The Renters’ Rights Act 2025 – new rules and new risks for landlords

Posted: 29/10/2025

The long-awaited Renters’ Rights Act 2025 (RRA 2025) received royal assent on 27 October 2025, introducing fundamental reforms to the residential private rented sector (PRS) in England, designed to re-balance the landlord-tenant relationship. While the timeline for implementation remains uncertain, a six-month period for key changes - including the abolition of section 21 notices – is anticipated, with other provisions to follow. Significantly, the RRA 2025 applies retrospectively to both existing and new tenancies making it essential for landlords, investors in the PRS, and managing agents to prepare now.   

Core measures

Assured shorthold tenancies (ASTs) to become periodic tenancies
Fixed term ASTs under the Housing Act 1988 (HA 1988) will be abolished and replaced with assured periodic tenancies, with rent periods not exceeding one month. All new residential tenancies falling within the HA 1988 will be assured periodic tenancies, which will continue on a rolling basis until terminated in a manner permitted by the RRA 2025.  Existing ASTs will be converted to assured periodic tenancies.

Landlords may only terminate a tenancy using one of the revised section 8 grounds (outlined below). Tenants benefit from a twelve-month protected period at the start of the tenancy, during which landlords cannot rely upon the 'sale of property' or 'moving in' grounds to regain possession.

Tenants may end the tenancy at any time on only two months’ notice.

Implications: Landlords lose the certainty of fixed term tenancies to provide rental income stability. Portfolio planning should take account of the increased flexibility for tenants to end tenancies on short notice and a possible increase in tenant turnover.

Abolition of section 21 ‘no-fault’ evictions and revised possession grounds
Section 21 'no-fault' evictions (currently the most common ground for possession used by landlords to end ASTs) are to be abolished.

Landlords may only end the tenancy via the section 8 possession procedure which requires the landlord to provide evidence of a valid statutory ground. Revised grounds include:

• sale of the property;
• landlord or close family member moving in;
• redevelopment of the property;
• anti-social behaviour;
• rent arrears (mandatory threshold raised from two to three months arrears).

Most grounds now require up to four months’ notice, extending the timeline for regaining possession.
In almost all cases, a court hearing will be required to obtain a possession order, replacing the simpler paper-based section 21 process.

Implications: The widened section 8 grounds and the abolition of 'no fault' evictions are expected to significantly increase the volume of possession claims.  The court system is already under strain and landlords are likely to face months of delay regaining possession, particularly in contested cases. Overall, landlords will find it much harder and more expensive to recover possession.

Where tenants reduce rent arrears to less than three months but do not clear them prior to a hearing, the judge will have discretion as to whether to award a possession order. Most costs landlords incur in these types of proceedings will not be recoverable from tenants.

Rent increases – new limits and tenant challenge rights
Landlords may increase rent yearly, to the market rent, but must serve a section 13 notice at least two months’ in advance, giving details of the proposed increase, which the tenant may challenge in the First Tier Tribunal.

The Tribunal will assess whether the proposed rent exceeds the market rent for comparable properties. Crucially, the Tribunal cannot increase the rent above the landlord’s proposed figure - only reduce or confirm it.

Contractual rent review provisions in tenancy agreements will be void. However, rent increases and notices served under existing tenancies before the  RRA 2025 comes into effect remain valid.

Implications: Under the section 13 procedure, tenants face no downside risk in challenging rent increases, and doing so delays the increase. In addition, tenants may challenge the initial rent under a new tenancy within six months of its commencement. Even if the Tribunal agrees with the landlord's proposed rent it cannot back-date it. We expect this to lead to a rise in FTT applications. Landlords should document evidence of local market comparables and factor in delays in rent increases taking effect, if challenged.

Ban on rental bidding wars and restrictions on advance rent payments
Landlords must advertise a fixed asking rent and cannot accept offers from the tenant above this amount.

As is the case now, landlords may require the tenant to pay a deposit but may not require more than one month's rent to be payable in advance of the tenancy.  This restriction does not affect any rent paid in advance for existing tenancies.

Implications: For landlords and agents, the rent-setting process must be transparent up-front. For some landlords, the limits on advance payments may affect cash flow planning.

PRS Landlord Database and Ombudsman Scheme
Landlords must register themselves and their properties on a new PRS landlord database. Registration will be a pre-requisite to use most section 8 possession grounds. There will be a fee payable for registration.

A new Ombudsman will provide binding resolution of tenant complaints.

Implication: Failure to comply with registration requirements may prevent landlords from regaining possession and lead to penalties if they market or let a property. Landlords should prepare for increased scrutiny and formal dispute resolution.

Anti-discrimination and pet requests
Under stronger anti-discrimination rules, landlords cannot discriminate against tenants with children or those receiving benefits.

Tenants have a statutory right to request pets and landlords cannot unreasonably withhold consent.

Enhanced enforcement powers for local authorities
The RRA 2025 introduces new offences and hefty penalties (beginning at £7,000 per offence, rising to £40,000 for repeat offenders). Local authorities may retain the financial proceeds they collect.

Implications: Local authorities have greater incentives to take enforcement action against landlords.

This is an overview of the core measures in the RRA 2025. For certain providers of purpose-built student accommodation and social housing there are detailed exemptions which should be considered closely.

Action points for landlords

• Review existing tenancy agreements and consider serving section 21 notices/making rent increases. For existing tenancies, there is still a window of time to serve section 21 notices as valid notices served before the RRA 2025 comes into force can be relied upon for possession proceedings.
• Prepare new standard form assured periodic tenancy agreements which comply with the RRA 2025.  
• Prepare for Tribunal rent challenges by gathering market evidence for proposed rents and rent increases. Landlords may want to factor in potential delays to rent increases when setting initial rents.
• Plan for longer possession timelines and potential court delays. Improve tenant vetting processes to mitigate against the need for possession proceedings.
• Plan for the additional administrative burden of registering properties on the PRS database, once available.
• Train agents and employees on the new rent and possession procedures.

This article was co-written by Sarah Brimacombe, senior knowledge lawyer in the real estate team.

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