The Renters’ Rights Act 2025 represents one of the most significant changes to residential letting in England and Wales in a generation. While much of the public focus has been on tenant protections, the real issue for landlords is the shift in legal risk. Practices that were once routine are being replaced with tighter controls, clearer enforcement, and fewer opportunities to recover from mistakes.

Renters’ Rights Act 2025: A Landlord’s Guide to Legal Duties and Risks

George Harrison February 9, 2026

Introduction

The Renters’ Rights Act 2025 represents the most substantial reform of the private rented sector in England since the Housing Act 1988. It is not merely a measure designed to enhance tenant protection; it fundamentally recalibrates the legal framework within which landlords operate, reallocating risk and increasing the consequences of non-compliance.

For many landlords, the long-established practices under fixed-term assured shorthold tenancies, offered a protection under section 21 “no-fault” notices, and discretionary rent increases is Under the Act, these are being phased out and replaced by assured periodic tenancies as the default model, a wholly grounds-based system for possession, and tighter statutory control over how and when rent may be increased.

In this environment, reactive management will rarely be sufficient. Landlords who do not prepare in advance risk finding themselves unable to recover possession when needed, unable to implement lawful rent increases, or exposed to financial penalties, rent repayment orders and reputational damage.

This article explains the key elements of the Renters’ Rights Act 2025 that are most relevant to private landlords in England and sets out practical steps that can be taken now to mitigate both legal and commercial risk. While certain details will be fleshed out through secondary legislation and statutory guidance, the overall direction of travel is clear, and early preparation will place landlords in a materially stronger position.

Scope and Timing

The Act applies to the private rented sector in England and covers the vast majority of existing assured and assured shorthold tenancies granted under the Housing Act 1988.

Implementation is phased. However, the core reforms are scheduled to take effect on 1 May 2026. These will include the abolition of section 21 and the conversion of most existing and new tenancies to assured periodic tenancies with monthly rent payment periods, subject to transitional periods. During which, landlords are likely to be managing tenancies governed by different legal regimes at the same time, increasing the risk of error if documentation and processes are not carefully reviewed.

The Act is deliberately broad in scope. It applies to landlords of all sizes and structures, including individuals with a single rental property, small buy-to-let investors, large portfolio landlords, corporate and SPV landlords, and those who instruct letting or managing agents. In most cases, legal responsibility remains with the landlord even where day-to-day management is delegated. There are no exemptions for long-standing, low-maintenance or “problem-free” tenancies, and stability of the landlord-tenant relationship does not remove the need for compliance.

The end of Section 21

The current role of Section 21

Under the existing Housing Act 1988 framework, section 21 enables landlords of assured shorthold tenancies to recover possession without establishing fault on the part of the tenant, provided that prescribed procedural and compliance requirements have been met. For many landlords, section 21 has operated as a backstop, offering a relatively predictable route to possession, including where circumstances change or relationships deteriorate.

However, section 21 has been the subject of sustained criticism, particularly in relation to insecurity of tenure for tenants and the potential for retaliatory eviction. These concerns underpin the policy decision to abolish section 21 and replace it with a possession regime based entirely on statutory grounds.

Possession under the Renters’ Rights Act 2025

Once the relevant provisions are in force, private landlords will no longer be able to serve new section 21 notices to both existing and new assured tenancies. Possession will instead depend on establishing one or more statutory grounds, all of which must be pleaded and evidenced.

The new grounds build on the existing section 8 framework but are expanded and re-structured to reflect commonly cited landlord needs, including:

serious or persistent rent arrears;
significant breach of tenancy obligations;
persistent antisocial behaviour;
the landlord or a close family member wishing to occupy the property as their home; and
an intention to sell the property.

Some grounds are mandatory, requiring the court to make a possession order if the ground is proved, while others remain discretionary, allowing the court to consider reasonableness in the circumstances. Certain grounds are subject to minimum occupation periods, notice requirements and evidential safeguards. For example, landlords relying on sale or own-occupation grounds are likely to be required to demonstrate a genuine intention and may be restricted from using those grounds within an initial period of the tenancy.

In practical terms, possession proceedings will become more evidence-driven and procedurally exacting. Informal arrangements, incomplete records and loosely documented breaches are far less likely to withstand scrutiny, particularly where tenants raise defences or counter-allegations. Accurate notices, correct timing and comprehensive record-keeping will be critical.

Rent, rent increases and affordability

Statutory control of rent increases

The Act introduces tighter statutory controls on rent increases, reflecting a policy objective of greater predictability and affordability for tenants. While rent will not be capped as such, the ability to increase rent will be regulated through a prescribed process, including:

a limit of one rent increase in any 12-month period;
the use of a standard statutory section 13 notice;
an expectation that increases reflect market rent; and
defined timeframes and a clear route of challenge for tenants.

Tenants will have enhanced rights to refer proposed rent increases to the First-tier Tribunal. The Tribunal’s role will be to determine the market rent, and in most cases, tenants will be protected from the risk of the Tribunal setting a rent higher than that proposed by the landlord. This alters the risk dynamics of rent challenges and makes careful pricing and evidence-gathering more important.

For landlords, this means that informal agreements or ad hoc increases (however amicable the relationship with the tenant) will carry increased risk. Rent reviews should be planned, documented and supported by objective market evidence. Existing contractual rent review clauses will also need to be reviewed to ensure that they are compatible with the statutory scheme and the move to periodic tenancies.

