With the Renters’ Rights Act 2025 looming on the horizon and set to come into force on 1 May 2026, landlords and tenants can expect significant changes to the current system of private renting. The Act primarily focuses on strengthening the position of tenants, providing them greater security in their tenancies. This article explores some of the main changes that landlords and tenants should be aware of.
Abolition of section 21 ‘no fault’ evictions
Perhaps the most immediately impactful change the Act brings is the abolition of section 21 evictions. This scheme currently allows landlords to serve a section 21 notice on tenants in certain circumstances, giving them 2 months’ notice to vacate the property, with minimal justification. This allowed landlords a relatively easy method of evicting tenants without fault on the tenants’ part.
Come 1 May 2026, section 21 evictions will no longer exist. Instead, landlords will be limited to section 8 evictions, which require fault of some kind from the tenant, or a set of ‘no-fault’ grounds for possession which give tenants greater security. The two most likely ‘no fault’ grounds that will be relied upon seem to be (1) that the landlord intends to sell the property, and (2) the landlord or close family members intend to move into the property for personal use. Both of these grounds cannot be used within the first 12 months of a tenancy and require 4 months’ notice to be given to tenants.
All assured tenancies to be periodic tenancies
The Act will remove fixed term assured tenancies. Instead, all tenancies will be periodic, meaning that tenants can stay in the property until they wish to end the tenancy by giving 2 months’ notice (assuming that the landlord does not use any relevant grounds of possession to evict them).
Additionally, all leases with a fixed term of more than 21 years will no longer be assured tenancies. Landlords may therefore circumvent the security granted to tenants under the Act if they can secure a lease with a fixed term of more than 21 years.
Enhanced protection for tenants – rent arrears
The Act affords tenants greater protection from eviction on the grounds of rent arrears. The threshold for eviction will increase from 2 to 3 months’ arrears. Additionally, the notice period a landlord is required to give to a tenant for eviction on the ground of rent arrears will increase from 2 to 4 weeks.
However, it should be noted that landlords can still use the discretionary rent arrears ground, for example where a tenant has a consistent habit of paying rent late.
Rent increases
The Act will limit rent increases to a once per year increase to market rate, which requires landlords to service a section 13 notice with at least 2 months’ notice on the tenant before the rent increase takes effect. This means that landlords will no longer be able to increase rent to above market rate, and any rent review mechanisms that may be written into the lease will be redundant.
Additionally, tenants who believe the proposed rent increase exceeds market rate will be able to challenge this at the First-tier Tribunal. The Tribunal will also be reformed such that it will never order tenants to pay rent greater than what the landlord has asked for.
Summary
The Act introduces measure primarily to strengthen the position of private tenants, decreasing uncertainty as to their living situation. Landlords particularly should make themselves aware of the upcoming changes to be fully prepared when they come into effect, and avoid accidentally falling foul of any of the new provisions.
Please call 01256 844888, email enquiries@lambbrooks.com or speak to our online chat assistant at any time of day.