The Renters' Rights Act 2025: What Landlords Need to Know

A Guide for Best Nest Landlords

 

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After years of speculation and delays, the Renters' Rights Act 2025 has received Royal Assent and will fundamentally reshape the private rented sector in England. The first phase of reforms takes effect on 1 May 2026 – just five months away. At Best Nest Properties, we understand that these changes represent the most significant shift in residential lettings since the Housing Act 1988, and we're here to help you navigate them.

 

The Timeline: A Phased Implementation

The government has confirmed a three-phase rollout:

Phase 1 (1 May 2026): The core tenancy reforms, including abolition of Section 21 and conversion to periodic tenancies

Phase 2 (Late 2026-2028): Introduction of the PRS Database and Landlord Ombudsman

Phase 3 (2030 onwards): Decent Homes Standard, Awaab's Law implementation, and EPC C minimum requirement (although we have not had confirmation of this yet).

This article focuses on Phase 1 – the changes you need to prepare for immediately.

 

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The End of Section 21 and Fixed-Term Tenancies

What's Changing?

From 1 May 2026, two cornerstones of private lettings will disappear:

• Section 21 "no-fault" evictions will be abolished entirely

• Assured Shorthold Tenancies (ASTs) will be replaced with Assured Periodic Tenancies (APTs)

Every existing fixed-term AST will automatically convert to a rolling periodic tenancy on 1 May 2026, regardless of when it was signed or how long it has left to run. If you granted a three-year tenancy in April 2026, it becomes periodic the very next month.

 

The Final Section 21 Window

You can still serve a Section 21 notice before 30 April 2026, but there's a critical deadline: you must apply to the court for possession proceedings by 31 July 2026 or the notice becomes invalid. Time is of the essence if you need to regain possession of any properties.

 

What This Means for You

Tenants gain significantly more security – they can stay indefinitely unless you have valid grounds for possession. However, tenants can still leave with just two months' notice (or less if your agreement specifies a shorter period). You lose the security of a fixed term, but tenants gain flexibility to leave at any time.

 

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New Grounds for Possession

With Section 21 gone, you'll need to rely on expanded Section 8 grounds. The key mandatory grounds include:

Ground 1: Landlord or family member wishes to move in (only after 12 months)

Ground 1A: Landlord intends to sell the property (only after 12 months)

Ground 8: At least two months' rent arrears (unchanged)

Grounds 8A-8C: Repeated rent arrears (new grounds)

Grounds 13-15: Anti-social behaviour (notice periods shortened to make evictions faster)

Grounds 5A-5C: Repeated breaches of tenancy obligations (new)

The 12-Month Protection Period

Critically, landlords cannot evict tenants during the first 12 months of a tenancy under Grounds 1 and 1A. This means if you're planning to sell or need the property back for personal use, you must think at least a year ahead.

 

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Rent Increases: New Rules and Tenant Rights

Annual Rent Reviews

Rent increases will be limited to once per year and must follow the statutory Section 13 notice procedure with at least two months' notice.

 

Tribunal Challenges

Here's where things get more complicated: tenants can now challenge any rent increase at the First-tier Tribunal (Property Chamber) without fear of retaliatory eviction. The challenge is free for tenants and could delay implementation by months while the tribunal decides if your proposed rent is "market rate."

The tribunal can confirm or reduce your proposed rent – but crucially, it cannot increase it. Given this one-sided risk, we expect significantly more challenges, and rent increases will likely take longer to implement.

 

Our Advice

• Ensure rent increases are genuinely market-rate and evidenced by comparable properties

• Build in buffer time when budgeting for rental income

• Consider more strategic timing of rent reviews

• Keep thorough records of local market conditions

 

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Tenant Rights: Pets, Discrimination, and Bidding Wars

Pets

From 1 May 2026, landlords cannot unreasonably refuse requests from tenants to keep pets. You must respond to any pet request within 28 days and provide valid reasons for refusal.

The government initially planned to allow landlords to require pet insurance, but this provision was removed from the Act during its passage through Parliament. You cannot ask for a larger deposit (still capped at five weeks' rent under the Tenant Fees Act 2019), though you could consider charging a "pet rent" provided it doesn't push the total rent above market rate.

 

No More Discrimination

It will be illegal to discriminate against tenants who:

• Have children

• Receive benefits

• Are families

Blanket "no DSS" or "no children" policies are now prohibited.

