Renters’ Rights Act 2025: What are the major changes landlords and tenants need to know about?

On 1 May 2025 the Renters’ Right Act 2025 (‘the Act’) came into force. The Act overhauls rules relating to the rental of properties and gives more rights to tenants. Matthew Pennycook, the Minister of State for Housing and Planning, introduced the legislation by stating: , “The Act will empower renters by providing them with greater security, rights and protections so that they can stay in their homes longer, build lives in their communities, and avoid the risk of homelessness” and that “it will also ensure that good landlords enjoy simpler regulation, and a clear and expanded possession grounds, so that they can regain their properties quickly when necessary.”

The Act is now in force and applicable to all tenancies moving forward, including existing tenancies. If an existing tenancy was for a fixed term, as of 1 May 2026, that tenancy automatically became a rolling periodic tenancy with no fixed duration (overriding any contractual notice period).

What are the major changes?

No fault evictions

‘No fault evictions’ (under section 21 of the Housing Act 1988) are now prohibited. Previously landlords could end an assured shorthold tenancy without reason provided that sufficient notice (at least two months) had been provided to the tenant and they were not within the initial fixed term of the tenancy.

Under the Act, a landlord can no longer evict tenants without reason. Reasons that a landlord may be allowed to seek possession include:

The landlord wanting to move back into the property
The landlord wanting to sell the property
There is at least three months of outstanding rent
Anti-social behaviour by the tenant

The applicable notice periods, dependent on which grounds a landlord seeks to rely on to regain possession of the property have increased. By way of example, landlords who wish to regain possession of their property as they wish to move back in or sell will have to give the tenant four months’ notice.

Rental periods

Under the Act, fixed term tenancies are abolished. Instead, properties will be let on a rolling basis so that tenants can stay as long as they wish in the property (unless a landlord has valid grounds to seek repossession) or, conversely, are not tied into remaining at the property for a fixed term and can leave at any time upon giving two months’ notice to the landlord.

Rental increases

Landlords, under the Act, will only be able to raise the rent once a year. Landlords will have to follow a specific procedure if they want to increase rent which includes providing at least two months’ notice. If a rent rise exceeds market value, tenants will be able to challenge this. Landlords will no longer be allowed to rely on rent increase clauses in tenancy agreements.

End of bidding wars

In certain areas, demand for properties can be high and landlords could have taken advantage of this by engaging in bidding wars and accepting offers from prospective tenants who offered higher than the advertised rental rate. Under the Act, this practice will no longer be possible.

Tenants with children and/or on benefits

Landlords are now prohibited from discriminating against prospective tenants who claim benefits and/or who will have children living with them or are likely to have children visit them at the property.

Landlords will not be able to prevent prospective tenants who claim benefits or have children living with or visiting them from enquiring about the property or taking up a tenancy.

Landlords will still be able to undertake reference and affordability checks before selecting tenants.

Comment

The Act brings welcome relief to renters in the market who want to have more stability and security.

In the lead up to the Act coming into force, there was a rise in the number of section 21 notices being served on tenants where landlords sought to remove tenants irrespective of whether there had been any wrongdoing (i.e. no fault evictions), before it became difficult (if not impossible) for them to do so.

Whilst some landlords might naturally be apprehensive, the Act is also designed to assist landlords in removing problem tenants so long as due process is followed.