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A guide to the Renters' Rights Act 2025

Guide

Introduction  

The Renters’ Rights Act (“the Act”) received Royal Assent on 27 October 2025 and will fundamentally overhaul the UK private rented sector, bringing several transformative changes that will reshape the relationship between residential landlords and tenants and deliver new and stronger protections for the vast majority of England's 11 million private renters.

In this note, we outline the major changes under the Act and consider their impact.

Which tenancies does the Act apply to? 

The Act applies to all residential assured tenancies granted before or after the Act came into force, which meet all the following criteria:

  • the tenant (an individual, not a company) is occupying the property as their only or main home; and
  • the rent is more than £250 per annum (£1,000 in greater London) and less than £100,000 per annum; and
  •  the original term of the tenancy does not exceed 21 years.

The Act does not apply to the following tenancies, meaning that they can continue as fixed-term arrangements:

  • residential fixed term tenancies with an original term of between 7 and 21 years granted before the Act received Royal Assent, or during the first two months after enactment, or pursuant to a contract entered into before the end of that period.
  • some specific types of residential tenancies, including (but not limited to) some student and agricultural lettings.

What does the Act do? 

Abolishes fixed term assured tenancies 

Abolishes fixed term assured tenancies

From the "Commencement Date" (not yet announced, but currently expected to be March/April 2026):

  • it will no longer be possible to grant a new tenancy of a residential property for a fixed term of under 21 years if the criteria for an assured tenancy (set out above) are met.
  • all existing tenancies of a main home will convert to periodic tenancies and continue on a rolling basis with no end date (and new tenancies will be assured rolling periodic tenancies from the outset). Landlords will only be able to regain possession of those periodic tenancies on specified grounds.
  • it will no longer be possible for landlords to use "no fault" section 21 (of the Housing Act 1988) notices to regain possession of their property, though there will be some short-term transitional arrangements in relation to notices served prior to the Act (see below).
  • tenants will be able to terminate a periodic tenancy at any time, provided at least two months' notice is given (unless a shorter notice period has been agreed with the landlord).

Affects the payment of rent 

Prohibits payments in advance/limits rental periods to a maximum of one month  

Rent under post Commencement Date tenancies cannot be paid before the first day of a rent period, which must not exceed one calendar month. However, clauses in pre–Commencement Date tenancies that provide for advance rent payments (exceeding one month) will be preserved.

Prohibits "pre-tenancy" payments

Landlords cannot accept pre-tenancy payments other than the first month's rent and a deposit, and this can only be accepted after the tenancy agreement has been signed.

Any term in a post Commencement Date tenancy agreement that breaches the above restrictions will not bind the tenant.

Stops rental bidding "wars"  

To prevent bidding wars, landlords cannot accept more than the advertised rent.

Limits rent reviews to the statutory procedure  

Contractual rent reviews will no longer be permitted (and any rent review provisions in pre-Commencement Date tenancies will be unenforceable). Instead, landlords must use the prescribed statutory process and can review the rent no more than once each year.

The new rent must be a market rent (or lower) and will only take effect if the tenant accepts it, or after the First Tier Tribunal ("FTT") determines a disputed rent increase.

 

Enhances tenant protections and implements anti-discriminatory measures 

Stops landlords from excluding benefits claimants or tenants with children

Landlords can no longer exclude those on benefits or those with children from enquiring about or taking a tenancy. When considering affordability criteria, money received from benefits must be taken into account.

Gives tenants the right to keep a pet  

All assured tenancies (other than social housing tenancies) will have an implied term that the tenant can ask the landlord for consent to keep a pet. The landlord cannot unreasonably refuse to give consent. Landlords have 28 days to give or refuse consent and may ask for additional information from the tenant. There are provisions to give the landlord extra time to deal with a request where they also need consent from a superior landlord.

 

Implements a new regulatory framework 

Secondary legislation is needed to bring these changes into force. Consequently, implementation of the new regulatory framework will take place in stages. Landlords will be given time to adapt to new housing standards.

Mandatory landlord redress scheme 

Residential landlords must join a landlord redress scheme under which complaints by prospective, current or former residential tenants must be independently investigated and determined.

