Now in the New Rental World!
Are you ready?
The last piece of legal paperwork was recently issued by the government and we are now able to write and explain, in brief, how the Renters Rights Act (RRA) will affect your position as a landlord. Depending upon the way you currently run your tenancy, will indicate how much or little the new laws will affect you. For many it will just be a case of being more attentive both to the tenant and the details of the rental.
The Renters’ Rights Act describes a piece of legislation designed to deliver “long overdue” reforms to the Private Rented Sector. Its primary goal is to give tenants greater security in remaining in their homes and greater freedom to leave substandard properties. The Government believes this is necessary because: “While the majority of landlords provide a good service, the [Private Rented Sector] currently provides the least affordable, poorest quality and most insecure housing of all tenures.”
For many a slight tweak will suffice, but for some landlords there may need to be more work involved, as they find that their current systems are not up to the new standards expected from the Act. These will therefor need reviewing and probably updating to avoid inadvertently being illegal.
Rather than go into great detail in this letter I would like you to treat it as a guide and a platform to either follow the links to articles offering much more detail, or to ring and have a chat about any areas of concern, as there are many aspects to each section of the Act.
There are three phases to the Act which primarily will come into force over the next two years. Phase 1, from the 1st of May, will:
Abolish Section 21 evictions – Social and private landlords will no longer be able to serve “no-fault” eviction notices to regain possession of their properties. This will prevent landlords from removing tenants without a valid legal reason.
Expand Section 8 possession grounds – The Government is adding and updating both mandatory and discretionary grounds following the abolition of Section 21. This will introduce clearer, more tightly defined grounds for possession. Landlords will only be able to regain a property in specific circumstances, such as serious rent arrears, plans to sell, or where they or a family member intend to move in. Most of these grounds will have increased timescales for the notice period and then in every case where it is disputed, it will have to go to court, which could significantly increase the time before the possession is granted.
Abolish fixed-term assured shorthold tenancies (ASTs) – All fixed-term assured tenancies will become rolling, assured periodic tenancies (APTs), from the 1st of May. This change will give tenants greater security, allowing them to remain in a property indefinitely so long as they meet the terms of their agreement. Tenants will still be able to leave by providing two months’ notice.
All new tenancies starting from the 1st of May will need to be in the new APT format and include a Written Statement.
Limit rent increases – The shift to periodic tenancies means Section 13 notices will be the only way for landlords to raise the rent. These can only be served once per year, and the market will need to be thoroughly researched to be able to justify the new rent.
Ban rental bidding wars – Landlords and agents can’t accept offers above the advertised price. This will mean that the marketed rent will have to be very precise and clearly show prospective tenants if anything is included in the rent.
Local authorities will also have enhanced powers to investigate and enforce compliance, including the ability to issue financial penalties where landlords or agents fail to meet their obligations.
Prohibit discrimination – Discrimination against tenants on benefits or with children will be formally prohibited. The decision on accepting a tenant will become totally objective and primarily based on tenant affordability rather than being subjective to a landlord whim. Records on the decision will need to be kept both for the successful tenant and the unsuccessful ones!
Allow renting with pets – Landlords can’t unreasonably refuse tenants with pets. They will not be allowed to increase the rent (over and above the market rent) specifically for a pet, nor will they be able to insist that the tenant takes out pet insurance. It is suggested that a pet reference is added to reference package.
Phase 2, due at the end of 2026, will:
Create a Private Rented Sector database – Designed to compile information about landlords and properties and provide visibility on compliance. Joining this will be compulsory and will involve a fee – not joining will make it illegal to let out the property and the landlord subject to a fine.
Phase 3, due in 2027, it will:
Introduce a Landlord Ombudsman – This will help resolve disputes between landlords and tenants impartially. Joining this will also be compulsory with another fee charged and a fine will be imposed for those who do not do so. Other penalties could also apply.
Further out, the Decent Homes Standard will be applied – All rental properties must meet the minimum quality standards, which will be described nearer the release date in 2035/36. Most properties should be operating at these basic standards already, but landlords will need to be proactive to problems and maintenance and not reactive.
