The Renters’ Rights Act 2025 (Act), which yesterday received Royal Assent, marks a significant shift in the legal landscape of the private rented sector in England. Designed to enhance tenant protections and modernise rental practices, the Act will gradually introduce sweeping reform including:
1. Abolition of Fixed-Term Tenancies: Fixed-term assured and assured shorthold tenancies are abolished. All new tenancies will be periodic, with rent periods not exceeding one month.
2. End of Section 21 ‘No-Fault’ Evictions: Landlords will no longer be able to evict tenants without reason. Instead, possession must be sought under specific statutory grounds.
3. Revised Grounds for Possession: The grounds on which landlords can seek possession have been updated, including clearer provisions for anti-social behaviour and rent arrears.
4. Rent Increase Control: A new statutory procedure will govern rent increases, with landlords required to follow a specific procedure. Tenants will have the right to challenge proposed increases in the First-tier Tribunal.
5. Ban on Rent in Advance: Landlords will now be prohibited from demanding rent in advance beyond the initial payment, both before and after a lease is entered into. This measure is intended to reduce financial barriers to renting, particularly for low-income tenants.
6. Right to Request Pets: Tenants will have a statutory right to request permission to keep a pet. Landlords must consider such requests reasonably and cannot refuse without justification. Tenants may be required to pay for insurance policies to cover the risk of damage caused by their pets.
7. New Landlord Redress Scheme: A mandatory landlord redress scheme will be introduced, allowing parties the opportunity to resolve disputes without resorting to court.
8. Private Rented Sector Database: A national database of landlords and rented properties will be created. Landlords will be required to register and keep their entries up to date.
9. Anti-Discrimination Measures: New provisions introduced to prohibit discrimination against tenants with children or those receiving benefits. Discriminatory terms in tenancy agreements, mortgages, and insurance contracts will be void.
10. Decent Homes Standard: Introduction of a statutory “Decent Homes Standard”, aligning it with extant social housing requirements. Landlords must ensure properties are safe, warm, and in good repair. Local authorities will be granted enhanced powers to enforce compliance.
Whilst the legislative reform will apply to England only, some provisions will apply in Wales — particularly those dealing with discrimination in the rental market.
These changes are expected to significantly alter traditional industry practices. The Act promises to be a minefield for the unwary. If you are a landlord, developer or investor and have queries or concerns about how the reform might impact you or your business, please contact a member of the Real Estate Disputes Team or your usual Brodies contact.
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