The Renters’ Rights Bill, introduced in September 2024, has completed its passage through Parliament and received Royal Assent on 27 October 2025.  It is now known as the Renters’ Rights Act 2025. The Act provides a framework for the reforms in the private rental sector in England and will require the Government to issue new regulations before it can be brought into force.  There will be a phased implementation period according to the Government’s roadmap with the first provisions coming into force on 1 May 2026.

One of the key reforms is the abolition of Assured Shorthold Tenancies (ASTs) and ‘no fault’ evictions under section 21 of the Housing Act 1988. Another notable feature is the new Private Rented Sector Landlord Ombudsman Service, which all private landlords with assured or regulated tenancies will be legally required to join, including those who use managing agents. This service will handle disputes and require landlords to pay compensation where appropriate.

Key Reforms

• Removal of fixed-term and Assured Shorthold Tenancies: These will automatically be converted into assured periodic tenancies (APTs) and tenants will move to a rolling or periodic assured tenancy.  This will allow them to stay in the property for as long as they want, or until a landlord serves a valid section 8 notice under the Housing Act 1988. Landlords will not need to change existing written tenancy agreements or issue new ones. Instead, they will need to provide tenants with a copy of the government issued ‘Information Sheet’ on or before 31^st May 2026
• Abolition of Section 21: Landlords will only be able to terminate a tenancy for one of the reasons specified in section 8 of the Housing Act 1988.  Tenants must be given the minimum notice period for each of these grounds
• Advance rent limits: Landlords will only be allowed to request one month’s rent in advance, plus a security deposit of up to five or six weeks’ rent. This will not apply to tenancy agreements in place before commencement and so these will not need to be amended
• Student agreements: Students cannot be required to sign rental agreements more than six months before moving in. Purpose built student accommodation (PBSA) will be exempted from the new APT regime
• Local authority investigatory powers: Local authorities are given new powers to investigate if a landlord or letting agent has broken certain laws in the private sector.  They include carrying out an inspection of a property with or without giving notice, and with or without a warrant
• Annual rent increases: Landlords can increase rents once a year by giving at least two months' notice.  The tenant may dispute the increase by applying to the First-tier Tribunal if they believe the increase is above the market rate.
• Stronger action against unethical landlord practices: Local councils will be given more power to crack down on the worst offenders of housing legislation, with fines lifted to up to £40,000
• Ban on discrimination: Landlords cannot discriminate against tenants with children, those receiving benefits, or owning pets, though they will be able to require pet insurance
• Prohibition of rental bidding: Properties cannot be rented for more than their advertised price
• New Private Rented Sector Landlord Database: Landlords will be required to provide their details on the Database to allow prospective tenants to make informed decisions before entering into a tenancy
• New PRS Landlord Ombudsman Service: All private landlords will be required to join the PRS Landlord Ombudsman Service which will determine complaints raised by tenants
• Regaining possession: Landlords will not be allowed to sell or move back into their property during the first 12 months of a new tenancy and must give four months’ notice to the tenant
• The Decent Homes Standard: Although previously applied only to social housing, this will now extend to private rentals to ensure properties meet requirements for a safe and decent home.

Implementation Timeline

The Government has published a phased roadmap for introducing the reforms:

Phase One (Core Tenancy Reforms) - 1 May 2026

• All fixed-term and Assured Shorthold Tenancies will be converted to assured periodic tenancies
• Section 21 “no-fault” evictions will be abolished
• Grounds for possessing the property must be fair for both parties (for example the landlord must have a valid reason to evict the tenant)
• Rent increases limited to just once per year, with tenants able to challenge excessive rises
• Ban on rental bidding and restrictions placed on rent in advance
• Landlords must reasonably consider requests for pets, with a requirement for pet damage insurance permitted
• Stronger anti-discrimination protections for tenants with children or those receiving benefits
• Expanded local council enforcement powers and rent repayment orders.

Phase Two - Late 2026

• Rollout of the Private Rented Sector Database for landlords
• Establishing the PRS Landlord Ombudsman service, a mandatory scheme for landlords that will provide a redress service to tenants when things go wrong.

Phase Three (Date to be confirmed)

• Implementation of the Decent Homes Standard across the private rented section
  

Private Rented Sector Landlord Ombudsman Service

This Ombudsman Service allows tenants to file complaints about their landlords at no cost. It aims to offer fair and unbiased solutions, with the power to require landlords to apologise, provide information, take corrective actions, or pay compensation. Landlords will also benefit, as the service will help resolve complaints efficiently and offer guidance on improving their handling of tenant issues.

Local councils will be able to take enforcement action for the Ombudsman Service by issuing penalties of up to £7,000 for initial breaches and up to £40,000 or criminal proceedings for continuing or repeated breaches. Tenants can also seek a rent repayment order if landlords repeatedly fail to join the Ombudsman Service. Furthermore, landlords must comply with the decisions made by the Ombudsman; failing to do so may result in expulsion from the service and enforcement actions from local councils, although there will be a process for landlords to rejoin if they address their compliance issues.

Find out more on the Government’s official webpage.

Please note that this webpage is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied. You should seek your own independent legal advice on your personal circumstances.