NARA Training Days 2025 – Renters’ Rights Act 2025

Introduction

As many will be aware, the Renters' Rights Bill has now received Royal Assent and following the government’s announcement on implementation, we will be covering the Renters Rights Act 2025 (the Act), the changes this will have on the private rental sector in England and crucially what it means for obtaining possession of property going forward.

Overview

In this session I am going to cover:

• The Act’s status, phased implementation and the headline reforms
• The new tenancy regime and the end of section 21
• The grounds for possession
• The Private Rented Sector Database
• Decent Homes Standard
• Some practical implications
• Next steps

Summary

The Act received Royal Assent on 27 October and delivers on the government’s manifesto to improve the private rental sector. The Act has received a lot of press attention, particularly around the ending of Section 21 “no fault” evictions however the changes are far wider.

This is the most significant reform to residential landlord and tenant law in decades and as such has implications for landlords, receivers and mortgage lenders with buy-to-let portfolios.

In terms of the key provisions:

• The nature of a tenancy will change: there will no longer be fixed-term assured and assured shorthold tenancies. Instead, all tenancies will be periodic from day one. This removes the certainty that fixed terms previously provided in terms of rental income for a set period
• The Act limits the scope for rent increases – with amendments to the statutory procedure and only allowing one increase a year, with tenants able to challenge the increase in the Tribunal
• Section 21 evictions will end, but other grounds for possession have been amended and expanded
• Tenants’ rights have been strengthened, such as the right to request pets, a ban on discrimination against prospective tenants with children or receiving benefits, and a prohibition on rental bidding
• The Act imposes new obligations on landlords to provide tenants with a written statement of terms and information before the tenancy is entered into
• A new private rented sector database will hold information about rented properties, and both tenants and landlords must provide information to the database
• The Decent Homes Standard will be extended to the private rented sector

Timeline and Implementation

Whilst the Act is now law, only a limited number of provisions took effect immediately. The Act will be implemented in three phases.

Phase 1 – 1 May 2026

This introduces the core tenancy reforms:

• New tenancy system becomes periodic from day one
• Section 21 is abolished
• Tenants must give more notice to leave
• New possession grounds take effect
• Rent controls, pet rights, and anti-discrimination rules begin

Phase 2 – Late 2026

Two-stage rollout:

Stage 1: regional rollout of the PRS Database for landlords and local authorities
Stage 2: wider rollout and the introduction of the Ombudsman scheme

Phase 3 – 2035 or 2037

This introduces:

• Decent Homes Standard
• Government response on EPC C requirement
• Review of the Housing Health and Safety Rating System
• Extension of Awaab’s Law

The government has confirmed that courts and tribunals will receive support and that a new digital possession system will launch in 2026.

New Tenancy Regime and End of Section 21

Assured tenancies

All new tenancies will be periodic assured tenancies; fixed terms will no longer be valid. Periods must match rent payment frequency.

Assured Shorthold Tenancies

ASTs will cease to exist. Existing ASTs will convert automatically on 1 May 2026.

Section 21

After 1 May 2026, landlords cannot use Section 21. Possession will only be possible via Section 8 grounds.

Possession requirements

Landlords will not need to provide a Gas Safety Certificate or EPC in order to serve a Section 8 notice, although failing to provide them may still result in other penalties.

Tenancy deposits

Deposit protection requirements remain unchanged.

Notice requirements

Tenants will need to give at least two months’ notice, aligned with the rental period. Notices can now be withdrawn with written consent from both parties.

Tenancies that cannot be assured tenancies

Long leases of more than 21 years, or those with more than seven years remaining as of 1 May 2026, cannot be assured tenancies.

Grounds for Possession (Reformed Section 8 Grounds)

The reforms aim to ensure landlords have legitimate reasons supported by evidence.

Ground 2 (sale by mortgagee)

This ground is simplified. It no longer requires prior notice to be given at the start of the tenancy.
(Still uncertain whether receivers can rely on it.)

Ground 1A (landlord intends to sell)

Landlords must evidence real intent to sell, e.g.:

• instructions to estate agents or solicitors
• marketing details
• records of viewings

Landlords cannot re-let the property for 12 months after relying on this ground.

Ground 6A (enforcement action)

May be used where tenant eviction is the only way to comply with enforcement action—for example, by reducing overcrowding in an HMO.

Penalties

Misuse of grounds can lead to:

• civil penalties up to £7,000 for first breaches
• up to £40,000 for subsequent breaches
• rent repayment orders of up to 2 years of rent

Tenant fault-based grounds

Ground 8 (mandatory rent arrears ground) is amended:

• At date of notice AND at date of hearing there must be:
– at least 13 weeks’ arrears (weekly/fortnightly rent)
– at least 3 months’ arrears (monthly rent)
• Notice period increases to 4 weeks
• Universal Credit processing delays do not count as arrears

Other grounds remain for damage, antisocial behaviour, and criminal activity.

Rent increases

Rent can only be increased by:

• Section 13 notice
• Tribunal determination
• Written agreement post-Tribunal

Rent clauses in tenancy agreements will no longer be enforceable.

The Section 13 notice period increases from one to two months. Rent cannot increase earlier than 52 weeks after the tenancy start date.

Private Rented Sector Database (Landlord and Property Portal)

The database will register:

• landlords
• rental properties
• safety documentation
• property standards
• rent levels

It will assign unique IDs and share some information with tenants and councils.

Failure to register may result in penalties, inability to let the property, or refusal of possession (except in severe misconduct cases).

Decent Homes Standard

Landlords must ensure properties are:

• free from serious health and safety hazards

• in a reasonable state of repair

• equipped with modern facilities

• meeting efficiency and comfort standards

Awaab’s Law will set strict timelines for remediating damp and mould.

Practical implications

• Increased due diligence on appointments
• Check PRS Database information (when live)
• Identify suitable possession grounds and gather evidence
• Plead alternative/discretionary grounds where appropriate
• Consider consequences of unsuccessful possession attempts

Risk management

• Review receiver appointment documents
• Prepare for longer notice periods and possession timelines
• Monitor compliance obligations (deposit protection, safety certification, database registration)

Next steps

• Use the 1 May 2026 date to prepare processes
• Await further guidance on Phase 1 reforms
• Provide the required “Information Sheet” to tenants by 31 May 2026
• Update documentation when prescribed forms appear
• Work with managing agents on compliance
• Continue current strategies but remain aware of upcoming changes
 

November 2025
Kate Hillman
Managing Associate, TLT LLP