Renters' Rights Act 2025 explained: what the new rental laws mean for landlords and tenants

The Renters' Rights Act 2025 represents a fundamental change to the private rented sector in England. It ends the assured shorthold tenancy model, abolishes section 21 ‘no-fault’ evictions and introduces a system of periodic tenancies supported by revised possession grounds and stronger standards of regulation.

The first major reforms came into force on 1 May 2026. Further measures, including elements of the new landlord database, redress arrangements and property standards regime, are being introduced in stages. Landlords, letting agents and tenants should therefore understand both the changes already in force and the additional obligations that will follow.

This guide explains the main provisions of the Renters' Rights Act 2025, including section 21 abolition, periodic tenancies, possession grounds, rent increases, landlord obligations and practical compliance steps. The reforms apply primarily to privately rented properties in England. Different housing legislation applies in Wales, Scotland and Northern Ireland.

What is the Renters' Rights Act 2025?

The Renters' Rights Act 2025 reforms the legal framework governing rented homes in England. Its central purpose is to provide tenants with greater security while preserving a landlord's ability to recover possession where there is a legitimate reason to do so.

For most private landlords and tenants, the most significant changes are:

• the abolition of section 21 notices and assured shorthold tenancies;
• the conversion of assured tenancies into periodic tenancies;
• new and amended section 8 possession grounds;
• restrictions on rent increases and rental bidding;
• stronger rights for tenants requesting permission to keep a pet;
• protection against discrimination involving children or benefit entitlement;
• new landlord registration and redress requirements;
• enhanced enforcement powers and financial penalties; and
• the future application of minimum property standards and time limits for addressing serious hazards.

The Act does not prevent a landlord from obtaining possession. It changes the legal route that must be followed and requires the landlord to establish an applicable statutory ground.

Section 21 abolition

Section 21 of the Housing Act 1988 previously allowed a landlord to seek possession of an assured shorthold tenancy without proving fault on the tenant's part. Provided the notice and relevant compliance requirements were valid, a landlord could usually begin possession proceedings after the notice period expired.

From 1 May 2026, section 21 is no longer available for tenancies within the reformed assured tenancy system. A landlord who wants possession must use the section 8 procedure and identify one or more statutory possession grounds.

The abolition applies to existing tenancies as well as new tenancies from the implementation date. Existing section 21 notices served before the change may remain capable of enforcement under transitional provisions, but strict deadlines apply. Landlords should obtain advice promptly rather than assume that an earlier notice can still be relied upon.

A section 21 notice cannot be replaced by a contractual clause requiring the tenant to leave on a particular date. Any term that attempts to avoid the statutory system is unlikely to give the landlord an independent right to possession.

How periodic tenancies work

The Renters' Rights Act 2025 replaces fixed-term assured shorthold tenancies with assured periodic tenancies. The tenancy continues from one rental period to the next until the tenant gives valid notice or the landlord obtains possession using an applicable statutory ground.

A landlord cannot require a tenant to leave merely because an agreed fixed period has ended. Subject to limited transitional provisions, existing assured shorthold tenancies converted into periodic tenancies when the reforms commenced.

Tenants will generally be able to end a tenancy by giving at least two months' notice, unless the parties agree to a shorter period. The new system gives tenants flexibility to leave unsuitable accommodation while providing landlords with a defined notice period.

Landlords and agents should update tenancy agreements, renewal processes, prescribed information and internal management systems. Templates referring to assured shorthold tenancies, section 21 notices or automatic termination at the end of a fixed term may no longer reflect the law.

New and amended possession grounds

Landlords must now rely on the possession grounds set out in section 8 of the Housing Act 1988, as amended by the Renters' Rights Act 2025. Some grounds are mandatory, meaning that the court must make a possession order if the statutory conditions are proved. Others are discretionary and require the court to decide whether possession is reasonable.

The appropriate ground, evidence and notice period will depend on the circumstances. Common examples include:

Landlords relying on the sale or occupation grounds must have a genuine intention to act as stated. Restrictions prevent a property from simply being marketed or relet during the relevant protected period after those grounds have been used. Breaching the restrictions could result in enforcement action, a financial penalty or a tenant's claim for compensation.

The court will not automatically accept a landlord's stated intention. Evidence may be required, such as sales instructions, correspondence with an estate agent, financial records or information showing which family member intends to occupy the property.

Rent arrears and possession proceedings

Possession for rent arrears remains available, but landlords must use the correct ground and satisfy the revised thresholds and notice requirements. The revised rent arrears grounds include changes to thresholds and notice requirements compared with the previous regime.

