UK Renters' Rights Act 2025: Section 21 Abolition, New Tenant Protections, and What Landlords Must Do

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and represents the most significant overhaul of England's private rented sector since the Housing Act 1988. For landlords and tenants alike, the changes arriving from May 2026 will alter the fundamental relationship between the parties to a residential lease. The Act abolishes the Section 21 "no fault" eviction procedure, converts all assured tenancies into periodic tenancies, introduces a mandatory private rented sector Ombudsman, creates a national landlord database, and strengthens tenant rights on everything from rent increases to keeping pets.

This article sets out the key provisions of the Act, explains the practical implications for both landlords and tenants, and identifies the steps that parties must take before the principal commencement date of 1 May 2026.

The End of Section 21: What Changes on 1 May 2026

Section 21 of the Housing Act 1988 has long permitted landlords to recover possession of a property without giving any reason, provided they serve the correct notice. Since its introduction, the mechanism has been criticised for enabling retaliatory evictions where tenants who complain about disrepair or poor conditions find themselves served with a notice to quit. The Renters' Rights Act 2025 repeals Section 21 entirely for all new and existing assured tenancies from 1 May 2026.

Landlords who wish to serve a final Section 21 notice must do so before 30 April 2026. Even then, court proceedings relating to any such notice must be commenced by 31 July 2026, after which the courts will no longer accept Section 21 possession claims. This hard deadline means that landlords who have been relying on Section 21 as their default recovery mechanism must either act promptly or familiarise themselves with the revised Section 8 grounds.

From 1 May 2026 onward, the only route to possession will be through Section 8 of the Housing Act 1988, as amended by the new Act. The number of available grounds for possession has been expanded from the original 17 to 37, giving landlords a broader but evidence-based set of reasons to seek recovery of their property.

Revised Section 8 Grounds: Mandatory and Discretionary

The expanded Section 8 grounds include 18 mandatory grounds (where the court must order possession if the ground is proved) and various discretionary grounds (where the court considers whether it is reasonable to grant possession). Several of the new grounds deserve close attention from practitioners.

Ground 1 allows a landlord to recover the property for occupation by themselves or a close family member. Four months' notice is required, and the ground cannot be invoked during the first 12 months of the tenancy. This prevents landlords from granting short tenancies and then immediately seeking possession on personal occupation grounds.

Ground 1A is a new ground that permits possession where the landlord intends to sell the property. Again, four months' notice must be given and the ground is unavailable in the first 12 months. The landlord must demonstrate a genuine intention to sell, and the courts may scrutinise claims to ensure they are not being used as a back-door Section 21.

Ground 8, relating to rent arrears, has been modified. The threshold has increased from two months' arrears to three months' arrears, and the notice period is four weeks. This change gives tenants slightly more breathing room before mandatory possession proceedings can commence, though repeated arrears remain a discretionary ground at lower thresholds.

Ground 7A addresses serious antisocial behaviour and criminal conduct. It allows the landlord to begin possession proceedings immediately, without waiting for a notice period to expire. This ground is likely to be of particular interest in cases involving violence, harassment, or drug-related offences at the property.

Periodic Tenancies: The New Default

Under the Act, the vast majority of new and existing tenancies in the private rented sector will become assured periodic tenancies. Fixed-term assured shorthold tenancies will cease to exist for residential lettings. This means that a tenancy continues indefinitely on a rolling basis until either the landlord serves a valid Section 8 notice and obtains a court order, or the tenant gives two months' notice to leave.

For tenants, this provides substantially greater security of tenure. There is no longer a fixed term that expires automatically, leaving the tenant vulnerable to non-renewal. For landlords, the loss of the fixed term means they can no longer rely on a lease expiry to recover possession. They must actively prove a ground for possession under Section 8.

The shift to periodic tenancies also has financial implications. Landlords cannot demand more than one month's rent in advance after the tenancy agreement is signed. The practice of requiring several months' rent upfront, which has been common where tenants have limited credit history or are from overseas, will be prohibited.

Rent Increases: Once a Year at Market Rate

The Act imposes a single framework for rent increases. Landlords may raise the rent once per year to the market rate, being the price the property would achieve if it were freshly advertised for letting. The landlord must give the tenant at least two months' notice of the proposed increase.

