The Renters Rights Act 2025 represents the biggest shake-up to England’s rental market in over 30 years. If you’re a landlord, these changes will affect you directly from 1 May 2026.
Many landlords find the legislation confusing and are uncertain about what they need to do. We’ve broken down exactly what it means and how to prepare.
What Is the Renters Rights Act?
The Renters Rights Act 2025 received Royal Assent on 27 October 2025, making it law in England. The government designed this legislation to give renters greater security and stability while introducing new obligations for landlords.
The Act builds on the previous government’s Renters (Reform) Bill, which didn’t make it through Parliament before the 2024 general election. The current version includes more far-reaching changes and reflects the Labour government’s manifesto commitment to transform private renting.
The Key Changes for Landlords
Here’s what you need to know:
- No more Section 21 'no-fault' evictions from 1 May 2026
- All tenancies become rolling (periodic) with no fixed terms allowed
- You can only evict with a valid reason using Section 8 notices
- Rent increases limited to once per year with two months' notice via Section 13
- Only one month's rent can be taken in advance
- You must respond to pet requests within 28 days and cannot unreasonably refuse
- You cannot refuse tenants because they have children or receive benefits
- You'll need to register with the PRS Database (from late 2026)
- You'll need to join the Landlord Ombudsman scheme (from 2028)
- Rent bidding is banned - you must advertise a specific rent and cannot accept offers above it
- Existing rent review clauses become invalid - all increases must follow the new process
When Do the Changes Take Effect?
The Act will roll out in three phases:
Phase 1: 1 May 2026
The main tenancy reforms take effect, including the abolition of Section 21 evictions and the end of fixed-term tenancies.
Phase 2: Late 2026 to 2028
Introduction of the Private Rented Sector (PRS) Database and the Landlord Ombudsman scheme.
Phase 3: No Earlier Than 2030
Implementation of the Decent Homes Standard and Awaab’s Law for private rentals.
Section 21 Evictions Are Ending
One of the biggest changes is the abolition of Section 21 notices, commonly known as ‘no-fault’ evictions. From 1 May 2026, you will only be able to regain possession of your property using Section 8 notices, which require a valid legal ground.
Valid grounds include situations where you want to sell the property or move in yourself, but these can only be used after the tenancy has run for at least 12 months. This 12-month protected period means tenants cannot be evicted during their first year, even with valid grounds.
Important deadline: The last date you can serve a Section 21 notice is 30 April 2026. If you’ve already served a valid Section 21 notice before this date, you’ll have up to two months after 1 May 2026 to start court proceedings, provided the notice is still within its six-month validity period.
All Tenancies Become Periodic
Fixed-term tenancies are ending. From 1 May 2026:
- New tenancies signed on or after 1 May 2026 will automatically be periodic
- All existing fixed-term tenancies will convert to periodic tenancies on 1 May 2026
- There's no need to rewrite existing tenancy agreements, but you must provide an information sheet to tenants
Periodic tenancies mean tenants can give two months’ notice and leave at any time. This requires different portfolio planning and a shift in how you manage longer-term tenancies.
New Rules on Rent Increases
The Act standardises how rent can be increased across all private tenancies. From 1 May 2026:
- You can only increase rent once per year
- All increases must use the Section 13 notice process, giving at least two months' notice
- Rent can only be increased to market rate (what the property would achieve if newly advertised)
- Any existing rent review clauses in tenancy agreements will no longer be valid
- You can only accept one month's rent in advance (even if current agreements allow more)
Tenants will have the right to challenge a rent increase if they believe it’s above market rate by applying to the First-tier Tribunal. The Tribunal will determine a fair market rent based on similar properties in the area. This application is free for tenants.
Planning tip: You need robust evidence of market rates when increasing rent. Keep records of comparable properties and their rental values.
Rent Bidding Is Banned
From 1 May 2026, rent bidding will be illegal:
- All rental adverts must state a specific rental amount
- You cannot encourage or accept offers above the advertised rent
- Tenants can only offer up to the advertised amount, not above it
This affects how you market properties and means you need to price rentals accurately from the outset.
Pet Requests Cannot Be Unreasonably Refused
The Act introduces new obligations around pets:
- You cannot unreasonably refuse a tenant's request to keep a pet
- You must respond to requests within 28 days
- You can refuse for valid reasons, such as no outdoor space or if your freeholder prohibits pets
- Properties can be advertised as 'unavailable for pets', but service animals for disabled tenants must always be allowed
The government rejected proposals to allow you to charge higher deposits for pet owners. The standard deposit limit remains at five weeks’ rent.
Key point: You need clear procedures for assessing and responding to pet requests within the 28-day timeframe.
Anti-Discrimination Rules
From 1 May 2026, you cannot refuse tenants simply because they have children or receive state benefits. Refusal is only permitted if:
- An existing insurance policy (that pre-dates the Act) specifically forbids it
- There's a fair reason, such as preventing overcrowding
- The tenant's income is genuinely too low to cover the rent
Any other bans within insurance, mortgage, or lease policies will be invalid under the new law.
Action needed: Review your insurance and mortgage policies now. If they contain blanket bans on benefits claimants or families, you may need to update them.
The PRS Database Registration
Starting in late 2026, you will need to register with a new Private Rented Sector Database. This will be rolled out region by region.
You will need to:
- Register yourself and each rental property
- Pay a registration fee
- Provide contact details, property information, and safety compliance records
- Keep information up to date
Before marketing a property, you must be registered, and adverts will need to include both your landlord database identification number and the property database identification number.
Penalties: Failing to register or keep information current will result in civil penalties.