Accurate rent records are essential. A landlord should retain the tenancy agreement, rent schedule, bank statements, payment history, correspondence and evidence of any repayment plan. Errors in the arrears calculation can delay proceedings or cause a claim to fail.

Tenants facing arrears should communicate with their landlord or agent as early as possible. A realistic repayment proposal, benefit application or evidence of temporary financial difficulty may help avoid court proceedings. Tenants should also check whether the claimed arrears include prohibited fees, disrepair-related issues or payments that have not been credited correctly.

Changes to rent increases

Landlords cannot use contractual rent review clauses to bypass the statutory process for assured periodic tenancies. Rent will generally be increased through the revised section 13 procedure and normally no more than once in any 12-month period.

The landlord must serve the prescribed notice and provide the required notice period. The proposed rent should reflect the open market rent for a comparable property. A tenant who considers the increase excessive may refer it to the First-tier Tribunal before it takes effect.

Landlords should keep evidence supporting the proposed figure, including comparable local rents, the property's condition, size, location and facilities. Tenants should gather their own comparable evidence if they intend to challenge an increase.

Rental bidding and rent in advance

Landlords and letting agents must advertise a clear asking rent and must not invite, encourage or accept an offer above that amount. This is intended to prevent prospective tenants from being pressured into rental bidding competitions.

The Act also limits the circumstances in which substantial rent payments can be demanded before a tenancy begins. Landlords and agents should review holding deposit procedures, rent-in-advance requests and affordability policies to ensure that they do not conflict with the new rules or the Tenant Fees Act 2019.

Requests to keep pets

Tenants have a strengthened right to request permission to keep a pet. A landlord must consider the request and must not unreasonably refuse it. Whether a refusal is reasonable will depend on the property, the proposed animal, superior lease restrictions, insurance conditions and other relevant circumstances.

A landlord may be able to require appropriate protection against pet-related damage where the statutory conditions are met. Decisions should be made individually and recorded in writing. A blanket ‘no pets’ policy may expose a landlord or agent to challenge.

Discrimination involving children or benefits

Landlords and letting agents must not prevent or disadvantage a prospective tenant simply because they have children or receive benefits. Advertising terms such as ‘no DSS’ or blanket exclusions of families are likely to create legal and regulatory risk.

Affordability and referencing checks may still be undertaken, but they should be fair, proportionate and based on the applicant's actual circumstances. Agents should review automated screening tools and instructions received from landlords to ensure that indirectly discriminatory criteria are not being applied.

Landlord obligations under the new rental laws

The Renters' Rights Act 2025 sits alongside existing housing, safety and consumer protection legislation. Abolition of section 21 does not remove a landlord's established obligations. Depending on the property and tenancy, these may include:

• keeping the structure, exterior, heating, water, sanitation and installations in repair;
• obtaining an annual gas safety record where gas is supplied;
• arranging electrical safety inspections at the required intervals;
• providing a valid energy performance certificate where required;
• installing and maintaining smoke and carbon monoxide alarms;
• protecting tenancy deposits and serving the required information;
• carrying out right to rent checks lawfully;
• complying with selective, additional or mandatory licensing requirements;
• providing required tenancy information and contact details;
• avoiding prohibited payments and unlawful fees;
• responding to hazards and repair reports within appropriate timescales; and
• respecting the tenant's right to quiet enjoyment and following lawful access procedures.

Although some earlier compliance failures were closely associated with the validity of section 21 notices, landlords should not treat section 21 abolition as reducing the importance of compliance. Breaches may still result in civil claims, rent repayment orders, regulatory action, financial penalties or difficulties obtaining possession.

Private rented sector database and landlord redress

The Act provides for a private rented sector database, through which landlords will be required to register themselves and relevant properties. The database is intended to provide tenants with information and help local authorities identify non-compliance.

Landlords will also be required to participate in an approved redress or ombudsman scheme. This will give tenants a route to pursue certain complaints without immediately starting court proceedings.

These measures are being implemented in stages. Landlords and agents should monitor commencement dates, registration windows, fees and the information that must be supplied. Continuing to let an unregistered property once registration becomes mandatory may restrict possession rights and lead to enforcement action.

Property standards and enforcement

The Act creates the framework for the Decent Homes Standard to be applied to the private rented sector and for time-limited duties relating to serious hazards, commonly associated with Awaab's Law. Detailed requirements depend on commencement regulations and supporting guidance.

Local authorities have enhanced powers to investigate breaches and impose financial penalties. In serious cases, landlords or agents may face prosecution. Rent repayment orders are also available for a wider range of housing offences and may cover a longer period than under the previous rules.

Landlords should adopt a documented process for inspections, repair reports, contractor instructions and follow-up visits. Tenants should report problems in writing, retain photographs and allow reasonable access for inspection and repair.

