The Renters’ Rights Act 2025: Why Landlords Need to Take Notice

The Renters’ Rights Act 2025 is being described as the biggest shake-up of the private rented sector since the Housing Act 1988. It received Royal Assent on 27 October 2025 and will be implemented in stages from 1 May 2026, starting with the abolition of Section 21 ‘no fault’ evictions and the switch to periodic tenancies.

While the government’s stated aim is to “transform the experience of private renting” and rebalance the system in favour of renters, the practical reality is that many responsible landlords will face more risk, more cost and more red tape.

This blog looks at the key parts of the Act from a landlord-focused perspective – highlighting where it may be detrimental to you, and what you can do now to protect your position.

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1. Life after Section 21: slower, riskier routes to possession

The headline change is clear: Section 21 ‘no fault’ evictions will be abolished. From implementation, landlords will only be able to regain possession using Section 8–style grounds, such as selling, moving in, serious rent arrears, anti-social behaviour or breaches of tenancy.

Landlords considering changes to their portfolios may also wonder whether a property can be sold soon after it has been purchased.

Why this is problematic for landlords

• Loss of flexibility
  Section 21 has been the main tool for ending problematic tenancies without a prolonged dispute about “fault”. Without it, landlords will need to rely on specific grounds – each with its own evidential burden and notice period.

• Greater reliance on the courts
  If a tenant doesn’t leave at the end of a notice, landlords must issue possession proceedings and prove that the ground applies. Even now, court delays are a major concern. Although the government promises a more “efficient, digitised” possession process, it remains to be seen whether the county court system will cope with extra demand.

• Scope for disputes and technical challenges
  Every ground used – from anti-social behaviour to selling – will be open to challenge. Poorly prepared evidence, defective notices or non-compliance with other parts of the Act (e.g. registration on the new database) could see claims struck out or delayed.

Practical risk:

More tenancies are likely to end only after a contested court process, increasing time, legal cost and stress for landlords, especially smaller portfolio and “accidental” landlords.

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2. All tenancies becoming periodic – security for tenants, uncertainty for landlords

The Act will abolish fixed-term assured shorthold tenancies (ASTs). In their place, almost all assured tenancies will be periodic, continuing indefinitely until the tenant ends the tenancy (with 2 months’ notice) or the landlord proves a statutory ground.

Key landlord concerns

• No guaranteed minimum term
  Landlords will no longer be able to rely on a six or twelve-month fixed term to secure an initial period of income. Tenants can end the tenancy with two months’ notice at any time after moving in. This makes cashflow forecasting and lender covenant compliance more difficult.

• Asymmetry of notice
  In many cases, landlords will need to give four months’ notice to sell or move back in – and can’t use those grounds in the first 12 months of a new tenancy. Tenants, by contrast, retain a rolling right to leave on two months’ notice.

• Student and specialist lets more complex
  While there are specific grounds for student and supported accommodation, they depend on precise criteria being met and evidence being kept. Mis-steps could leave landlords unable to recover possession in time for an academic year or new incoming occupiers.

Practical risk:

Higher void risks, more uncertainty around tenancy length and a need for far tighter tenancy management and communication.

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3. Arrears and rent increases: more tenant protection, more landlord exposure

Higher threshold and longer notice for mandatory rent arrears

The Act increases the mandatory rent arrears threshold from 2 to 3 months’ arrears, and extends the minimum notice period from 2 weeks to 4 weeks. It also encourages use of discretionary grounds only where arrears are persistent or serious.

For landlords, this means:

• Longer periods where no rent is being paid but the tenant remains in occupation.

• Greater emphasis on “temporary” arrears and “viable tenancies”, which may make courts more reluctant to grant possession where tenants make small or last-minute payments.

• Increased need for meticulous rent records, correspondence and evidence of arrears management to justify eviction.

Tighter rules on rent increases

Under the new regime:

• Rents can only be increased once per year, using a statutory Section 13 notice.

• Tenants can challenge increases at the First-tier Tribunal if they believe the proposed rent exceeds market rent.

• The Tribunal will not be allowed to increase rent above the landlord’s proposed figure, and rent increases can’t be backdated.

Potential downsides for landlords:

• In fast-moving markets, there is a real risk that rent levels lag behind market value, particularly if a tenant challenges successfully.

• Any rent review clauses in existing agreements will effectively be overridden, removing a tool that is often built into mortgage and investment appraisals.

• Preparing for Tribunal challenges means more admin and evidence gathering (comparable properties, local market data, etc.).

Practical risk:

Reduced ability to track market rents in real time, and longer exposure to non-paying tenants before possession can be obtained.

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4. New Ombudsman and Database: extra cost, extra scrutiny

The Act introduces:

• A mandatory Private Rented Sector Landlord Ombudsman – which all private landlords must join.

• A Private Rented Sector Database – where all landlords and properties must be registered, with fines for non-registration and restrictions on regaining possession if you’re not on it.

