Renters' Rights Act 2025: Key changes for landlords, lenders, and the private rented sector

The Renters’ Rights Act 2025 represents the current Labour Government’s commitment to reforming the private rented sector and improving the experience of tenants. The legislation was introduced to Parliament on 11 September 2024 and received Royal Assent on 27 October 2025. Most of the key measures are scheduled to take effect on 1 May 2026.

Key changes

• Abolition of fixed-term tenancies – New fixed-term agreements will no longer be permitted. All tenancies will instead default to periodic arrangements, typically on a monthly cycle and never exceeding 28 days. Existing fixed-term tenancies will convert to periodic tenancies from the outset.

• Updated notice periods – Tenants will be able to end their tenancy by giving two months’ notice. In most cases, landlords will need to provide four months’ written notice when seeking possession.

• Ending of ‘no-fault’ evictions – Section 21 evictions will be abolished. Landlords will no longer be able to regain possession without providing a reason and must instead rely on the updated and expanded Section 8 grounds. In many scenarios, landlords will be prevented from recovering possession during the first 12 months of a tenancy.

• Restrictions on rent increases – Rent may only be increased once per year, and landlords must use the statutory process by serving a valid Section 13 notice. A new notice cannot be issued until 52 weeks have passed since the previous increase took effect. Tenants may challenge any proposed increase before the First-tier Tribunal if they believe it exceeds the market rent.

• Rules on deposits and rent in advance – Landlords will be prohibited from accepting more than one month’s rent in advance between the signing of the agreement and the tenancy start date, and they may not accept any advance payment before the tenancy has been formally entered into.

• Ban on rent-bidding practices – Landlords and agents will be barred from requesting or accepting offers above the advertised rent, encouraging higher bids, implying that other applicants have offered more, or advertising a property with a price range that invites competitive bidding. Civil penalty notices of up to £7,000 may be imposed for breaches.

Further measures expected later in the year

• A Private Rented Sector Database – A national register of landlords and rented properties in England. Tenants will be able to verify that their landlord is properly registered. Failure to register may result in sanctions, including restrictions on a landlord’s ability to obtain a possession order.

• A Private Landlord Ombudsman – This will provide tenants with a faster and fairer route to resolve complaints without going to court.

• A Decent Homes Standard – A new minimum standard for rented homes, ensuring hazards are addressed promptly and consistently across the sector.

Overall aims of the Act

The Act is intended to:

1. Provide renters with greater security of tenure
2. End “no-fault” evictions
3. Ensure fairer rent practices
4. Improve transparency and accountability in the rental market
5. Raise housing standards and protect tenants from poor conditions and unfair treatment

What this means for the sector

The Renters’ Rights Act 2025 marks a significant shift in the private rented sector. Over time, these changes may encourage smaller or accidental landlords to leave the market, with larger-scale landlords and institutional investors likely to take a more prominent role. However, this is not expected to materially affect the overall volume of buy-to-let transactions.

For lenders, the Act clarifies and strengthens their ability to exercise their power of sale by removing the requirement for the mortgage to have commenced before the tenancy began and eliminating any obligation to notify the tenant in advance that this ground may be relied upon.

As the implementation timetable progresses, those who prepare early, review their structures and adapt to the new requirements will be best positioned to navigate this new era of private renting with confidence.

If you would like advice or assistance on the issues raised in this blog, please contact a member of our Real Estate team on 0113 207 0000.