Renters’ Rights Act is here!

Renters’ Rights Act 2025

What this means if you are a landlord

The Renters' Rights Act is now in force and introduces significant changes to the private rented sector.

The Act abolishes Assured Shorthold Tenancies (ASTs), which were previously the most common type of tenancy agreement for private residential lettings, and provides tenants with greater security and protections.

Landlords should review their tenancy arrangements and ensure they understand the new requirements, including changes to possession grounds, rent increases, and tenancy management obligations.

You can read more about the Bill on the Government website here.

FAQ

Under the new legislation, landlords and tenants will no longer agree fixed tenancy periods. Known as “assured periodic tenancies”, these tenancies will run from month to month instead until the tenant serves notice, or the landlord wants to regain possession of the property by meeting one of the grounds that will enable this.

Landlords will not be allowed to move back into their property or attempt to sell it during the first 12 months of any new tenancy unless selling to a landlord who will take over the tenancy. This will give tenants a protected period for 12 months. If the tenant, however, wishes to leave the property during this period, they can do so as long as they give two months’ notice to terminate, and it must be in line with the rent payment date.

Part of the Act is to provide tenants with more security. The new legislation has abolished Section 21 notices, or “no-fault evictions”. Instead, landlords must use a Section 8 notice, and this will have to cite one of the specific grounds for possession, for example if the landlord is looking to move back into the property, or they want to sell it. Other grounds to use a Section 8 notice could be rental arrears or antisocial behaviour.

Yes, a landlord can still propose an annual rent increase, and this would be done by serving a Section 13 notice. Any rent increase proposed must be in line with local market rents and, if required, evidence of such rents provided. If the tenant is in agreement with the proposed increase, the increase will take effect from the next rent due date after the anniversary. If a tenant believes the rent increase is unfair and above the market rate, they can dispute it by applying to the First Tier Tribunal. However, they must do this before the start date of the proposed new rent.

Landlords and agents will not be allowed to encourage or accept bids above the stated price, and will be required to publish an asking rent for the property.

Now the Renters Rights Act has been enacted, the Tenant Fees Act 2019 has been amended and prohibits landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into. A landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) once a tenancy agreement has been signed and before commencement.

It is imperative that the new legislation is adhered to as non-compliance will be met with fines. These fines are being increased, and local authority enforcement powers will be strengthened. Currently, fines can be up to £7,000 for minor or initial non-compliance and up to £40,000 for repeat offences so the penalties will be significant.

The Government will be introducing a new Private Rented Sector Landlord Ombudsman Service, which will be mandatory for private landlords to join, including those who use a managing agent. The new Ombudsman will provide tenants with the tools to challenge their landlord without the need to go to court and the same access to redress as is the case in other essential services and markets.

As our client, you can be assured that we were well prepared for the changes introduced by the Renters' Rights Act and will continue to guide and advise you through the evolving legislative landscape. Although the Act brings significant changes to tenancy law, we do not expect it to have a substantial impact on how most tenants rent their homes. Tenants are likely to continue living in properties for as long as they suit their circumstances, with moves typically driven by changes in personal circumstances rather than by the legislation itself.

This is our understanding of the Bill as it’s written currently. As with new parliamentary Bills, there may be further amendments as it works its way through the legal process.

If you are unsure how the upcoming changes will affect you, contact us for a free consultation to discuss further or seek independent legal advice.

**Information correct at time of publishing – October 2025**

Disclaimer: This is not legal advice and should not be relied on as such. We recommend seeking legal advice from a solicitor should you wish to rely on it in Court.

Renters' Rights Act

Renters’ Rights Act 2025

What this means if you are a landlord

FAQ

1. What does the Renter’s Rights Act mean for landlords?

2. What security will this provide to the tenant?

3. Under the new legislation, how will I regain possession of my property?

4. Will landlords be able to increase rents?

5. Rental bidding

6. Rent in Advance

7. What happens if landlords or their agents breach the new legislation?

8. Private Rented Sector Landlord Ombudsman

9. What will Davies & Davies do to support our clients?

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