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The Renters’ Rights Act 2025 Explained: What Landlords and Tenants Need to Know

The Renters’ Rights Act 2025 (RRA) marks the most transformative reform of the private rented sector in decades. With Royal Assent granted on 27th October 2025, this landmark legislation reshapes how landlords and tenants interact, replacing old tenancy structures and bringing in sweeping new standards for fairness, transparency, and accountability.

In this first instalment of our five-day series on the RRA, we’ll explore why the Act was introduced, the key changes it brings, and what both landlords and tenants can expect as we move towards implementation.


Why the Renters’ Rights Act Matters

For years, the private rental sector has been under increasing scrutiny. Complaints about poor housing conditions, limited tenant rights, and sudden evictions under Section 21 (the so-called “no-fault” eviction process) led to mounting calls for reform.

The Renters’ Rights Act 2025 represents a fundamental cultural shift — one that aims to rebalance the relationship between landlords and tenants, improving standards while preserving landlords’ rights to manage their properties effectively.

The government’s stated goals are clear:

  • End “no-fault” evictions.

  • Simplify tenancy structures.

  • Improve property standards and accountability.

  • Create a fairer, more stable rental market.


The Major Changes Introduced by the Act

Let’s break down the most significant reforms — and what they mean for you.

1. The End of Section 21 and the Rise of Periodic Tenancies

Section 21 notices — which allowed landlords to evict tenants without giving a reason — are now abolished. In their place, all tenancies will convert to “assured periodic tenancies.”

That means:

  • No more fixed-term tenancies like 6- or 12-month ASTs.

  • Tenants can leave with two months’ notice.

  • Landlords can only end a tenancy using valid legal grounds (covered under Section 8).

This change ensures tenants have greater long-term security while allowing landlords to regain possession when necessary — but only with evidence.


2. New Grounds for Possession (and Stricter Safeguards)

Landlords will still be able to reclaim their property, but the process has changed. Grounds for possession are now more clearly defined and require proof.

Some examples include:

  • Selling or moving into the property: Allowed only after the first 12 months of a tenancy, with four months’ notice.

  • Persistent rent arrears: Now requires at least three months’ unpaid rent before court action.

  • Anti-social behaviour or property damage: Still enforceable at any time, with supporting evidence.

To prevent misuse, landlords using the “selling” or “move-in” grounds cannot re-let or market the property for 12 months after regaining possession.


3. Rent Increases: A Fairer System

The RRA changes how rent can be increased. Landlords can only raise rent once per year, using the Section 13 process — with two months’ notice to tenants.

Tenants will also have the right to challenge unfair increases at a tribunal. Importantly, tribunals cannot set rent higher than the landlord’s proposed amount, ensuring tenants aren’t penalised for raising disputes.

This brings predictability to rental pricing, balancing affordability with landlords’ need to adjust rents for inflation and market conditions.


4. No More “Bidding Wars”

The Act bans rental bidding — the practice of encouraging tenants to offer higher rent to secure a property. Landlords and letting agents must now publish a fixed asking rent and cannot solicit or accept offers above it.

This reform levels the playing field, particularly in high-demand areas where competitive bidding previously excluded lower-income tenants.


5. Ending Discrimination in Lettings

The Act makes it illegal for landlords or agents to refuse to rent to:

  • Families with children, or

  • Tenants receiving benefits (DSS claimants).

This prohibition applies to both advertising and decision-making. Blanket statements like “No DSS” or “No children” are now considered discriminatory, with potential penalties for non-compliance.


6. Restrictions on Rent in Advance

To make renting more accessible, the Act limits how much rent can be demanded upfront:

  • Only one month (or 28 days) may be required before the tenancy starts.

  • Once the tenancy begins, landlords cannot enforce early payment clauses.

This prevents landlords from demanding six months or more rent in advance — a common practice that unfairly locked out many tenants.


7. Mandatory Membership in the New PRS Ombudsman

All landlords will soon be required to join the Private Rented Sector (PRS) Ombudsman, a government-backed redress scheme offering free, impartial dispute resolution for tenants.

Key facts:

  • Tenants can raise complaints at no cost.

  • Ombudsman decisions are binding on landlords.

  • Failure to join can lead to fines up to £7,000, and up to £40,000 for repeat offences.

This new system aims to resolve disputes quickly and reduce the burden on the courts.


8. Compulsory Landlord and Property Registration

The RRA introduces a national PRS Database. Landlords must register:

  • Their own details, and

  • Each rental property they own.

Failure to register may mean losing access to certain possession grounds. The database will also give local councils better tools to identify and target rogue landlords.


9. Pets in Rental Homes: A New Right to Request

Under the RRA, tenants now have a legal right to request a pet, and landlords cannot unreasonably refuse. While landlords can still require a higher deposit (within the legal cap) for potential damage, blanket bans on pets are no longer acceptable.

Guidance will clarify what counts as a “reasonable refusal,” but landlords should start preparing to assess requests individually.


10. Raising Property Standards: The Decent Homes Standard & Awaab’s Law

The RRA extends key housing quality standards to the private sector:

  • The Decent Homes Standard (DHS) will now apply to private rented properties for the first time.

  • Awaab’s Law introduces strict deadlines for addressing serious hazards such as damp and mould.

While full implementation is expected between 2035–2037, landlords should begin assessing property condition and planning upgrades now.


11. Stronger Enforcement and Heavier Penalties

Local councils will gain expanded investigatory powers to enforce compliance, including:

  • The ability to request documents and enter certain premises.

  • Increased civil penalties — up to £7,000 for initial breaches and £40,000 for serious or repeated violations.

  • The ability to issue Rent Repayment Orders for persistent offenders.

The message is clear: enforcement is becoming proactive, not reactive.


What Happens Next?

Although the Act is now law, implementation will be phased. The government has confirmed that:

  • The new tenancy system will launch in one stage, converting all existing tenancies on a single commencement date (expected in 2026).

  • The Ombudsman will open for registration as soon as possible after Royal Assent.

  • Standards and property registration measures will follow through secondary legislation in the coming months.

We’ll cover the rollout timetable in detail in a later post — but landlords should begin preparing immediately.


What Landlords Should Do Now

  1. Audit your tenancy agreements.
    Remove fixed terms and “no-fault” clauses that will become invalid.

  2. Train staff and agents.
    Ensure everyone understands the new notice periods, rent-increase rules, and anti-discrimination duties.

  3. Prepare your compliance records.
    Keep rent ledgers, inspection reports, and communications ready — future possession claims will rely heavily on evidence.

  4. Review property conditions.
    The Decent Homes Standard will eventually apply — start planning repairs or improvements now.

  5. Stay informed.
    Keep checking official updates on commencement dates, registration processes, and the Ombudsman scheme.


Coming Up Next

Tomorrow, in Day Two of our RRA Series, we’ll dive deeper into the new tenancy model, explaining exactly how assured periodic tenancies work, what the new possession grounds mean in practice, and how to manage rent reviews and notices.


Contact NetRent

If you’re unsure how the Renters’ Rights Act 2025 affects you as a landlord, NetRent can help.

Telephone: 01352 721300
Email: support@netrent.co.uk


Legal Disclaimer

NetRent does not provide legal advice. The content of this article represents our understanding of rental property law as of November 2025 and is intended for general informational purposes only. Landlords and tenants should seek independent legal or professional advice before taking action based on this material.

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