Renters' Rights Act - what happens now?

The Renters’ Rights Act (the Act) came into force in October 2025, with its main provisions taking effect from this Friday, 1 May. The Act introduces wide ranging reforms to the private rented sector and constitutes the most significant change to rental rights in England since 1988.

The reforms aim to provide greater clarity and consistency across the sector, with a view to improving security for tenants while introducing a new framework for how tenancies are managed and brought to an end. Here’s what you need to look out for.

Key changes

The Act makes a number of changes - some of the key ones are set out below.

The end of Assured Shorthold Tenancies (ASTs) and the introduction of Assured Periodic Tenancies (ASPs)

An AST is a tenancy agreement that can either be for a fixed term, or rolling on a periodical basis.

From 1 May 2026, all new and existing ASTs will automatically convert into ASPs with no fixed term. The tenancy period itself must align with the rent payment cycle and must not exceed one month.

As a result, tenancies will no longer have a fixed duration. While this provides tenants with greater flexibility, it may make it more difficult for landlords to predict how long a tenancy will last. This is because it can be brought to an end sooner than a fixed term AST .

Abolishment of section 21 notices

Under the current system, a landlord may serve a section 21 notice on a tenant at any time, providing at least two months’ notice is given to the tenant to regain possession of their property.

From 1 May 2026, however, this approach will no longer be available. Section 21 notices will be abolished, and if landlords wish to continue possession proceedings they'll be required to do so using a section 8 notice under the Housing Act 1988. 

This will require them to illustrate reliance on one or more specified statutory grounds. Some of these grounds for possession are set out below; some are newly introduced, while others have been amended. 

1. Amended grounds
   1. Occupation by landlord or family (ground 1) – A landlord or their close family member wishes to move into the property. This ground cannot be used for the first 12 months of a new tenancy, and 4 months’ notice is required to be given to the tenant in writing. The notice may be served during the first 12 months of a new tenancy, provided that it doesn't expire before the end of that period.
   2. Redevelopment (ground 6) – This is used when a landlord wishes to demolish or substantially redevelop the property which cannot be done with the tenant living at the property. A minimum of 4 months’ written notice must be given to the tenant by way of a section 8 notice.
   3. Rent arrears (ground 8) – This can be used when rent is unpaid by at least 13 weeks (or 3 months). In this instance, 4 weeks’ notice is required to be given to the tenant in writing.
      
      
2. Newly introduced grounds
   1. Sale of dwelling-house (ground 1A) – This new ground applies when a landlord wishes to sell their property. This ground cannot be used for the first 12 months of a tenancy, and 4 months’ notice is required to be given to the tenant. As with ground 1, the notice may be served during the first 12 months, provided it does not expire before the end of that period.
      
      
3. Mostly unchanged grounds
   1. Breach of tenancy (ground 12) – This ground applies when any tenant obligation, except non-payment of rent (ground 8 above), is breached. Two weeks’ written notice is required to be given to the tenant.

In summary, the amended grounds retain their core purpose but introduce longer notice periods, additional timing restrictions and increased scrutiny, while the largely unchanged grounds continue to operate as before, albeit in a system where all possession claims now require judicial determination.

Mandatory ombudsman membership

The Act requires all existing and new private landlords to join the private rented sector ombudsman, providing tenants with a formal route for complaints and dispute resolution.

Rent increases

A landlord will only be able to increase rent once per year by serving a section 13 notice proposing the new rent which must be in line with the open market rent. A landlord must give the tenant 2 months’ notice of any rent increase.

Pets

A landlord cannot now unreasonably deny a pet residing at their rental property during a tenancy and also can't require tenants to obtain pet insurance. 

What this means for landlords and letting agents

The reforms introduced by the Act will significantly alter how landlords and letting agents will manage tenancies in practice. With fixed terms abolished, tenancy agreements and internal processes will need to be reviewed and updated to reflect assured periodic tenancies and the statutory framework for giving the appropriate notice under section 8 of the Housing Act 1988.

Letting agents, in particular, will need to ensure they don't fall into common compliance pitfalls. This includes serving the correct notice periods when seeking possession and following the revised rent review procedure. They may wish to also check with their clients that they've joined the private rented sector ombudsman. Existing tenancy templates, guidance notes and standard communications will need updating well in advance of the new regime taking effect on 1 May 2026.

Training will also be key. Staff involved in lettings, renewals, rent increases and possession matters will need a clear understanding of the new rules to avoid delayed possession or regulatory breaches.

Possession proceedings

Under the new system, all possession claims will require reliance on statutory grounds and, where contested, judicial determination. This is likely to place additional pressure on an already stretched court system and may result in longer timescales to regain possession, even where mandatory grounds apply.

These extended possession timeframes may affect decisions, so thought should be given to when certain actions are taken, particularly where issues such as rent arrears, redevelopment plans or sales are time sensitive.

The median time from claim to repossession for landlord claims in England and Wales rose to 25 weeks by the end of 2024, compared with around 23.6 weeks during the same period in 2023.

Property and risk portfolio considerations

From a risk perspective, longer and less predictable possession processes may have knock on effects for property insurance premiums and landlord policies. This is particularly so where possession cannot be secured quickly.

The removal of blanket restrictions in certain areas, such as pets, also requires landlords and agents to adopt more considered, case by case decision making.

There may also be wider implications for ownership structures, particularly where substantial residential portfolios are held as investment assets. Reduced certainty over tenancy length and greater constraints on rental increases may influence how many properties are retained.

Looking ahead

Alongside tenancy reform, the government is continuing work to raise standards in the private rented sector, with a particular focus on safety, repair and energy efficiency. Further consultations will inform the timing and detail of these measures.

Proposals include faster action requirements for addressing serious hazards, such as damp, mould and unsafe living conditions, and improving the overall quality of rented homes to ensure they are warmer and safer for tenants.

In addition, the government plans to require privately rented homes to meet higher energy efficiency standards, with an EPC rating of C or above by 2030, unless an exemption applies. Whilst this change is still some way off, landlords and letting agents should begin factoring potential compliance and upgrade costs into longer term planning. Limited exemptions are expected to apply, including where no further improvements are reasonably possible, or where required third party consent for works has been refused.

If implemented, these measures are intended to reduce energy bills, improve living conditions and support the government’s wider environmental objectives.

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