The UK property market has been braced for change since the publication in 2017 of Theresa May’s white paper ‘Fixing our Broken Housing Market’, which argued that tenants needed a fairer deal. Almost a decade later, reform is finally coming through the Renters’ Rights Act 2025.
This Act will introduce a new regime that represents a fundamental change in England’s private rental sector (PRS), explains legal firm Travers Smith.
Although the Act was passed into law in October 2025, most of its provisions are not yet in force. The Government has now published a roadmap for implementing the new regime, starting in May 2026, the firm said.
Some of the key changes being introduced include:
- Abolition of ASTs: Assured shorthold tenancies will be abolished and instead all new and existing assured tenancies of PRS units will be (or will become) assured periodic tenancies. Tenancies that are not assured tenancies (such as holiday lets) will not be affected.
- Abolition of section 21 Housing Act 1988: Under the new regime, landlords that want vacant possession of a property must use the section 8 procedure which will involve establishing one of the statutory grounds for possession. The ensuing court processes are likely to result in long and costly delays in gaining possession.
- No minimum term: Conversely, tenants will be able to serve notice to terminate a tenancy on two months’ notice at any time, to expire at the end of a rent payment period.
- Rent increases: Under the new regime, landlords can only increase the rent once a year by serving a section 13 notice. Tenants will be incentivised to challenge this reviewed rent because the Tribunal process will inevitably delay the rental increase at no cost to the tenant and may result in a smaller rent increase.
- More regulations: The new Private Rented Sector Landlord Ombudsman will provide “quick and binding resolutions” for tenants’ complaints about their landlord (but not vice versa) and the new Private Rented Sector Database will publish details of any sanctions imposed on landlords. Both will be funded by landlords and will operate alongside selective licensing despite the apparent duplication of purpose and functions.
- Pets: Tenants will be able to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. There is no provision for requiring tenants to pay for pet damage insurance or to put down larger deposits.
- Decent Homes Standard and Awaab’s Law: These standards will be applied to the PRS to ensure that homes are safe. These only apply to social housing currently, and it is unclear yet how they will be applied to the PRS.
- Discrimination: Landlords and agents will not be able to discriminate against prospective tenants who receive benefits or have children. The terms of any superior lease, loan or insurance policy which restrict letting to families or people on benefits will be void.
“The new renters’ rights regime is the most significant change to the PRS in 40 years. The real estate finance community will need to consider how best to respond to the challenges it poses for borrowers and lenders alike,” Travers Smith said.
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