Compliance checklist for landlords and letting agents

The following checklist can help landlords and agents prepare for and comply with the Renters' Rights Act 2025:

1. Identify every tenancy and confirm whether it falls within the reformed assured tenancy regime.
2. Remove outdated references to assured shorthold tenancies, fixed-term possession and section 21 from templates.
3. Provide tenants with the required written tenancy information.
4. Review possession procedures and train staff on the revised section 8 grounds.
5. Keep evidence supporting any intention to sell, occupy or redevelop a property.
6. Update rent review procedures to comply with the statutory section 13 process.
7. Advertise a clear asking rent and prevent rental bidding.
8. Review policies concerning benefits, children, guarantors and affordability checks.
9. Introduce a fair written process for considering pet requests.
10. Audit deposit protection, gas safety, electrical safety, energy performance and alarm compliance.
11. Check whether each property requires an HMO, selective or additional licence.
12. Maintain accurate rent statements, inspection records and repair logs.
13. Prepare for private rented sector database registration and redress scheme membership.
14. Review management agreements to allocate compliance responsibilities clearly between landlord and agent.
15. Seek legal advice before serving a possession notice or taking steps to recover a property.

What tenants should check

Tenants should retain a copy of their tenancy agreement, deposit information, rent statements, safety documents and all correspondence with the landlord or agent. Any repair problem, proposed rent increase or request involving a pet should be raised in writing.

A tenant does not have to leave merely because a landlord asks them to do so. Unless the tenant agrees to surrender the tenancy, a landlord will generally need to serve a valid notice, establish a statutory possession ground and obtain a court order. Eviction without following the legal process may amount to unlawful eviction.

However, tenants should not ignore a notice. Court deadlines can be short, and the landlord may seek possession costs. Early advice can identify whether the notice is valid, whether the stated ground is established and whether there are relevant issues involving disrepair, deposits, discrimination or arrears.

Common risks for landlords

Possession claims are technical. Using the wrong ground, notice form or notice period can result in dismissal, delay and an adverse costs order. Similar risks arise where a landlord has not met licensing, registration or other statutory requirements relevant to the claim.

Landlords should also avoid pressuring tenants to leave, changing locks, removing belongings, interrupting utilities or entering without proper authority. These actions may amount to harassment or unlawful eviction and can lead to criminal and civil liability.

Where possession is required, Stephensons can advise on the correct route, review the evidence, prepare and serve notices and conduct court proceedings. Further information is available through our landlord services.

Frequently asked questions about the Renters' Rights Act 2025

Can a landlord still evict a tenant?

Yes. A landlord can still recover possession, but must establish an applicable section 8 ground and follow the correct notice and court procedure. Section 21 can no longer be used for tenancies within the new regime.

Do existing fixed-term tenancies continue until their end date?

Existing assured tenancies moved into the periodic system when the reforms commenced. A contractual end date does not by itself require the tenant to leave. The precise position may differ for tenancies outside the assured tenancy regime.

Can a landlord sell a property with a tenant living in it?

Yes. A property may be sold subject to the tenancy, or the landlord may seek possession using the sale ground if its statutory conditions are met. The landlord must have a genuine intention to sell and comply with the applicable protected period, notice requirements and restrictions on reletting.

Can a tenant challenge a rent increase?

A tenant may refer a proposed statutory rent increase to the First-tier Tribunal before it takes effect. The tribunal will consider the market rent based on the property's characteristics and comparable evidence.

Does the Act apply to every residential letting?

No. Company lets, holiday accommodation, certain licences, lodger arrangements and other excluded or specialist tenancies may fall outside the assured tenancy regime. The substance of the arrangement is more important than the title used in the agreement.

Does the Renters' Rights Act 2025 apply in Wales?

No. The Renters' Rights Act 2025 applies principally in England. Wales is governed by the Renting Homes (Wales) Act 2016.

How Stephensons can help

The Renters' Rights Act has changed the procedure, not removed a landlord's ability to recover possession. Landlords who understand the new grounds, maintain good records and obtain early legal advice can still recover properties where legitimate reasons exist

Stephensons advises on possession proceedings, rent arrears, tenancy disputes, disrepair, unlawful eviction, deposit claims, access issues and landlord compliance. You can find more information about our property disputes expertise. For advice on buying, selling or refinancing a rented property, visit our residential property team.

Speak to our property law team

If you need advice about the Renters' Rights Act 2025, serving or challenging a possession notice, updating tenancy documents or meeting the new landlord obligations, speak to Stephensons on 0161 696 6170. Our property law team can assess your circumstances and explain the practical steps available.