OVERVIEW OF THERENTERS’ RIGHTS ACT
AND ITS IMPLICATIONS
UPDATED 14TH NOVEMBER 2025
RENTERS’ RIGHTS ACT
AND ITS IMPLICATIONS
UPDATED 14TH NOVEMBER 2025The Renters’ Rights Act (RRA) received Royal Assent and officially became law on 27th October 2025, with implementation scheduled to begin on 1st May 2026. The government states that, by giving advance notice of the legislative changes, landlords, tenants, and letting agents will have sufficient time to prepare.
The first changes, which will come into effect during phase 1, tackle discrimination and financial exploitation. Landlords will be prohibited from increasing rent more than once a year, requesting more than one month’s rent in advance, unreasonably refusing pets, and discriminating against tenants who receive benefits or have children. Tenants will be able to appeal excessive rent increases but will have to comply with stronger legal grounds for eviction. Other key changes will include the banning of bidding wars and the abolition of Section 21.
During phase 2, beginning in late 2026, the Private Landlord Ombudsman and a Private Rented Sector Database will be introduced. Finally, phase 3 will focus on providing extra protections and improving living conditions by introducing a Decent Homes Standard, accompanied by updates to the Housing Health and Safety Rating System.
The Renters’ Rights Act aims to re-balance the relationship between tenants and landlords by offering greater protections to renters while ensuring that landlords meet higher standards of responsibility:
Balancing rights: The Act aims to strike a balance between the rights of tenants and landlords, ensuring fairness and transparency in the renting sector.
Improving standards: Setting minimum property standards ensure that rented properties meet basic safety and habitability requirements, improving living conditions for tenants.
Ensuring affordability: Landlords will not be able to accept offers over the advertised asking price and rent increases will only be allowed once per year. Tenants will need at least two months’ notice and will have the right to challenge excessive increases through a tribunal.
Balancing rights: Providing tenants with greater security and stability in their rented accommodation.
To achieve this, the Act will make the following key changes from 1st May 2026.
Abolition of Section 21: The main aim of the Act is to simplify tenancy structures by transitioning all tenancies to periodic
contracts. This means that a tenancy will end only if the tenant chooses to leave, or if the landlord has a valid reason.
Changes to Section 8: Following the removal of Section 21, landlords will need to use Section 8 of the Housing Act 1988
to regain possession of their property, typically by providing grounds for eviction, which will also include a number of new and strengthened grounds for eviction.
Periodic contracts: The Act will end fixed term tenancies. Where a tenant moves in, there will be no end date as per current Assured Shorthold Tenancy Agreements. The tenancy will continue on a month by month basis until the tenant decides to leave or the landlord has a valid ground for possession.
No bidding wars: Landlords will not be able to accept offers from tenants that exceed the advertised asking price, meaning that accurate pricing will be essential.
Changes to minimum notice periods: Tenants will be given the right to end their tenancy at any time, provided they give two months’ notice. Landlords will also be able to give tenants four months’ notice should they wish to sell or move into their rental property, while notice periods for other grounds (antisocial behavior, rent arrears, etc.) will continue to vary.
Restrictions on rent increases: Landlords will be able to increase rents once per year provided that the increase reflects the market rate. Tenants will have the right to contest any proposed increase they believe to be unfair.
Pets in properties: Tenants will have the right to request permission to keep pets in their property. Landlords will have to consider each request and provide a fully considered response.
Upfront rent restrictions: Ban on upfront rental payments of more than one month. The Act will restrict rental payments to a maximum of a month at a time.
No discrimination: A ban on “no children” and “no DSS” advertising.
Landlords will need to provide tenants with a minimum of 12 months of tenancy before being able to regain possession using the sale or occupation grounds. Therefore, notices can only be served at month 8.
An overhaul of Rent Repayment Orders will provide additional recourse for tenants or local authorities to go to a tribunal if a landlord commits certain offences.
In addition to strengthened grounds for eviction due to anti-social behaviour, the majority of notice periods will be doubled.
Fines for minor or initial non-compliance can be up to £7,000 but go up to £40,000 for repeat offences, per offence.
Where a landlord serves notice to sell the property or move back in, they will not be able to re-let the property for a period of 12 months from the date the tenants vacated.
New documentation requirements for all new tenancies starting from 1st May 2026 and a government-issued information sheet to be sent to all existing tenancies by 31st May 2026.
PRS Database (from late 2026): Mandatory registration of all rental properties.
Landlord Ombudsman (mandatory by 2028).
Future property standards including the Decent Homes Standard and Awaab’s Law (dates TBC).
Although the Act will only take effect from 1st May 2026, Chestertons recommends the following for landlords:
Consider a Rent Protection product: Being without access to their rental property or the income from their rental property is the worst case scenario for all landlords. Although this is already a risk, the new laws may mean it takes longer to regain possession of your property if a tenant fails to pay rent. You can easily protect yourself against this by taking out a Rent Protection product. Chestertons offers one of the most comprehensive options on the market, so please contact us to find out more.
Be selective with your tenants: Most landlords will agree that a good tenant is more important than anything else. Take time to select the best tenant for your property and use an agency like Chestertons which has one of the most robust and stringent tenant referencing systems in the industry.
Optimise your property: The best rental properties will always achieve the best rents and attract the best tenants. Ensure that your property is in good decorative order and presents well to prospective tenants. Also, if your property is suffering from mould or damp, now is the time to get it addressed, before the new Decent Homes Standard is applied to the private rented sector. On the flip side, the removal of fixed term contracts means that tenants will no longer be able to lock themselves into long-term tenancies with their rents fixed at a specific amount.
Chestertons offer landlords a range of services and products to ensure that they are fully protected and prepared for the Renters’ Rights Act.
Join the many landlords already benefiting from Chestertons Protect!
With the Renters’ Rights Act progressing quickly, there’s never been a better time to protect your investment.
Why our landlords love Chestertons Protect:
Guaranteed Rent – Get paid even if your tenants miss payments.
Eviction Support – Expert legal guidance to regain possession.
Vacant Possession Payments – Up to 90% of rent for six weeks while you find a new tenant.
Property Damage Cover – Extra £250 towards damages, plus legal support for claims over £1,000.
Please complete the form below to register your interest. Someone from our team will assess your eligibility and get back to you with more information.
For all media enquiries, contact [email protected] The contents of this document are intended for the purpose of general information and should not be relied upon as the basis for decision taking on the part of the reader. Although every effort has been made to ensure the accuracy of the information contained within this report at the time of writing, no liability is accepted by Chesterton UK Services Ltd for any loss or damage resulting from its use. Reproduction of this report in whole or in part is not permitted without the prior written approval of Chesterton UK Services Ltd. January 2025. If you wish to discuss how the Renters’ Rights Act might affect you and how you can prepare for it, please contact [email protected]