Private Rented Sector database (PRS database) 

Landlords of assured tenancies must register with the PRS database that will contain details of matters such as banning orders or relevant convictions or prior regulatory breaches. The database could also be used to collect information about the property such as the energy performance, gas safety and electrical certificates. The data to be collected and details of those who will be permitted to view it will be set out in further regulations.

Decent Homes Standard and Awaab's Law  

A new Decent Homes Standard (most likely based on the standards applicable to social housing) will be introduced. "Awaab's Law" will apply to the private rented sector, mandating landlords to investigate and address health hazards in rented properties within specific timeframes.

 

Enhances enforcement powers  

Restriction on gaining possession 

A landlord cannot apply for an order for possession without up-to-date registrations on the PRS database (unless seeking possession on the grounds of anti-social behaviour or nuisance/annoyance).

Financial penalties 

Local council enforcement powers will be strengthened, and there will be civil financial penalties of £7,000 (per breach) for first or minor breaches, and up to £40,000 for more repeated or serious breaches of the Act.

Breaches include:

  • purporting to let for a fixed term
  • failing to provide a written statement of terms and information before the tenancy is entered into
  • accepting prohibited pre-tenancy rent
  • engaging in rental bidding
  • discriminating against certain kinds of tenant
  • misusing possession grounds
  • violating PRS database requirements
  • marketing or letting during a restricted period and breaching the Decent Homes Standard/Awaab's Law.
Offences 

Landlords who provide false or misleading information to the PRS database and/or who repeatedly breach the provisions of the Act will commit a criminal offence for which the local authority can impose an unlimited fine. Where the landlord is a company, officers of the company who are found to have connived in the offence will also be criminally liable.

Rent repayment orders 

Tenants whose landlords have committed an offence will have up to two years (up from 12 months) to apply to the FTT for a rent repayment order. The Act has expanded the list of offences by adding:

  • misuse of possession grounds
  • PRS landlord ombudsman breaches and database violations
  • marketing, letting and licensing during a restricted period
  • breaching the Decent Homes Standard/Awaab's Law

Rent repayment orders will also be imposed in cases of continuing breaches, after the imposition of a civil financial penalty.

 

Will the Act take effect immediately? 

The provisions of the Act will be implemented in several stages: 

27 October 2025 Royal Assent: provisions of the act enabling the making of regulations to bring further parts of the Act into force at a later date come into force.
Existing tenancies remain unaffected; landlords and tenants can continue to grant fixed term assured shorthold tenancies, serve section 21 notices, seek possession on the "old" Housing Act 1988 grounds and issue possession proceedings (subject to the transitional provisions set out in "Pre-existing section 21 notices and possession proceedings" below) until the Commencement Date.
27 December 2025 Two months after Royal Assent: tenancies of more than 21 years and tenancies of between seven and 21 years granted up to 27 December 2025 will cease to be treated as assured tenancies and will fall outside the Act. Some tenancies granted to students and others arranged by local authorities will also cease to be assured tenancies.
March/April 2026 Commencement Date: (not yet fixed but currently anticipated to be March/April 2026) all existing assured tenancies (fixed term and periodic), no matter when granted, will convert to rolling periodic tenancies. No new fixed term assured shorthold tenancies can be granted. Section 21 notices can no longer be served, the new/revised grounds for possession take effect, the new rules relating to rent payments and increases take effect, and tenants will be able to request permission to keep a pet.

 

Continuing regulatory requirements

Short term residential tenancies have always been subject to a raft of regulation including the requirements to protect deposits, provide prescribed information, gas safety certificates, electrical certificates, be licensed for the letting of certain HMOs and comply with the Tenant Fees Act 2019. The sanction for non-compliance with these regulations has been the inability of the landlord to serve a section 21 notice to terminate the tenancy. Instead, now that most short-term residential tenancies will become rolling tenancies and section 21 notices can no longer be served, the sanction for non-compliance will be the court's refusal to make an order for possession (save in certain limited circumstances) where the landlord remains in breach. 

  • Under the Act, where a deposit has been taken under a tenancy, a court may only make an order for possession where the deposit is being held in accordance with an authorised tenancy deposit scheme.
  • Once regulations have come into force detailing the requirements for the new PRS database, the court will also be prevented from making an order for possession where the landlord is in breach of database requirements. It is not yet clear if this means failing to register with the database or will extend to a failure to upload compliant documents such as energy performance certificates and gas safety certificates. Secondary legislation will be required to confirm this.

