The Renters’ Rights Act 2025 introduced extensive changes to the private rented sector in England. The reforms affect how tenancies operate, how rents can be increased and how landlords can recover possession of their properties.
The first major phase came into force on 1 May 2026. Landlords, tenants and letting agents should understand how the new rules affect existing tenancies as well as arrangements created after that date.
This article provides an overview of key changes, but individual possession, rent and compliance matters should be assessed on their particular facts.
Does the Renters’ Rights Act apply in Wales?
An important geographical distinction must be made at the outset.
The central tenancy reforms discussed in this article apply to the private rented sector in England. They should not be presented as applying generally across both England and Wales.
Residential occupation contracts in Wales are principally governed by the Renting Homes (Wales) Act 2016 and associated Welsh legislation. Welsh landlords and contract-holders must therefore obtain advice based on the separate Welsh framework.
Penerley Solicitors can help determine which legal regime applies where a property, landlord or tenant has a connection with England or Wales.
The end of assured shorthold tenancies
One of the Act’s central reforms was the abolition of assured shorthold tenancies and the transition to a simplified system of assured periodic tenancies.
Under the reformed system, relevant tenancies no longer operate as fixed-term assured shorthold tenancies in the traditional sense. Instead, assured tenancies are generally periodic, with tenants paying rent for each rental period until the tenancy is ended in accordance with the law.
For tenants, this provides greater flexibility because they are not ordinarily tied to a lengthy fixed term. For landlords, it means that tenancy documentation and management procedures must reflect the new framework.
Landlords should not simply reuse an old assured shorthold tenancy template. Agreements, notices and internal processes should be reviewed to ensure they comply with the law now in force.
Has Section 21 been abolished?
From 1 May 2026, private landlords in England can no longer serve a new notice under Section 21 of the Housing Act 1988 to recover possession without relying on a statutory ground.
This is commonly described as the abolition of “no-fault eviction”.
The reform does not mean that landlords can never recover possession. Instead, they must use an applicable statutory ground and comply with the relevant notice and court requirements.
Transitional provisions may apply where a Section 21 notice was served and possession proceedings began before 1 May 2026. The circumstances and dates should be checked carefully before any action is taken.
How can a landlord recover possession?
The possession regime relies on specific statutory grounds. Some are mandatory, meaning that the court must generally make a possession order if the ground is established and all applicable requirements have been met. Others are discretionary, meaning that the court considers whether granting possession is reasonable.
Grounds may be available where, for example:
- the landlord intends to sell the property;
- the landlord or a qualifying family member intends to occupy it;
- the tenant has accumulated qualifying rent arrears;
- there has been persistent late payment of rent;
- the tenant has engaged in antisocial behaviour;
- the tenancy was obtained using false information; or
- the tenant has breached a term of the tenancy.
Different grounds have different evidential requirements, notice periods and restrictions. A landlord who uses the wrong ground, gives insufficient notice or fails to provide the required evidence may have their claim delayed or dismissed.
A possession notice should therefore not be treated as a standard administrative form. The legal basis for possession should be considered before notice is served.
Restrictions following possession
Where a landlord recovers possession because they intend to sell the property or move into it, statutory restrictions may prevent the property from being re-let or marketed for letting during a prescribed period.
These restrictions are intended to discourage landlords from relying on a ground that does not reflect their genuine intentions.
Landlords should retain evidence supporting the reason for possession. A change in circumstances after possession may require careful consideration, particularly before the property is placed back on the rental market.
Misuse of a possession ground may lead to enforcement action and potential liability.
How are rent increases dealt with?
The Act introduced a more structured process for rent increases within assured periodic tenancies.
Landlords must follow the statutory procedure rather than relying on informal demands or a contractual rent-review clause that is inconsistent with the legislation. Rent increases are generally limited to once a year and must be proposed through the correct notice process.
A tenant who believes that a proposed increase exceeds the market rent may be able to challenge it before the First-tier Tribunal.
