What the Renters’ Rights Act 2025 means for you, and why you should act now

What’s happening and when

• The legislation (formerly the Renters’ Rights Bill) received Royal Assent on 27 October 2025.

• The main reforms will take effect on 1 May 2026 for all existing and new tenancies. 

• Some measures, such as a new private rented-sector database, a mandatory Landlord Ombudsman and tightened housing-standards rules, will be introduced later, likely through secondary regulations. 

That means landlords and letting agents have only a few months to familiarise themselves and adjust their practices.

Key changes landlords need to know

1. No more “no-fault” evictions

One of the most significant reforms: the abolition of the notorious Section 21 “no-fault” eviction. Landlords will no longer be able to evict tenants without giving a legal reason. Instead, eviction will only be possible under clearly defined grounds (e.g., rent arrears, sale of property, landlord or close family moving in). 

2 All tenancies become periodic (rolling)

Fixed-term assured shorthold tenancies (ASTs) are being scrapped. On the Commencement Date, existing tenancies automatically convert into “assured periodic tenancies”, effectively month-to-month (or week-to-week) rolling agreements.

• Tenants may end the tenancy at any time with two months’ notice (or less if specified). 

• For landlords, this means less control over fixed-term planning, but more flexibility for tenants.

3. Rent increases and bidding rules

• Rent increases will be limited to once per year via a regulated process. 

• Landlords or agents are banned from holding “bidding wars” where prospective tenants outbid each other above the advertised price. The rent must be the advertised amount. If landlords want to raise rent, they must follow a prescribed legal procedure (using new forms under the law).

4. Higher standards & accountability

• The Act introduces a legally required “Decent Homes Standard” for the private rented sector, something that had previously applied only to social housing. 

• Local authorities get stronger powers to inspect properties, enforce compliance, and issue civil penalties for violations.

• Landlords (and agents) will be required to provide tenants with a “written statement” of tenancy terms before a tenancy starts. Pets, discrimination, and tenant protections

• Landlords can no longer simply impose blanket bans on pets. Tenants will have the right to request a pet (landlords may only refuse on valid grounds). 

• Discrimination against tenants because they receive benefits or have children is explicitly prohibited under the new law. 

What this means for landlords (and why you should act now)

1. Prepare your tenancy agreements and documentation. Stand-alone fixed-term ASTs will no longer be valid after 1 May 2026. You need updated documentation reflecting the new assured periodic tenancy format, plus the required written statement of terms.

2. Anticipate reduced flexibility. You’ll lose the ability to end a tenancy without cause; eviction will need legitimate grounds. That makes planning (e.g., for property sale) more complex and requires a longer lead time.

3. Budget for more compliance costs. Higher standards for property condition, safety, and maintenance, along with possible inspections and enforcement, might increase running costs.

4. Consider potential income impacts. With rent controls (limited increases, no bidding wars), and more durable tenancies, returns on investment could be lower. Some landlords may choose to leave the rental market, which could reduce supply. 

5. Adapt policies on pets, tenants on benefits, and general tenant screening. Must ensure compliance with anti-discrimination rules and consider reasonable pet requests.

So, what should you do now?

If you manage rental properties (or plan to), now is the time to review your portfolio, audit current tenancy agreements, and plan for compliance. This is not a passive change: once 1 May 2026 rolls around, existing practices that deviate from the new law may become illegal.

If you’d like help auditing your properties and getting tenancy agreements ready, I can assist. Planning ahead will save hassle and risk down the line, and give you confidence in navigating the new rental landscape.

Feel free to reach out, I’d be happy to guide you through what needs to be done to stay compliant and protect your rental business.

Bouchra El Bouzidi

07925502036

bouchra@parkesestates.com