An overview of the Renters’ Rights Act 2025

• No more assured shorthold tenancies. All existing and future tenancies that would otherwise have been ASTs will become assured tenancies once the act is in force.
• No more fixed term assured tenancies. Instead, these will become periodic and will run in alignment with the frequency with which rent is paid (“the rent period”).
• As is currently the case, an assured tenancy is not one that is granted to a corporate tenant.
• The new legislation will override any clause in a superior lease that requires:
  • any subletting to be granted on a fixed term AST so that the intermediate landlord is not in breach of the covenants in the superior lease
  • the intermediate landlord to deliver up the property free of any such subtenant so that failure to do so will not constitute a breach of the superior lease.
• Any tenancy granted for more than 21 years (a long lease) will not be an assured tenancy and is outside the scope of the act.
• It is still permissible until 26^th December 2025, for landlords to grant (or enter into an agreement for lease) for a fixed term residential tenancy of between 7 and 21 years and such tenancies will also be outside the scope of the act.
• The government will be introducing an information sheet that landlords will have to supply to their tenants informing them of the changes introduced by the act.

• With all proposed lettings, the marketing details for the properties must include the proposed rent and it will be an offence for a landlord or letting agent to encourage prospective tenants to make bids for rents higher than the stated figure.
• Tenancies must provide for the rent to be paid monthly, or for any period up to 28 days (“the rent period”). These time limits are prescribed. It will no longer be possible to agree provisions for rent to be paid every quarter or every 6 months.
• Tenancies can impose different rent periods at different times of the tenancy provided they do not exceed one month e.g. if a tenancy (and first rent payment) starts midway through a calendar month but the landlord wants to align future payments to a specific day going forward.
• Any terms to the contrary will be of no effect and the default position is that the rent is payable monthly calculated from the first date of the tenancy.
• RRA amends the Tenant Fees Act 2019 by prohibiting landlords and letting agents from inviting or accepting payment of any rent before the tenancy is entered into so in practice tenancies are likely to commence on a later date after the parties have signed the tenancy agreement. Any provision in a tenancy agreement that contravenes this prohibition will be of no effect.
• Prohibition on advance rent payments will not apply to registered social housing providers or where tenancies have already been entered into before this part of the act comes into force.

• The existing tenancy deposit rules that currently apply to ASTs will continue to be applicable to all new assured periodic tenancies.
• This means that where the statutory requirements have not been adhered to, the court will not make a possession order. The only exception to this is where the landlord is relying on Grounds 7A or 14 or where the landlord has already returned the deposit to the tenant.

• Landlords can increase rents once per year and increase notices served under s13 have to provide at least 2 months’ notice specifying the proposed new rent.
• The s13 notice will specify the date on which the landlord proposes that the new rent takes effect which cannot be before the beginning of a new period of the tenancy. The new period of the tenancy must be at least 52 weeks after the date on which the tenancy began. So landlords will have to ensure that their notices are valid and comply with the new statutory requirements.
• Where the rent is being reviewed for the second or third time etc, the second or third s13 notice cannot take effect before the appropriate date (see below).
• Unless the tenant challenges the proposed new rent specified in the s13 notice, the new rent will take effect from the date specified in the landlord’s s13 notice.
• If a tenant wants to challenge the proposed new rent or validity of the s13 notice, it must apply to the tribunal (First tier-Tribunal) to do so before the date specified in the s13 notice (being the beginning of a new period of the tenancy). There is no ability for landlords to kick-start the process by applying to the tribunal.
• If rather than formally challenging the rent via the tribunal, the landlord and tenant agree a figure between them which is lower than that specified in the s13 notice, then that agreed figure will take effect from the beginning of the new period of the tenancy.
• Landlord and tenants can still agree new rents between themselves and agree a variation of the tenancy to reflect this, but landlords can no longer insert stepped rents into tenancies.
• If the parties have agreed to vary the terms of the tenancy, the landlord has to provide the tenant with an updated tenancy agreement within 28 days.
• Under the act, tenants also have the ability to challenge the level of rent provided that no more than six months have passed since the tenancy was entered into, giving new tenants who have recently agreed terms and entered into the tenancy,  the power to seek a review of the rent if they feel they have been asked to pay more than the open market rent.
• Landlords cannot require tenants to pay more than one month’s rent in advance.
• There are separate rules that apply to registered social housing providers.

