year restriction and twelve month re letting bar after using those grounds must be observed.

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Courts and tribunals: The courts will likely see more section 8 litigation, and the First tier Tribunal is expected to handle an increased number of rent challenges. Both systems are already under strain, so longer case durations and more evidence heavy hearings are anticipated.

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Practical implications for stakeholders

For landlords and investors

1. Possession strategy: Review and update exit routes to comply with the amended section 8 grounds. Build timelines around the first-year protections and new notice requirements. Prepare stronger evidence for anti social behaviour and arrears cases, noting that the mandatory arrears threshold is now three months.

2. Rent policy: Remove rent review clauses and adopt a section 13 process with clear market comparables in case of Tribunal scrutiny. Increases take effect only from the Tribunal determination and cannot be backdated.

3. Capital strategy: The “sell to regain possession” ground cannot be used within the first year and includes a twelve month re letting restriction. This affects financial modelling and debt covenants in some portfolios.

4. Property standards: Begin a Decent Homes gap analysis to ensure compliance with damp and mould response requirements and contractor availability.

5. Registration and redress: Budget for compliance with the PRS database and ombudsman membership, and train staff in complaint handling procedures given the ombudsman’s powers.

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For letting agents and property managers

6. Advertising rules: Adjust advertisements to display a single asking price, and ensure internal systems prevent offers above that figure.

7. Rent in advance: Eliminate practices that require multi month prepayments except where existing agreements are grandfathered. Update onboarding and training materials.

8. Pets: Establish a transparent decision making process for pet requests. Until official guidance confirms whether insurance requirements are lawful, decisions should be handled case by case and fully documented.

9. Record keeping: Maintain comprehensive records on repairs, damp and mould responses, rent setting evidence, and tenant communications, since the Tribunal and ombudsman will expect detailed evidence.

10. Review tenancy agreements: Many agreements will not be compliant with the Act, you may want to consider seeking legal advice on current tenancy templates,

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For PBSA and the wider student market

PBSA providers that are part of approved codes will generally remain outside the main provisions for new tenancies. However, existing ASTs within PBSA may still be affected during the transition. Providers should map tenancy types across their portfolio and prepare communications for students well in advance.

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For Build to Rent operators and lenders

Tenants will be able to leave with two months’ notice, which may increase turnover and income volatility. The sector can offset this through improved service and tenant engagement. Lenders should review rent setting assumptions, since rent increases now require section 13 compliance and may be challenged. This may influence debt service cover ratios and valuation models.

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Compliance checklist for the next 90 days

11. Tenancy audit: Identify all assured and AST agreements, flag those likely to convert to periodic tenancies, and determine which remain outside the new regime, such as company lets or high rent tenancies.

12. New tenancy types: New agreements should be considered to replace templates currently being used. This will confirm a tenancy is complaint with the new Act.

13. Possession procedures: Replace section 21 workflows with a section 8 framework covering grounds, notice requirements, and evidence standards.

14. Rent procedures: Establish a formal section 13 process with templates, notice tracking, and comparable evidence. Remove rent review clauses from all templates.

15. Advertising compliance: Enforce asking price only rules across all channels and systems.

16. Advance rent policy: Remove any requirement for multi month advance payments from new agreements.

17. Pets policy: Develop a reasoned decision framework for pet requests and document all decisions carefully.

18. Decent Homes compliance: Review damp and mould management processes, contractor capacity, and resident communications.

19. Registration and ombudsman readiness: Gather data for PRS database registration and prepare for ombudsman membership, ensuring clear complaint pathways are in place.

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Open questions and areas to watch

• Commencement dates: The government has yet to publish commencement orders specifying the start dates for each provision. Most commentators expect these to arrive in early 2026.

• Pets and financial risk shifting: Clarification is still needed on whether landlords can require pet insurance or additional deposits.

• Database and ombudsman details: Further regulations will define data requirements, fees, and enforcement mechanisms. Non compliance may attract significant penalties.

• Student tenancies: The line between PBSA exemptions and other student housing remains uncertain and will require close review once guidance is issued.

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The Renters Rights Act 2025 fundamentally reshapes the private rented sector. Possession will now depend entirely on statutory grounds, rent increases will be transparent and challengeable, and both quality and fairness standards will rise. A new framework for registration and redress will further professionalise the industry.

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What happens next will depend on how quickly secondary legislation and commencement orders are introduced. The coming months will therefore be crucial for landlords, agents, and investors to review their procedures, train staff, and ensure compliance with a more transparent, balanced, and regulated rental market.

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Those who prepare early will adapt more smoothly to the new legal landscape and minimise both operational and reputational risk.

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Further Information

For further information regarding property and landlord and tenant law, 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).

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_{The contents of this article do not constitute legal advice.  Law applied at date of publication.}