 

Bidding Wars Banned

Landlords and letting agents must publish an asking rent and cannot:

• Request bids above this price

• Encourage bidding wars

• Accept offers above the advertised rent

Violations can result in civil penalties up to £7,000.

 

Rent in Advance Limited

From 1 May 2026, landlords will only be able to request one month's rent in advance for new tenancies. Existing agreements requiring more rent in advance don't need to be amended – you're grandfathered in.

 

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New Information Requirements

 

For New Tenancies (from 1 May 2026)

You'll need to provide written information about the tenancy to all new tenants. The government will publish the specific requirements in January 2026, and new prescribed forms will be introduced.

 

For Existing Tenancies

If you already have a written tenancy agreement in place, you don't need to issue a new one. Instead, you must provide tenants with a government-published "Information Sheet" explaining the changes by 31 May 2026 at the latest. This will be available online from March 2026.

If you have verbal tenancy arrangements, you'll need to provide a written summary of the main terms, also by 31 May 2026.

Failure to provide this Information Sheet can result in civil penalties up to £7,000.

 

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What's Coming in Phase 2 (Late 2026)

While you have slightly more time to prepare, be aware that Phase 2 will introduce:

Private Rented Sector Database: Mandatory registration for all landlords with an annual fee. You'll need to provide:

• Landlord contact details

• Property details (address, type, bedrooms, occupancy)

• Safety certificates (Gas, EICR, EPC)

Landlord Ombudsman: A new redress scheme that all landlords must join, providing tenants with free dispute resolution

Enhanced Enforcement: Expanded powers for local authorities, doubled maximum penalties for rent repayment orders, and mandatory reporting on enforcement activity

 

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How Best Nest Properties Can Help

These changes are significant, but they don't have to be overwhelming. At Best Nest Properties, we specialise in HMO and residential property management, and we're already preparing for the new regulatory landscape. Here's how we can support you:

✓ Compliance audits to ensure your properties meet all requirements before 1 May 2026

✓ Portfolio reviews to identify properties that may need strategic decisions (sell vs. hold)

✓ Updated tenancy agreements compliant with the new requirements

✓ Professional rent assessments to support tribunal-proof rent increases

✓ Documentation systems ready for the PRS Database when it launches

✓ Expert HMO knowledge – we understand the additional complexities for multi-let properties

The Bigger Picture: Is This Good or Bad for Landlords?

The government insists these reforms strike "the right balance" and that "good landlords have nothing to fear." Housing Minister Matthew Pennycook has acknowledged it will "take time for the sector to adjust to a significant change in regulation."

That's an understatement.

The reality is more nuanced. These changes will particularly impact:

• Portfolio landlords who rely on fixed terms for financial planning

• Accidental landlords who lack professional management support

• Those with marginal properties where increased risk may not justify continued investment

However, there are also opportunities:

• Landlords working closely with their managing agent will stand out in a higher-regulation environment

• Quality properties will command premium rents as competition for good stock increases

• Long-term relationships with reliable tenants become even more valuable

• Specialist operators (like HMO landlords) who already navigate complex regulations are well-positioned

 

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Final Thoughts

The Renters' Rights Act represents a fundamental shift towards prioritising tenant security and rights. Whether you view this as long-overdue reform or regulatory overreach, the changes are coming, and preparation is essential.

At Best Nest Properties, we believe that professional, well-managed properties with good landlord-tenant relationships will continue to thrive under the new system. Yes, there's more regulation, but there's also an opportunity to distinguish yourself as a professional landlord who provides quality accommodation and respects tenants' rights.

The key is not to panic, but to prepare. We've successfully navigated complex HMO licensing regimes, Article 4 directions, and multiple regulatory changes over the years. This is another evolution of the sector, and we're here to help you through it.

 

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Get Expert Support

If you're concerned about how these changes will affect your portfolio, or if you'd like professional management support to ensure compliance, get in touch with Best Nest Properties.

We offer comprehensive property management services with particular expertise in HMO properties and complex regulatory environments. Let us handle the compliance burden so you can focus on your investment returns.

 

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This article provides general guidance based on information available as of December 2025. Landlords should seek specific legal advice for their individual circumstances. Best Nest Properties is not a law firm and this content does not constitute legal advice.

 

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About the Author: Wendy is the Founder & Operator of Best Nest Properties and Chair of the HMO Action Group Committee. With extensive experience in property investment and HMO management, she specialises in navigating complex regulatory environments and advocates for sensible housing policy reform.