• The tribunal will determine what it considers to be the open market rent payable and only has jurisdiction to determine the level of the new rent up to the amount specified by the landlord in the notice.
• Where the open market rent is less than that proposed in the s13 notice, the new rent will be that lower figure.
• Where the tribunal determines that the open market rent is higher than that stated in the s.13 notice, the rent will be set at that which the landlord proposed in its notice.
• Where no s13 notice has been served and the review is sought by a tenant within the first six months from the date the tenancy began, the open market rent will be assessed as at the date of the tenant’s application to the tribunal.
• In the case of a s13 notice review, the new rent will be assessed as at the date specified in the notice for the beginning of the new period of the tenancy.
• The tribunal will have regard to the rent periods of the tenancy, the other terms of the tenancy including whether the landlord is liable to pay the council tax (e.g. in the case of an HMO).
• The usual disregards that currently exist under the Housing Act 1988 remain i.e. the effect on the rent due to a tenancy being granted to a sitting tenant or certain improvements having been undertaken by the tenant or reduction in value of the property due to the tenant’s failure to comply with the terms of the tenancy.

• Where no s13 notice has been served and the tenant seeks the review within the first six months from the date the tenancy began, the new rent will take effect from the date the tribunal directs which will not be earlier than the date of the tenant’s application.
• Where the tenant seeks a review following the service of a s13 notice, the new rent will take effect from the date specified in the notice if that date is on or after the tribunal’s determination (which in practice would require the landlord to engage the s13 process several months before the anniversary of the commencement of the tenancy and predict what it considers the open market rent will be at that time).
• What is more likely to happen in practice is that the determination will take place after the date specified in the s13 notice and the new rent will therefore be imposed on the beginning of the first new period of the tenancy that begins after the determination date. For example, the first monthly rental period that falls after the date of the tribunal’s decision.
• However, in the case of a review where a s13 notice has been served, the tribunal has been given a little leeway and discretion to depart from either of the prescribed appropriate dates above if that would cause undue hardship to the tenant. Instead it can direct an alternative appropriate date provided that is no more than two months after its decision.

• It is still permitted for landlords to ask tenants to provide a guarantor.
• Where there is a sole tenant who dies during the term of the tenancy, the guarantor will not be liable for any future payments after the date of death.
• In situations where there are more than two tenants, each guaranteed by separate family members, the guarantor is also released upon the death of the tenant they have guaranteed. In this context, a “family member” extends to grandparents, aunts, uncles and cousins.

• A new Schedule 2 is inserted into the Housing Act 1988 specifying the grounds for possession. This includes a new ground where a landlord intends to sell its interest in the building.
• Section 21 notice (no fault evictions) are banned.
• Break clauses in existing ASTs that transition into assured tenancies under the new regime will be of no effect.
• Landlords must register first with the Private Rented Sector Database in order to obtain a possession order (unless grounds 7A and 14 are being relied on).
• Where a section 8 notice is served relying on breaches of the tenancy, the following time frames will apply and a new s8 form will have to be served:

• Those landlords who do not have genuine grounds to rely on but serve s8 notices leave themselves open to a fine

• S.21 notices can continue to be served until the act comes into force and The Secretary of State is given the power to make regulations enabling landlords to continue the current AST possession process where they have already served section 21 notices prior to the commencement of the act.
• Where s.8 notices have already been served, regardless of whether possession proceedings are already afoot, the current possession process will apply and landlords can pursue existing claims for possession.

• Currently, and under the act, if possession is ordered on Ground 6, the landlord has to pay compensation to the tenant in the form of reasonable removal expenses (not a new provision but worth bearing in mind).
• Apart from Ground 6 referred to above, a new provision has been inserted that gives the court discretion to award compensation where possession is ordered on Ground 6B.
• Such payment is designed to compensate the tenant for loss and damage it will suffer in having to vacate, taking into account the circumstances that gave rise to the statutory notices being served in the first place and whether the tenant’s own conduct led to or contributed to them being served.

• Ground 4A applies to HMOs only, typically student houses occupied by 3 or more persons so private landlords renting smaller spaces to 1 or 2 students at a time that do not constitute an HMO, cannot rely on this ground.
• Ground 4A can be used to obtain possession at the end of the academic year i.e. between 1^st June and 30^th September, where properties are occupied by full time students.
• Ground 4A is not available if the student tenants entered into their tenancy more than 6 months before it was due to commence.
• PBSA – Purpose-Built Student Accommodation providers have the benefit of specific provisions of the act enabling them to grant fixed term tenancies aligned to the academic year with anticipated regulations exempting them from HMO registration and the PRS Database/PRSLOmbudsman.
• However in order to benefit from the above exemptions, the PBSA providers will need to be members of and registered as upholding approved code of standards e.g. ANUK/Unipol; Universities UK/GuildHE Accommodation Code of Practice for Student Housing (ACOP).

