Renters\' Rights Act 2025: What Every Landlord Must Know

The Renters' Rights Act 2025 marks the most fundamental shift in the private rented sector for a generation. After years of consultation, false starts under the previous administration, and significant parliamentary debate, the Act received Royal Assent in 2025 and is being brought into force in stages. For landlords, the changes are substantial — and for many, they are accelerating the decision to exit the sector entirely.

The end of Section 21 — no-fault evictions abolished

The centrepiece of the Act is the abolition of Section 21 of the Housing Act 1988 — the mechanism that allowed landlords to recover possession of a property without needing to provide a specific reason. Often called "no-fault evictions," Section 21 notices gave tenants two months' notice and required no grounds at all.

Under the new regime, landlords must rely on one of the specific grounds for possession set out in Schedule 2 of the Housing Act 1988, as amended by the new Act. These include grounds for rent arrears, anti-social behaviour, the landlord intending to sell, or the landlord or a close family member needing to move in. Each ground has its own procedural requirements and notice periods.

All tenancies become periodic

The Act also abolishes fixed-term assured shorthold tenancies for new lets. All tenancies become periodic from the outset — rolling month to month (or week to week if the original rent was weekly). This removes the certainty of a fixed term for landlords, who previously could plan around a six- or twelve-month contract coming to a natural end.

Existing fixed-term tenancies are converted to periodic tenancies once the relevant commencement provisions come into force. Landlords with tenants mid-term on a fixed contract will see that arrangement automatically become periodic.

Rent increase restrictions

Landlords can only increase rent once per year and must use the formal Section 13 process to do so, giving at least two months' written notice. Tenants gain a strengthened right to challenge increases they consider above market rate at the First-tier Tribunal — and the Tribunal can only set the rent at market level, not higher. This removes a previous tactic of proposing an above-market increase to negotiate downward.

New landlord database and Ombudsman

All private landlords in England will be required to join a new Private Rented Sector Database, registering their properties and their details. Failure to comply carries financial penalties. Alongside this, a new mandatory Ombudsman scheme will handle disputes between landlords and tenants without the need for court proceedings. Membership is compulsory for all landlords, and the Ombudsman can award compensation to tenants.

Awaab's Law extended to the private sector

Originally introduced for social housing following the tragic death of Awaab Ishak, the Act extends Awaab's Law to the private rented sector. Landlords will be required to investigate and begin remedying damp, mould, and other hazards within specified timeframes. Timescales are set by regulation, and failure to comply gives tenants grounds to take action.

What this means for landlords considering their next move

For many landlords, the abolition of Section 21 is the tipping point. The ability to recover possession quickly and without litigation has historically been one of the key assurances supporting the decision to let residential property. Combined with Section 24 mortgage interest restrictions, rising compliance costs, and increased regulatory obligations, the overall position for personal-name landlords has shifted materially.

Landlords who wish to sell while a tenant remains in occupation can still do so — using the new mandatory grounds for possession (Ground 1 for owner-occupation, Ground 1A for sale) with appropriate notice periods. However, tenants now have significantly stronger protections against retaliatory use of these grounds within the first six months of a new tenancy.

Firedstone buys tenanted and vacant properties directly across England and Wales. If you are considering selling in light of the new legislation, we can provide a no-obligation offer that takes account of the property's current tenancy status — with no requirement to first obtain vacant possession.

This article contains general information only and does not constitute legal advice. Legislation is being brought into force in stages; always consult a solicitor or property specialist regarding your specific situation.

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