The Renters’ Rights Act 2025 is about to reshape how private renting works in England. It marks the biggest change to residential tenancies in decades and will affect almost every landlord and tenant with an Assured Shorthold Tenancy. Government guidance confirms that the new rules will apply from the 1st of May 2026, covering both new and existing tenancies.
Understanding the rules and preparing early will be key to avoid disputes, delays and unexpected costs.
To help unpack the practical implications and highlight the key points you need to be aware of, Raeesah Dudhwala, Associate Solicitor in the Commercial Property and Corporate Team at Bromleys, sets out what you need to know.
When does the Renters’ Rights Act 2025 start and why is the start date important?
Although the Act was given Royal Assent in October 2025, the transformative provisions have a delayed commencement date: 1 May 2026.
That matters because:
- It affects how quickly landlords must update tenancy agreements
- It influences possession strategies for the next 12–18 months
- It marks the point when existing ASTs are automatically transitioned into the new system
Landlords who have relied on fixed terms or Section 21 notices to manage their portfolios will need to make decisions sooner rather than later. A tenancy that renews before May 2026 may fall under one set of rules at the start and a completely different one shortly after.
If you operate across borders, remember that these reforms apply only in England. Wales, Scotland and Northern Ireland have their own rental frameworks, which will remain separate.
What does the end of Section 21 mean for landlords?
From 1 May 2026, Section 21 disappears entirely.
This isn’t just a technical update; it fundamentally changes how possession works.
Here’s what landlords can no longer do:
- End a tenancy without providing a valid legal reason
- Use a Section 21 notice to bypass disputes or manage deteriorating relationships with tenants
- Rely on fixed-term expiry dates to regain possession
If a section 21 notice has been served prior to the 1st May 2026, the fixed term tenancy would continue until its contractual end date unless and until possession is obtained.
What replaces Section 21 under the new tenancy rules?
Section 8 becomes the only route to possession.
Under Section 8, landlords must rely on specific statutory grounds and supply supporting evidence. This could include:
- Tenant being in 3 months’ rent arrears
- Anti-social behaviour
- Landlord is selling the property
- Landlord is moving into the property themselves
- There is a breach of tenancy terms
Courts can reject claims if the notice is incorrect, if the evidence is incomplete, or if the burden of proof isn’t met.
The Act significantly raises the bar on documentation.
It is also important to note that the deposit must be protected prior to issuing a section 8 proceeding.
How will periodic tenancies work?
The Government has confirmed that fixed‑term ASTs will no longer be the default. This is one of the biggest structural changes in the rental market for decades.
What this means in practice:
- All assured tenancies automatically become periodic tenancies
- Tenancies will continue until ended lawfully
- Tenants can leave by providing two months’ notice
- Landlords can only recover possession via statutory grounds—not because a contract has “ended”
For some landlords, especially those letting to students or those managing properties with seasonal occupancy, this represents a fundamental shift in business planning.
How will rent increases work?
The Act brings in stronger safeguards aimed at preventing unfair or unpredictable rent hikes.
Key changes include:
- Rent can only be increased once in every 12-month period
- Tenants can challenge increases at the First‑tier Tribunal (within 6 months of the tenancy) even if the increase was originally agreed between the parties
- Statutory rent increase process must be followed
Tribunal decisions will rely heavily on:
- Market comparables
- Property condition
- Local data
- Evidence of improvements or deterioration
For landlords, this means rent reviews can no longer rely on vague or outdated benchmarks.
You will need well‑prepared, localised comparables from similar properties.
For tenants, the ability to challenge rent increases creates a new lever in negotiations, particularly in areas where rents have climbed significantly.
Are landlords allowed to refuse pets under the new Act?
Key points:
- Tenants can make a formal request to keep a pet
- Landlords will not be able to unreasonably withhold consent as long as the tenant provides full information
- A refusal must be accompanied by a clear, evidence‑based explanation
- The only grounds for reasonable refusal are covenants prohibiting pets on the title or prohibitions to this effect in the superior lease
This won’t open the door to every pet in every property but it does prevent blanket bans.
Are bidding wars and rent in advance payments still allowed?
To reduce rent inflation and protect tenants from “backdoor” financial pressure, the Act will:
- Ban rental bidding wars
- Cap the ability to pay rent in advance at one month’s rent rather than quarterly or annually in advance
- Standardise how deposits and holding fees must be handled
What do these changes mean for landlords?
The rules have become stringent making it harder for landlords to regain possession unless the statutory procedure is followed and there is a valid ground for repossession.
Under the previous rules, many possession claims following the expiry of section 21 did not require a court hearing. However, under the new regime, all possession claims will require a hearing resulting in unavoidable delays. Incorrect notices or weak evidence can lead to further delays or failed claims which could result in the landlord not being able to further claim in the future.
Landlords must plan exists earlier and be strategic. They must ensure that there is good record-keeping and compliance.
Two major schemes are to be rolled out:
1. Private Rented Sector Database
Landlords will be legally required to register themselves and their properties every time a property is marketed, let and/or advertised.
Failure to register or comply with the requirements can result in financial penalties being imposed on the landlord.
There is no tenant database equivalent.
Landlords will not be able to obtain possession under section 8 grounds if they are not registered.
2. Mandatory PRS Landlord Ombudsman
This aims to reduce pressure on courts by resolving disputes early and at lower cost.
Landlords will need to respond to complaints quickly and transparently, with a clear paper trail.
Enforcement risk
There will be greater scrutiny of landlord behaviour with financial penalties available in certain instances.
There will be civil financial and criminal penalties imposed for non-compliance with fines of up to £7000.
How Bromleys can help
Whether you’re a landlord trying to adapt your portfolio to the new system or a tenant wanting clarity about your rights, early, specialist advice can make the transition far easier.
Our Dispute Resolution and property teams can assist with:
- Reviewing and updating tenancy agreements
- Advising on possession grounds under the new section 8 grounds
- Drafting and serving of valid possession notices
- Rent increase disputes
- Compliance checks for existing AST portfolios
- Advice for landlords planning sales or changes of use
- Resolve disputes before they escalate into court proceedings
If you would like tailored advice, call our Commercial Property or Dispute Resolution teams on 0161 884 0905 or email bromleys@bromleys.co.uk.
For more information, please review our earlier article: Assured Shorthold Tenancy Solicitors | Commercial Property Law