Renters' Rights Act 2025: A Complete Guide for Landlords and Tenants
The Renters' Rights Act 2025 is now law. It received Royal Assent on 27 October 2025, and the first wave of changes takes effect on 1 May 2026. Whether you are a landlord managing a property in South London or a tenant planning your next move, these changes will affect you directly — and soon.
This guide covers what is changing, what it means in practice, and what you should be doing right now to prepare.
What is the Renters' Rights Act 2025?
The Renters' Rights Act 2025 is the most significant overhaul of private rented sector law since the Housing Act 1988. Introduced by the Labour government, it is designed to give tenants greater security and fairer treatment, while also setting clearer expectations for landlords and the condition of rented properties.
At its core, the Act abolishes no-fault evictions, ends fixed-term Assured Shorthold Tenancies, and introduces a raft of new rights and obligations for both landlords and tenants. It is not a minor adjustment. If you let or rent a property in England — including South London — these changes will affect you, and they are coming very soon.
When does it come into effect?
The Act is being rolled out in three phases.
Phase 1 — 1 May 2026 (imminent)
This is the big one. From this date, all the main tenancy reforms take effect, including the abolition of Section 21, the move to periodic tenancies, the new rent increase rules, and the ban on rental bidding.
Phase 2 — late 2026
A new private rented sector (PRS) database and mandatory Landlord Ombudsman scheme will be introduced. Landlords will eventually need to register. Mandatory membership is expected from around 2028.
Phase 3 — 2035 or later
A new Decent Homes Standard for the private rented sector sets minimum requirements for property condition, covering safety, warmth, and state of repair. Awaab's Law — which enforces strict timescales for dealing with damp and mould — will also be extended to private rentals. The government's target for EPC C energy efficiency is 2030.
What exactly is changing from 1 May 2026?
Here is a clear breakdown of the key changes coming in under Phase 1.
Section 21 abolished
Landlords can no longer evict tenants without a valid legal reason. No-fault evictions end.
End of fixed-term tenancies
All Assured Shorthold Tenancies (ASTs) — whether new or existing — are replaced by periodic (rolling) tenancies. There will be no more fixed end dates.
Section 13 rent increases
Landlords can only raise rent once per year, using the formal Section 13 (Form 4) process. Tenants can challenge increases they feel are above market rate at the First-tier Tribunal.
Rent in advance capped
Landlords cannot request more than one month's rent before a tenancy begins, and cannot demand more than one month at a time once the tenancy is underway.
Ban on rental bidding
All rental listings must state a specific asking price. Landlords and agents cannot accept or encourage offers above the listed rent.
Pet rights strengthened
Tenants have a formal right to request a pet. Landlords must respond within 28 days and cannot refuse without reasonable grounds. Landlords may require pet insurance to cover potential damage.
Anti-discrimination rules
Landlords and agents cannot refuse applicants simply because they have children or receive housing benefit. "No DSS" and "No children" policies are banned.
Written Statement of Terms
Before a new tenancy begins, tenants must be given a written statement of the key terms — this can be included within the tenancy agreement itself.
Tenant notice to quit
Tenants can end a periodic tenancy by giving two months' written notice (or less if the tenancy agreement permits).
The end of Section 21 — what does it mean in practice?
This is the change that has generated the most debate, and the one landlords ask us about most.
Section 21 of the Housing Act 1988 allowed landlords to serve a notice ending a tenancy without giving any reason — often called a "no-fault eviction." From 1 May 2026, that is no longer possible.
This does not mean landlords cannot ever ask a tenant to leave. It means they will need a valid reason, using the revised Section 8 grounds for possession. These include:
Significant rent arrears
Persistent late payment of rent
Antisocial behaviour
The landlord wishing to sell the property
The landlord or a close family member needing to move into the property
The tenant causing serious damage to the property
If any of these situations arise, landlords still have a clear legal route to regain possession. The key difference is that every possession claim now needs to be documented and evidenced properly.
A few important points about the transition:
Landlords who served a valid Section 21 notice before 1 May 2026 must start court proceedings by 31 July 2026 to rely on it
From 1 May 2026, no new Section 21 notices can be served
All existing fixed-term tenancies automatically convert to periodic tenancies from that date — there is no opt-out
This is precisely why thorough record-keeping, proper tenancy agreements, and detailed inventories matter so much. If a possession case reaches court, landlords will need clear evidence to support their claim. Getting paperwork right from the start is no longer optional.
What is a periodic tenancy and how does it work?
Most private tenancies in England are currently Assured Shorthold Tenancies — typically fixed for six or twelve months, after which they either roll on a monthly basis or the tenant signs a new fixed-term agreement.
From 1 May 2026, fixed-term ASTs are abolished. All tenancies will be periodic from the start, meaning they roll on indefinitely with no set end date. Existing fixed-term agreements will convert automatically on that date.
For tenants, this brings more security and flexibility. There is no sudden end-of-term pressure, and you can stay in your home as long as you keep to the terms of your agreement.
For landlords, periodic tenancies are straightforward to manage when handled professionally. The important things are clear written terms at the outset, good communication with tenants throughout, and staying on top of any issues before they escalate.
At Your Home Managed, we have always taken a clear, personal approach to tenancy management. Good landlord and tenant relationships make for better tenancies on both sides — and in many ways, the new legislation reflects exactly that.
What are the penalties for non-compliance?
Financial penalties under the Renters' Rights Act range from £7,000 to £40,000, depending on the severity and nature of the breach. Local housing authorities have already received significantly enhanced investigatory powers — in place since 27 December 2025 — covering illegal evictions and poor housing standards, and these powers will only increase once Phase 1 comes in.
