1st December 2025 | George Faulkner | Renters’ Rights Act 2025, Residential tenancies, Landlord obligations

The Renters’ Rights Act 2025 will bring the biggest shake-up to the private rented sector in decades. With the first phase coming into force on 1 May 2026, landlords, agents and tenants have only months left to prepare. Below is a summary of the key changes and what action is needed now.

What is changing?

  1. New tenancy structure

From May 2026, most new and existing residential tenancies will convert into assured periodic tenancies. This means:

  • no more fixed-term ASTs as the default; and
  • no more “no-fault” Section 21 evictions.
  1. Updated Section 8 grounds for possession

Several existing grounds are being amended and new grounds introduced, including:

  • Higher rent arrears thresholds – for monthly rents the mandatory arrears ground will increase from two months’ arrears to three months.
  • New Ground 1A – intention to sell which gives landlords a new mandatory ground to regain possession if they genuinely intend to sell the property
  1. New rules for rent and advance payments

Rent regulation is tightening:

  • rent increases will be permitted no more than once per year, and must be accompanied by two months’ notice; and
  • the maximum rent in advance will be capped at one month’s rent.
  1. Fairer access for tenants

Landlords and agents will no longer be able to reject applicants because they:

  • receive benefits; or
  • have children.

Tenants will also gain a stronger right to request permission to keep a pet, and landlords must respond within a defined timeframe with clear, lawful reasons if refusing.

  1. Stronger enforcement

Local authorities will receive enhanced investigatory and enforcement powers and penalties for non-compliance will rise. Landlords should expect closer scrutiny of:

  • compliance paperwork;
  • property safety standards; and
  • management conduct.

For those seeking further official guidance, the Government has published a detailed overview of the reforms in its “Guide to the Renters’ Rights Act”.

What landlords and agents should do now

To prepare for the May 2026 changes, landlords and agents should:

  • review all tenancy agreements and prepare for the shift to periodic tenancies;
  • familiarise themselves with the new and amended Section 8 grounds for possession; and
  • update policies for rent increases and advance payments.

Given that “no-fault” Section 21 evictions will not be available for most tenancies after 1 May 2026, landlords should also consider whether they may need to recover possession in the near future. If so, they should assess whether serving a Section 21 notice ahead of 1 May 2026 is necessary.

How Sherrards can help

Our Real Estate Litigation team is advising landlords, agents and tenants nationwide on the practical implications of the Act. We can assist with:

  • reviewing and updating tenancy agreements;
  • possession strategies prior to the implementation of or under the new regime;
  • tenant rights, challenges and dispute resolution; and
  • all matters relating to residential tenancies and the Renters’ Rights Act 2025.

To find out more, please contact George Faulkner or another member of the Real Estate Litigation team.