A change in the legal landscape for landlords and renters.
As we are near the end of 2025, the private rented sector is already looking ahead to the pivotal legislative changes that will come into force in 2026. This massive shift in the legal landscape is the largest in many years, and agents, landlords, and tenants will all feel the effects.
The Renters’ Rights Act 2025 (“the Act”) is now on the statute book, and over the next few years we will see a staged implementation of the various changes rather than a single “big bang” (which we are all grateful for).
A detailed understanding of the timing for the various stages of this implementation will be very important. For landlords, knowing precisely which changes will bite and when will ensure that the appropriate time and resources are spent on reviewing portfolios, remaining compliant, and avoiding fines.
1 May 2026 – The Headline Date
Although it is not the first or only stage of implementation, all eyes are on 1 May 2026. On that date, the following changes will come into effect:
- No more ASTs - All fixed‑term assured tenancies and assured short-hold tenancies will become periodic tenancies with rent periods no longer than one month. This will mean that tenants can stay in properties as long as they want unless a landlord serves a Section 8 notice relying on one the refreshed grounds. But they will also be able to terminate tenancies at any time on no more than 2 months’ notice.
- No S.21 - Landlords will no longer be able to serve Section 21 notices (although the transitional provisions preserve the validity of any properly served Section 21 notice where a court claim has been or is brought within the specified time limit). Although this has widely been branded as the end of no-fault eviction, landlords will still be able to terminate tenancies without fault where, for example they intend to sell the property or occupy it as their own or close family’s principal residence, or where the property is to be redeveloped.
- No Bidding - Landlords and agents will no longer be able to accept rental offers higher than originally advertised or require tenants to pay more than 1 month’s rent in advance (this will also apply to existing tenancies). And to counter the risk of rents being artificially inflated, tenants have the right to challenge the initial rent within the first 6 months of the tenancy if it is “significantly higher” than similar properties.
- No Automatic Rent Increases - If a landlord wishes to raise the rent, they may do so once a year and only by following the updated Section 13 procedure (giving the required notice and obtaining the proper evidence of the market rent). This can be challenged by tenants in the Tribunal and will undoubtedly be, as the new rent will only apply from the date of the Tribunal’s determination.
- No Blanket Tenant Policies - The Act will prohibit any form of discrimination against renters who have children or receive benefits. Landlords and agents will be strictly forbidden from engaging in practices that could deter these individuals from renting a property.
- No Blanket “No Pet” Policies - Landlords will be required to consider requests from tenants to keep pets. If refused, valid reasons must be provided within 28 days. Importantly, the provisions allowing landlords to require tenants to have pet damage insurance or to reimburse landlords for the costs of such insurance did not make it into the Act.
- Comply or Else - Local authority enforcement powers will be greatly expanded, and fines for non-compliance will be increased.
Landlords/agents will need to be ready for immediate operational changes and the start of the new periodic tenancy world.
Other Implementation Dates (Currently TBC)
The Act establishes the architecture for a “Private Rented Sector Database” and a “Private Rented Sector Landlord Ombudsman”. There will therefore be other dates for implementing these separate changes brought about by the Act.
The Government currently expects the Private Rented Sector Database to be introduced in late 2026/early 2027. Once the relevant regulations commence, a landlord will be prohibited from marketing or letting unless there are active entries for both the landlord and the property in the PRS Database, and written advertisements must display the unique identifiers issued by the database operator. Landlords will be subject to civil penalties for marketing/advertising/letting while non‑compliant, and—critically—courts will be barred from making possession orders while the landlord is in breach of the duty to maintain active database entries, save for serious anti‑social behavior grounds.
Much later (2035 or 2037), The Decent Homes Standard will be brought into the private rented sector, allowing regulations to specify minimum requirements for safety, repair and thermal comfort, backed by local authority enforcement and financial penalties.
Act Now
In summary, landlords and agents should act now to prepare for the new regime by reviewing their portfolios to determine where it may be appropriate to serve Section 21 notices, updating procedures, and training teams on the revised legal requirements. It is essential to organise property and compliance records in readiness for the PRS databases, re-work rent increase processes and send tenants to the Government’s new Information Sheet to ensure compliance with the new Act.
If you require any advice during this period of planning and change, Fladgate would be glad to assist.
