Friday, 12th December 2025Renters’ Rights Act 2025 – What It Really Means for Possession and Risk
In our previous article on the Renters’ Rights Bill, we highlighted the sweeping reforms set to reshape the private rented sector (PRS). At that time, much of the detail and timing of implementation remained uncertain. The Bill has since received Royal Assent on 27 October 2025, becoming the Renters’ Rights Act 2025 (RRA), and the Government has now confirmed that the changes will be rolled out in three phases, giving landlords, tenants and agents time to prepare.
For landlords, the RRA is a landmark shift affecting tenancy agreements, possession rights, rent increases, and compliance obligations. Understanding the timetable and preparing now is essential.
Possession: Fewer routes, not no routes
Many landlords are concerned that, with the end of Section 21 “no-fault” evictions, the right to recover possession will be hollowed out and investment risk will spike. The position is more nuanced. Section 21 will end from 1 May 2026 and landlords will need to use the revised statutory grounds going forward. Any landlord intending to rely on a Section 21 notice should act promptly: 30 April 2026 is the final date on which a valid Section 21 notice can be served. Early planning is advisable for any landlords with upcoming possession needs.
From May 2026, all assured shorthold tenancies convert to periodic tenancies. That change removes fixed end dates but does not remove the ability to regain possession; it changes the mechanics. Landlords will need to evidence the ground relied on and ensure procedural compliance. Tenants will be able to end the tenancy by giving two months’ notice, which may reduce void risk profiling for some portfolios while requiring tighter rent and repairs controls for others.
Certain possession grounds will interact with the new regulatory infrastructure. In Phase 2, landlords must be on the PRS Database and, in some cases, registration will be a prerequisite to using specified possession grounds. Failure to register may shut off a route to possession and expose the landlord to penalties, so database compliance becomes part of the possession strategy.
Is renting now “riskier” for landlords?
The risk profile changes, but risk can be managed with preparation.
Rent control by procedure, not price-cap: From May 2026, rent can be increased only once every 12 months to market rate via a Section 13 notice. Clauses that try to do something different will be ineffective. This places a premium on evidence of market comparables and on-cycle reviews. Poor paperwork will translate to revenue drag.
Front-end affordability tactics narrow: From Phase 1, landlords may accept up to one month’s rent in advance only, and cannot invite or accept offers above the advertised rent. Pricing discipline and transparent advertising will be essential to avoid enforcement risk.
Pet requests and discrimination rules bite: Landlords must consider pet requests and not unreasonably refuse, with statutory challenge rights for tenants. Combined with strengthened protections for tenants who receive benefits or have children, screening and decision-making must be documented and objectively justified to mitigate dispute risk.
More scrutiny, more paper: Local authorities gain greater powers, including higher civil penalties and wider rent repayment orders. Robust records and prompt responses move from good practice to risk control.
The new infrastructure landlords must plug into
From late 2026, the PRS Database becomes mandatory for assured and regulated tenancies. Unregistered properties cannot be marketed or let, with civil and criminal penalties for non-compliance. The database will also hold safety certificates, EPCs and contact details, and landlords will in some cases need to be registered to use certain possession grounds. Treat database accuracy as a gateway compliance.
All landlords must also join the PRS Landlord Ombudsman. Tenants can raise disputes about standards, repairs and conduct, and determinations are binding. Keep audit trails for repairs, communications and inspections; they will decide outcomes.
Standards on the horizon
Longer term, the Decent Homes Standard will extend into the PRS through regulations, with councils given effective and proportionate enforcement powers. Planning capex against DHS criteria now will smooth compliance and protect value.
What to do now
Map your possession contingencies. If a Section 21 route is needed before transition, take advice immediately and work to the 30 April 2026 deadline. After May 2026, plan to use the revised statutory grounds and align your evidence and processes accordingly.
Convert your tenancy strategy for periodic-only lets and rework house rules and pet policies to reflect the RRA framework, with fair, documented decision-making and clear timelines.
Reset rent governance. Move all reviews to a 12‑month cycle, build a comparables file for Section 13 notices, and strip out inconsistent rent-review clauses from templates to avoid unenforceability.
Get database- and ombudsman-ready. Assemble compliance packs now—EPCs, gas and electrical safety, licences, contact details—and prepare workflows so properties can be registered and disputes handled efficiently once Phase 2 opens.
After a long period of uncertainty, the government has now provided a clear roadmap for the Renters’ Rights Act 2025. Landlords can now see exactly what changes will take effect, when they will be phased in, and what steps are required to prepare. Taking action early will be crucial to ensure compliance, manage risk and navigate the transition smoothly.
If you have any queries regarding this note or require further information about anything covered in this briefing, do get in touch with Aoife Reid, Paul Twomey, or your usual contact at the firm on +44 (0)20 7526 6000.