This is not a grey area. The government has made clear that enforcement will be taken seriously. For landlords, this makes working with a professional letting agent who understands the legislation more important than ever.
For tenants, it means stronger mechanisms are in place to act if a landlord breaches their obligations — including the right to challenge rent increases at the First-tier Tribunal.
Tenants and pets — what changes?
This one often surprises landlords. From 1 May 2026, tenants have a formal right to request to keep a pet at the property. Landlords must respond to any such request within 28 days.
A landlord cannot simply say no — they need genuine, reasonable grounds to refuse. If they refuse without good reason, the tenant can challenge the decision.
To protect their property, landlords may require tenants to take out pet insurance that covers accidental damage. This is a fair middle ground that many landlords are already factoring into their approach.
Our advice: review your tenancy agreement now, include a clear pet policy, and be ready to handle requests fairly and in writing before May arrives.
What does this mean for landlords in South London?
South London remains one of the most active rental markets in the country. Demand from tenants consistently outstrips supply across areas like Balham, Clapham, Tooting, Streatham, and Wandsworth — and that is unlikely to change.
What is changing is the level of care required to let and manage a property compliantly. The abolition of Section 21 means that getting the tenant selection process right from the very beginning is more important than ever. So is having thorough, well-documented tenancies that can stand up to scrutiny if anything goes wrong.
At Your Home Managed, we work closely with landlords across South London to make sure their properties are let correctly, their paperwork is watertight, and their tenant relationships are managed with care. We have been doing this for over 20 years, and we stay on top of legislative changes so that our landlords do not have to.
If you are wondering how the new rules affect your property, or you are a tenant wanting to understand your rights, we are here to help. We handle the complexity so that you do not have to.
What should landlords do before 1 May 2026?
There is still time to prepare, but not much. Here is a practical checklist.
Review your tenancy agreements. Make sure they will work as periodic tenancies and are up to date. Speak to your letting agent or solicitor if you are unsure.
Check your inventory and documentation. Under the new rules, evidence matters more than ever. Your check-in report, property condition records, and all written communications are important.
Understand the Section 8 grounds. These are now your only route to recover possession. Know what they cover and what evidence you would need to support a claim.
Update your rent increase process. From May 2026, all rent increases must use the Section 13 (Form 4) process. Make sure you know how to use it correctly.
Remove discriminatory criteria from your applicant process. "No DSS" and "No children" policies are now unlawful. Review any standard wording used in your listings or application process.
Prepare a pet policy. Decide how you will handle pet requests and make sure your tenancy agreement reflects this before May.
Speak to your letting agent. If you manage your property yourself, now is a very good time to consider professional support. The legislative landscape is becoming more complex, and the cost of getting it wrong is significant.
What next?
The Renters' Rights Act represents a fundamental shift in how the private rented sector works in England. For landlords, the message is to get your paperwork in order, understand the new rules, and make sure your tenancies are professionally managed. For tenants, the changes bring meaningfully greater security and clearer rights than you have had before.
At Your Home Managed, we are an independent letting and property management agency based in South London with over 20 years' experience. We stay fully up to date with legislation so that our landlords and tenants are always properly looked after.
If you have questions about how the Renters' Rights Act affects your property or tenancy — or you would like to speak to us about letting or managing your home — we would be very happy to help.
Call us on 0208 125 7780 or email info@yourhomemanaged.com.
The Act received Royal Assent on 27 October 2025. Phase one — covering the abolition of Section 21, periodic tenancies, the new rent increase rules, and more — comes into effect on 1 May 2026. Phase two (Landlord Ombudsman and PRS Database) is expected in late 2026. Phase three (Decent Homes Standard) is not expected until 2035 at the earliest.
Yes. From 1 May 2026, landlords in England can no longer serve a Section 21 notice to end a tenancy without reason. The only route to recover possession is through the revised Section 8 grounds, which require a valid legal reason supported by evidence.
Yes. Landlords retain the right to recover their property through the strengthened Section 8 grounds. Valid reasons include significant rent arrears, antisocial behaviour, serious property damage, a genuine wish to sell, or a need for the landlord or a close family member to move in. Every claim now needs to be properly documented.
All existing fixed-term Assured Shorthold Tenancies automatically convert to periodic (rolling) tenancies from 1 May 2026 — regardless of when the original agreement was signed or when the fixed term was due to end. There is no opt-out.
Once. From 1 May 2026, rent can only be increased once every twelve months, using the formal Section 13 (Form 4) notice process. Tenants can challenge increases they consider above market rate at the First-tier Tribunal.
For new tenancies from 1 May 2026, landlords cannot accept rent before the tenancy agreement is signed, and cannot demand more than one month's rent at a time once the tenancy is underway. This ends the practice of requesting three, six, or twelve months upfront.
Not automatically. From 1 May 2026, tenants have a formal right to request a pet. You must respond within 28 days and can only refuse on reasonable grounds. You may require the tenant to arrange pet insurance covering accidental damage. A blanket no-pets policy will no longer be sufficient — each request must be considered on its own merits.
A new mandatory Landlord Ombudsman scheme is being introduced as part of Phase two, expected in late 2026. It will give tenants an independent route to resolve disputes outside the courts. All private landlords will be required to register, with mandatory membership expected from around 2028.
Yes. The Renters' Rights Act applies to all private rented sector landlords across England, including those letting in South London. Areas such as Balham, Clapham, Tooting, Streatham, and Wandsworth are all covered. Working with an experienced local letting agent is the most reliable way to stay compliant.
The Decent Homes Standard will set minimum requirements for the condition of privately rented homes — covering safety, warmth, and repair. This is a Phase 3 change and is not expected to come fully into force until 2035 or later. The government will confirm its plans following the consultation that took place in 2025.