Renters’ Rights Act: Royal Assent and what comes next

The Renters’ Rights Act (the Act) received Royal Assent on 27 October 2025.

The Act transforms the landscape of residential lettings in England, including how tenancies operate and are terminated. It aims to give tenants greater security and flexibility, while increasing regulation of the private rented sector (PRS) and ensuring more transparency.

The timetable for implementation is largely uncertain and expected to commence in early 2026. However, investigatory powers for local authorities under the Act will commence on 27 December 2025 and certain “long tenancies” can no longer be assured tenancies. Notably, much of the Act requires secondary legislation before it can fully take effect. Anyone operating in this sector will need to monitor developments closely to stay informed about what changes are coming into force and when.

In this article, we take a closer look at the Act and the key changes:

Abolition of fixed-term assured shorthold tenancies (ASTs)

The Act abolishes fixed-term ASTs, which will automatically convert to periodic assured tenancies. Any new tenancies granted once this section is in force will also be periodic assured tenancies, which means landlords will no longer be able to tie tenants into a fixed letting period. Tenants will also be able to serve two months’ notice to terminate their Periodic Assured Tenancy at any point, greatly increasing tenant flexibility.

Abolition of Section 21 notices

The Act also abolishes Section 21 notices – commonly known as ‘no fault’ evictions, where landlords can regain possession without providing a reason (if other requirements are met). Crucially, there are transitional provisions which that landlords can still rely on Section 21 notices already served before this part of the Act comes into force.

Section 21 notices are expected to be abolished in spring 2026, being among one of the first waves of commencement.

Section 8 notices – grounds for eviction

Once Section 21 notices are abolished, landlords will only be able to use the Section 8 notice procedure to terminate a periodic assured tenancy, which must cite a ground of possession set out in the Housing Act 1988.

The Section 8 notice procedure already exists, but the Act expands and modifies the existing grounds for possession. A key new ground is that landlords will be able to regain possession if they wish to sell the property. However, they must give four months’ notice, and tenants will have an initial protected 12-month period before a landlord is able to serve notice relying on this ground.

Notice periods for a Section 8 notice have generally increased from two weeks–two months to four weeks–four months; and as is already the case, some of the grounds of possession are discretionary, so possession is not guaranteed.

Deposits

A significant change introduced by the Act is that to obtain possession via the Section 8 notice procedure, landlords must have complied with the deposit protection rules – a new requirement under the Act which does not exist under the current legislation.

Rent reviews

Contractual rent review provisions (even in ASTs that convert to assured periodic tenancies) will be of no effect. Rent increases must be made by serving a Section 13 notice. Landlords can only increase rent once a year, with a minimum of two months’ notice, and the increase must reflect market rent. Tenants will also have the right to challenge rent increases in the First-tier Tribunal if they believe they exceed the market rate.

Rental bidding

Landlords will be prohibited from inviting or accepting rental bids above the advertised rent – commonly referred to as a ‘bidding war’. This change promotes transparency and fairness in the rental market.

Rent in advance

Landlords will no longer be able to demand more than one month’s rent in advance. Generally speaking, rent must not be accepted before the start of the rental period it relates to – for example, rent paid on 1 September must cover 1 – 30 September.

Private Rented Sector Database (PRSD)

The Act introduces the PRSD – a new national digital register that all landlords in the PRS must join. The database will be widely accessible and aims to improve transparency around compliance, property standards and enforcement history.

Failure to register could lead to civil penalties and may prevent landlords from regaining possession. The PRSD does not yet exist; secondary legislation is awaited which will set out the requirements landlords need to comply with to be active on this database.

Decent Homes Standard (DHS)

The DHS, long established in the social housing sector, will be extended to the PRS. Landlords must ensure their properties meet specific standards for repair, safety and comfort, with further details awaited. Significant penalties will apply for non-compliance.

Awaab’s Law, which came into force in the social housing sector on 27 October 2025, will also be extended to the PRS. It sets strict requirements for landlords to deal swiftly with hazards, such as damp and mould.

Pets

The Act will introduce an implied right for tenants to request permission to keep pets. Landlords cannot unreasonably refuse such requests and will be under timescales to formally respond.

Discrimination

Landlords will no longer be able to cherry pick tenants, meaning landlords will not be able to refuse to rent to people in receipt of benefits or tenants with children. Any discriminatory clauses in existing ASTs will cease to apply.

Landlords will, however, be able to prevent a letting to someone with children if, for example, the premises is wholly unsuitable and would result in overcrowding.

Written statement and landlord obligations

Landlords must provide tenants with a written statement before the tenancy begins. This must outline key tenancy terms, including grounds for possession. Failure to provide the statement could result in penalties, though it will not prevent a possession order if justified.

This requirement will apply to tenancies that convert to periodic assured tenancies from ASTs, with transitional provisions to give landlords time to comply. We also await secondary legislation to set out what the written statement must entail.

Financial penalties and sanctions

As a result of the Act, Landlords or agents may face financial penalties ranging from £7,000 to £40,000. Offences at the higher end of this range may be criminal.

The government has already published the “Investigatory Powers Guidance for Renters’ Rights Act 2025”, which will assist a local housing authorities determine whether an offence has been committed.

A Private Rented Sector Ombudsman will also be introduced, with powers to impose financial penalties. The primary aim of this forum will be to deal with tenant complaints.

Conclusion

The impact of the Act is significant. While Royal Assent confirms the final form of the legislation, there is still uncertainty around timing and detail. The government has yet to confirm a full timeline, but landlords now have the opportunity to prepare for the changes and seek legal advice to ensure a smooth transition once the Act is implemented.