The Renters’ Rights Act 2025 (the Act) has now received Royal Assent and will come into force in 2026, with the provisions being rolled out in three main phases from May of that year.
This scheduled rollout aims to give landlords and investors adequate time to prepare for the changes, and in November 2025, the government released 24 guides for landlords and letting agents.
Impact of the Renters’ Rights Act
- Abolish Section 21 evictions – Property owners will need to ensure they have a robust process in place for dealing promptly with issues under Section 8 of the Housing Act 1988 instead. Grounds for Section 8 eviction include rent arrears, breach of the tenancy terms, property damage, and anti-social behaviour, and landlords will have to prove these to the court.
In addition, tenants will have 12 months’ protection from eviction by landlords who want to sell or move into the property themselves. - Prohibition of multiple months’ advance rent – landlords will only be able to request one month’s rent in advance. No rent can be taken until the tenancy agreement is signed.
- The Decent Homes Standard and Awaab’s law – The Decent Homes Standard is being extended from the social housing sector to private rentals. The implementation of Awaab’s Law as part of the Act requires social landlords to investigate and remedy emergency hazards within 24 hours or move tenants elsewhere. Significant damp and mould must be investigated within ten days, and action to remedy matters and make the property safe must be taken within five working days of the investigation.
- Purpose Built Student Accommodation (PBSA) exceptions – PBSA providers must be signed up to a government-approved code of practice. Otherwise, PBSA landlords are exempt from assured periodic tenancy rules, with fixed-term contracts that tie in with the academic year permitted. Termly or yearly rent can be requested.
- Common law tenancies excluded – certain common law tenancies are not covered by the Act, including where the annual rent is over £100,000, a property is rented to a company, the agreement is a genuine licence agreement, or there is a fixed term of over 21 years.
- Private Rented Sector Database – a property database will be in operation, with landlords required to maintain an active listing for each rental property. Where build to rent investors have multiple units, they will need to ensure that listings are updated and remain current. Details of the way the database will be operated are not yet available.
- Tougher enforcement action – landlords need to maintain the condition of their properties, with councils legally required to enforce the rules, and able to take tougher action against those failing to meet the required housing standards.
Implementation of the Renters’ Rights Act 2025
- 27 October 2025 – Act passed Parliament and received Royal Assent, with a phased implementation period
- 1 May 2026 – Phase 1:
- End of fixed-term tenancies
- End of ‘no-fault’ evictions under Section 21
- Discrimination on the grounds of children or receipt of benefits unlawful
- Rental bidding and rent in advance will be banned, and landlords will not be allowed to accept rent that is higher than advertised
- Tenants able to request permission for pets
- Rent increases limited to once per year
- Deposits capped at 5 weeks’ rent
- More powers around rent repayment orders will be granted to local councils, and the maximum penalty doubled
- Local councils will have more authority to inspect property and obtain information to enable them to crack down on rogue landlords and enforce housing standards
- Phases 2 and 3 – dates to be decided, but likely to be end of 2026 and later, to create:
- Private landlord database
- Private rented sector ombudsman
- Decent homes standard
Next week, we will publish Part 2 of this article, looking at the implications of the Act for those involved in rental property development and investment.
How 3CS can help
Our experienced property solicitors can assist you with landlord and tenant law and advice for build to rent investors. For expert guidance or representation, please get in touch.
