The Renters’ Rights Act 2025 – What it means for landlords and tenants

The private rented sector in England is about to undergo its most significant shake‐up for decades. The Renters’ Rights Act 2025 has received Royal Assent (it has been made law) and will eventually come into force, introducing major changes to tenancy law, landlord obligations and tenant protections.

At Hopkins Solicitors, we act as trusted legal advisers to commercial and property clients. Although much of our commercial property work lies outside the residential lettings sector, the ripple effects of this legislation mean that any investor, landlord or property manager in the private rented sector must consider these changes. This article explains what the Act does, when its provisions come into force, key changes affecting landlords and tenants and what you should be doing now.

Why is the Act being introduced?

Historically the regime governing private residential tenancies (notably through assured shorthold tenancies or ASTs) has been regarded as favouring landlords in ways that contributed to insecurity for tenants. For example, the ‘no-fault’ eviction under Section 21, Housing Act 1988 has been widely criticised for enabling rapid tenant turnover and reducing incentive for landlords and tenants to invest in property. The government cites that the new law will deliver “greater security and stability” for renters.

The Act intends to remedy the issues caused by tenants being forced to remain for a fixed term and pay rent to the end, the fact that rent increases are often seen as an eviction by the back door, that tenants may be prevented from keeping a pet and the issues caused by rogue landlords and the lack of enforcement.

Key features of the Act

Here are the major changes introduced by the Renters’ Rights Act 2025 (the “Act”). Many of the features will require secondary legislation and not all are in force immediately.

1. Abolition of Section 21 “no-fault” evictions

Under the current regime landlords may rely on Section 21 of the Housing Act 1988 to regain possession on 2 months’ notice at the end of a fixed-term AST or during a periodic tenancy without giving any specific reason. This is known as the “shorthold” ground for re-possession. The Act abolishes that ground entirely and converts all existing assured shorthold tenancies to assured tenancies.

Instead, landlords will only be able to regain possession under defined grounds (for example under Section 8 of the Housing Act 1988 – things like non-payment of rent, etc), though those grounds will be expanded and modified to include if the landlord wishes to sell or use the property for themselves or their family.

The Local Authority will be able to issue a rent repayment order if a landlord relets the property after using the ground meant for if you are selling the property.

Landlord’s should amend their forms of tenancy so as not to include the old language and grounds for possession and ensure that the new grounds are included.

Landlords can be fined for using old forms.

2. Fixed-term ASTs become periodic tenancies

Going forward (subject to commencement) tenancies will convert into periodic or rolling tenancies rather than fixed-term contracts so that they run from month to month or week to week

A tenant will be able to serve notice straight-away to end a tenancy on 2 months’ notice ending at the end of a rent period, so between 2-3 months.

This gives tenants more flexibility to leave (often with two months’ notice) while landlords cannot rely on an end-of-term fixed period to regain possession without a valid ground.

This also means that tenants may not be able to get a fixed term, which they might want to comply with residence requirements.

3. Rent increases and bidding controls

The Act introduces tighter rules on rent increases. Landlords will only be able to raise rents under specified procedure (for example a Section 13 notice) and only once a year in many cases. Any rent review clauses in any new or existing agreements will not be valid.

It also prohibits rental bidding wars (where tenants bid above the advertised rent) by requiring a landlord to cite a proposed asking rent which will be the maximum they can then charge. They won’t be able to charge an additional pet rent.

There are provisions that will restrict large advance rents (for example more than one month’s rent in advance) and only once a tenancy has been signed.

4. Standards, property condition and enforcement

The Act extends higher standards for property condition (including applying a version of the “Decent Homes Standard” to private rentals) and gives enforcement authorities stronger investigatory powers.

5. New protections against discrimination and ‘blanket bans’

Landlords and letting agents may no longer impose blanket bans on tenants receiving benefits or having children and must consider reasonable requests such as for pets (subject to detailed regulations).

