The Renters’ Rights Act 2025 (“the Act”) received Royal Assent on 27 October 2025. It delivers the most significant overhaul of private renting in England for more than thirty years.
It strengthens security for tenants and creates clearer obligations for landlords.
At Ai Law, we are already advising clients across the sector on what these reforms mean in practice and how to stay compliant.
1. End of fixed terms: all tenancies become periodic
The Act replaces fixed-term Assured Shorthold Tenancies with Assured Periodic Tenancies.
Every new tenancy will now run from month to month. Tenants can leave by giving notice, usually two months. Landlords must show a lawful ground to recover possession.
This ends the traditional six or twelve-month renewal cycle. Landlords should review all tenancy templates, notice provisions and renewal letters to remove references to fixed terms.
Tenants benefit from greater flexibility and continuity of occupation.
2. Section 21 is abolished
Landlords can no longer use Section 21 of the Housing Act 1988 to remove tenants without grounds.
All possession claims must now rely on valid Section 8 grounds such as rent arrears, breach, or an intention to sell or move into the property.
The Act introduces new grounds for possession, including where the landlord wishes to sell or occupy the property. These can only be used after the first twelve months of the tenancy and require four months’ notice.
Landlords should revise their possession strategy immediately. Evidence for Section 8 claims must be properly documented to avoid delay or dismissal.
3. Rent control and bidding bans
Rent may only be increased once every twelve months under Section 13, with at least two months’ written notice.
Tenants can challenge any increase before a Tribunal if they believe it exceeds market rent.
The Act also bans rental bidding. Landlords and agents must advertise at a single fixed price and cannot invite or accept higher offers.
Advance rent is capped at one month for monthly tenancies and 28 days for weekly tenancies. Any term requiring more is unenforceable.
These measures are designed to promote transparency and fairness.
Landlords should review rent-review clauses, marketing materials and agent instructions to ensure compliance.
4. Fair letting and equal access
It is now unlawful to apply blanket bans such as “no DSS” or “no children”. Decisions must be based on objective criteria such as affordability and references.
Tenants also gain a statutory right to request a pet. A refusal must be reasonable and given in writing within the statutory timeframe.
Landlords should update application forms and standard tenancy agreements.
Policies that restrict applicants without lawful justification will expose landlords to legal challenge and potential Ombudsman action.
5. New redress and registration duties
The Act establishes a Private Rented Sector Ombudsman and a Property Portal.
All landlords will be required to:
- Register with the Ombudsman once operational.
- Record property details and compliance evidence on the Property Portal.
- Maintain up-to-date safety certificates and documentation.
Local authorities gain extended powers from 27 December 2025 to inspect, demand documents, and impose civil penalties.
Tenants may also claim rent repayment orders for serious or repeated non-compliance.
Landlords should maintain a comprehensive compliance file including tenancy agreements, inspection reports, safety records and correspondence.
6. When the changes take effect
The Act is now law, but commencement will be phased.
Initial powers begin at the end of 2025, with full implementation expected across 2026.
Further regulations will confirm specific start dates.
Existing tenancies will automatically convert to periodic agreements once commencement occurs. Preparing documentation and systems now will prevent disruption.
7. What landlords and tenants should do now
Landlords and agents
- Audit all tenancy templates and remove fixed terms.
- Stop relying on Section 21 notices.
- Update possession procedures to Section 8 grounds only.
- Review rent-increase clauses and ensure one increase per year.
- Remove discriminatory terms and prepare a written pets policy.
- Compile compliance evidence ready for the Ombudsman and Property Portal.
Tenants
- Review your tenancy agreement and understand your new rights.
- Keep written proof of rent payments and correspondence.
- Check that any new tenancy is periodic and compliant.
- Challenge unfair rent increases or discrimination through the Ombudsman.
8. Market impact
The Act aims to create a fairer and more transparent rental system, largely weighted toward the tenant.
The Act, like many of the increasing regulations being introduced in respect of property and company law by Parliament, creates further red tape that is likely to result in longer transaction times and higher costs passed onto the individuals at different parts of the process, for example delays in selling tenanted properties or costs resulting from further administrative tasks and legal checks by property mangers and conveyancers.
Tenants gain flexibility and protection from arbitrary eviction and greater legal certainty against unscrupulous landlords, yet arguably these issues are most likely to be with housing associations. The impact of the Act will be felt more by private landlords as owners of investment BTLs will be subject to greater regulation and scrutiny.
Landlords are set to face greater administrative duties and red tape.
9. How Ai Law can help
We suspect an increase in landlords navigating evictions.
Ai Law advises landlords, tenants, and agents on all aspects of property law and regulatory change.
Please contact us for more information, in particular:
- Any landlord and tenant disputes
- Possession proceedings
- Reviewing, updating and drafting tenancy agreements