What the Renters’ Rights Act means for landlords: key changes and how to prepare

The Renters’ Rights Act 2025 has now received Royal Assent and marks one of the most significant reforms to the private rented sector in England in over three decades. While most of the measures are not yet in force, landlords should begin preparing for the upcoming changes, which are expected to be phased in during 2026.

This new framework is designed to provide tenants with greater security, transparency and fairness, but it also aims to create a more consistent and professional private rented sector. Responsible landlords who already provide safe, well-managed homes will find much of the new law aligns with best practice.

Here’s what landlords need to know and how to stay compliant when the Act comes into effect.

End of Section 21 ‘No-Fault’ Evictions

Section 21 will be abolished. Landlords will no longer be able to evict tenants without providing a specific reason.

Instead, all evictions must be based on valid grounds for possession, such as:

• The landlord intending to sell or move into the property (after a 12-month protected period)

• Serious rent arrears (three months or more)

• Antisocial behaviour or property damage

• Redevelopment or use for supported accommodation

Courts will continue to handle possession claims, but landlords must ensure they have clear evidence and that the property is registered on the new PRS database to use these grounds.

All tenancies will become periodic

Fixed-term tenancies will be replaced with rolling, periodic tenancies, meaning tenancies continue indefinitely until either the landlord or tenant gives notice. Tenants can leave with two months’ notice.

Landlords will need to give specific notice depending on the ground for possession (for example, four months if selling or moving in). This change provides tenants with greater flexibility but also means landlords should plan for longer-term property management and financial forecasting.

Annual rent increases only, and at market rate

Rent can only be increased once per year, with two months’ notice. Increases must reflect market value, and tenants can challenge them at the First-tier Tribunal. Rent review clauses or backdated increases will no longer be permitted.

It’s vital for landlords to keep evidence of local rental market rates and document communications with tenants around any rent changes.

New PRS Ombudsman and Database

All landlords in England will be required to join the new Private Rented Sector Ombudsman, even if they use an agent, and register on the Private Rented Sector Database, providing accurate property and compliance details. These systems will offer landlords a central hub for guidance and communication, while tenants will gain greater transparency.

Failing to register could result in a civil penalty of up to £7,000 for initial breached and up to £40,000 or criminal prosecution on continuing or repeated breaches. 

Decent Homes Standard and Awaab’s Law

The Decent Homes Standard will apply to the private rented sector for the first time. This means landlords must ensure their properties are:

• Safe and free from serious hazards such as damp, mould, or structural risks.

• In good repair and fit for occupation.

Under Awaab’s Law, landlords must take prompt action to fix serious health and safety issues within legally defined timeframes. Delays could lead to tenant enforcement or legal action.

Ending rental bidding and discrimination

Landlords and agents will no longer be able to:

• Solicit or accept rent offers above the advertised rent.

• Discriminate against tenants with children or those receiving benefits.

• Adverts such as ‘No DSS’ will be illegal. Referencing can still assess affordability, but decisions must not be based on family status or income source.

Renting with pets

Tenants will have a legal right to request a pet, and landlords cannot unreasonably refuse. Guidance will clarify acceptable reasons for refusal, and landlords may require tenants to take out pet damage insurance.

Preparing for implementation

Although the Act is not yet in force, landlords should:

• Audit all tenancies and property conditions.

• Update tenancy agreements for compliance with periodic tenancies.

• Join or prepare to join the PRS Ombudsman.

• Register on the PRS Database once it opens.

• Review rent increase policies and ensure communications are transparent.

By acting early, landlords can ensure a smooth transition, demonstrate professionalism, and build stronger, longer-term relationships with tenants.

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Today marked a historic moment as King Charles III delivered his first speech, outlining the government’s priorities for the upcoming year. Among the key announcements were significant reforms impacting the rental and property sectors. Let’s delve into the three major takeaways that should be on every letting agent and landlord’s radar.

 Renters (Reform) Bill: A Balancing Act

The speech reiterated the government’s commitment to the Renters (Reform) Bill, signalling a renewed focus on the rights of tenants and the concerns of landlords. A notable highlight is the pledge to abolish Section 21, commonly known as “no-fault evictions,” a commitment that has been in the spotlight since the Queen’s Speech in 2019.

However, the timeline for implementation remains uncertain. The King’s Speech provided no further clarity on the criteria and deadlines for the significant court process reforms required before Section 21 can be abolished. Letting agents and landlords should stay vigilant for updates, as these changes will reshape the dynamics of the rental market.

Leasehold Bill: A Path to Fairness

King Charles III emphasised the government’s dedication to making homeownership more accessible by introducing a Leasehold Bill. The proposed reforms aim to streamline the process of buying the leasehold of a property and alleviate the burden of “punitive” service charges.

Estate agents need to monitor the legislative landscape, anticipating reforms such as simplified procedures for leaseholders to purchase the freehold or extend their leasehold. The introduction of a cap on ground rent at 0.1% of the freehold value could transform the leasehold market, while changes to ownership requirements may lead to a future where all houses are sold as freehold.

Net Zero and Energy Efficiency: A Green Commitment

The government’s unwavering commitment to achieving Net Zero emissions by 2025 is a pledge with broad implications, including significant changes in the property sector. King Charles III expressed the government’s desire to “safeguard energy independence” and invest in renewable energy sources.

For landlords and homeowners, the initial requirement to upgrade properties to an EPC C rating by 2025 on new tenancies, and 2028 for all tenancies, faced a revision in September 2023. Prime Minister Rishi Sunak announced the relaxation of these targets, relieving landlords and homeowners from the original deadlines. However, the commitment to energy efficiency and the transition to renewable sources remains a focal point in the government’s agenda.

As we navigate through this new era under King Charles III, the landscape of the property market is set to undergo significant transformations. Letting agents and landlords must stay informed and adapt to these changes to ensure a smooth transition into a more tenant-friendly, fair, and sustainable future.

 

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