Renters’ Rights Act 2025
Lorraine Stratton-Webb, Partner in the residential conveyancing team at Clough & Willis Solicitors answers your questions around the Renters’ Rights Act 2025
- What is the Renters’ Rights Act 2025?
The Act is a reform of private rental law in England. It reshapes the balance between landlords and tenants by introducing stronger tenant protections, tighter controls on rent practices, new compliance requirements and higher property standards.
- When do the changes take effect?
The Act is being introduced in stages. From 1 May 2026, section 21 ‘no-fault’ evictions will be abolished and most Assured Shorthold Tenancies will convert into rolling tenancies. By the end of 2026, a mandatory Private Rented Sector database and a new Landlord Redress Scheme are expected to launch. Looking further ahead, the Decent Homes Standard and the principles underpinning Awaab’s Law will be extended into the private rental sector.
- What is happening to Assured Shorthold Tenancies?
ASTs will be abolished from 1 May 2026 and will automatically convert into assured periodic, or rolling tenancies. This applies to both new and existing tenancies, regardless of any fixed term stated in the contract. In practice, fixed terms will disappear and tenancies will continue on a month-to-month basis. Rent will only be payable up to one month in advance, meaning the demand of three or six months’ rent upfront will stop.
- How can tenants end a tenancy under the new system?
Tenants will be able to terminate their tenancy by giving two months’ notice to their landlord. This is designed to give tenants greater flexibility and mobility, while still providing landlords with reasonable notice.
- What replaces section 21 ‘no-fault’ evictions?
From 1 May 2026, landlords will no longer be able to evict tenants without providing a reason. They must rely on Section 8 of the Housing Act 1988 and cite one or more of the statutory grounds for possession. These grounds are divided into mandatory and discretionary categories. If a mandatory ground is established at the possession hearing, the court must grant an order for possession. If only discretionary grounds are relied upon, the court will consider whether it is reasonable to grant possession in light of all the circumstances.
- What are examples of mandatory and discretionary eviction grounds?
These include where a landlord intends to occupy the property themselves or sell it, where a lender is repossessing the property, where redevelopment or demolition cannot be carried out with the tenant in situ, where the tenant has accumulated serious rent arrears of at least three months, or where there has been severe or criminal antisocial behaviour. Discretionary grounds cover matters such as persistent rent arrears, breaches of tenancy terms, deterioration of the property due to tenant neglect, provision of suitable alternative accommodation and lower-level antisocial conduct.
- Can tenants receive compensation if evicted?
In certain circumstances, tenants may be entitled to financial compensation. For example, where a landlord relies on particular mandatory grounds following regulatory failings or housing condition breaches, the court may award compensation.
- Are landlords still allowed to take deposits and rent in advance?
Landlords may still take holding deposits and tenancy deposits, but strict limits remain in place. A holding deposit is capped at one week’s rent, and tenancy deposits are capped at five weeks’ rent, or six weeks where annual rent exceeds £50,000. In relation to rent in advance, landlords may take a maximum of one month’s rent, or 28 days’ rent where payments are due every 28 days or less.
- Is rent bidding still allowed?
No. Landlords must advertise an asking rent and are not permitted to accept more than that advertised figure.
- How will rent increases work?
Rent increases will be limited to once per year and must be made using the formal Section 13 notice procedure. Any proposed rent must reflect the open market rate. If a tenant believes that the proposed rent exceeds market value, they may challenge it. Any increase will take effect no sooner than two months after agreement, service of notice or tribunal determination.
- Can landlords refuse pets?
Tenants will have an implied right to request permission to keep a pet, and landlords may not unreasonably refuse consent. What amounts to a reasonable refusal is narrowly defined and may include circumstances where a superior landlord’s consent is required and has been properly sought but refused. Landlords must respond within 28 days of receiving a request. If a tenant fails to provide requested information, the request may lapse.
- Does the Act address discrimination?
Yes. The Act prohibits landlords and agents from discriminating against prospective tenants on the basis of benefit status or family status. Blanket restrictions such as ‘No DSS’ or exclusions targeting families will no longer be lawful.
- What is the Decent Homes Standard and how will it apply?
The Act empowers the government to introduce mandatory quality standards for private rental properties, including Houses in Multiple Occupation. These standards will govern both the condition a property must be in before it can be lawfully let and the ongoing maintenance obligations landlords must meet. Implementation is expected between 2035 and 2037.
- How does Awaab’s Law relate to this Act?
Awaab’s Law requires social landlords to investigate and remedy serious hazards, particularly damp and mould, within strict, legally enforceable timeframes. The Renters’ Rights Act effectively extends similar principles to the private rental sector, with implementation anticipated in the later phase of the Act.
- What is the Private Rented Sector database?
The Act introduces a mandatory national database requiring landlords to register themselves and their properties before marketing or letting. Failure to register or keep information updated will prevent lawful letting and may result in financial penalties.
- How will the Act be enforced?
Local authorities will have primary responsibility for enforcement and will be empowered to investigate suspected breaches, impose financial penalties of up to £7,000 per breach and up to £40,000 for repeated offences, issue banning orders preventing individuals from letting property and pursue criminal sanctions for obstruction or non-compliance. In addition, a mandatory Landlord Redress Scheme will be introduced by the end of 2026 to handle complaints from current and prospective tenants.
- What does this mean for landlords and tenants?
The Act represents a significant rebalancing of the private rental sector. It strengthens tenant security, increases regulatory oversight and raises compliance for landlords. For landlords, proactive preparation and careful adherence to the new framework will be essential. For tenants, the reforms promise greater stability, fairness and transparency.
If you have any questions on any property matters please contact Lorraine Stratton-Webb on freephone 0800 083 0815
