Renters’ Rights Act 2025 (England) – What this means for you: the most impactful points landlords need to be aware of?

The government has indicated that the key measures in the Renters’ Rights Act 2025 are intended to commence from 1 May 2026. However, this date should be treated as proposed rather than guaranteed. The commencement timetable (including any phasing, transitional arrangements, and supporting regulations) remains subject to government decision and could be delayed, revised, or implemented in stages.

This note is therefore provided as a forward-looking summary of the reforms landlords should be preparing for, based on the expected commencement framework. Landlords and agents should keep the position under review and seek confirmation of the final start date and detailed requirements once the government publishes thedefinitive commencement order and associated guidance.

From 1 May 2026, private landlords in England should expect the following corechanges:

- Section 21 (“no-fault”) possession is abolished for the PRS; possession will be via Section 8 grounds only.

- Assured Shorthold Tenancies (ASTs) and fixed terms end; most PRS tenancies become AssuredPeriodic Tenancies (open-ended), and existing PRS tenancies convert onthe commencement date.

- Rent increases are restricted to once per year, via the revised Section 13 process with at least twomonths’ notice, and tenants can challenge increases at the Tribunal.

- Marketing/lettings conduct is regulated:rental bidding is prohibited, rent in advance is capped (no more than onemonth), and discrimination against benefit recipients and families withchildren is unlawful.

Tenants gain strengthened rights to request pets (landlords must not unreasonably refuse;response timeframe set at 28 days). Further obligations (Database/Ombudsman; Decent Homes Standard; Awaab’s Law) are scheduled for later phases.

Key reforms in further detail :

Tenancy structure: move to Assured Periodic Tenancies

- The Act removes fixed-term assured tenancies in the PRS, moving to periodic tenancies.Tenants may end the tenancy by giving two months’ notice.
- The government’s stated position is that this will apply to both new andexisting PRS tenancies from 1 May 2026, to avoid a two-tier system.

Practical landlord impact:

- Tenancy documentation, life cycle processes, and possession planning should assume tenancies are open-ended unless/until brought to an end using a statutory ground and (where required) a court order.

Possession:end of Section 21; reliance on Section 8 and revised grounds

- From 1 May 2026, landlords in the PRS cannot serve new Section 21 notices.
- Landlords must use Section 8 grounds, with the court process continuing where the tenant does not vacate.

The Act reforms grounds to balance tenant security and landlord recovery, including:

- A 12-month protected period at the start of a tenancy during which landlords cannotuse “sell”/“move in” type grounds.

- Where“sell”/“move in” grounds are used: 4 months’ notice and restrictions intended to prevent misuse (including limits on re-letting/marketing for a period after use).

- For rent arrears: the mandatory threshold increases from 2 to 3 months’ arrears, and the notice period increases from 2 weeks to 4 weeks (with discretionary arrears grounds retained for persistent late payment).

Transitional point (existing Section 21 notices):

- PRS possession claims already underway on 1 May 2026 proceed, and where a valid Section 21 notice was served before 1 May 2026,court proceedings must be issued under the Section 21 route no later than 31July 2026 (subject to usual rules).

Rent and rent challenges: annual limit and revised Section 13 process

From 1 May 2026:

- PRS landlords may increase rent once per year using the revised Section 13 procedure, giving at least two months’ notice.

- Tenants can challenge proposed rent increases at the First-tier Tribunal, which will determine the market rent; reforms are intended to reduce the scope for “backdoor eviction” via above-market uplifts.

Practical landlord impact:

- Landlords should evidence market rent (comparables, condition, improvements)and anticipate a higher likelihood of Tribunal challenges, particularly where uplifts are material.

Lettings conduct: “bidding wars”, rent in advance, and discrimination

From 1 May 2026:

Rentalbidding is prohibited:

- Landlords/agents must advertise an asking rent and it is unlawful to solicit or accept offers above it.

Rent inadvance is restricted:

- Landlords/agents must not require or accept more than one month’s rentin advance in the pre-tenancy context (and contractual terms requiring rent to be paid in advance of the agreed due date become unenforceable once the tenancy starts).

- It becomes unlawful to discriminate against prospective tenants because they have children or are in receipt of benefits (including conduct that deters applications, such as withholding availability or refusing viewings/tenancies for those reasons).

Pets:

- Tenants have a statutory right to request a pet; landlords must consider the request andmust not unreasonably refuse. The government roadmap specifies an initial 28 days to respond, with reasons required if refusing.

Enforcementand penalties (local authority focus):

- Local authorities will oversee compliance; enforcement is strengthened via expanded civil penalties and investigatory powers (including powers to demand information and documents to inspect in certain circumstances).
- The government has stated penalties can be up to £7,000 for breaches, and up to £40,000 for repeat or serious non-compliance, alongside rent repayment orders in appropriate cases.

UK PRS context for private institutions and family offices

While the reforms are framed primarily as tenant protections, they also represent astructural shift in how residential income strategies are executed in England. For institutional investors, private capital, and family offices, the directionof travel is clear: the PRS is moving towards a more regulated, consumer-styleframework, where returns are increasingly linked not only to asset quality butalso to the strength of operational delivery.

The removal of fixed terms and the shift to open-ended periodic tenancies is likely to increase the importance of tenancy management discipline, evidence-based decision-making, and consistent documentation. For well-capitalised landlords with professional management, these reforms may be manageable. For smaller or informal operators, the operational and compliance burden may be material potentially accelerating a gradual re balancing of stock away from amateur ownership and towards better governed portfolios.

At the sametime, the market remains supported by persistent demand drivers: constrained supply, affordability pressure in the owner-occupier market, and demographic churn in key urban centres. In that context, many private investors continue toview UK residential as a long-duration, sterling-denominated income exposure but with the clear expectation that regulatory risk and execution risk now sitalongside traditional pricing and vacancy considerations.

For family offices in particular, the likely “winners” under the new regime are strategies focused on quality, durability, and tenant experience: well-maintained assets,clear compliance records, and professionalised leasing and renewals. Where this is done well, the reforms may ultimately support more stable occupancy and reduced churn, even if they limit certain levers previously used to manage tenancy outcomes.

‍