The Renters’ Rights Act 2025 introduces wide-ranging sweeping reforms to the private rented sector in England, fundamentally changing the legal framework for landlords and tenants. Some of the key changes, such as the abolish of section 21 (“no fault”) evictions, Assured Shorthold Tenancies becoming periodic tenancies with fixed-terms becoming void, increased local authority oversight and tougher penalties and the national redress scheme/“landlord database” are well documented, there are a number of further changes which will increase the burden for landlords, although this is not an exclusive list:
- Increased Thresholds for ‘Fault’ Notices: Currently, in the event that one of the ‘faults’ contained with Schedule 2 of the Housing Act 1988, the landlord can serve a section 8 upon the tenant. The Renters’ Rights Act adds pre-conditions upon a landlord before a possession order will be granted by the courts following the service of a section 8 notice. With the abolition of section 21, what is likely to be of the greatest consequence is the increase of substantial rent arrears (ground 8) that a tenant needs to be in from 2-months arrears to 3-months arrears before a section 8 notice can be validly served.
- Restriction on Rent Increases: A landlord will no longer be able to rely upon rent increase clauses and, for most tenancies, rent can only be increased by serving a statutory section 13 notice and not within the first 52 weeks of the tenancy. The notice period is increased from 1-month to 2-months. Tenants will be able to challenge proposed rent increases and any notice at the First-tier Tribunal, who has the power to determine the open market rent. A landlord will also be required to specify a rent amount in adverts for new tenancies and cannot invite or accept offers exceeding these amounts.
- Right to Request Pets: Tenants may request to keep a pet and landlords must not unreasonably refuse consent except in very limited circumstances. Processes and deadlines are set out for pet requests are set out in the Renters Rights Act, and courts may order specific performance against landlords who fail to comply.
- Anti-Discrimination Measures: Landlords will be prohibited from discriminating against prospective tenants because they either have children living with them or visiting them or if the tenant claims benefits. Blanket bans and tenancy clauses to this effect are void, save for very limited exceptions. New financial penalties will be in place for discriminatory practices.
List of Actions for Landlords
To protect their investments and ensure legal compliance landlords should prepare for an era of more local authority oversight which will include greater investigatory powers, increased financial penalties (of up to £40,000 in some cases) and new offences for misuse of possession grounds, and take the following immediate, practical steps:
- Review and Update Tenancy Agreements: Removal of fixed-terms, bringing rent increase clauses into line with the new statutory provisions, removing outright bans on pet ownership and removing any discriminatory clauses could prevent landlords running into problems in the future.
- Serve Section 21 Notices As Soon As Possible: Section 21 will be abolished, but this is not anticipated to come into effect before 01 May 2026 and notices served before this time can be relied upon. Assuming that landlord wishes to recover vacant possession of the property in the near term and depending upon whether the necessarily formalities have been complied with, landlords should ensure section 21 notices are served correctly before their anticipated abolition date of 01 May 2026. There will be no opportunity to remedy an invalid section 21 notice after this time.
- Familiarise with New Offences and Penalties: Note that misuse or reckless reliance on possession grounds, or failure to provide proper documentation, can result in fines up to £40,000, rent repayment orders, and summary convictions.
- Understand New Database and Redress Scheme Requirements: A landlord should prepare to register themselves and their property details on the private rented sector database and ensure continued compliance. A landlord should prepare to join a redress scheme.
- Prepare for the Decent Homes Standard: While this is not yet required, it is anticipated that the Decent Homes Standard shall be expanded to the private rental sector. This sets out the minimum standards for rented housing and landlords should anticipate upgrades to housing where necessary and seek to address any issues that could impact upon a tenant’s health.
These actions should help landlords reduce future legal risk and ensure compliance with the Renters’ Rights Act 2025. Contact Daniel Smith and our Property Disputes experts here.