• Landlords cannot refuse to grant tenancies because tenants are in receipt of housing benefits but they can still undertake tenant referencing and make decisions based on affordability.
• Landlords cannot refuse to grant tenancies to those tenants simply because they have children or pets but are permitted to take a pragmatic approach where a property might not be suitable e.g. due to its size.
• Any term of a landlord’s or superior landlord’s insurance policy that restricts the property being let to a tenant with children or to tenants in receipt of benefits is of no effect if it has been extended or entered into after commencement of this part of the act. An exception will therefore apply to pre-existing insurance policies.
• However, where there are similar prohibitions in the terms of a mortgage that the landlord might have, those terms will have no effect.
• There will be a term implied into all tenancies allowing a tenant to have a pet at the property if the tenant seeks written permission and the landlord consents.  Tenants should provide a description of the pet. There are time limits imposed on landlords to respond to such requests which generally must be done within 28 days.
• Landlords cannot unreasonably refuse such a request and must provide a written response. Landlords can not require tenants to pay an additional tenancy deposit or take out additional insurance.
• There are exceptions to this 28 day period which apply. For instance, where the landlord has made a reasonable request for further information about the pet before the 28 day period lapses. Once the information is provided by the tenant, the landlord will have a further 7 days to respond and if the tenant fails to provide the information, there is nothing further the landlord need do.
• Another exception will apply where there is a superior landlord from whom the landlord needs to obtain consent pursuant to the terms of its own lease. In that situation, the landlord must seek superior landlord consent within 28 days but need only respond to the tenant within 7 days of receiving the superior landlord’s decision.
• The landlord and tenant can also agree to extend the 28 day period between them.
• An example where it might be reasonable to refuse a pet is if any superior lease includes an absolute prohibition on keeping pets in the property. Where the superior lease contains a qualified covenant, but the superior landlord has refused consent, that will also provide the landlord with reasonable grounds to refuse consent.
• If a tenant is unhappy with a landlord’s refusal it can pursue the matter either via the courts or make a complaint to the PRSL Ombudsman (see below).

• A Decent Homes Standard is being introduced which is expected to enhance and codify the existing fitness for habitation regulations, with the details of that still to be published.
• Awaab’s Law which is already in place for social housing landlords will be introduced to all private landlords and imply terms into tenancy agreements requiring landlords to address safety issues such as damp and mould within a fixed timescale. The details are to be published.

• Tenants can serve notices to quit at any time giving 2 months’ notice of their intention to vacate.
• Such notice can be withdrawn before the termination date if both landlord and tenant agree.

• A new Private Rented Sector Database (PRSD) is being introduced to which landlords (including those with Rent Act tenancies) will have to register themselves and their properties for a fee. This will include details of any relevant banning orders that have been made or imposition of fines and any convictions of relevant offences. Full details will be published. Registration is required before a property can be marketed for letting and any failure to do so is an offence so is something letting agents will have to check before agreeing to market a property for rent.
• Landlords will be precluded from obtaining possession orders unless they have registered and paid the fee.
• Where selective licensing applies, landlords will still be required to hold the appropriate licences.
• Landlords will also have to sign up to the Private Rented Sector Landlord Ombudsman scheme (see below).

• Requesting information from landlords and letting agents upon prior notice, to investigate breaches of the act and related housing legislation e.g. including illegal evictions under Protection from Eviction Act 1977 or letting rental properties in breach of a banning order under ss21-23 of the Housing and Planning Act 2016. It will be possible for a recipient to refuse to provide information due to legal professional privilege or if they have a reasonable excuse for not doing so. Providing false or misleading information is an offence and punishable by a fine. If there is a failure to cooperate, the local authority can seek a court order and recovery of costs for doing so including from a company director.
• Power of entry to commercial premises from where letting operations are conducted e.g. letting agencies, to seize documents such as tenancy agreements, bank statements, correspondence.
• Power of entry to the residential property upon reasonable notice and at reasonable times.

Claire is a Property Litigation partner within the Real Estate and Construction team providing advice, representation and support across the full spectrum of property matters including commercial and residential disputes. She acts for both landlords and tenants, landowners and developers as well as HNW individuals and is able to advise in insolvency situations where there are properties involved.