Renters’ Rights Act 2025: Changes from 1 May 2026 and how you may be affected

The Renters’ Rights Act 2025 (“the Act”) is one of the most significant reforms to the private residential rented sector in decades, and seeks to enhance security and fairness for tenants, while ensuring that landlords retain suitable rights to manage their properties effectively.

The provisions of the Act that will come into force on 1^st May 2026 are:

1. Abolition of Assured Shorthold Tenancies and Section 21 ‘No-Fault’ Evictions:

Assured shorthold tenancies (AST) will be abolished. This means that any AST created prior to 1^st May 2026 will automatically become an Assured Periodic Tenancy. Any new tenancy created after 1^st May 2026 will be an Assured Periodic Tenancy not an AST.

The difference between an AST and an Assured Periodic Tenancy is significant. The primary difference is that landlords of an Assured Periodic Tenancy must have a legally recognised reason to end the tenancy. This means that, with the abolition of ASTs, comes the abolition of Section 21 ‘no-fault’ evictions, and from 1^st May 2026 landlords will not be able to seek possession without being able to satisfy specific grounds.

For tenancies created prior to 1^st May 2026, there will be a transitional period whereby a landlord may still apply to the court for possession of the property in reliance upon a Section 21 Notice until 31^st July 2026, provided that the Section 21 Notice was served before 1^st May 2026.

2. Abolition of fixed-term tenancies:

Residential tenancies cannot be granted for a fixed term but rather must be granted on a periodic basis. This means that tenancies will automatically continue from period to period, until formally ended as detailed below. The maximum amount of time that a period is permitted to be is one month.

Tenancies created prior to 1^st May 2026 will be automatically converted into Assured Periodic Tenancies, such that the fixed-term element of the tenancy will be extinguished and the tenancy will automatically continue beyond the fixed-term.

This provision of the Act will not apply to long leases of more than 21 years, which can continue to be granted for a fixed-term.

3. Termination of tenancies:

A tenancy may be ended by notice given by the tenant or the landlord. A tenant may end a tenancy at any time by giving at least two months written notice ending on or the date before the rent payment date. Upon expiration of the tenant’s notice, the tenancy will end.

A landlord may serve notice to end a tenancy at any time, but only if one of the grounds of possession specified within the Act apply. To end a tenancy under most of the grounds of possession, a landlord is required to give four months’ written notice to the tenant, although some grounds have a shorter notice period.

As the Act is going to abolish ‘no-fault’ evictions, the number of grounds of possession on which a landlord can rely to bring a tenancy to an end have increased and include a new ground that the landlord intends to sell the property.

Upon expiration of the landlord’s notice, the landlord must apply to the court for an Order for Possession if the tenant does not leave the property.

4. Rent:

The Act will impose stricter regulations upon landlords preventing them from accepting a higher rent than that which was advertised for the property, in turn preventing bidding wars from disadvantaging tenants.

Landlords will not be able to require a tenant to pay any rent in advance of the tenancy starting, except that the first instalment of rent can be paid upon agreement of the tenancy. This means that landlords will no longer be able to mandate that tenants pay large instalments of rent up-front.

Further, landlords may only increase rental payments once a year, to the open market rental value of the property, and must give tenants at least two months’ written notice of the increase. Tenants are entitled to challenge the increase through the First Tier Lands Tribunal, which may decide either that the proposed rent increase is an appropriate amount, or that it is too high and reduce it accordingly.

5. Transparency and Regulation:

The Act establishes that certain prescribed information must be given by the landlord to the tenant relating to the property and the tenancy. For tenancies created on or after 1^st May 2026, landlords are obligated to provide tenants with a Statement of Terms before the tenancy starts, which contains prescribed information about the property and the tenancy. For tenancies created before 1^st May 2026, landlords must provide tenants with a copy of the Renters Rights Act Information Sheet 2026 by 31^st May 2026 at the latest.

Landlords must not discriminate against prospective tenants on the basis that they have children living with or visiting them, or that they claim benefits, and landlords cannot unreasonably refuse a tenant’s written request to keep a pet at the property.

6. Landlord Duties and Offences:

Landlords will be under a duty not to:

1. Attempt to let a property to a tenant for a fixed term of less than 21 years
2. End a tenancy other than by the proper procedure as detailed above
3. End a tenancy without having a reasonable belief that the ground of possession relied upon will be successful.

The Act provides that it will be a criminal offence for a landlord to breach any of these duties, and defaulting landlords will either incur a penalty of £7,000 or face prosecution.

Consequently, the Act will significantly change the landscape of private sector renting, and it is vital that landlords comply with its provisions from 1^st May 2026. It is also important for tenants to understand their increased rights under the new law.

Our team is happy to help landlords and tenants navigate the new law with confidence and clarity, and our experienced Solicitors can:

• Advise you about your rights and responsibilities

• Draft and review tenancy agreements to ensure compliance with the Act

• Represent you in matters before the First Tier Land Tribunal

• Advise on the availability of grounds for possession

• Prepare and serve Notices

• Commence or defend proceedings for an Order for Possession.

The Act also intends to introduce other significant changes in due course (dates to be confirmed) including:-

• establishing a new private rented sector database, and compelling landlords to supply details of their properties to be included on the database before they are able to let the property to tenants. The database will provide prospective tenants with information about current and prospective landlords and properties, and people who have committed banning order offences. It has not been determined when the provisions of the Act relating to the database will come into force but guidance suggests that it could be from late 2026 onwards.

• establishing a new Ombudsman redress scheme for current, former or prospective tenants to allow independent judgments and complaints against landlords. The types of redress which may be ordered under the scheme include apologies, explanations and compensation. Equally, it is unclear when the provisions of the Act relating to the Ombudsman will come into force but guidance suggests that it could be from 2028 onwards.

• that privately rented properties will need to comply with the Decent Homes Standard, a policy which ensures that homes are safe and in good repair, from 2035 onwards.

Contact our team today for a confidential discussion about your circumstances and how we can assist you.