The Renters’ Right Act: What Landlords Need to Know
The Renters’ Right Act received Royal Assent on 27 October 2025 and has now officially become law.
The Act brings significant reform to the private rented sector, most notable signalling the end of Assured Shorthold Tenancies (AST’s) - the most common form of tenancy used when renting to private individuals.
Below, we answer some of the most frequently asked questions from our landlords and outline what the Renters’ Right Act (RRA) means in practice.
When do the reforms come into effect?
The main reforms outlined below will come into force on 01 May 2026. Further changes (including landlord and property registration, Awaab’s Law and minimum housing standards) are expected to follow in late 2026.
How are Assured Shorthold Tenancies being replaced?
The new legislation applies to all Assured Shorthold Tenancies, both new and existing, but excludes company lets and properties with rents exceeding £100,000 per year.
Under the new system:
Fixed-term tenancies will no longer exist
Tenancies will instead run on a month-to-month basis
These will be known as Assured Periodic Tenancies
A tenancy will continue until either:
The tenant serves notice to leave, or
The landlord successfully relies on one of the statutory grounds for possession
What security will tenants have?
For the first 12 months of a new tenancy, landlords will not be permitted to:
Move back into the property, or
Sell the property with vacant possession
The only exception is where the property is sold to another landlord who agrees to take on the tenancy
This creates a 12-month protected period for tenants. However, tenants may still choose to leave during this time.
Tenants will be required to:
Provide 2 months’
Ensure the notice aligns with the rent payment date
Will the legislation apply to new and existing tenancies at the same time?
Yes, the legislation will apply to both new and existing tenancies on the implementation date, with no phased transition currently planned.
As a result:
Any existing break clauses or options to renew will cease to apply once the law comes into force
New tenancies will not be able to include break clauses or renewal options, as all tenancies will be periodic from the outset
How will landlords regain possession of their property?
The Act abolishes Section 21 notices (often referred to as ‘no-fault evictions’) to provide greater security for tenants.
Landlords must instead use a Section 8 notice, relying on one of the legally defined grounds for possession. These include:
The landlord or a close family friend wishing to move into the property
The landlord intending to sell the property
Rent arrears
Antisocial behaviour
Each ground carries its own notice period and evidential requirements, which landlords must carefully reserve.
Will landlords still be able to increase rents?
Yes, landlords may propose one rent increase per year by serving a Section 13 notice.
Key points to note:
Any increase must be in line with local market rents
Evidence may be required to justify the increase
If accepted, the new rent will apply from the next rent due date after the anniversary
If a tenant believes the proposed increase exceeds the market rate, they may challenge it by applying to the First-tier Tribunal, provided this is done before the new rent takes effect.
Are there changes to advance rent payments?
Under the new legislation:
Advance rent payments will no longer be permitted, including shortfall payments
Existing tenancies that currently pay rent quarterly, six-monthly, or annually may continue this arrangement for the remainder of that tenancy
The restriction applies only when a new tenancy is agreed
Is rental bidding being affected?
Landlords and agents must publish a clear asking rent for a property. They will not be allowed to:
Encourage bidding wars
Accept offers above the advertised rent
Can I advertise my property as ‘no pets’?
Any existing ‘no pets’ clauses will become invalid once the legislation is implemented.
Landlords may still advertise a property as ‘no pets’, however, once a tenancy has commenced:
Pets can only be refused under specific circumstances
Valid reasons include restrictions within a superior lease or other legal limitations
What happens if landlords or agents breach the legislation?
Local authority enforcement powers will be strengthened, and penalties for non compliance increased.
Fines up to £7,000 may be issued for initial or minor breaches
Repeat or serious offences may attract fines of up to £40,000
If you have any questions about how the Renters’ Rights Act may affect your property or portfolio, please contact the Residential Estates team, who will be happy to provide clear guidance and ongoing support. Here’s you can reach our team:
Call our office on 01244 343355
Email lettings@residential-estates.co.uk
