Comprehensive legal advice for landlords and tenants on the most significant reform of residential tenancy law in a generation — abolition of section 21, new possession grounds, pet rights and the Decent Homes Standard.
The Renters Rights Act 2025: What You Need to Know
The Renters Rights Act 2025 is the most significant reform of private residential rented sector legislation in England since the Housing Act 1988. The Act makes sweeping changes to the landlord-tenant relationship, fundamentally altering how tenancies are created, how they can be ended, and the rights and responsibilities of both landlords and tenants. Legal Merchant's specialist solicitors provide comprehensive advice to landlords and tenants on understanding and complying with the new regime.
Major Changes Already in Force / Coming Into Force. The Renters Rights Act 2025 introduces the most far-reaching changes to residential tenancy law since 1988. Landlords who fail to adapt face criminal liability, civil penalties and the inability to recover possession. Tenants have significantly enhanced rights. Early legal advice is essential for both parties.
Key Changes Under the Renters Rights Act 2025
Abolition of Section 21
The Act abolishes "no fault" evictions under section 21 of the Housing Act 1988. Landlords can no longer recover possession simply by giving notice without a specific reason. All possession claims must now be based on a stated ground.
Periodic Tenancies Only
Fixed-term assured shorthold tenancies are abolished. All new tenancies become periodic assured tenancies from day one. Existing fixed-term tenancies convert to periodic tenancies on their natural expiry. This gives tenants greater security while reducing landlords' ability to plan.
New Possession Grounds
A revised and expanded schedule of grounds for possession under section 8, including updated grounds for rent arrears, anti-social behaviour, landlord wanting to sell, and landlord/family wanting to move in — with new notice periods and restrictions.
Right to Keep Pets
Tenants have a default right to request permission to keep a pet. Landlords cannot unreasonably refuse. Where a landlord consents, they can require the tenant to take out appropriate pet damage insurance. Unreasonable refusal can be challenged.
Decent Homes Standard
The Decent Homes Standard is extended to the private rented sector for the first time, requiring private landlords to ensure their properties meet minimum habitability standards. Councils can take enforcement action against non-compliant landlords.
Awaab's Law
Named after Awaab Ishak, who died from mould exposure, Awaab's Law requires landlords to investigate and fix damp and mould hazards within strict statutory timeframes. Initially applying to social housing, the Act extends this to the private rented sector.
Abolition of Section 21: Impact on Landlords
The abolition of section 21 "no fault" evictions is the most significant change for landlords. Under the new regime, landlords must establish a specific ground for possession under the revised Schedule 2 to the Housing Act 1988. The main grounds available to landlords are:
Mandatory Grounds (Court Must Grant Possession)
Ground 1A — Landlord/family intends to occupy: The landlord (or certain family members) intends to use the property as their principal home. A new restriction means the landlord cannot re-let within 12 months of recovering possession on this ground.
Ground 1B — Landlord intends to sell: The landlord intends to sell the property with vacant possession. Again, restrictions on re-letting apply.
Ground 7A — Serious rent arrears: Rent is at least 3 months in arrears at both the date of the notice and the date of the hearing (previously 2 months for the mandatory ground). This is a higher threshold than previously.
Ground 7AA — Anti-social behaviour conviction: The tenant, or someone living with or visiting the tenant, has been convicted of certain serious offences at or near the property.
Ground 8 — Other serious anti-social behaviour: For closure orders and certain Housing Act 1996 injunctions.
Discretionary Grounds (Court May Grant Possession)
Ground 10 — Rent arrears (less than 3 months): Rent is in arrears but below the mandatory threshold. The court has discretion to grant possession where it is reasonable to do so.
Ground 11 — Persistent late payment: The tenant has persistently paid rent late, even if no arrears exist at the hearing date.
Ground 12 — Breach of tenancy obligation: The tenant has breached an obligation of the tenancy (other than rent).
Ground 14 — Anti-social behaviour / nuisance / annoyance: The tenant has caused or allowed nuisance or annoyance to neighbours, or has been convicted of a relevant offence. Now applies even if the conduct occurs away from the property.
New Notice Requirements
Minimum notice periods under section 8 have been increased for many grounds. Key changes include:
Ground
Old Notice Period
New Notice Period
Ground 1A (Landlord to occupy)
2 months
4 months
Ground 1B (Landlord to sell)
N/A (new ground)
4 months
Grounds 8/10/11 (Rent arrears)
2 weeks
4 weeks
Ground 14 (Anti-social behaviour)
Immediately
Immediately
Ground 12 (Breach of tenancy)
2 weeks
4 weeks
Rent Increases Under the New Regime
The Renters Rights Act significantly changes how rent can be increased in the private rented sector:
Landlords can only increase rent once per year
Rent increases must be proposed using a new prescribed form (revised section 13 notice)
Tenants have an enhanced right to challenge rent increases at the First-tier Tribunal
Where a challenge is made, the tribunal can only set the rent at the market rent — it cannot set it above what the landlord proposed
Mid-tenancy rent review clauses in tenancy agreements are abolished — all rent increases must go through the section 13 process
Tenant Rights and Protections
Right to request pet — landlords must respond within 28 days and cannot unreasonably refuse
Prohibition on rental bidding wars — landlords and agents cannot invite or accept offers above the advertised rent
Right to request written tenancy agreement — landlords must provide a written statement of the tenancy terms
Extended deposit protection — enhanced requirements for deposit protection and prescribed information
Right to redecorate — tenants will have a right to request consent to redecorate and landlords cannot unreasonably refuse
Ombudsman scheme — all private landlords must register with a new Property Ombudsman scheme
Private Rented Sector Database — a new national database of private landlords and properties will be created
Frequently Asked Questions
Yes. The abolition of section 21 applies to all assured shorthold tenancies once the relevant provisions are brought into force — including existing tenancies. There is no grandfathering for tenancies entered into before the Act came into force. Existing fixed-term tenancies will automatically convert to periodic tenancies at the end of their fixed term. Any section 21 notices served but not yet acted upon before commencement will have a transitional period in which they can be used, but this is limited. Our solicitors can advise on transitional arrangements and the steps landlords should take to adapt their practices.
Yes, but using the new Ground 1B (landlord intends to sell). You must serve a minimum 4 months' notice. The ground requires you to genuinely intend to sell the property. If you recover possession using Ground 1B but then do not sell (or you re-let the property within 12 months), the tenant may have grounds to challenge the possession and seek compensation. Evidence of your intention to sell (such as instructing an estate agent) is important. Our solicitors can advise on the correct notice and procedure.
No. The Renters Rights Act abolishes fixed-term assured shorthold tenancies. All new residential tenancies (and existing ones on expiry of the fixed term) will be periodic tenancies from the outset — meaning either party can end the tenancy by giving notice (the tenant giving 2 months' notice, the landlord relying on one of the statutory grounds). This applies to all private residential lettings in England. Professional and student landlords will need to adapt their business models accordingly. Contact our solicitors for tailored advice on managing your portfolio under the new regime.