Renters Rights Act 2025 – What changes from 1st May 2026? (Renters Reform Bill)

Renters Rights Act 2025 Key changes:

• Section 21 (‘no fault’) evictions abolished à Landlords must use Section 8 Housing Act 1988 grounds with evidence only.
• Assured Shorthold Tenancies (ASTs) automatically become Assured Periodic Tenancies (APTs) overnight (no paperwork needed) à every tenancy becomes a rolling month-to-month agreement with no end date.
• Tenants can leave with 2 months’ notice à no minimum stay is required, and they can leave at any time.
• Rent increases via Section 13 of the Housing Act 1988 only à this can only be once per year, and Landlords have to follow the new legal process for increasing the rent; this includes providing the tenant with notice, detailing the proposed rent increase at least two months’ before that increase is due to take effect.
• Rent in advance is capped at 1 month (for new tenancies only) à you’ll only be able to require up to one month’s rent in the period between all parties signing the tenancy and the tenancy starting; you won’t be able to accept any payment of rent before this period. Once the tenancy’s begun, you won’t be able to require any payment of rent before it’s due.
• Rental bidding is banned à landlords must advertise the exact rent and cannot accept higher offers.
• Discrimination banned à landlords are not allowed blanket ‘No DSS’ or ‘No children’ policies.

 

Civil Penalties for Non-Compliance

• Local authorities have a duty to enforce the new rules, and breaches can result in civil penalties without court proceedings à starting penalties from £6,000 (e.g. for serving an invalid possession notice), up to £30,000 for misusing possession ground knowing it was invalid.

 

What Landlords Must Do by May 31^st 2026:

1. Landlords with existing tenancies will need to provide tenants with a copy of the Government published ‘Information Sheet’ (available March 2026);
2. If no tenancy agreement exists, Landlords must issue a written statement of terms; and
3. HMO student landlords must serve new Ground 4A intention notice if planning to use this ground for repossession.

 

What Landlords Don’t Need to Do:

1. Issue new Tenancy Agreements à any existing ASTs continue as APTs automatically without the need for paperwork;
2. Re-serve EPC, EICR, or gas safety certificates à these remain valid;
3. Re-register tenancy deposits à this is not necessary as the APTs are not treated as new tenancies;
4. Repay rent already paid in advance à the advance rent cap only applies to new tenancies from 1^st May 2026;
5. Remove rent review clauses à these become automatically void on 1^st May 2026.

 

OVERALL STRATEGY

Tenancy agreements existing need to be looked at carefully to see whether any amendments are required to improve the landlord’s position in seeking possession. Potentially existing tenancy agreement may need to be varied.

Urgent consideration needs to be given also as to whether to rely upon a section 21 notice in the last month and weigh  up with all the necessary documents have been served to enable section 21 notices to be served in the last month.

Call us for expert advice.

Please note the contents of this article are not to be relied upon and are provided for general information only.

For  advice as to a specific case please contact the office