Why this matters for landlords

• Direct cost
  Landlords are likely to pay an annual fee per property for Ombudsman membership, plus registration fees for the database. Even if individually “small”, these costs add up across a portfolio.

• Additional compliance burden
  You’ll be expected to:

  • Register each property and keep details up to date.

  • Follow Ombudsman standards and respond to complaints in a prescribed way.

  • Keep records that could be disclosed in investigations or complaints.

• Sanctions tied to possession rights
  If you haven’t complied with deposit rules or database registration, you may be prevented from obtaining possession except in the most serious anti-social behaviour cases. That is a significant leverage point for regulators and tenants.

Practical risk:

Administrative slip-ups (such as failing to register in time) could directly undermine your ability to evict, even where you have a strong substantive ground.

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5. Property condition, Awaab’s Law and the Decent Homes Standard

The Act applies the Decent Homes Standard (DHS) to the private rented sector and extends Awaab’s Law to PRS tenancies. This will allow regulations to set strict timeframes for dealing with hazards such as damp and mould, backed by civil penalties and rent repayment orders.

For many landlords this will mean:

• Upfront capital expenditure to bring older or more marginal properties up to the required standard.

• Tighter repair timescales – failure to act quickly enough could lead to court claims, Ombudsman awards, rent repayment orders and substantial fines.

• The need for more formal systems: logging repairs, keeping photographic evidence, storing inspection reports and communicating clearly with tenants.

Practical risk:

Landlords with ageing stock or limited reserves may find compliance costs significant – and non-compliance increasingly expensive.

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6. Pets, rent in advance, discrimination and rental bidding

The Act also introduces a raft of changes which, taken together, shift risk away from tenants and onto landlords:

• Pets – tenants gain a strengthened right to request pets, which landlords cannot “unreasonably” refuse. This raises questions about:

  • Lease or mortgage terms that restrict pets.

  • Increased wear-and-tear and potential damage.

  • Insurance coverage and premium levels.

• Rent in advance – landlords will generally be prohibited from requiring more than one month’s rent in advance for assured tenancies, closing off a tool often used where tenants have weaker credit or non-standard income.

• Rental discrimination – discrimination against tenants with children or in receipt of benefits will be unlawful. Landlords must instead rely purely on objective affordability and referencing criteria, and may face penalties for indirect discrimination (e.g. “professionals only”-style policies).

• Rental bidding – landlords and agents will have to advertise a single asking rent and will be banned from inviting or accepting bids above it. In high-demand areas this may limit the ability to let at the true market clearing price.

Practical risk:

Fewer risk-mitigation tools (like large rent in advance), more potential for challenge over letting criteria, and constraints on pricing where demand is strongest.

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7. Stronger local enforcement and rent repayment orders

The Act significantly strengthens both local authority enforcement powers and rent repayment orders (RROs):

• Civil penalties for many breaches will be up to £7,000 for minor breaches and £40,000 for serious or repeat offences, with the alternative of criminal prosecution and unlimited fines.

• RROs will be extended to more offences (including misuse of possession grounds and failure to register on the database), with the maximum period of rent to be repaid increasing from 12 to 24 months.

• Repeat offenders may automatically face the maximum RRO.

Practical risk:

The financial consequences of “getting it wrong” – even once – become much more severe. Compliance can no longer be an afterthought.

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8. What should landlords do now?

Although not all provisions are in force yet, the direction of travel is clear and the implementation roadmap has been published.

Landlords should start preparing now by:

1. Auditing their portfolio

   • Check deposits, safety certificates, HMO licences and repair records.

   • Identify properties that may not meet the forthcoming Decent Homes Standard and budget for upgrades.

2. Reviewing tenancy documentation

   • Move towards clear, robust written agreements that anticipate the new regime.

   • Remove or re-draft clauses that will become unenforceable (e.g. certain rent review, rent-in-advance or blanket “no pets” provisions).

3. Strengthening record-keeping

   • Keep detailed rent schedules, arrears correspondence, repair logs and inspection notes.

   • Ensure you can evidence any future use of possession grounds, particularly for selling, moving in or serious arrears.

4. Planning for cashflow and risk

   • Stress-test your finances against longer arrears periods, potential tribunal challenges on rent, and compliance costs.

   • Consider whether to diversify, restructure or exit parts of your portfolio that may become uneconomic.

5. Taking early legal advice

   • The Act is complex and will be implemented in stages, with much detail in secondary legislation and guidance.

   • Getting advice now can help you update your processes, documents and strategy so you’re not caught out when key commencement dates arrive.

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If you are a landlord and you’re unsure how the Renters’ Rights Act will affect your properties, we can:

• Review your existing tenancy agreements and notices.

• Advise on compliant strategies for rent increases and arrears management.

• Help you prepare for registration on the PRS Database and Ombudsman scheme.

• Support you with possession claims, disputes and risk management under the new regime.