Market dynamics and financial planning

In a market characterised by high demand and rising costs, some landlords have historically relied on frequent rent adjustments. The Act seeks to prevent bidding wars and repeated short-interval increases by requiring landlords to reassess financial assumptions, particularly where borrowing is highly leveraged.

The emphasis on market justification shifts the criteria towards market trends and documentary evidence. Landlords who can demonstrate that their proposed rent aligns with comparable properties and is consistent with the statutory framework will be better positioned both in negotiations with tenants and in Tribunal proceedings.

Additionally, the Act will place a cap of one month on the tenant’s rent deposits. This would help the parties evaluate financial planning and referencing policies.

Enforcement, penalties and reputational risk

A more interventionist regulatory landscape

The Act sits alongside wider reforms, including the creation of a national landlord database and a mandatory Private Rented Sector ombudsman scheme. Together, these measures signal a more interventionist regulatory approach. The database is intended to improve transparency and enforcement capability, while the ombudsman provides tenants with a relatively accessible route to redress without immediately resorting to litigation.

Local authorities will continue to exercise existing enforcement powers in relation to licensing, safety and unlawful eviction, and in some areas those powers will be strengthened.

Registration on these schemes are legal pre‑conditions for possession claims and any non-compliance is enforceable through civil penalties. Such penalties can be significant, and repeat or serious breaches may lead to banning orders or prosecution under other housing legislation.

Key risks for landlords

Non-compliance under the new regime carries several layers of risk. First, landlords may be unable to recover possession because statutory pre-conditions have not been met, for example, failure to comply with registration, information or rent-related requirements can render notices invalid.

Second, there is direct financial exposure through civil penalties and rent repayment orders, which in certain circumstances can require repayment of up to 12 months’ rent or housing benefit or universal credit.

Third, there is reputational and operational risk. As tenant awareness increases and routes to redress become more accessible, practices that were once tolerated (such as informal arrangements or delayed repairs) are more likely to be challenged. This can lead to disputes, enforcement action, adverse publicity and reduced asset value.

Practical steps landlords should take now

Review documentation and processes

Landlords should undertake a comprehensive review of tenancy agreements, templates and standard correspondence. Provisions predicated on fixed-term assured shorthold tenancies, section 21 notices or unrestricted contractual rent reviews are likely to require amendment or removal.

Robust systems should be in place for issuing and evidencing compliance with prescribed requirements, including safety certificates, licensing, deposit information and statutory notices. Where agents are instructed, responsibilities should be clearly allocated in writing to avoid gaps in compliance.

Plan for possession and disputes

Landlords should consider in advance how they would rely on statutory grounds for possession if difficulties arise. This includes identifying which grounds are most likely to be relevant and ensuring that records are kept from the outset in a form capable of supporting those grounds.

Effective record-keeping should cover rent accounts, correspondence, inspection reports, complaints and responses, and evidence of attempts to resolve issues. This not only supports litigation but can also facilitate earlier and more favourable dispute resolution.

Take a portfolio-wide strategic view

For landlords with larger or more complex portfolios, a strategic review may be appropriate. This can identify properties or tenancies that carry heightened risk, such as unlicensed HMOs, informal arrangements, or properties in areas with active enforcement.

Such a review can inform decisions about investment, regularisation or disposal and allows landlords to act proactively rather than under pressure during a dispute or investigation. It further enables landlords to maintain compliance across their portfolio in a structured way.

Conclusion & How We Can Help

The Act represents a structural shift in the balance of rights and responsibilities in the private rented sector. For landlords, it removes long-standing safety nets such as section 21 and replaces them with a more regulated, evidence-driven and enforcement-focused framework.

While the Act is intended to improve security and standards for tenants, it also materially increases legal risk for landlords who are unprepared or who continue to rely on outdated documentation, informal practices or assumptions based on the pre-existing regime.

The consequences of non-compliance are not limited to technical breaches. Landlords may find themselves unable to recover possession, exposed to rent repayment orders or civil penalties, or subject to investigation by local authorities or the landlord ombudsman. Given the phased implementation and the interaction with existing housing legislation, early advice and careful planning are essential.

Our property team here at JLN regularly advises private landlords, investors and portfolio owners on residential letting arrangements and regulatory compliance. In the context of this new legislation, we can assist by:

reviewing existing tenancy agreements, templates and standard documents to ensure they are compatible with the new periodic tenancy model and the abolition of section 21;
advising on lawful rent-setting and rent increase strategies, including preparation for and responses to First-tier Tribunal challenges;
assessing possession options under the new statutory grounds and advising on evidential requirements and risk;
supporting landlords in disputes with tenants, rent repayment order applications and investigations or enforcement action by local authorities;
advising on portfolio-wide risk, including licensing, compliance gaps and strategic planning ahead of full implementation.

If you are a landlord and would like advice on how the Act will affect your properties, existing tenancies or future plans, we recommend taking early advice by contacting our specialist team.

We usually offer a no-cost, no-obligation 20-minute introductory call as a starting point or, in some cases, if you would just like some initial advice and guidance, we will instead offer a one-hour fixed fee appointment (charged from £250 plus VAT depending on the complexity of the issues and seniority of the fee earner).

Please email wewillhelp@jonathanlea.net providing us with any relevant information or call us on 01444 708640. Following an initial discussion, we can provide a clear scope of work, a fee estimate, and confirm any information or documentation we would need to review.

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This article is intended for general information only, applies to the law at the time of publication, is not specific to the facts of your case and is not intended to be a replacement for legal advice. It is recommended that specific professional advice is sought before relying on any of the information given. © Jonathan Lea Limited.