Whilst we do not typically advise on residential property issues, we are conscious that many clients have portfolios which may include residential or mixed use premises or may consider acquiring such premises in the future. To this end, the Renters’ Rights Act (RRA), enacted on 27 October 2025, might be of interest, given the major changes it brings in respect of properties in England and to tenants’ rights in particular.
The date on which the provisions of the RRA referred to in the key takeaways will take effect has not yet been determined, but will likely be sooner rather than later. Landlords must act now if they need to secure possession of a property currently let under an AST without having to satisfy a statutory ground for determination.
What are assured tenancies?
A tenancy under which a dwelling in England is let is an assured tenancy if the dwelling is let to one or more individuals and is occupied by them (or at least one of them) as their only or principal home (ASTs being one type of assured tenancy).
Some tenancies of dwellings are specifically excluded from being assured tenancies by statute. The RRA adds to the list of excluded tenancies – a fixed term tenancy of more than 21 years from the date of grant, or an existing fixed term tenancy for a term of more than seven but not exceeding 21 years, cannot be an assured tenancy and is therefore outside the new regime.
How will assured tenancies be terminated when the changes come into effect?
Tenants will be able to terminate the assured tenancy for any reason on not less than two months’ notice, aligning with a rental period. The parties can agree a shorter notice period for a tenant.
Landlords will be able to terminate an assured tenancy where they can establish one of the statutory grounds for determination (as they can under existing legislation).
Under the RRA, a landlord will not be able to determine an assured tenancy without a reason – i.e., without establishing a statutory ground for determination. The landlord must give notice to the tenant setting out the statutory ground being relied on. Certain grounds are mandatory, meaning the court will order possession is given if the tenant does not leave voluntarily after the notice has expired. The court has discretion whether to order the tenant to vacate in respect of other, non-mandatory grounds.
The RRA generally extends the periods of notice a landlord must give, with at least four months’ notice now required for most mandatory grounds.
What are the mandatory statutory grounds?
Whilst there are several grounds, the more relevant of these are likely to be:
(a) On the sale of a dwelling by a landlord – this ground applies where the landlord intends to sell its freehold or leasehold interest or to grant a lease for a term of more than 21 years.
(b) Where a landlord requires possession of the dwelling for its own occupation or by a family member as their only or principal home – the RRA extends the category of family members to whom this applies.
The assured tenancy cannot be brought to an end on either of the grounds referred to in paragraphs (a) and (b) during its first year – the landlord’s notice must expire after that period.
In addition, if a landlord relies on either of these grounds, there will be a 12-month period during which they will be restricted from letting the dwelling on a tenancy for a term of 21 years or less or to be occupied under a licence for monetary consideration unless:
(i) in the case of the sale ground, the licensee has agreed to buy the dwelling or take a lease of over 21 years (with no breaks), and the licence is granted pending completion of the sale or grant of the lease; and
(ii) in the case of the landlord/family occupation ground, the occupier is the landlord or a specified family member.
(c) If a dwelling is a house in multiple occupation (HMO) let to full time students, a landlord may determine the assured tenancy between 1 June and 30 September in any year to re-let to students for the next academic year provided the landlord informs the current tenants, before the grant of the tenancy, that possession may be required on that basis.
(d) Where a superior lease ends.
(e) If a landlord is subject to enforcement action (e.g., an improvement notice) and needs possession to comply.
(f) On redevelopment – where a landlord intends to demolish or reconstruct the whole or a substantial part of the dwelling or to carry out substantial works, and the intended work cannot reasonably be carried out without the tenant giving up possession. The assured tenancy cannot be brought to an end during the first six months on this ground (but different time periods apply where the dwelling is being compulsorily acquired by a local authority).
(g) Where there are rent arrears – this was an existing ground, but the RRA increases the amount of arrears that have to be accrued to rely on it to at least 13 weeks where rent is payable weekly or fortnightly and to three months where rent is payable monthly.
(h) On the death of a tenant, in the event of severe antisocial or criminal behaviour, or if the tenant’s immigration status means they have no right to rent.
The RRA will abolish an existing mandatory ground applicable where, at any time in the 12 months prior to the notice to determine being given, the dwelling was used as a holiday let.
Are there any restrictions on rent?
Tenants will be able to challenge any rents that are not at market rates, and rents may only be reviewed once a year to a market rate, in accordance with the provisions set out in the RRA. Express contractual rent review provisions in assured tenancies will not be permitted.
Landlords will have to publish the asking rent when advertising the property to let, are prohibited from asking for, encouraging, or accepting bids above that amount, and will not be able to require rent payments to be made more than one month in advance.
What other provisions are of note?
Other significant provisions of the RRA can be summarised as follows:
- Anti-discrimination requirements preventing landlords from refusing to let to tenants with children or those on benefits, though affordability checks remain permitted.
- Introduction of a mandatory landlord redress scheme for complaints, to be overseen by an ombudsman.
- A requirement for active registration on the private rented sector (PRS) database of landlords and properties; failure to comply will prevent the landlord from marketing the property to let and restrict their ability to regain possession.
- Application of the Decent Homes Standard (minimum standards as to the condition, safety, and security of rented properties) and “Awaab’s Law” requiring prompt action on health hazards in the private rented sector.
- Landlords must not unreasonably refuse requests for pets to live at the property.
What are the penalties for non-compliance?
The RRA gives local authorities enhanced investigatory powers and strengthens enforcement measures, including civil penalties of up to £7,000. For serious or repeated breaches, such penalties may rise to as much as £40,000, with the potential for criminal sanctions.
What do landlords need to do?
Landlords should consider whether they need possession and if so whether they can serve a section 21 notice before the date the provision in the RRA abolishing such notices takes effect. Any notice so served, and proceedings commenced further to such notice, will remain valid for a prescribed period of time.
Landlords should also amend existing letting documents to reflect the changes in the law and prepare for the additional administrative burden of:
- Compliance with the new regime, to include registration on the PRS database, keeping it up to date, and adherence to the landlord redress scheme.
- Managing a portfolio – the move to periodic tenancies may lead to uncertainty, with landlords not having the security of knowing rent is payable for a minimum fixed period.
What will the implications be?
Whilst the changes will be welcome for tenants, who will have more security of tenure, landlords will again feel hard done by, with the previous regime already making it difficult to remove troublesome tenants. We expect the changes will lead to some landlords leaving the sector, reducing the number of properties available to rent and putting more pressure on the housing market.
Client Alert 2025-275
