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The Renters’ Rights Act 2025: Key Changes from May 2026 for Landlords and Tenants

To Let sign on a British street of houses

Effective from 1 May 2026

Introduction

The Renters’ Rights Act 2025 constitutes the most significant overhaul of residential tenancy law in England since the Housing Act 1988. Having come into force on 1 May 2026, it reshapes the relationship between landlord and tenant, with the objectives of:

  • Enhancing security of tenure
  • Improving affordability
  • Rebalancing rights within the private rented sector

This article summarises key changes and what they mean in practice.

Table of Contents

Abolition of Section 21 and the Move to Grounds-Based Possession

Section 21 ‘no-fault’ evictions have been abolished.

Landlords can no longer recover possession without establishing a statutory ground under the reformed grounds in Schedule 2 of the Housing Act 1988.  Mandatory and discretionary grounds are retained, but there are new and amended grounds that are also available.

Mandatory grounds include rent arrears, occupation by the landlord or their family, sale of the property and severe anti-social behaviour. The occupation and sale grounds also carry restrictions which aim to prevent landlords exploiting these grounds.

Discretionary grounds include rent arrears (below the three-month threshold), suitable alternative accommodation, and where there is a deterioration in the condition of the property due to the tenant.

The removal of the Section 21 process gives tenants increased security as a landlord can only seek possession based on the updated grounds.

Abolition of Assured Shorthold Tenancies and Fixed Terms

Assured shorthold tenancies (ASTs) have been abolished. All affected private sector tenancies (including existing tenancies) operate as assured periodic (rolling) tenancies with no fixed end date.

Tenants can generally terminate on two months’ notice. This replaces the previous fixed-term, contract-based model with an open-ended tenancy framework.

Reform of Rent Regulation

Rent increases are now limited to one per year and must be implemented via the statutory Section 13 procedure with at least two months’ notice.

Contractual rent review clauses are no longer effective for new increases after 1 May 2026. Tenants may challenge proposed increases before the First-tier Tribunal.

Financial Protections: Upfront Rent and Bidding Practices

To address affordability at the outset of tenancies, upfront rent demands are restricted to one month.

The Act also prohibits rental bidding wars by preventing landlords and agents from soliciting or accepting offers above the advertised rent.

Strengthened Anti-Discrimination Protections

It is now unlawful to refuse tenants solely because they have children or because they receive benefits. These measures are intended to reduce barriers to accessing housing in the private rented sector.

Statutory Right to Request a Pet

Tenants have a statutory right to request permission to keep a pet. Landlords must not unreasonably refuse such requests, although reasonable conditions (such as pet damage insurance) may be imposed.

Transitional and Compliance Obligations

Landlords must provide existing tenants with the Government-issued Information Sheet by 31 May 2026 (or provide prescribed written information where the tenancy is wholly oral).

Existing tenancy agreements can remain in place, but clauses that conflict with the Act will be unenforceable.

Wider Structural Reforms (Phased Implementation)

Beyond 1 May 2026, the Government’s roadmap provides for further measures to be implemented in phases, including a private rented sector database for landlords and a landlord ombudsman scheme, alongside steps to raise property standards.

What This Means for Landlords and Tenants

For landlords:

  • Greater reliance of statutory grounds for possession
  • Increased compliance requirements
  • More structured rent increase processes

For tenants:

  • Increased security of tenure
  • Greater protection in areas such as rent setting, tenant selection and tenancy management
  • Improved access to housing

Conclusion

The Act marks a substantial shift in the private rental sector.

By removing Section 21, ending fixed terms, tightening rent increase processes, and introducing protections on discrimination and pets, it materially alters both litigation strategy and day-to-day tenancy management.

For more information and to seek legal advice on any property dispute you may be experiencing as a landlord or tenant, visit our landlord & tenant disputes or property disputes service page. Get in touch via our form to speak with an expert.

FAQs

When did the Renters’ Act 2025 come into force?

The Act came into force on 1 May 2026, with some additional reforms expected to be introduced in phases after this date.

Has Section 21 been abolished?

Yes. Section 21 ‘no-fault’ evictions have been abolished. Landlords can now only recover possession of a property by relying on specific statutory grounds under Section 8 of the Housing Act 1988.

Can landlords still evict tenants under the new rules?

Yes, but only where a valid legal ground applies, such as significant rent arrears, an intention by the landlord to sell or move into the property, or serious anti-social behaviour.

Are fixed-term tenancies still allowed?

No. Assured shorthold tenancies (ASTs) and fixed-term agreements have been abolished. All tenancies are now periodic (rolling), with no fixed end date.

How often can rent be increased under the new law?

Rent can only be increased once per year, using the statutory process. Landlords must give tenants at least two months’ notice, and tenants can challenge increases at the First-tier Tribunal.

Can landlords still ask for several months’ rent upfront?

No. The Act restricts upfront rent payments to one month, helping to reduce barriers to entering the rental market.

Is it legal to refuse tenants with children or on benefits?

No. It is now unlawful for landlords or agents to refuse tenants solely on these bases.

Can tenants keep pets under the new rules?

Tenants have the right to request a pet. Landlords must not unreasonably refuse, although they may impose reasonable conditions, such as requiring pet insurance.

Stewart Croft - Senior Associate Solicitor

Stewart Croft | Senior Associate Solicitor

Stewart Croft is a senior associate solicitor within the commercial litigation and dispute resolution team, based at the firm's Blackburn office.