The Renters’ Rights Act 2025: What It Means for Landlords

2025-10-31

Industry News

The Renters’ Rights Bill has now received Royal Assent, becoming the Renters’ Rights Act 2025.

What does this mean, and how will it affect you as a Landlord?

In the coming weeks, the UK Government will confirm a “commencement date” for the Act the day new provisions officially come into force.

As with previous reforms, the Government has not yet set precise timelines for every section, but it is expected that the key provisions will take effect immediately on commencement, while others will be introduced in stages. It is vital that you have a proactive Letting Agent who ensures your property remains compliant and ready from day one. The Renters’ Rights Act makes sweeping changes to all Housing Act (2004) tenancies. Understandably, many Landlords may feel uncertain about what this means for them.

Key Changes in the Renters’ Rights Act

• All Assured Shorthold Tenancies (ASTs) will automatically convert into periodic tenancies with no fixed end date.
• Tenants will be able to serve two months’ notice to end their tenancy at any time.
• Section 21 “no fault” evictions will be abolished. Landlords seeking possession will now need to serve a valid Section 8 notice with the correct ground and notice period.
• Rent increases will require a Section 13 notice and can only take place once every 12 months. Tenants will have the right to challenge any rent increase they believe to be unfair through the First Tier Tribunal (FTT).
• Rent in advance will be capped at one month’s rent before the tenancy starts.
• Rental “bidding wars” will be banned. Landlords and Agents will be prohibited from encouraging or accepting offers above the advertised rental price.
• Tenants will gain a “Right to Request a Pet.”
• Landlord registration will become mandatory with the new Private Rented Sector Landlord Ombudsman Service and Private Rented Sector Database before a property can be advertised. (We are still awaiting full Government guidance on registration requirements.)
• The Act will ban discrimination against tenants with children or those receiving housing benefits.

Top 5 Landlord FAQs about the Renters’ Rights Act

1. How will renewals and rent increases work?

Renewals will no longer exist, as there will be no fixed-term tenancy agreements. Currently, most rent increases are negotiated at renewal. Under the new system, Landlords and Agents will need to serve a Section 13 notice for any proposed rent increase, which can only occur once every 12 months.

Since most tenancies already operate on a yearly cycle, this should not significantly impact Landlords’ ability to review rent annually.

2. What happens if I need to sell my property?

To regain possession for sale, Landlords will need to serve a Section 8 notice using the new Ground 1A – Sale of Property. A tenant must receive four months’ notice, which cannot be served before month eight of the tenancy. This effectively means a Landlord cannot seek vacant possession for sale within the first 12 months. Once a Section 8 has been granted under Ground 1A, there will also be a 12-month “protected period” preventing the property from being re-let during that time.

3. What about tenants who pay rent in advance, such as students?

For new tenancies beginning after the Act comes into effect, rent in advance will be capped at one month. There will be no exceptions. Landlords who commonly let to students or overseas tenants will need to ensure strong referencing and rent protection insurance are in place. Existing tenancies that pre-date the Act will remain unaffected, and their advance payment clauses will still apply.

4. Will I be forced to accept tenants with pets?

No. Landlords will retain the right to decline pet requests; however, they must respond in writing within 28 days. A refusal must be based on reasonable grounds, such as restrictions under a Superior Landlord or Head Lease. The Government will issue further guidance on what constitutes “reasonable” in due course.

5. Will I be forced to rent to tenants with children or receiving benefits?

No. While blanket bans on “No Children” or “No Benefits” will become illegal, Landlords will still have the final say on who they rent to. It remains lawful to refuse tenants who fail affordability or reference checks, or where the property is not suitable for children. However, Landlords and Agents must ensure that decisions and advertising are non-discriminatory and properly documented.