The Renters’ Rights Act delivers the government’s manifesto commitment to reform private renting in England, including abolishing Section 21 ‘no fault’ evictions. The Act received Royal Assent on 27 October 2025, with a single commencement date to be confirmed. Some measures are not yet in force.

The reforms aim to improve outcomes for 11 million private renters and 2.3 million landlords by increasing fairness, stability and accountability across the sector.

Key reforms

All assured tenancies will convert to periodic agreements, ending fixed terms. Tenants can remain in their home until they choose to leave, giving two months’ notice. This removes the risk of arbitrary eviction and increases flexibility.

Section 21 is abolished. Landlords must rely on strengthened statutory possession grounds and apply to court if a tenant does not leave. Mandatory grounds require possession if proven; discretionary grounds allow judges to consider reasonableness.

Tenants are protected during the first 12 months of a tenancy from eviction where a landlord intends to sell or move in. In such cases, landlords must provide four months’ notice and cannot re-let or market the property for 12 months after regaining possession, subject to limited exceptions.

For rent arrears, the mandatory eviction threshold increases from two to three months’ arrears, and notice periods rise from two weeks to four, giving tenants more time to recover while protecting landlords from unsustainable loss.

Rent increases and tribunal challenges

Landlords may increase rent once per year to market rate — defined as the rent the property would achieve if newly advertised. Increases must be made using a formal Section 13 notice, giving at least two months’ notice.

Tenants who believe an increase exceeds market value can apply to the First-tier Tribunal for determination. The Tribunal will independently assess the lawful market rent.

Key implications if tenants contest:

• The Tribunal cannot set rent higher than the landlord’s proposed increase.
• Rent increases are not backdated; any revised rent applies from the Tribunal decision date.
• The Tribunal may delay implementation by up to two months in cases of financial hardship.
• While proceedings are ongoing, tenants continue paying the existing rent.
• If the proposed rent reflects market level, it will be upheld.
• If a lower figure is set, only that lower rent becomes payable.

This removes the historic risk of tenants facing higher rents after challenge and prevents excessive increases being used as a “backdoor eviction”.

Rent review clauses and informal increases will no longer be permitted. All increases must follow the statutory route.

Additional measures

The Act establishes a Private Rented Sector Landlord Ombudsman for binding dispute resolution and a Private Rented Sector Database to support enforcement. Landlords must register to use certain possession grounds.

Tenants gain strengthened rights to request pets, protection from discrimination based on benefits or children, and protection from rental bidding above advertised rent. The Decent Homes Standard and Awaab’s Law will extend to the private rented sector.

Overall, the Act marks a significant shift in private renting — increasing tenant security while maintaining structured, court-based routes for landlords to recover property and adjust rent in line with the market.

National Residential Landlords Association (NRLA)

Two-thirds of landlords planning rent rises say forthcoming tax increases are a key reason, according to new polling of NRLA members.

In her recent Budget, the Chancellor announced that income tax on rental income will increase by two percentage points from 2027. The Office for Budget Responsibility (OBR) warned the move would push up rents — a concern now reflected in new research by Pegasus Insight. Among landlords intending to increase rents in the next year, 65% cited the tax hike as a driving factor, second only to the 68% who pointed to rising property running costs.

With the Government set to end ‘no explanation’ repossessions from 1 May, landlords say court delays are their leading concern. According to the survey, 91% are worried about court wait times. Government data shows it now takes over seven months on average for courts to process and enforce possession cases under the system replacing Section 21 — the longest timeframe since early 2022.

Market pressures remain strong, with 61% reporting high tenant demand. However, 24% said they had sold property in the past year, compared with just 5% who purchased. The 19-point gap between sales and purchases is more than double the level at the start of 2024. Of those who sold, 27% did so with tenants in situ.

NRLA Chief Executive Ben Beadle said higher taxes risk driving rents up further and warned that ministers must ensure courts can process legitimate possession cases far more quickly.

Renters Rights Act is a big change for renting in England, and will test landlords and agents. With section 21 going, possession for antisocial behaviour will be tricky, so the only way to evict will need a clear Section 8 reason and clean paperwork.

For landlords, the play is simple. Screen harder, reference properly, document everything, and price in risk. If you rely on the rent to pay the mortgage, look at rent guarantee insurance and keep a cash buffer. Alos look out for purchase opportunities.

I like the idea of the Ombudsman and the Property Portal. If they work, they’ll cut the nonsense and raise standards. If they work!

My caution sits with the courts. If arrears build or behaviour turns ugly, the process must move fast. Final thoughts, make sure your rents are at market value now, as changes post 1 May 26 will be stricter.

Nick Thorpe

www.nickthorpe.me
Property Catalyst Club