Understanding the Renters Reform Bill 2025: Key Legal Changes for Landlords and Tenants
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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 31st 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 1st May 2026;
  5. Remove rent review clauses à these become automatically void on 1st May 2026.