The Renters’ Rights Act 2025 (the “Act”), coming into force in its first phase on 1 May 2026, represents the most significant overhaul of the private rented sector in England for a generation. It fundamentally rebalances the relationship between landlords and tenants.
Abolition of Section 21: The End of “No-Fault” Evictions
The headline reform is the abolition of section 21 of the Housing Act 1988, effective from 1 May 2026. From that date, landlords will no longer be able to rely on ‘no-fault’ evictions.
This change removes a longstanding mechanism that allowed landlords to recover possession on two months’ notice without justification. In its place, landlords must rely exclusively on the statutory grounds for possession under section 8 (as amended).
Transitional provisions:
- Valid section 21 notices served before 1 May 2026 may still be relied upon, provided proceedings are issued by 31 July 2026.
- After implementation, no new section 21 notices can be served under any circumstances.
Practical impact:
Landlords must now evidence a legitimate basis for possession, increasing reliance on court processes and potentially extending recovery timelines.
Removal of Fixed-Term Tenancies
The Act abolishes assured shorthold tenancies (ASTs) and replaces them with a single system of assured periodic tenancies.
Key features:
- No fixed terms: tenancies are open-ended from the outset.
- Tenants may terminate at any time on two months’ notice.
- Landlords cannot rely on contractual expiry to recover possession.
All existing ASTs will automatically convert into periodic tenancies on 1 May 2026.
Rent Review and Rent Increase Restrictions
The Act introduces a more regulated framework for rent increases:
- Rent increases are limited to once per year.
- Informal or ad hoc increases are prohibited.
- Rental bidding wars are banned, requiring properties to be marketed at a fixed price.
Provisions for Pets
The Act introduces a qualified right for tenants to request permission to keep pets.
- Tenants must make a written request, including details of the pet.
- Landlords must not unreasonably refuse consent.
- Landlords may require appropriate safeguards, such as pet insurance.
Impact on Existing Tenancies
One of the most significant features of the Act is its retrospective application to existing tenancies.
From 1 May 2026:
- All existing ASTs automatically convert into periodic tenancies.
- Existing contractual terms remain valid unless inconsistent with the Act.
- Landlords must provide tenants with a prescribed “information sheet” explaining the new regime.
Consequences:
- No need to reissue tenancy agreements, but contractual provisions (e.g. break clauses) may become ineffective.
- Immediate application of new possession and rent rules.
Impact on New Tenancies
For new tenancies granted after implementation:
- Only assured periodic tenancies can be created.
- Section 21 will not be available in any form.
- Full compliance with the new statutory framework is required from the outset.
Strategic considerations for landlords:
- Increased importance of pre-tenancy due diligence.
- More structured rent-setting strategies.
- Greater reliance on professional management and legal advice.