How to terminate a tenancy under the Act 

Without section 21, landlords will only be able to regain possession by proving specific statutory grounds. Many of these grounds will be familiar as they are the same as those under the old regime which applied to bringing assured shorthold tenancies to an end before expiry of the fixed term.

The Act introduces new grounds for landlords to terminate a periodic tenancy and secure possession and modifies some existing grounds. Below we highlight a number of these new and modified grounds.

Sale of the property - new ground  

A landlord who intends to sell their property can give 4 months' notice to their tenant requiring possession, provided the tenancy has existed for 1 year when the notice expires. A landlord cannot re-market or re-let the property for a restricted period of 12 months from the later of the expiry of the landlord's notice and the date possession proceedings are commenced.

Superior long lease ending – new ground  

Where the landlord of the assured tenancy is a tenant, and the superior lease will come to an end within the next 12 months, the landlord may give4 months' notice to terminate the tenancy. If the landlord is a private landlord (and assuming that their lease is not an agricultural holding or farm business tenancy), the superior lease must originally have been granted for a term of more than 21 years to use this ground.

Sale by mortgagee – amended ground 

The requirement to give notice to the tenant prior to entering into the assured tenancy has been dropped. An assured tenancy may be terminated to allow disposal with vacant possession by a mortgagee entitled to exercise a power of sale, whether the mortgage was granted prior to or during the tenancy.

Agricultural workers – new ground 

A tenancy can be terminated on 2 months' notice where a landlord requires the dwelling for an agricultural worker who is either self-employed or will be working for a business operated by the landlord for a minimum of 35 hours per week. However, the definition of an agricultural worker in this context is very limited and broadly includes work only in connection with dairy and livestock farming, grazing and the growing of food. It would not, for example, include work in a farm shop or workshop.

Redevelopment – amended ground 

A landlord who intends to demolish or reconstruct the whole or a substantial part of the dwelling, for which purpose possession of the property is required, can give 4 months' notice to their tenant requiring them to give up possession, unless the landlord and tenant can agree a variation of the tenancy to accommodate the landlord's works. This ground can only be relied upon by the landlord who granted the tenancy. The tenancy must have been entered into at least 6 months prior to the landlord seeking possession.

Rent arrears – amended ground 

Tenants must be 13 weeks or 3 months in arrears (up from 8 weeks or 2 months respectively) for this ground to apply. The notice period has increased from 2 to 4 weeks.

Student accommodation – new (limited) ground   

Landlords of HMOs (three or more tenants from two or more households) who, prior to entering into the tenancy, provided a written statement to their tenants that they intend to rely on this ground, can give 4 months' notice to their tenants to terminate the tenancy between 1 June and 30 September in order to let to other students.

To take advantage of this ground, all the tenants in the property must meet the "student test" (i.e. be full-time students) and the landlord cannot require them to sign up to the tenancy agreement more than 6 months before they intend to start living at the property.

 

Pre-existing section 21 notices and possession proceedings 

The Act's transitional provisions provide that where a landlord has served a section 21 notice prior to the Commencement Date:

  • the tenancy will remain an assured shorthold tenancy until possession proceedings are concluded, or the section 21 notice expires (six months after giving notice);
  • the landlord must ask the court to issue a claim form for possession by the earlier of:
  • six months after the date of service of the section 21 notice; or
  • three months after the Commencement Date

The Act will not affect possession proceedings begun prior to the Commencement Date.

What should landlords be doing now? 

The specific requirements that will be imposed on landlords will be set out in secondary legislation to be published in the coming months. In the meantime, landlords can prepare themselves by: 

  • Assessing whether existing tenancies will be affected by the Act.
  • Considering deadlines for new and existing section 21 notices and possession proceedings
  • Collating evidence that regulatory requirements have been met. For example, up to date EPC, gas safety and electrical certificates, prescribed information and deposit protection information should be ready to upload onto the PRS database if/when necessary.
  • Checking the state of the property for damp and mould to assess whether remedial works are required to comply with new housing standards (once they are published).
  • Considering whether a pet policy is needed.

This is a general overview of the contents of the Act and should not be taken as a comprehensive note or as legal advice.  Mishcon de Reya LLP, October 2025 

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