The Renters Rights Act 2025 explained: key changes for landlords and tenants.

Renting your home is common in England, with 4.4m households (19%) renting from a private landlord between 2021 and 2023, a number which has increased significantly over the past 50 years.

And while many tenants have trouble-free experiences, there are a number of issues and challenges that some face, such as unpredictable costs, poor property conditions, high competition, and discrimination.

It's because of these concerns that the legislation designed to regulate the sector has seen a dramatic overhaul.

At the end of October, the proposed Renters Rights Bill 2025 received Royal Assent, meaning it has become the Renters Rights Act 2025; in other words, law. This is an incredibly significant piece of legislation and will bring a number of major changes to the private rented sector in England.

We want to make sure you're fully informed of these changes, whether you're a landlord, tenant or property professional. In this article, we're going to look further at some of the changes and what they mean for you.

What is the Renters Rights Act 2025?

An evolution of the previous government's Renters Reform Bill, The Renters Rights Act 2025 is a piece of new legislation that was passed on 27th October.

It abolishes assured shorthold tenancies (ASTs) and aims to transform the private rented sector to make sure renting is fair, offering more security for tenants, while still taking into account landlords’ rights.

The major reforms outlined

The abolition of "no fault evictions"

Landlords will no longer be able to rely on Section 21 Notices and will now need to provide a legitimate reason to seek possession of their property.

No more fixed-term tenancies

All tenancies will become assured periodic tenancies, giving tenants greater security.

Caps on rent increases

There will be stricter procedures for increasing rent, as a proposed rent increase will be limited to once a year.

More transparent and fair rental practices

Encouraging tenants to engage in rental bidding 'wars' will be banned.

The right to keep a pet

Tenants can request to keep a pet, which cannot be unreasonably refused and landlords can no longer require a tenant to take out pet damage insurance or pay the landlord for this.

Improved quality standards

The private rented sector now falls under the Decent Homes Standard, with Awwab's Law also now applicable to private landlords, not just the social rented sector. This means landlords must address potential health issues, such as damp and mould within a specified timeframe.

No more discriminatory practices

The Act means landlords can't discriminate against tenants on benefits or with children.

The creation of a central Private Rented Sector Database

It will be compulsory for landlords to register themselves and their properties on a newly created database, to help with enforcement and increase transparency for tenants.

The creation of a Property Landlord Ombudsman

Joining a new ombudsman will be mandatory for landlords and is aimed at handling tenants complaints and ensuring fair and efficient dispute resolution.

How do the changes affect tenants?

Ultimately, the Act has been designed to protect tenants from unfair practices and unsafe living conditions, giving them stronger rights and fairer, more predictable rent payments.

Fixed term assured tenancies will be removed and replaced with an assured tenancy system, where no fault evictions become a thing of the past. Tenants will still be able to end their tenancy agreement by giving at least two months notice, allowing flexibility but also security.

Tenants can also enjoy better quality rental properties thanks to stronger procedures in place to enforce high standards

How do the changes affect landlords?

If you are a landlord, it's important you familiarise yourself with the legal obligations these changes bring. You'll need to ensure your practices comply, from how you advertise properties, to how you maintain your properties and manage tenant fees.

The new Act will prohibit landlords from ending a tenancy agreement for no reason. A landlord will only be able to seek possession by citing a reason from the – now expanded – list of grounds under section 8 of the Housing Act 1988. However, landlords will still be able to regain possession if they wish to move in, or sell, but the notice period for these grounds is increasing from two months to four.

New rent review clauses mean a landlord will no longer be able to ask for a number of months’ rent in advance of the tenancy; this will be limited to one month only. A tenant can pay more up front if they want to, but a landlord cannot request any more than one month's rent.

Timeline

The Renters Rights Act 2025 will be introduced in a phased approach, with key changes such as no fault evictions, updated possession grounds and ending assured fixed term shorthold tenancies, applying from 1st May 2026.

Subsequent phases will bring in the other mechanisms detailed, but exact timings are to be confirmed.

FAQs

How do the changes affect existing tenancies?

The Act treats existing tenancies almost identically to new ones. Fixed term tenancies automatically become periodic tenancies, and the new principles apply.

How are rent arrears dealt with as part of the changes?

Previously, a landlord could seek mandatory possession where a tenant was in at least 2 months’ arrears. Now, however, the tenant must be in at least 3 months’ rent arrears before the landlord can obtain mandatory possession and a landlord must serve 4 weeks’ notice before issuing proceedings.

It's worth noting that a tenant who is persistently late in paying rent or who breaches their written tenancy agreement could still be at risk even if they are within 12 weeks of arrears. It would be a court's discretion to decide if the landlord could request possession.

What are the penalties for non-compliance?

Landlords and agents could incur increased civil penalties and even criminal charges if they persistently or seriously breach the terms within the Act. Local housing authorities have been given additional powers to help enforce the new obligations. Financial penalties are expected to start at £7,000 and rise to up to £40,000 for serious breaches.

Need further advice?

Whether you're a tenant, landlord, or property agent, it's vital to understand how these changes impact you and any action you need to take before May 1st. Here at Rudlings, we have specialist experience in property law, from dispute resolution to conveyancing, and our experts are on-hand if you have any concerns or queries about the new Act.

Contact one of the team today