Residential property: Renters’ Rights Act 2025 scope and implementation dates

The Act was introduced primarily to improve standards in the private rented sector (PRS). Many of the reforms had their beginnings in the Renters’ Reform Bill, introduced by the previous government, but which wasn’t implemented before the General Election.  For PRS landlords, the changes are wide-ranging and radical.

Timescales

MHCLG has published the timeline for implementation but we are still waiting for secondary legislation which will fill in many of the outstanding details.

Implementation will begin on 27 December when the new exclusions to the assured tenancy regime will come into force and local authorities are given new investigative powers.  This piece of the reform jigsaw doesn’t need secondary legislation; the implementation date is in the Act itself.

The date for the radical tenancy reforms – including the abolition of assured shorthold tenancies and the end of the use of section 21 “no fault evictions”, the end of fixed term tenancies and new rules for tenants to challenge rent increases - will be 1 May 2026 for PRS tenancies. 

Other reforms will follow in phases and we expect the final changes to be fully in force by 2037.

Summary of key changes (in date order)

27 December 2025

New exclusions from the assured tenancy regime

Long leases (over 21 years) will no longer be treated as assured tenancies.  This closes the so-called AST and ground rent traps.  It means that a landlord of a long lease will need to use forfeiture proceedings to bring the lease to an end, rather than being able to rely on grounds for possession (like rent arrears) under the Housing Act 1988.  

1 May 2026

Abolition of assured shorthold and fixed term tenancies

This is one of the most significant reforms.  All tenancies will be converted to periodic tenancies, with no minimum term and no fixed end date, which will be called Assured Periodic Tenancies (APTs). Tenants will be able to terminate a tenancy by giving two months’ notice whereas landlords will need to establish one of the specified grounds to regain possession. Fixed terms will be unenforceable.

End of “no fault” evictions using section 21

Landlords will no longer be able to use the "no-fault" notice procedure and will have to establish one of the grounds in the Housing Act 1988 to regain possession of their property. There is concern in the sector on the capacity of the courts to deal with the increased number of proceedings, but MHCLG, MoJ and HMCTS are working together to ensure that parties have “swift access to justice”.

Expansion and reform to grounds for possession

The grounds for possession have been expanded and reformed.  The changes include:

• Introduction of new grounds for the landlord 
  • to gain possession so they or a family member can move in (Ground 1)
  • to sell the property (Ground 1A)

In both cases, there is tenant protection for 12 months from the beginning of the tenancy.  Landlords using Ground 1A will be prohibited from marketing or re-letting within 12 months.

• the notice period for a mortgagee to gain possession under Ground 2 has been increased from 2 months to 4 months.  The mortgage no longer needs to have been granted before the tenancy and prior notice no longer needs to be given to the tenant that possession could be recovered under Ground 2.
• an increase to the amount of rent arrears needed under Ground 8 before notice can be issued from 2 months to 3 months (plus a 4 week notice period).

Limitations on rent increases and rental bidding

• Landlords will only be able to increase rent once a year.  They must give two months’ notice and any clauses allowing additional increases will be invalid. Tenants can challenge increases through the First-tier Tribunal. The rent increase will only take effect on the date of the Tribunal’s decision (rather than being backdated).  This could have an impact on income streams.
• Landlords will no longer be allowed to accept a deposit of more than 6 weeks rent and no more than 1 month’s rent can be paid in advance.  It will be unlawful to accept rent higher than the published asking rent.  The advertised rent should reflect market rent. 

From late 2026

Private Rented Sector Database 

Registration with the PRS Database will be compulsory and there will be a fee.  Landlords will need to provide key information which will (probably) include contact details, property details and safety information (e.g. gas, electric and EPCs).  The roll-out will begin in late 2026.

Landlord Ombudsman Scheme

Tenants will be able to complain about landlord behaviour to the new PRS Ombudsman. Membership of the scheme will be compulsory.  The implementation will be in 2 phases with the choice of scheme administrator to be made 12 – 18 months before compulsory membership which is expected in 2028.

2035 or 2037?

Extension of the Decent Homes Standard to the PRS

The reformed Decent Homes Standard will set out standards on quality, safety and condition for homes.  MHCLG has also promised a review of the Housing Health and Safety Rating System.  Decent Homes will cover Minimum Energy Efficiency Standards (MEES), EPC C or equivalent by 2030.

Date tbc

Awaab’s Law  

Awaab’s Law sets out a statutory timeframe for investigation and remedy of hazards.  A consultation on details and implementation timeframe is promised “in due course”.  

Next steps and implications for lenders

We’re waiting for secondary legislation, expected in time to review before implementation of the main tenancy reforms in May 2026. Firms who lend on buy to let properties will need to review their mortgage terms and letting conditions to align with the new requirements of the Act and ensure that their landlord borrowers comply with the new requirements. Firms should also review their associated policies and procedures to ensure compliance with the requirements of the Act.