The Renters’ Rights Bill officially received Royal Assent this week. The Renters’ Rights Act 2025, as it is now known, will introduce sweeping changes to the residential private rented sector in England.
The Act is significant not just to occupiers but also to commercial investors and operators of multi-let residential products, says legal firm Dentons.
Among the key changes being introduced by the Act are the following:
- Assured shorthold tenancies (ASTs) and fixed-term assured tenancies will be abolished. Going forward, only periodic assured tenancies with rental periods not exceeding one month will be permitted within the assured tenancy regime.
- Existing ASTs and fixed-term assured tenancies not benefiting from any exemption will automatically convert to periodic assured tenancies on commencement of the relevant provisions. Landlords of such tenancies need to be aware of the transitional provisions and ensure that they serve the required information notice within the prescribed timeframe. Additional notices may also be needed if a landlord wishes to retain the ability to rely on certain grounds for possession in the future (for example, Ground 4A relating to student accommodation).
- Section 21 no-fault evictions will also be abolished. The transitional provisions make some allowance for existing section 21 proceedings to continue.
- The section 8 grounds for seeking possession will be significantly overhauled. New grounds will be introduced such as Ground 1A in relation to the sale of a dwelling house. Several existing grounds will be modified. For example, Ground 8 (rent arrears) will, following commencement of the relevant provisions, require at least three months’ (or, if rent is paid weekly or fortnightly, 13 weeks’) rent to be in arrears – currently the requirement is at least two months’ (or, if rent is paid weekly or fortnightly, eight weeks’) rent to be in arrears.
- Tenants will no longer be tied into fixed terms and instead will be able to end a relevant tenancy by giving two months’ notice.
- There will be restrictions on rent being paid in advance and rental bidding practices will be prohibited.
- If a landlord wishes to increase the rent during the currency of an assured periodic tenancy, it will only be able to do so by following the relevant statutory procedure which cannot be triggered in the first year of the term or within a year of a previous increase taking effect. Tenants have the right to challenge rent increases.
- The banning of discrimination in the rental market based on:
- the possibility of a child living or visiting the premises; and/or
- the person being (or the possibility of becoming) a benefits claimant.
- A requirement for relevant landlords to be a member of a recognised landlord redress scheme for investigating complaints etc.
- The introduction of a private rented sector database. This will be a database to be kept by the Secretary of State (or a third party) of relevant landlords and the dwellings they are letting (or intend to let). Landlords will be required to register themselves and their dwellings, keep the entries up to date and maintain them as active entries while lettings are ongoing. There will be significant penalties for non-compliance, including restrictions on the ability to market premises and/or to recover possession.
- Extension of the decent homes standard to the private rented sector.
“The timetable for implementing the Act has not yet been confirmed. Further, several key provisions will require secondary legislation before the full details of the changes are known,” said Dentons.
“However, those potentially affected may wish to begin reviewing their portfolios now to identify tenancies that are likely to fall within scope. We will continue to monitor developments and provide further updates as more information becomes available.”
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