The Landlord Ombudsman Scheme
A new Landlord Ombudsman scheme will launch in 2028. You will be required to join this redress scheme, which will handle tenant complaints and disputes.
The Ombudsman will have the power to:
- Order compensation payments to tenants
- Expel landlords from the scheme for serious breaches
- Provide an alternative to court proceedings for resolving disputes
Compliance requirement: You cannot market a property without being a member of the Ombudsman scheme once it launches.
Decent Homes Standard and Awaab's Law
While not coming into effect until the 2030s, the Act will eventually introduce:
A minimum quality benchmark requiring properties to be in reasonable repair, have modern facilities, provide adequate heating, and be free from serious health hazards.
Named after two-year-old Awaab Ishak who died from mould exposure, this requires you to investigate and fix serious hazards like damp and mould within set deadlines. Failure to act promptly will result in tenants being able to claim compensation.
Penalties for Non-Compliance
The Act introduces significant penalties for landlords who fail to comply:
- Most first offences carry civil penalties of £7,000
- Repeat offending can result in fines up to £40,000
- Tenants may apply to the First-tier Tribunal for a Rent Repayment Order of up to 24 months of rent
- Defective or unfounded eviction notices are an offence
Local authorities are obliged to enforce the new offences and penalties under the Act.
What You Need to Do Now
Preparation is essential. Here’s your action plan:
Before 30 April 2026:
- Review your portfolio and decide your strategy for each property
- Ensure all safety compliance is up to date (gas safety, electrical checks, EPC ratings)
- Review insurance and mortgage policies for discriminatory clauses
- Consider whether you need to serve any Section 21 notices before the deadline
By 1 May 2026:
- Understand that all tenancies automatically become periodic
- Prepare for the 12-month protected period on all tenancies
- Set up systems for managing Section 13 rent increases
- Create procedures for handling pet requests within 28 days
By 31 May 2026:
- Provide all existing tenants with the government-published information sheet explaining the changes (available online from March 2026)
Ongoing:
- Stay informed about the PRS Database rollout in your area
- Plan for joining the Landlord Ombudsman scheme when it launches in 2028
- Keep detailed records of property maintenance and tenant communications
Why Professional Management Matters More Than Ever
The Renters Rights Act significantly increases the administrative burden and compliance requirements for landlords. Getting it wrong could result in substantial fines, loss of rental income through Rent Repayment Orders, or difficulty regaining possession of your property.
Professional property management ensures:
- All notices are served correctly and within legal timeframes
- Rent increases are properly documented and justified with market evidence
- Pet requests are handled compliantly within the 28-day deadline
- You're registered with the PRS Database and Ombudsman scheme when required
- Properties meet all safety and compliance standards
- Tenant communications are managed professionally
How Michael Anthony Estate Agents Can Help
With over 30 years of experience in lettings and property management, we understand how significant these changes are and what they mean for your investment.
Our lettings specialists stay current with all regulatory changes and can guide you through every aspect of compliance. We’re members of the Property Ombudsman Scheme and the National Association of Estate Agents (NAEA), giving you confidence that your properties are managed to the highest professional standards.
We can help you:
- Understand your obligations under the new Act
- Prepare your properties for the regulatory changes
- Manage tenancies compliantly under the new system
- Handle rent reviews and Section 13 notices correctly with robust market evidence
- Respond to pet requests within legal timeframes
- Navigate the PRS Database registration when it launches
- Ensure all safety compliance is maintained
- Deal with possession proceedings under the new grounds
The legislation is complex, and the penalties for getting it wrong are severe. Working with a trusted, experienced agent means you can continue to benefit from your investment without the stress of navigating complicated regulations.
If you have questions about how the Renters Rights Act affects your portfolio, get in touch with our team today. We’re here to help you stay compliant and protect your investment.
Frequently Asked Questions
When does the Renters Rights Act come into force?
The main changes take effect on 1 May 2026, including the abolition of Section 21 evictions, the end of fixed-term tenancies, and new rules on rent increases. The PRS Database and Ombudsman follow in later phases.
Can I still evict tenants under the new law?
Yes, but only using Section 8 notices with valid legal grounds. You can no longer use Section 21 ‘no-fault’ evictions from 1 May 2026. Valid grounds include wanting to sell the property or move in yourself, but these can only be used after 12 months of tenancy.
What happens to my existing fixed-term tenancies?
All existing fixed-term tenancies will automatically convert to periodic (rolling) tenancies on 1 May 2026. You don’t need to issue new agreements, but you must provide tenants with a government information sheet by 31 May 2026.
How do I increase rent under the new system?
You can only increase rent once per year using a Section 13 notice, giving at least two months’ notice. The increase must reflect market rate. Tenants can challenge increases at the First-tier Tribunal if they believe they’re above market rate.
What if my mortgage or insurance doesn't allow tenants on benefits?
Only pre-existing policies (from before the Act) that specifically forbid benefit recipients are valid grounds for refusal. Any other bans will be invalid. You should review and update your policies now.
Do I have to allow pets?
You cannot unreasonably refuse pet requests. You must respond within 28 days and can only refuse for valid reasons like lack of outdoor space or freeholder restrictions. You cannot charge higher deposits for pet owners.
What is the PRS Database and when do I need to register?
The Private Rented Sector Database launches from late 2026 on a regional basis. You’ll need to register yourself and each property, providing contact details and safety compliance records. You cannot market properties without being registered.
What penalties could I face for non-compliance?
Civil penalties start at £7,000 for first offences and rise to £40,000 for repeat offending. Tenants can also apply for Rent Repayment Orders of up to 24 months of rent for certain breaches.