The Renters’ Rights Act 2025: What tenants and landlords need to know

The 27th October 2024 marked a major milestone for renters across England and Wales, as the long-awaited Renter’s Rights Act officially received Royal Assent. The Act, previously known as the Renters’ Rights Bill, represents the most significant reform to the private rented sector in over three decades. Although the legislation is now law, most of its provisions will be phased in from early 2026 to allow landlords, agents and tenants time to prepare.

Ending “no-fault” evictions

Perhaps the most talked-about reform is the abolition of eviction under Section 21 of the Housing Act 1988, commonly referred to as “no-fault” evictions. Once the Act takes effect, landlords will no longer be able to evict tenants without a relevant ground. The specific grounds are contained in Section 8 of the Housing Act 1988, and have been expanded as part of the Act.

This change aims to provide renters with greater stability and confidence in their homes, while balancing landlords’ ability to regain possession where reasonable grounds exist.

Periodic tenancies become the default

The Act will also abolish fixed term assured shorthold tenancies, replacing them with open-ended periodic tenancies. This means tenancies will continue on a rolling basis until the tenant decides to leave or the landlord lawfully regains possession. Tenants will be able to give two months’ notice to end their tenancy, providing more flexibility to move for work or family reasons.

For landlords, this shift will require careful review of existing tenancy agreements and processes to ensure compliance when the changes commence.

Strengthening property standards and landlord accountability

A new Private Rent Sector Database will be introduced, requiring all landlords to register their properties. Local authorities will have greater powers to enforce standards, including financial penalties for non-compliance. The Act also reinforces obligations to maintain safe and decent homes, aligning private rentals more closely with social housing standards.

Notice periods and rent reviews

The Act restricts rent increases to once per year, with a minimum two month notice period. “Rent review clauses” that allow automatic, or opaque rent hikes will be prohibited. All increases must be fair, reasonable, and challengeable through the First-tier Tribunal if tenants believe they are excessive, and not in line with “the market rate”.

When will the changes take effect?

Although the Act is now law, it does not yet apply in practice. The Government has indicated that commencement of regulations will bring key provisions into force from early 2026, with more complex measures, such as landlord registration, following later in a phased rollout.

Preparing for the Act to come into effect

Landlords should begin reviewing tenancy documentation, compliance procedures, and property management practices now. Tenants, meanwhile, should stay informed of their evolving rights and the timings that may affect their current tenancies.

How can Ellis Jones help you?

We have a specialised Dispute Resolution team available to assist both landlords and tenants. If you are a landlord that would like further understanding of how the Scheme might affect you and the possession action you can take, or you are a tenant faced with a landlord that is applying pressure on you in respect of rent arrears, we would be happy to discuss your case and see if we are able to assist. Should you wish to discuss this further, please do not hesitate to contact our specialist Dispute Resolution team on 01202 525333 or email emma.bowditch@ellisjones.co.uk.