The Renters’ Rights Act 2025: What You Need to Know

The Renters' Rights Act 2025 comes into force today, representing the most significant overhaul of the private rented sector in England in a generation. The legislation introduces sweeping changes to the rights and obligations of landlords and tenants alike, with immediate effect for the vast majority of residential tenancies. Whether you are a landlord managing a portfolio of properties or a tenant navigating the private rental market, understanding these changes is essential.

At LCF Law, our Real Estate team advises landlords, institutional investors and tenants across the full spectrum of residential and commercial property matters. Below, we set out the key provisions now in force.

End of fixed-term assured shorthold tenancies

With immediate effect, all existing Assured Shorthold Tenancies (ASTs) automatically convert to rolling periodic tenancies. Fixed-term contracts as a mechanism for residential lettings are abolished. Tenancies will now continue on a rolling basis until either party brings them to an end in accordance with the new statutory framework.

For tenants, this provides far greater security and flexibility. For landlords, it means the automatic expiry of a fixed term can no longer be used as a ground for recovering possession. The practical and contractual implications of this change are considerable and landlords should review their existing arrangements as a matter of priority.

Abolition of 'no-fault' evictions

The Act abolishes Section 21 'no-fault' evictions entirely. Landlords wishing to recover possession of their property must now rely on one of the specified, evidence-based grounds contained within the legislation. These include grounds such as the landlord genuinely intending to sell the property or wishing to occupy it as their principal home.

This is a fundamental shift in the landlord and tenant relationship. Possession proceedings will require landlords to demonstrate a legitimate basis for recovering the property, and courts will scrutinise claims accordingly. Landlords who pursue possession without proper grounds risk adverse findings and potential liability. We strongly advise landlords to seek legal advice before serving any notice to quit.

Tenants' right to end a tenancy

Tenants may now end their tenancy by serving a maximum of two months' notice. The previous mechanism by which fixed-term contracts locked tenants into a property for a defined period has been removed. This provision provides tenants with considerably greater mobility and removes the financial exposure associated with early termination clauses.

Restrictions on rent increases

Landlords are now restricted to one rent increase per year. Any proposed increase must be communicated to the tenant by way of a formal Section 13 notice, with a minimum of two months' notice required before the new rent takes effect.

Tenants who consider a proposed increase to be above market rate retain the right to challenge it before the First-tier Tribunal. This mechanism provides an important safeguard against disproportionate rent rises and is likely to generate increased tribunal activity in the months ahead.

Holding deposits and advance payments

The Act introduces a cap on holding deposits and upfront rental payments. Landlords and letting agents may not accept more than one month's rent as a holding deposit or advance payment. Additionally, landlords are prohibited from taking any rent payment before a tenancy agreement has been formally signed by both parties.

These provisions are designed to address practices that have historically placed prospective tenants at a financial disadvantage, particularly in competitive urban rental markets. Non-compliance with these requirements may give rise to civil liability and regulatory sanctions.

Discrimination and pet ownership

The Act expressly prohibits landlords from discriminating against prospective or existing tenants on the basis that they have children or that they are in receipt of housing benefit or other welfare payments. Blanket 'no DSS' or 'no children' policies will be unlawful.

In relation to pet ownership, the legislation strengthens tenants' rights to request permission to keep a pet in a rented property. Landlords must consider such requests and may only refuse on reasonable grounds. Where a landlord does consent, they may require the tenant to hold appropriate pet insurance as a condition of that consent.

Written statements of tenancy terms

Before a tenancy commences, landlords are now required to provide tenants with a written statement setting out the key terms of the tenancy and the respective obligations of both parties. This requirement is intended to ensure transparency from the outset and to reduce the potential for disputes arising from ambiguity or a lack of documentation. Landlords who fail to comply with this requirement may find their ability to enforce tenancy terms adversely affected.

Landlords with existing AST's created before 1st May 2026 must serve the official Renters' Right Act Information Sheet 2026 to tenants by 31st May 2026.

Key changes at a glance

• All existing Assured Shorthold Tenancies automatically convert to rolling periodic tenancies.
• Section 21 'no-fault' evictions are abolished. Landlords must rely on specific, evidence-based grounds to recover possession.
• Tenants may end a tenancy on a maximum of two months' notice.
• Rent increases are capped at once per year and require two months' notice by way of a Section 13 notice.
• Holding deposits and advance payments are capped at one month's rent. Rent cannot be taken before a tenancy agreement is signed.
• Landlords cannot discriminate against tenants with children or those receiving benefits. Tenants have strengthened rights to request permission to keep pets.
• Landlords must provide tenants with a written statement of key tenancy terms and obligations before the tenancy begins.

Speak to our team

The Renters' Rights Act represents a fundamental change to the landscape of residential lettings in England. Whether you are a landlord seeking to understand your revised obligations, an investor assessing the impact on your portfolio or a tenant wishing to understand your strengthened rights, our team is on hand to assist.

For advice tailored to your specific circumstances, contact real estate Associate Ryan Cotton on 01274 848 837 or at ku.oc1780323143.fcl@1780323143notto1780323143cr1780323143

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