Both parties should keep accurate records of the existing rent, the proposed rent, the date notice was served and the date on which the increase is intended to take effect.
Landlords should avoid asking tenants to agree to an increase under pressure or describing a statutory increase as immediately binding where the legal process has not been completed.
Rental bidding and rent in advance
The reforms are intended to make the process of securing a tenancy more transparent.
Landlords and agents must publish an asking rent and must not encourage or accept bids above that amount. This is designed to prevent prospective tenants from being drawn into bidding wars in competitive rental markets.
The Act also limits the amount of rent that can be required in advance in relevant circumstances. Landlords and agents should review their referencing, holding deposit and rent-collection procedures rather than assuming that practices used before May 2026 remain lawful.
Requests to keep a pet
The reforms provide tenants with a clearer route to request permission to keep a pet.
A landlord must consider a request and must not unreasonably refuse it. However, this does not necessarily give every tenant an unrestricted right to keep any animal. The property, type of animal, superior lease, insurance arrangements and other relevant circumstances may still need to be considered.
Landlords should respond to requests properly and keep a written record of their decision and reasons. Tenants should provide useful information about the animal and how it will be cared for.
A provision allowing pet requests does not remove the tenant’s responsibility for damage, nuisance or breaches of other lawful tenancy obligations.
Written information and existing tenants
Most landlords and letting agents were required to give the government’s official Renters’ Rights Act Information Sheet 2026 to tenants whose tenancy existed before 1 May 2026. The deadline for doing so was 31 May 2026.
Failure to meet that requirement may expose a landlord or agent to a financial penalty of up to £7,000.
For newer tenancies, landlords must ensure that the tenant receives the written information required under the new regime. Accurate documentation is particularly important because non-compliance may affect enforcement and possession action.
For straightforward, commercially focused explanations of changing property law, Nakdlaw offers an approachable source of legal support for landlords and tenants.
Property condition and enforcement
Landlords remain responsible for complying with their repairing, safety and property-management obligations.
The wider reform programme strengthens tenants’ ability to challenge poor conditions and gives local authorities significant enforcement responsibilities. Landlords should maintain records of inspections, reported defects, contractor appointments and completed repairs.
Ignoring a repair complaint can create legal, financial and reputational risk. Tenants should report problems promptly in writing and retain photographs, correspondence and other relevant evidence.
Neither party should assume that the new protections allow rent to be withheld automatically or permit a landlord to enter a property without lawful notice and authority.
Practical steps for landlords
Landlords should review all tenancy templates, possession procedures and rent-increase processes. Staff and managing agents should understand the grounds for possession and know when legal advice is required.
Records should be kept of prescribed information, safety documents, deposits, repair reports and communications with tenants.
Any possession strategy should begin with an assessment of the applicable ground, supporting evidence, notice period and pre-action requirements.
Practical steps for tenants
Tenants should retain their tenancy agreement, rent statements, deposit information, information sheet and correspondence with the landlord or agent.
A tenant who receives a possession or rent-increase notice should not ignore it. The validity of a notice, the date for responding and the options available will depend on its contents and the tenant’s circumstances.
Tenants should continue complying with their obligations while seeking advice. The abolition of Section 21 does not prevent possession where another ground can be established.
How Penerley Solicitors can help
The Renters’ Rights Act represents a substantial change for private renting in England. Early advice can help prevent procedural mistakes, unnecessary disputes and avoidable costs.
Penerley Solicitors can advise landlords and tenants on tenancy documentation, possession grounds, rent disputes, breaches of tenancy and compliance with the new framework.
Contact Penerley Solicitors for clear and practical advice about your rights and responsibilities under the Renters’ Rights Act 2025.
LEGAL NOTICE: This article provides general information only and does not constitute legal advice. The Renters’ Rights Act provisions discussed principally concern England. Different legislation governs residential renting in Wales.