If the tenant disagrees with the proposed increase, they can refer the matter to the First-tier Tribunal (Property Chamber). An important change is that the Tribunal will no longer have the power to set the rent above what the landlord proposed. Under the previous regime, a Tribunal reference could result in a higher rent than the landlord had asked for, which discouraged tenants from challenging increases. That perverse outcome has been eliminated.

The ban on rental bidding is another notable measure. Landlords and letting agents are prohibited from inviting or encouraging prospective tenants to offer more than the published asking rent. A civil penalty of up to 7,000 pounds applies to breaches. The policy is aimed at cooling competition in overheated rental markets, particularly in London and the South East.

The Right to Request a Pet

Tenants will have a strengthened right to request permission to keep a pet at the property. The landlord must consider the request and cannot unreasonably refuse. Where the landlord grants permission, they may require the tenant to take out pet damage insurance to cover any additional wear and tear. The landlord cannot charge a higher deposit or additional fees for pet keeping beyond the insurance requirement.

The pet provisions reflect a growing recognition that blanket "no pets" clauses in tenancy agreements have prevented responsible pet owners from accessing the rental market. However, the right is not absolute. A landlord may still refuse where there are genuine reasons, such as lease restrictions from a superior landlord, property unsuitability, or a small property where a large animal would cause legitimate concerns.

Private Rented Sector Ombudsman and Landlord Database

All private landlords with assured tenancies must join the new Private Rented Sector Landlord Ombudsman. This service will provide tenants with a free, impartial dispute resolution mechanism as an alternative to the courts. The Ombudsman will have the power to order landlords to take remedial action, issue apologies, and pay compensation.

Failure to register with the Ombudsman attracts a civil penalty of up to 7,000 pounds for a first offence and up to 40,000 pounds or criminal prosecution for repeat non-compliance. Landlords should treat Ombudsman registration as a mandatory compliance step, akin to deposit protection.

The Act also establishes a Private Rented Sector Database where all landlords must register their properties. The database will be publicly searchable, allowing tenants and local authorities to verify whether a landlord is compliant with their legal obligations. Non-registration carries a civil penalty of up to 7,000 pounds.

Anti-Discrimination Provisions

The Act makes it unlawful for a landlord or letting agent to refuse to let to a prospective tenant because they have children or because they receive housing benefit or Universal Credit. This codifies what has been regarded as best practice and brings private renting into line with the protections that already exist in other areas of housing law. The civil penalty for discrimination on these grounds is up to 7,000 pounds.

These provisions will be particularly significant for families and individuals on lower incomes who have historically faced difficulty securing private rented accommodation due to "no DSS" or "no children" policies.

Decent Homes Standard for Private Rentals

For the first time, the Decent Homes Standard will apply to the private rented sector. The standard, which has been a feature of social housing for years, sets minimum requirements for the condition, repair, and facilities provided in rented properties. The government consulted on the specific requirements during mid-2025, and the detailed regulations are expected to be published before the May 2026 commencement date.

Local authorities will receive enhanced enforcement powers to investigate breaches. From 27 December 2025, councils have been able to inspect private rented properties, demand documents, and access third-party data as part of their enforcement toolkit. These investigatory powers will expand further from 1 May 2026.

Practical Steps for Landlords and Tenants

Landlords should begin preparing now for the May 2026 changes. Those who rely on Section 21 as a routine management tool need to understand the revised Section 8 grounds and ensure their tenancy documentation supports the evidence requirements of each ground. Property management procedures should be updated to maintain records of rent arrears, antisocial behaviour complaints, and inspection reports that may be needed to satisfy a court.

Registration with the Ombudsman and the PRS Database will be mandatory, and landlords should budget for any fees associated with these services. Pet policies should be reviewed, and template responses to pet requests should be prepared to ensure that any refusal is reasonable and documented.

Tenants should be aware that their security of tenure will increase substantially from May 2026. Existing fixed-term tenancies will convert to periodic tenancies at the end of their current term. Tenants who wish to leave will need to give two months' notice, and those who wish to stay can do so for as long as they continue to meet their obligations under the tenancy.

The Act is a generational shift in English housing law. Whether you are a landlord, tenant, letting agent, or legal adviser, the time to prepare is now.