The Renters’ Rights Act 2025 represents the biggest overhaul of the private rented sector in England for a generation. With the core provisions due to take effect from 1 May 2026, landlords must now prepare for a fundamentally different regulatory and operational landscape.
While much of the commentary has focused on enhanced tenant protections, the Act has significant commercial and legal consequences for landlords who fail to adapt early. This article highlights the key changes that matter most to landlords and, crucially, the specific pitfalls that could expose you to delay, financial loss or enforcement action.
The End of Section 21: Possession Now Requires Strategy, Evidence and Timing
Perhaps the most widely publicised reform is the abolition of section 21 “no‑fault” evictions. From 1 May 2026, landlords will no longer be able to recover possession simply because a fixed term has ended. All assured shorthold tenancies will convert automatically into assured periodic tenancies, and possession will be possible only via section 8 grounds.
Accordingly, possession is no longer guaranteed.
Although the Act expands and clarifies some section 8 grounds, including where a landlord intends to sell or move back into the property, these grounds:
- Cannot be relied upon in the first 12 months of a tenancy.
- Require strict evidence.
- May be subject to greater judicial scrutiny, particularly where tenants allege retaliatory conduct or bad faith.
Landlords who have historically relied on section 21 as a portfolio‑management tool will need to plan exit strategies much earlier and maintain more comprehensive records throughout the tenancy.
Fixed Terms Are Gone: Increased Tenant Flexibility, Reduced Landlord Control
Under the new regime, landlords may no longer grant fixed‑term tenancies. From commencement, all tenancies are periodic from the outset, with tenants able to give two months’ notice at any time.
For landlords, this introduces a new commercial risk:
- Tenants can leave shortly after moving in.
- There is limited ability to lock in occupation for mortgage or income‑planning purposes.
- Notice periods cannot be contracted out of.
Careful financial modelling and realistic assumptions about turnover will be essential, particularly for leveraged portfolios.
Rent Increases: A Narrower Path and Greater Risk of Challenge
The Act significantly tightens the rules around rent increases:
- Increases are limited to once per year.
- Rent review clauses in tenancy agreements will no longer be effective.
- Increases must follow the statutory section 13 process, with two months’ notice.
- Tenants may challenge increases in the First‑Tier Tribunal
Landlords are also prohibited from:
- Encouraging or accepting rental bids above the advertised rent
- Requesting more than one month’s rent in advance
Excessive or poorly evidenced rent increases are now far more likely to be challenged. Once challenged, rent may be frozen or reduced to a market‑assessed figure.
Mandatory Pet Requests: “Reasonable Refusal” Is Narrower Than You Think
Tenants now have a statutory right to request consent for a pet. While landlords may refuse, refusal must be reasonable and justified within strict parameters. In many cases, landlords will be expected to accept pets subject to appropriate insurance.
Generic “no pets” clauses are unlikely to withstand scrutiny. Landlords should:
- Review leasehold restrictions carefully (particularly where there is a superior landlord)
- Update tenancy documents.
- Ensure refusals are supported by evidence, not preference.
Increased Enforcement, New Databases and Exposure to Penalties
The Act introduces a Private Rented Sector Database and a new Landlord Ombudsman, alongside enhanced local authority powers. Over time, mandatory participation is expected for most landlords.
Local authorities’ investigatory and enforcement powers have already increased, with expanded access to:
- Civil penalties.
- Rent repayment orders.
- Banning orders for serious or repeated breaches.
This will result in compliance failure is easier to detect and harder to fix.
Poor document management, missing safety certificates, or non‑compliant notices can now:
- Invalidate possession proceedings.
- Lead to financial penalties.
- Prevent rent recovery in some circumstances.
Existing Tenancies Are Not Exempt
A common misconception is that the new rules apply only to new tenancies. In fact, existing assured shorthold tenancies will automatically transition into the new periodic framework on commencement.
Landlords must also provide existing tenants with a prescribed information statement by 31 May 2026.
Landlords who fail to update their documentation, policies and processes risk being non‑compliant from day one, even if the tenancy predates the Act. Failure to provide the prescribed tenant information sheet to tenants risks a fine up to £7,000 from the Local Authority.
What Should Landlords Be Doing Now?
In light of the scale of reform, landlords should:
- Audit existing tenancies and possession plans.
- Review rent‑setting and increase strategies.
- Update tenancy documentation and compliance systems.
- Train staff and managing agents on the new regime.
- Seek early advice where future possession or redevelopment is anticipated.
The Renters’ Rights Act is not simply a technical amendment, it fundamentally reshapes the balance of power in the private rented sector. For compliant, well‑advised landlords, the new framework can still support sustainable investment. However, failure to adapt carries far greater legal and financial risk than under the previous regime.
Early preparation, careful strategy and robust compliance will be key.
If you need any advice or guidance please get in touch with our Litigation Solicitor Maria Gough today.