Under the Awaabs Law (AL) regulations, damp timescales will be imposed for sorting the problem out, as well as response times to the tenant. It is advised for any landlords not already operating some sort of response format, that one is started, so that the systems are in place and functional in their operation. This law is due sometime in the mid 2030s, but there is a lot of sector thought that it will come into effect a lot earlier and cover a far wider range than the original proposed issues. These other serious areas of concern will be highlighted through the HHSRS (Housing Health Safety Rating System, which is also being overhauled within the Decent Home Standard, for greater ease of use and understanding, by both landlords and council officers).
Section 21 Notices can still be issued up to the 30th April , so there is still time to remove a problem tenant before the new eviction processes start, with their longer timescales. Be aware that any notice issued before the end of April will have a three month life to get into court and be registered – if it is not acknowledged by that time, it will become defunct.
The UK Government has published a ‘Renters’ Rights Act Information Sheet 2026’, which must be provided to all named tenants by 31 May 2026. This must be delivered either as a physical copy or electronically (for example, via email); simply sharing a web link will not meet the legal requirement. Failure to issue this by the deadline is likely to incur a fine of up to £7,000.
Between 1 May and 30 July 2026, student landlords will be able to use Ground 4A to give two months’ notice to regain possession. This transitional measure is intended to support the student lettings cycle ahead of the 2026/27 academic year. From 2027, the RRA will come into full effect for student accommodation which is classified as a legal HMO (three bedrooms and above). One and two bedroom accommodation with students will NOT be allowed to use a Section 4a notice and will have to rely on the usual grounds and notice periods – this makes these types of property impractical to let out to students given the set term times and the longer notice periods.
There is a lot coming down the line for the PRS, but if processes are now put in place and the new laws are understood, then there is no reason why in this time of high rents and with a plentiful supply of tenants, that current market conditions should not continue. This will still make it a good time to be a residential landlord so long as the intention is to stay in the sector for several years.
I would urge all landlords to take out rent guarantee insurance and landlord legal fees insurance. The costs and time it will take to regain possession of the property are likely to significantly increase, with access time to the courts growing from greater use.
Local authorities will also have enhanced powers to investigate and enforce compliance, including the ability to issue financial penalties where landlords or agents fail to meet their obligations. Within the Act are a lot of fines and the local councils are being told by the government to enforce these new regulations more stringently, so councils will take a lot more interest in the PRS than they maybe have in the past. There is no doubting that the councils are cash strapped and spare resources are scarce, so keeping them on side will be essential, to avoid any intrusive scrutiny of landlords and rented properties in their areas.
My advice for landlords is quite simple:
BE PROFESSIONAL – TREAT IT AS A BUSINESS!
CLINICAL RECORD TAKING IS ESSENTIAL
KEEP OPEN & REGULAR COMMUNICATION
DO NOT BE COMPLACENT and SHOW COMPASSION to YOUR TENANT!!
Preparation is going to be critical. Robust record-keeping, clear communication, and early action will be essential during the transition and ongoing with the new tenancies.
Remember the government`s aim, underlying this Act, is that tenants are treated as human beings and not numbers – their rented property will be their home until they leave.
Taken from the Government`s Guide to RRA, here is a slightly more in depth description of the changes that the RRA will bring in; it will:
Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction. We will implement this new system in one stage, giving all tenants security immediately.
Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable. The Act introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.
Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. This will bring tenant-landlord complaint resolution in line with established redress practices for tenants in social housing and consumers of property agent services
Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils – helping them target enforcement activity where it is needed most. Landlords will need to be registered on the database in order to use certain possession grounds.
Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse.
Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
Apply ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards.
Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live.
End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
Below are two useful links, should you wish to go into even greater depth of what is involved in the Act. These are very much the bones of it and the nuances are yet to be seen as issues come up. A lot of clarity will come over the next few years as court cases give us some depth and precedence of how the Act will work and be interpreted.
Below are the links to the timeframe and the government`s Guide.
https://www.gov.uk/government/publications/renters-rights-act-2025-implementation-roadmap
https://www.gov.uk/government/publications/guide-to-the-renters-rights-act
If you have any queries, please feel free to email me – phil@sunshinerl.co.uk
Or call me – 07970807703.
Phil