A New Era for UK Renters: What the Renters’ Rights Act 2025 Means for Tenants and Landlords

The UK rental landscape is set for a significant transformation as the Renters’ Rights Act 2025 begins its phased implementation on 1 May 2026. This landmark legislation aims to redress the balance between landlord control and tenant security, while coinciding with ongoing shifts in the private rented sector (PRS).

What’s Changing from May 2026

Phase 1 of the Renters’ Rights Act brings the most sweeping reforms seen in decades. Here are the key changes landlords and tenants need to prepare for:

Section 21 Evictions Abolished: No-fault evictions will be removed. Landlords must now use Section 8 with specific grounds for possession.

End of Fixed-Term Tenancies: All Assured Shorthold Tenancies (ASTs) will convert to open-ended periodic tenancies, offering greater flexibility and security for renters.

Controlled Rent Increases: Landlords can increase rent only once per year via a Section 13 notice, requiring two months’ notice to tenants.

Fairer Practices: Bidding wars, discrimination against tenants receiving benefits or with children, and unreasonable refusals of pets are all outlawed.

Penalties for Non-Compliance: Landlords face civil fines up to £7,000 or criminal penalties up to £40,000 for breaches.

New Standards for Agreements: Prescribed tenancy agreement wording and updated tenant information sheets will follow soon.

What’s Coming Next

The Act introduces reform in three phases, with later stages reinforcing accountability and housing quality:

Phase 2 (Late 2026): Launch of a national PRS database and creation of an independent Landlord Ombudsman to mediate disputes and uphold standards.

Phase 3: Introduction of the Decent Homes Standard and implementation of Awaab’s Law following a public consultation, compelling landlords to address health hazards such as damp and mould quickly.

Rental Market Adjusting to Change

As regulation intensifies, landlords are already rebalancing their portfolios. According to the ONS (Nov 2025), UK rents average £1,366 per month, with annual increases tempering to 4.4%. The 15% increase in rental stock supply and easing tenant demand has led to faster lettings—now averaging 17 days per property.

In London, rents rose just 1.6%, suggesting a modest recovery in affordability. Larger institutional landlords, particularly in the Build to Rent (BTR) and Purpose-Built Student Accommodation (PBSA) sectors, are adapting swiftly to new compliance demands. Smaller landlords, by contrast, may find profitability challenged by the tightening regulatory environment.

Other Legal and Market Developments

The Renters’ Rights Act isn't the only change affecting property stakeholders:

Commercial landlords face a possible ban on upwards-only rent reviews, with a bill progressing through the House of Lords.
Heat network regulations for multi-unit heating services will become mandatory on 27 January 2026, especially impacting social housing.
Business rates reform is underway with a call for evidence open until 18 February 2026, potentially introducing new bands and rate multipliers for high-value properties.

Looking further ahead, the government proposes a minimum EPC rating of “C” for new tenancies by 2028 and all tenancies by 2030. A leasehold reform bill slated for early 2026 may also establish commonhold as the default tenure for new flats, restrict ground rent charges, and limit forfeiture rights for minor breaches.

Final Thoughts

The Renters’ Rights Act 2025 signals a bold shift toward transparency, stability, and fairness in the UK rental market. While the changes create a more robust framework for tenant protections, landlords who stay ahead of compliance and strategic market trends can continue to thrive in this evolving landscape.

As we move toward full rollout by 2027, both tenants and property professionals should keep a close eye on further developments—including how prescribed tenancy formats, PRS databases, and national standards take shape.