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The Renters’ Rights Act 2025 is one of the most significant shake-ups of the private rental sector in decades. Whether you’re a landlord, tenant, property investor, or managing agent, these changes will affect how residential property is let, managed, and recovered. In this Q&A, Rosie Korcz – partner in our Commercial Property team – shares her expertise and knowledge.
What exactly is the Renters’ Rights Act 2025?
The Renters’ Rights Act 2025 (the “Act”) is new legislation designed to reform the private rental market in England and, to a more limited extent, Wales and Scotland. Its aim is to improve tenant security while raising standards and accountability for landlords.
Even if you are not currently renting or letting property, the Act will influence the wider housing market.
Is the Act being implemented in stages?
Yes. Although the Act received Royal Assent on 27 October 2025, its provisions will come into force in phases:
Phase 1 – from 1 May 2026
- Abolition of section 21 “no-fault” eviction notices
- End of most Assured Shorthold Tenancies (ASTs)
Phase 2 – expected by the end of 2026
- Introduction of the mandatory Private Rented Sector (PRS) Database
- Launch of the Landlord Redress Scheme
Phase 3 – expected 2035–2037
- Introduction of the Decent Homes Standard into the private rented sector
Abolition of Assured Shorthold Tenancies (ASTs)
What are Assured Shorthold Tenancies?
A tenancy is a legal agreement under which a property owner grants a tenant the right to occupy a property in return for rent.
An Assured Shorthold Tenancy (AST) is a residential tenancy that allows the tenant to occupy the property for a fixed term, while giving the landlord specific statutory routes to regain possession.
Does the Act abolish all ASTs?
No. Most ASTs will be abolished and automatically converted to assured periodic tenancies (rolling tenancies).
A small category of ASTs, for example, fixed terms exceeding 21 years, will not be affected.
What happens to existing ASTs?
What is an AST?
An Assured Shorthold Tenancy is a residential tenancy that allows a tenant to occupy a property for rent while giving landlords certain routes to regain possession—most notably via section 21 notices.
Are ASTs being abolished entirely?
Almost all ASTs will be abolished and automatically converted into assured periodic tenancies (rolling tenancies).
A very small number of ASTs, such as those with fixed terms exceeding 21 years, are excluded.
What happens to existing ASTs?
From 1 May 2026, most ASTs (new and existing) will:
- Continue on a rolling, periodic basis
- Limit rent payments to one month in advance
- End the practice of demanding three or six months’ rent upfront
How can tenants end their tenancy?
- Tenants may serve two months’ notice
- The notice must expire the day before a rent payment date
- Shorter notice periods are possible if agreed in writing
How can landlords regain possession?
- Until 1 May 2026: landlords may still use section 21 notices
- From 1 May 2026: landlords must rely on section 8 grounds only (see below)
Abolition of Section 21 “no-fault” evictions
What was a section 21 notice?
A section 21 notice allowed landlords to evict tenants without giving a reason, provided procedural rules were followed.
What replaces section 21?
Landlords must now rely on section 8 notices, which require one or more legally recognised grounds for possession.
These grounds are divided into:
- Mandatory grounds – the court must grant possession if proven
- Discretionary grounds – the court will decide whether it is reasonable to grant possession
What are examples of Mandatory Grounds?
- Landlord seeking to occupy the property themselves or via a family member
- Four months’ notice
- Tenant must have occupied for at least 12 months
- Sale of the property
- Four months’ notice
- Tenant must have occupied for at least 12 months
- Available to social landlords from 2027
- Sale by a lender
- Four months’ notice
- Notice must be served before court proceedings
- Development or demolition
- Four months’ notice
- Tenant must have occupied for at least 6 months
- Works must not be possible with the tenant in situ
- Rent arrears
- Four months’ notice
- At least three months’ or 13 weeks’ arrears
- Severe or criminal antisocial behaviour
- Immediate notice
- Includes criminal convictions or breach of antisocial behaviour orders
What are examples of Discretionary Grounds?
- Any rent arrears (including persistent arrears) – four weeks’ notice
- Suitable alternative accommodation available – two months’ notice
- Breach of tenancy terms – two weeks’ notice
- Deterioration of the property due to the tenant’s ill-treatment – four months’ notice
- Antisocial behaviour – immediate
This is not an exhaustive list. Landlords should seek legal advice before serving notice.
