Estates Gazette - Renters' Rights Act 2025
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- 6 min read
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What is this Estate Gazette article about?
In this Estsates Gazette APC Series article, Jen Lemen BSc (Hons) FRICS looks at the impact of the Renters’ Rights Act 2025.
This is essential knowledge for Residential pathway RICS APC candidates, particularly if you are pursuing the Leasing and Letting, Landlord and Tenant and/or Property Management technical competencies. It will also be relevant knowledge if you are a Commercial Real Estate pathway candidate managing mixed-use properties.
You can read the full article here:
Don't forget to check out the rest of the great content in the Estates Gazette - and stay tuned for future APC Series articles!
What is the Renter's Rights Act 2025?
The Renter’s Rights Act 2025 represents the most significant policy reform in the private rented sector (PRS) for many years. It introduces a wide number of changes, which will affect landlords, tenants, agents and surveyors.
What is the aim of the Renter's Rights Act 2025?
The Government’s aim through the Act is to create a ‘functioning private rented sector that will provide a secure stepping stone for aspiring homeowners and flexibility for those who want it’. This should help to create a better balance between landlords and tenants, without creating undue regulation and control on a free market.
Prior to the implementation of the Act, there were two ways to gain possession of a property rented out on an Assured Shorthold Tenancy (AST). Section 8 is used where the tenant has breached the tenancy, whereas Section 21 is used for a ‘no fault’ eviction. The latter does not require the tenant to have breached their tenancy and allows the landlord to regain possession at the end of a fixed term AST or during a periodic tenancy. No reason needs to be given, as long as at least 2 months’ notice is served.
What types of tenancies does the Renter's Rights Act 2025 apply to?
This applies to tenancies where:
The tenant enjoys exclusive occupancy of the entire property or a specific room within a property.
The property is the tenant’s main home
The rent is between £250 - £100,000 p.a.
The landlord does not live at the property with the tenant
The tenant is an individual and not a company or organisation
What are the key reforms under the Renter's Rights Act 2025?
The key reforms are:
Section 21 abolished, so ‘no fault’ evictions can no longer be triggered by landlords. Thus, Section 8 must be relied upon requiring specific grounds to be stated, such as rent arrears or damage to the property. The mandatory eviction threshold for tenant arrears has been increased from 2 to 3 months’ worth of arrears and the notice period must be at least 1 month in this circumstances. However, for anti-social behaviour the landlord can begin proceedings immediately.
A landlord can seek possession under Section 8 if they are selling the property or wish to take back the property for their own occupation. A landlord cannot do this within the first 12 months of a tenancy and must give the tenant 4 months’ notice. They cannot market or re-let the property for 12 months if a tenant is evicted under this ground.
All ASTs will become periodic, rather than fixed term ASTs.
Tenants will be given more flexibility through being able to terminate an AST at any time on giving 2 months’ notice.
There is no phased implementation of the Act, so all of the changes take effect immediately upon implementation in May 2026.
There are additional changes under the Act, which include:
Rents can only be increased once each year and after serving a Section 13 notice giving 2 months’ notice. The proposed rent must reflect a market rent and tenants can challenge excessive proposals via the First Tier Tribunal.
When marketing a property to rent, an advertised rent must be stated and no offers may be accepted above this advertised rent by a landlord – this effectively bans ‘bidding wars’.
Rules to prevent discrimination against tenants with children or who are in receipt of benefits.
Specific wording must be included in all ASTs from 1 May 2026, including (but not limited to) mandatory information such as the name of the landlord, name of the tenant(s), property address, start date for possession and the rent.
Landlords may only take upfront costs from a tenant of up to 1 months’ rent.
Tenants have a right to request that they can keep a pet in their property. Landlords cannot unreasonably refuse this, although they can require that the tenant maintains pet insurance for the duration of their AST.
For student rentals, these ASTs will also move to being periodic tenancies. However, there is a specific Section 8 4A eviction ground for Houses in Multiple Occupation (HMO) let to students, which will allow landlords to regain possession in line with the academic year dates. This will require prior notice to be given at the start of the AST.
How will the Renter's Rights Act 2025 be enforced?
There are a range of enforcement powers for non-compliance with the Act. Civil penalties include fines (of up to £40,000), rent repayment orders and widened investigatory powers for local authorities.
When will the Renter's Rights Act 2025 be implemented?
The first phase of the Act will be implemented on 1 May 2026.
Later phases of the Act will come into force on:
31 July 2026 – deadline for final applications to Court for possession under Section 21.
Late 2026 – A PRS database and PRS Landlord Ombudsman will be introduced. The former will require landlord registration to help Council’s to target enforcement of the Act and for tenants to verify compliance. The latter will provide a free and binding resolution service for tenant complaints, avoiding the time and cost of full Court proceedings.
April 2027 – end-to-end digitalisation of the Court process planned.
2028 – mandatory sign up to the PRS Landlord Ombudsman planned.
2030 – EPC rating of C or above proposed.
2035 – application of the Decent Homes Standard to the PRS.
As a prospective Chartered Surveyor, how might the Act affect your advice to clients?
Think about these questions:
Are your landlord clients compliant?
Does every tenant have a written AST stating the mandatory requirements under the Act?
Are rents reflective of the market and do they cover the additional costs of compliance under the Act?
Are any tenants current breaching their ASTs?
How do you record communication with tenants? Are you recording sufficient information to rely upon in case a Section 8 notice is required?
Are you aware of any maintenance issues through routine inspections?
Are you marketing properties in compliance with the Act, e.g., advertised rent?
Are you discriminating in any marketing material, e.g., stating no DSS or no pets?
Does your marketing encourage bids over the advertised rent?
Do you need to update your T&Cs for letting instructions?
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N.b. Nothing in this article constitutes legal, professional or financial advice.