There will be a process by which a tenant can request consent to keep a pet and the consent will be deemed if there is no response and there will be limited grounds for opposing this.

6. Landlord/tenant registers and transparency

A national Private Rented Sector database is envisaged, increased transparency for landlords and agents and a landlord ombudsman or equivalent dispute-resolution mechanism may be mandated.

7. The end of the £250 ground rent trap

Another feature of the legislation is relevant to those that own a long lease with a ground rent.

Some people have had issues with leases with ground rents over £250 per annum (£1,000 per annum in London) because such a lease is construed as an assured shorthold tenancy and capable of termination under one of the section 8 grounds under the Housing Act 1988, namely for non-payment of rent over this threshold.

It had led to leaseholders struggling to sell or get a mortgage on such properties.

The issue has largely been caused by the fact that this rent threshold was set in 1989 when the Housing Act 1988 came into force and it hasn’t been updated since which has led to many ground rents “catching up” with the figure.

The Act provides that any lease granted for over 21 years will not be an assured tenancy and will not therefore be subject to the termination provisions of section 8 of the Housing Act 1988 and this part of the legislation comes into force on 27 December 2025.

When do the changes come into force?

It is vital to emphasise that though the Act has attained Royal Assent (on 27 October 2025) the majority of its provisions are not yet in force.

The government intends a phased rollout with commencement dates to be published; some investigatory powers begin 27 December 2025 but other major changes (such as the full abolition of Section 21 and conversion of tenancies) may come into effect in 2026 (potentially mid-2026 or later).

What does this mean for landlords?

For landlords and property investors the Act brings both challenges and opportunities. Here are key implications:

• Possession strategy must change – You will no longer be able to rely on fixed-term AST expiry plus Section 21 notice for possession unless the old regime still applies (pre-commencement). You will need to rely on defined grounds and ensure those are clearly documented.

• Review tenancy agreements now – Ensure your standard documentation is up to date, contains no prohibited terms and is ready for conversion to the new regime when required.

• Rent review policies must be assessed – With frequency of increases limited, rent review clauses may need rewriting and budgeting assumptions will change.

• Property condition and compliance workloads may increase – With higher standards and stronger enforcement, proactively inspect, manage repairs and maintain records.

• Communications and relations with tenants become more important – With tenants gaining more rights, good landlord-tenant relations, responsive management and documented process become not just best practice but commercial necessity.

What does this mean for tenants?

From the tenant perspective the Act offers enhanced rights, security and clarity:

• More stability: by abolishing no-fault evictions, tenants are less likely to be asked to leave without cause.

• Flexibility: many tenancies will become rolling/periodic and tenants may leave with notice rather than being locked into fixed-term until expiry.

• Greater transparency: rent increases will be more regulated and tenants will have access to rights to challenge in certain cases.

• Better housing standards: stronger enforcement powers mean landlords are more likely to keep properties up to standard.

• Reduced discrimination: the ban on blanket bans helps tenants who might otherwise have been excluded from renting (for example benefit recipients).

Next steps and action checklist

1. Create an inventory of existing tenancies: term-type, expiry dates, Section 21 notices served, rent review clauses.

1. Review draft tenancy agreement templates in light of the new regime.

1. Audit property-condition records, ensure compliance with safety, repair and maintenance obligations.

1. Map rent‐review policy and budgeting assumptions for future years.

1. Monitor government guidance and commencement regulations (timing may vary by provision).

1. Communicate with tenants about forthcoming changes and your commitment to good management.

Conclusion

The Renters’ Rights Act 2025 represents a landmark reform of the private rented sector in England. For landlords its arrival marks the end of the default fixed-term AST + 2 months’ notice Section 21 model and a shift towards greater regulation of possession, rent and property standards. For tenants it offers enhanced protections, clarity and rights.

If you would like to explore the implications of the Act in more depth or want to update your documentation and strategy, we’re here to help.