What does it mean for Landlords & Tenants?
The Renters’ Rights Act began its journey through the UK Parliament with its first reading in the House of Commons on 11 September 2024. After completing all parliamentary stages, the legislation was formally approved and granted Royal Assent on 27 October 2025.
The government has confirmed that the Act will come into force on 1st May 2026. To help landlords and tenants prepare, we’ve outlined the key changes and what they are likely to mean in practice to all our Assured Shorthold Tenancies.
The Key Reforms Explained
- Assured Shorthold Tenancies Will End
The current AST system will be replaced. All tenancies will move to a new structure known as Assured Periodic Tenancies, meaning they will run now on a rolling monthly basis
Fixed-term agreements will no longer be created under the new system.
- Section 21 (“No-Fault” Evictions) Will Be Abolished
From 1 May 2026, landlords will no longer be able to serve a Section 21 notice.
Instead, possession will only be possible under Section 8, using specific statutory grounds.
New and Updated Possession Grounds
Mandatory grounds will be strengthened and expanded, including where:
- A landlord intends to sell the property.
- A landlord (or close family member) intends to move into the property.
In these circumstances:
- A minimum of four months’ notice must be given.
- Notice cannot expire within the first 12 months of the tenancy.
Grounds relating to:
- Rent arrears
- Anti-social behaviour
- Breach of tenancy agreement
- Rent Payment Rules Will Change
- Rent periods will be limited to monthly (or shorter).
- Rent will only be due on the agreed payment date.
- Landlords will not be able to demand multiple months upfront unless the tenant chooses to pay early.
- Rent Increases Limited to Once Per Year
Rent reviews will be restricted to once every 12 months.
Increases must be served via a formal Section 13 notice, and tenants will retain the right to challenge the proposed increase at the First-tier Tribunal if they believe it exceeds market value.
- Tenant Notice Requirements
Tenants will be able to give two months’ written notice at any point during the tenancy (or less, if agreed).
Notice is expected to expire at the end of a rental period.
For example:
If rent is due on the 1st of each month and notice is served on 15 June, the tenancy would end on 31 August.
In joint tenancies, notice served by one tenant will apply to all named tenants.
- Tenants’ Right to Request a Pet
Tenants will gain the right to formally request permission for a pet.
Landlords must not unreasonably refuse such requests, unless restricted by a superior landlord or head lease.
- Ban on Rental Bidding
The agreed rent cannot exceed the advertised rent. Bidding above the listing price will not be allowed.
- Stronger Anti-Discrimination Rules
Landlords will not be permitted to reject applicants solely because:
- They receive benefits.
- They have children living with or visiting them.
Measures Introduced Through Secondary Legislation
Some elements of the Act will follow later and may not take effect immediately.
These include:
Landlord Redress Scheme
All landlords will be required to join an approved redress scheme before marketing a property. This will provide tenants with a faster and more cost-effective route to resolve disputes without going to court.
PRS (Private Rented Sector) Database
Landlords must register themselves and their properties before advertising. This hasn’t been fully set up by the Government yet so details will follow. Please see further notice on Landlord Database
Mandatory Written Agreements
All tenancies must be set out in writing.
Awaab’s Law
Clear timeframes will be introduced for investigating and resolving serious health hazards in rental properties.
Decent Homes Standard
Minimum property condition standards will formally apply to the private rented sector.
Implementation Timeline
The reforms will be rolled out in phases.
Phase One – From 1 May 2026
Applies to both new and existing tenancies:
- End of Section 21
- Transition to Assured Periodic Tenancies
- Limits on rent in advance
- Ban on rental bidding
- Anti-discrimination protections
- Annual rent increase limit
- Pet request rights
Phase Two – 2027 to 2028
- Launch of the PRS database
- Introduction of the Landlord Ombudsman
Phase Three – Expected 2035 to 2037
- Implementation of Awaab’s Law
- Application of the Decent Homes Standard
Important Dates to Note
- March 2026 – Final regulations published and Government information sheet released.
- 30 April 2026 – Final day to serve a Section 21 notice.
- 1 May 2026 – Tenancy reforms take effect.
- 31 May 2026 – Deadline to provide Government information sheet to existing AST tenants.
- 31 July 2026 – Final deadline to apply to court under Section 21.
Enforcement and Penalties
Local authority enforcement powers will be strengthened.
- Civil penalties up to £7,000 for initial or minor breaches.
- Fines up to £40,000 for repeated or serious non-compliance.
- Rent Repayment Orders extended from 12 months to 24 months in certain cases.
- Liability may extend to superior landlords and company directors.
Please read more at Gov.uk here
We’re Here to Help
The Renters’ Rights Act represents the most significant reform of the private rented sector in decades. As further regulations and guidance are released, we will continue to keep you informed.
If you would like to discuss how these changes affect your property, please contact Jo in Lettings at:
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