Legal News | 27.01.26

The Renters’ Rights Act 2025: What Landlords needs to know ahead of the May 2026 reforms

Overview

The Renters’ Rights Act 2025 (“the Act”) received Royal Assent on 27 October 2025 and introduces major reforms to the private rental sector. Its purpose is to strengthen tenant security while ensuring landlords can still recover possession, but only through defined statutory processes.

The Act abolishes Assured Shorthold Tenancies (“ASTs”) and Section 21 Notices (“no-fault” evictions). Subject to limited exceptions, most existing ASTs will convert into periodic residential tenancies, with no minimum fixed term, with tenants able to terminate their tenancy at any time on two months’ notice.

The Act also introduces stricter controls on rent increases, enhances tenants’ rights to challenge rent, and imposes higher standards and enforcement obligations on landlords. It does not apply to common law tenancies, such as second homes.

Implementation

The core provisions of the Act, including the abolition of ASTs, conversion to periodic tenancies, and the new rent increase regime, are expected to come into force on 1 May 2026, with further landlord obligations phased in later.

We currently understand that Section 21 Notices may still be served up to 30 April 2026.

Section 21 Notices

A valid Section 21 Notice may only be served where the fixed term has expired or is within its final two months. In addition, landlords must have provided, at the start of the tenancy:

• the current How to Rent checklist;
• an Energy Performance Certificate; and
• a Gas Safety Certificate.

These requirements apply to ASTs granted from October 2015 onwards. It remains uncertain whether non-compliance can be remedied retrospectively.

While landlords have historically had six months to commence possession proceedings, where a Section 21 Notice is served before 1 May 2026, proceedings must be issued by the earlier of six months from service, or 31 July 2026.

Landlords’ Right to Recovery

Once the Act is in force, landlords will only be able to recover possession using the Section 8 grounds under the Housing Act 1988. New grounds will include where the landlord (or a close family member) intends to occupy the property, the landlord intends to sell, or possession is required to comply with enforcement action.

The Act also amends existing grounds by increasing the rent arrears threshold from two to three months and extending the notice period from two to four weeks. Where possession is obtained on grounds of sale or occupation, landlords may be restricted from re-letting for a defined period.

If a tenant does not vacate voluntarily, a court order will be required and eviction may only be carried out by an authorised enforcement officer.

Rent Increases

No rent review may take place within the first 12 months of a tenancy. Thereafter, landlords may propose one increase per year, on two months’ notice, and only in accordance with a prescribed statutory process. Any increase must reflect a fair market rent, and tenants may challenge both proposed and existing rent levels.

Other Provisions

Further regulations will raise standards for property condition and introduce stronger enforcement powers. The Act also addresses discriminatory practices in the letting process.

If you have any general queries on matters included in this article, or require specific assistance for any commercial property matter, please contact the Commercial Property Team at commercialproperty@wansbroughs.com or 01380 733300.