The Renters’ Rights Act 2025 arrives

Tenancy structure and evictions

A prominent change introduced by the Act is the abolition of “no-fault” evictions, which were previously possible under section 21 of the Housing Act 1988. These allowed landlords to obtain possession after a fixed term has ended, without any other reason being given.

The Act provides that all Assured Shorthold Tenancies (AST) will automatically become periodic tenancies and they will continue unless they are ended (either by a landlord or a tenant). So, fixed-term ASTs will no longer exist.

From 1 May 2026, no new section 21 notices can be validly served.

Landlords will instead have to rely on the amended grounds under Section 8, Schedule 2 of the Housing Act 1988. There has been a lot of changes to Schedule 2, so, some of the main amendments are:

• Intention to sell – if a landlord intends to sell their property, they can rely on this ground if the tenancy has existed for more than 12 months and provided they give the required notice (4 months).
• Landlord/family occupation – a landlord will be able to rely on this mandatory ground if they or a family member intends to move into the property, providing that the tenancy has existed for more than 12 months when the notice expires and the notice gives the required notice (4 months).
• Enforcement action – if a landlord is subject to enforcement action, they can use this ground to obtain possession of the property to become compliant.
• Rent arrears – a landlord can rely on this ground if a tenant is in rent arrears for more than 3 months at the time the notice is served (previously 2 months’ arrears), and 4 weeks’ notice must be given.

A key concern for landlords and tenants is what will happen to Section 21 Notices that have already been served, and whether they will still be able to rely on them to start possession proceedings.

In respect of section 21 notices already served, the tenancy to which they relate will continue as an AST. The section 21 notice will remain valid (regarding proceedings which have already commenced) until either a) the proceedings conclude or b) the notice becomes time-barred (which is 6 months from the date of the notice).

For matters where a possession claim has not yet been filed with the court, landlords will have until 31 July 2026 to file proceedings with the court. After this date, no further applications can be made.

Financial exposure & loss of rent risk

The Act also affects the financial landscape across the sector. Abolishing the section 21 procedure means that it will be more difficult for a landlord to recover possession of a property, and at the very least, it is likely to take longer. This is likely to increase the risk for void periods of rent.

There will be a stricter regime for rent increases, so rents can only increase once per year, and new statutory notices will need to be served, which is good news for tenants. Further, if tenants believe that the proposed rent in the notice exceeds the market rent, they can seek a determination from the First-tier Property Tribunal.

It is not known whether the tribunal is equipped for an influx of rent applications. It is likely that long delays will occur, thereby lessening a landlord’s ability to increase the rent. It will also require costs to be incurred, and as the Tribunal is often a “no costs” jurisdiction, this is likely to be yet another factor for landlords to either leave the market, or seek very high rents at the start of the tenancy to avoid having to apply for increases.

Rental bidding will be abolished. In practice, a letting agent will no longer be able to ask for offers above the advertised price. In essence, a landlord or agent will be required to publish an asking price and not invite any competing bids.

Advance payment of rents will be abolished from March 2026. Landlords will only be able to demand rent in advance up to the value of one month’s rent. Landlords will not be able to demand rent advance payments before the tenancy is signed. This is likely to affect overseas tenants living here for a specific period, who usually prefer to pay the full term’s rent in advance for certainty.

Property standards & housing condition obligations

A key purpose of the Act was to modernise and improve housing quality across England and Wales, as many houses fell below the desired standard. Key to achieving this aim is the Decent Homes Standard and Awaab’s Law. The Decent Homes Standard already applies to the social secto,r and Awaab’s Law applies from 27 October 2025. Regulations will set out the Decent Homes Standards for the private sector, whereas the Act itself will deal with the introduction of Awaab’s law into the private sector.

As a result, local authorities will now have broader enforcement powers (including significant penalties) for non-compliant homes that fall below the required standards. Awaab’s Law will require landlords in the private rented sector to remedy serious health hazards, such as damp and mould, within strict timeframes and to carry out emergency repairs within 24 hours.

Tenant rights & protections

Given that ASTs are being abolished in favour of periodic tenancies, tenants will largely be able to remain until they decide to leave (unless the landlord can rely on a valid section 8 ground for possession and serve the correct notice).

It remains to be seen how a landlord can meet some of the new tests for seeking possession, such as proving an “intention to sell”. Placing a property on the market is an obvious sign, but this doesn’t necessarily prove a genuine intention.

Greater security of tenure is not the only benefit for tenants, though; there is also an emphasis on greater transparency through the publication of asking rents, limited advance rent payments, and regulation of rent increases, as discussed above.

Overall, the Act means greater stability for tenants, improved housing, and increased ability to challenge unfair practices.