Renting Revolution: What the Renters’ Rights Act 2025 Means for Tenants and Landlords

The UK rental market is undergoing its most significant transformation in decades. With the Renters’ Rights Act 2025 (RRA) receiving Royal Assent on 27 October 2025, tenants and landlords alike should brace for a three-phase rollout designed to re-balance the power dynamic in England’s Private Rented Sector (PRS). From scrapping no-fault evictions to capping rent hikes, here's everything you need to know about the changes ahead.

Phase 1 (From 1 May 2026): A New Era for Private Renting

The first phase of the RRA takes effect on 1 May 2026 and brings monumental shifts:

1. Abolition of Section 21 “No-Fault” Evictions

Gone are the days when landlords could evict tenants without providing a reason. Section 21 notices will no longer be valid, ushering in greater stability and protection for renters.

2. End of Fixed-Term Assured Tenancies

All new tenancies will be periodic and open-ended by default, giving tenants greater flexibility and mobility.

3. Revised Notice Periods and Possession Grounds

Tenants must give at least two months’ notice to vacate. Landlords can still seek possession via Section 8 grounds for legitimate reasons (e.g., rent arrears, selling the property).

4. Limits on Rent Increases

Landlords may only raise rent once every 12 months with two months’ notice, using the Section 13 process. Tenants can challenge increases at the First-tier Tribunal.

5. No More “Bidding Wars”

Landlords are prohibited from accepting rent offers above the advertised price. Contractual rent review clauses are also deemed invalid.

Phase 2 (Late 2026): Scrutiny and Standards for Landlords

The latter part of 2026 will see regulatory frameworks strengthened:

1. National PRS Database

A comprehensive registry will be launched to monitor private landlords and ensure legal compliance.

2. PRS Landlord Ombudsman

An independent body will handle tenant complaints and disputes, offering accessible redress outside the court system.

Phase 3: Raising the Standard of Rentals

Following a period of consultation, Phase 3 will introduce:

1. Decent Homes Standard in the PRS

Quality benchmarks for safety, warmth, and maintenance will apply in the private rental sector for the first time.

2. Awaab’s Law

Inspired by recent tragedy, this law mandates swift action on damp and mould issues to protect tenants’ health and safety.

The Implications: Opportunities and Challenges

For Tenants:

*Security:* Longer tenancy security without being locked into fixed terms.
*Affordability:* Capped rent rises and more power to challenge hikes.
*Transparency:* Greater landlord accountability through new databases and ombudsman.

For Landlords:

*Regulatory Compliance:* New responsibilities, from clear rent-setting to safety standards.
*Control via Section 8:* Legal grounds for possession still exist, but require more rigor.
*Rent Forecasting:* With rental increases capped and regulated, long-term investment planning becomes essential.

Rental Market Snapshot: Trends and Responses

In 2025, renters paid an average of £10,580—up £684 from the previous year—representing 41% of post-tax income. Young renters (18–25) spent a staggering 50% on rent, particularly in London boroughs.

However, early 2026 is seeing cooler rental demand in response to falling house prices and mortgage rates. Regional rent drops include:

North East: −10.0%
South West: −8.1%
Yorkshire & Humberside: −7.4%
Wales: −6.1%

Forecasts predict pre-May 2026 rent hikes, especially for properties underpriced by 17–25%, as landlords act before restrictions take effect. Rent growth is expected to remain subdued thereafter, largely capped by modest wage growth (approx. 3.9%).

Leasehold and Property Law Reforms: What Else Is Changing?

Alongside the RRA, other reforms are reshaping the housing landscape:

Leasehold & Freehold Reform

Transparency for costs, especially insurance fees
Protections for leaseholders in service charge disputes
Ground rent cap forthcoming for existing leases
New legislation to make commonhold the default for flats, phase out new leaseholds, and eliminate forfeiture threats

Social Housing Rent Cap

For the 2026–27 year, rent increases in social housing are capped at CPI + 1%, with a potential £2 uplift if rents were below the national formula.

What Landlords and Tenants Should Do Now

Landlords: Review tenancy agreements, prepare for the end of Section 21, and align with Section 13 rent processes.
Tenants: Understand your new rights, especially around notice periods, rent reviews, and eviction protections.
Agents and Property Managers: Update compliance practices, and get ready to register with the PRS database and ombudsman services.

Conclusion: A Fairer Future for Renting

The Renters’ Rights Act 2025 ushers in a new chapter for the UK’s rental market—one that prioritises stability, fairness, and tenant wellbeing. While the transition may be challenging for some stakeholders, long-term benefits including transparency, quality standards, and financial predictability promise to build a more balanced private housing sector for everyone.