In some cases, tenants may be entitled to financial compensation if possession is granted – for example, where repossession follows certain remedial action orders.
Rents in advance
Can landlords still request rent in advance?
Yes, but within strict limits.
Landlords may request:
- One week’s holding deposit
- Five weeks’ rent deposit (annual rent under £50,000)
- Six weeks’ rent deposit (annual rent £50,000 or more)
- One month’s rent in advance, payable only after signing the tenancy agreement
Once the tenancy begins, rent must be paid only on the agreed payment date.
Does this end large upfront rent demands?
Yes. The practice of demanding multiple months’ rent in advance is effectively banned.
Tenants may still choose to pay early voluntarily, but landlords cannot request or encourage it.
Can landlords invite rental bidding?
No. Properties must be advertised at a fixed asking rent, and landlords cannot accept a higher amount.
Rent increases
Are rent increases now limited?
Yes. Landlords may:
- Increase rent only via a section 13 notice
- Increase rent once per year only
Can tenants challenge rent increases?
Yes. If tenants believe a rent increase exceeds the open market rate, they may apply to the First-Tier Tribunal.
Can increased rent be backdated?
No. Any agreed or imposed rent increase:
- Takes effect two months later
- Cannot be backdated
Pets and Anti-Discrimination
Can landlords refuse pets?
Only in limited circumstances.
Tenants now have an implied right to request a pet. Landlords:
- Must respond within 28 days
- May only refuse for defined “reasonable” grounds (e.g. superior landlord refusal)
Mortgage or lease clauses banning pets will become unenforceable from 1 May 2026. Existing insurance restrictions remain valid until renewal.
What about “No DSS” or “No children”?
These are now unlawful.
The Act bans discrimination based on:
- Benefit status
- Family status (including children)
Landlords and agents must not prevent enquiries, viewings, or applications on these grounds.
Decent Homes Standard
What does the Decent Homes Standard mean for landlords?
The Act empowers the Secretary of State to prescribe mandatory standards for qualifying residential properties, including HMOs.
These standards will cover:
- Property condition prior to letting
- Ongoing maintenance obligations
- Requirements relating to safety and habitability
This section is expected to be implemented in Phase 3 (2035–2037).
Landlords already have statutory obligations to ensure properties are safe and free from health hazards. The new standard will expand on that position.
Awaab’s Law
How does Awaab’s Law fit into the Act?
Awaab’s Law arose following the tragic death of Awaab Ishak due to prolonged exposure to mould.
Currently applying to social housing, the Act will extend similar legally enforceable requirements to privately rented homes. This will require landlords to investigate and address damp and mould within strict timeframes.
Implementation is expected in Phase 3 (2035–2037).
Enforcement and the PRS Database
What is the Private Rented Sector Database?
Landlords must register themselves and their properties on a mandatory PRS Database.
Failure to register means:
- The property cannot be marketed or let
- Financial penalties may be imposed
The database will include key information about landlords and properties, including enforcement history.
It is likely that landlords will be prohibited from passing on database costs to tenants, particularly in light of the Tenant Fees Act 2019.
Who enforces the Act?
Local authorities will have enforcement powers, including:
- Investigating breaches
- Imposing financial penalties of up to £7,000 per breach
- Imposing fines of up to £40,000 for repeated offences
- Issuing banning orders
- Bringing criminal prosecutions (Level 3 fine)
What is the Landlord Redress Scheme?
A mandatory Landlord Redress Scheme will be introduced in Phase 2.
Landlords must be members in order to market or let property.
The scheme will handle complaints from current and prospective tenants independently.
Further operational detail is awaited.
First-tier Tribunal and Rent Repayment Orders
What awards are available to tenants?
Tenants may apply to the First-tier Tribunal to:
- Challenge rent increases
- Apply for rent repayment orders
Where landlords knowingly or recklessly misuse eviction grounds or provide incorrect information in the PRS database, tenants may be awarded up to 24 months’ rent.
What support is available with Private Rental rights?
The Renters’ Rights Act 2025 introduces substantial structural reform to the private rented sector.
Proactive compliance is essential.
At Davis Blank Furniss LLP, our experienced property team can assist with:
- Updating tenancy agreements
- Reviewing property portfolios
- Preparing and serving section 8 or section 13 notices
- Advising on compliance and enforcement risk
For tailored advice on how the Renters’ Rights Act 2025 affects you, please contact our team.
