Key sections of The Renters Right Act 2025, will come into force on 1st May 2026, fundamentally changes the operation of residential tenancies. The reform is designed to provide tenants with greater security and stability whilst placing stricter compliance obligations on landlords.
Key changes in the legislation are that it abolishes many mechanisms that landlords previously relied such as fixed-term tenancies and “no fault” evictions, and replaces them with more regulated tenant protections.
What does this mean for landlords?
Abolishment of Fixed – Term Tenancies
From 1 May 2026, all Assured Shorthold Tenancies (ASTs) will no loner exist and will automatically convert into Assured Periodic Tenancies. This means that any fixed-term agreement is effectively stopped and continues on a rolling basis. There is no requirement to issue a new tenancy agreement to existing tenants as the law treats this as a continuing arrangement on the same payment terms.
The abolishment of fixed term tenancies means that tenants will be able to leave at any time by giving two months’ notice, even if they originally signed a longer fixed-term agreement before 1 May 2026. Where rent has been paid in advance under an existing AST, and the tenant leaves early, landlords will be required to refund any overpaid rent covering the unused period.
Abolishment of Section 21 “No fault” eviction
The most significant change of the implementation of the legislation is the abolition of Section 21 no fault evictions. From 1 May 2026, landlords will no longer be able to regain possession without proving one of the valid legal grounds under Section 8 of the Housing Act 1988. Any attempt to use Section 21 after 1 May 2026 will be invalid and may result in financial penalties.
Introduction of Civil Penalties for Non-Compliance
To combat any breaches of the legislation, the Act introduces a strong enforcement regime Local Authorities snow have the power to impose civil penalties of up to £7000, for an initial breach, and up to £40,000 for a repeated or ongoing breach. This enforcement is based on the balance of probabilities, making it very onerous for landlords.
What Landlords Must Do to Comply With The Act:
The Information Statement
Firstly, landlords must provide all tenants with the new official information statement which can be found on the Government website. This must be issued to all existing tenants and any tenants who have already signed agreements and are due to move in after 1 May 2026. The deadline for serving this document is 31 May 2026, and failure to comply can result in a financial penalty of up to £7000.
Written Statement of Terms – for informal tenancies
Secondly, where there is no written tenancy in place, in cases such as an informal periodic tenancy, landlords are required to issue a written statement of terms. This is not a new tenancy agreement, but simply a formal record of confirmation of terms of the existing arrangement. This must also be served on the tenants by 31 May 2026, otherwise the same potential financial penalty of up to £7000 may apply.
There is no need to re-issue any current tenancy agreements, or re-serve compliance documents, or re-protect deposits, as the tenancy is continuing and not deemed to be a new tenancy.
In particular landlords should be aware that the “How to Rent” guide is being discontinued and so there is no requirement to serve an updated version after the 1 May 2026.
What Landlords Must Stop Doing:
From 1 May 2026 the Act makes it clear that certain practices must cease immediately.
Section 21 Notices
After this date, landlords can no loner use Section 21 notices under any circumstances. Additionally, they cannot ask tenants to leave informally or rely on any other notice or clauses in older tenancy agreements that attempt to bypass the section 8 process. Any such clauses from 1 May 2026 onwards will be rendered void and attempting to remove a tenant outside of the correct procedure may result in such penalties referenced throughout.
Fixed-Term Tenancies
The use of fixed-term tenancies must cease completely. Landlords should no longer issue AST agreements or any documents which purports to let the property for a fixed duration. All new tenancies must be periodic from the outset and if they make any reference to fixed term, or the old AST template, for a new tenancy entered into after 1 May 2026 will constitute a beach of the act and may incur financial penalties.
Rent in Advance
There are also new restrictions around rent payments. For any new tenancy entered into on or after 1 May 2026, landlords cannot require the rent to be paid in advance as a condition of the tenancy. Whilst tenants may choose to pay in advance voluntarily, this cannot be demanded or included in the agreement, and any clause purporting this will not be legally binding.
Rental Discrimination
The act introduces a clear prohibition on rental discrimination. This means that landlords cannot refuse applicants solely because they receive benefits or have children. While affordability checks are still permitted, when assessing the income of a potential tenant, benefits must be included in this. This means that any criterion or policies such as ‘full-time employment required’ or ‘professionals only’ is no longer lawful and may result in financial penalties if this is breached.
Rent increases
For any rent increases, landlords must now follow a strictly prescribed process/ Any increase must be carried out using a Section 13 notice (Form 4A), giving at least two months’ notice, and can only be made once a year. Previous methods should as the older s13 notice (Form 4) or rent review clauses are no longer valid. If a landlord attempts to increase the rent using the incorrect method, the increase will be unenforceable, and the tenant will not be considered to be in arrears.
Advertisement and Rental Bidding
Finally, there are further rules governing the marketing of properties. All advertisements must state a clear and precise figure of proposed rent, and it will be a breach of the act if a fixed rental price is not listed. Further, landlords are now prohibited in engaging in rental bidding, which means that they cannot invite, encourage, or accept offers above the advertised rent, otherwise they will be in breach.
What Should Landlords Do Before 1 May 2026:
In advance of the changes coming into force, landlords should take steps to protect their position and ensure compliance with the act.
Service of Section 21 Notice before 1 May 2026
If possession of the property may be required. Landlords should consider whether to serve a Section 21 notice before the last day being 30 April 2026. It is important to note that any possession proceedings must be issued by 31 July 2026, otherwise the notice will lapse and cannot be relied upon.
Rent increase before 1 May 2026
Landlords wishing to increase the rent under the current system should act before the changed take effect. The final date to serve a rent increase using the section 13 process (with one months notice) is 30th April 2026. After this date the new rules will apply. It is important to note that this only applies where agreement do not have a rent review clause in this.
Where tenancy agreements contain rent review clauses, this will only remain valid if the increase takes effect before 1 May 2026.
New Tenancy Agreements and Service of Information Sheets
In anticipation of the transition, landlords should begin preparing new Assured Periodic Tenancy agreements for future lettings, as AST templates cannot be used, and should obtain and serve the new information statement on all existing tenants as early as possible.
The Renters’ Rights Act 2025 represents a major shift in landlord responsibilities and tenant protections.
Preparation is essential. Landlords who act early will be better positioned to avoid penalties and ensure compliance under the new regime.
If you are unsure how these changes affect your property portfolio, our team can guide you through the transition and help ensure full compliance. Please call our Landlord and Tenant Team on 01206 766333.
