Renters’ Rights Act: A final note of caution

The long-anticipated overhaul of the Private Rented Sector (PRS), under the Renters’ Rights Act 2025, begins its first phase with effect from today (01 May 2026). This is a note of caution to all Landlords and Lettings Agents.

Despite the Act’s criticisms before it received Royal Assent on 27 October 2025, it is a stark reminder to all Landlords and Lettings Agents that you must be ready for strict compliance starting with effect from today.

What does Phase 1 look like?

One of the most significant changes in the implementation of Phase 1 of the Act is the abolition of Section 21 notice under the Housing Act 1988, bringing an end to “no fault” evictions. Alongside this, Assured Shorthold Tenancies will transition to Assured Periodic Tenancies.

In practical terms, this means tenants will be able to remain in their property on a rolling basis (based on the rental period, but not exceeding 1 month) for as long as they choose, unless and until the landlord brings the tenancy to an end by serving a valid Section 8 notice relying on one of the prescribed statutory grounds.  Tenants will be entitled to end the tenancy at any time by giving two months’ notice (unless a shorter notice period is agreed).

Another crucial change being rolled out in Phase 1 of the Act is that landlords will only be able to recover possession where they can rely on a reason, usually a breach of the tenancy, but there are new grounds that a Landlord can utilise if they need to sell the property or move in a family member. Landlords should be aware that whilst the grounds set in Schedule 2 of Section 8 of the Housing Act 1988 (as amended) have been expanded, the notice periods have also been increased.

A further change is the limitation of rent increases to once a year in the PRS. Landlords will be required to follow the procedure set out at Section 13 of the Housing Act 1988 (as amended) procedure, giving tenants at least two months’ notice of any proposed rent increase before it takes effect.

What’s more, Landlord and Lettings Agents will be prohibited from encouraging rental bidding and asking for rent in advance. In practical terms, Landlords and Letting Agents will be prohibited from asking for, encouraging, or accepting offers above the advertised rent. They will also be restricted from requiring more than one month’s rent in advance.

Phase 1 will also make it illegal to discriminate against renters who have children or receive benefits. Landlords and Lettings agents will be prohibited from taking any steps that disadvantage a prospective tenant, or prevent them from renting a property, on the basis that they have children or receive benefits. This includes withholding information about a property (including its availability), denying viewings, or refusing to grant a tenancy on those grounds.

Landlords in the PRS will also need to consider tenant requests to rent with a pet and not unreasonably withhold consent. Landlords will have an initial 28 days to consider a tenant’s request and must provide a valid reason for any refusal.

Landlords and Lettings Agents should be aware that civil penalties are set to expand, alongside a new obligation on local authorities to report on their enforcement activity. Financial penalties are going to range from £7,000 to £40,000. In addition, rent repayment orders will be extended to superior Landlords, the maximum award will be increased, and repeat offenders will face the highest level of penalty.

Again it must be noted that these measures will all take effect from today (01 May 2026).

The moral of the story

Landlords and Letting Agents should not be tempted to risk non-compliance with the Act, as doing so could have significant financial implications – there is also the risk of criminal prosecution. It is important that you continuously review your obligations as a Landlord to ensure you are acting in accordance with the Act.

Whilst it may seem daunting, it need not be, provided that the relevant steps are taken to ensure compliance with the Act.

How can Ellis Jones help?

Our specialist team at Ellis Jones has been at the forefront of commentary on the Renters’ Rights Bill (as it was) from its earliest stages, including its previous iteration. As a result, our lawyers have developed a deep, detailed, practical and analytical understanding of the Act and its implications for Landlords and Lettings Agents.

For further information, or to speak with a member of our team, please contact us on 01202 525 333 or complete our make an enquiry form below.