When Did the Renters’ Rights Bill Become Law?
The Renters’ Rights Act 2025 Is Now Law, And It Changes Everything for Landlords
On 27 October 2025 at 7:40pm, England’s private rental sector changed forever.
The Renters’ Rights Bill received Royal Assent, the final stage where a Bill becomes law, making it the Renters’ Rights Act 2025. The biggest shake-up to landlord rights in decades.
And if you’re a landlord? This affects you directly.
From 1 May 2026, Section 21 no-fault evictions disappear completely. Every tenancy becomes indefinite. And regaining possession of your own property becomes exponentially harder.
Landlords across England are anxious. Many are looking to exit the market before the deadline hits.
The Act applies to England only. Wales has its own separate rental legislation under the Renting Homes (Wales) Act 2016.
Here’s what you need to know, and what you need to do before time runs out.
Quick navigation: Already decided to sell? Skip to “What This Means If You’re Thinking of Selling“. Staying in the market? Jump to “What Landlords Need to Do Now“. Need the full picture first? Keep reading.
What’s Already Changed vs What’s Coming
The legislation is now law, but implementation happens in stages.
Here’s the critical date you need to remember:
1 May 2026.
That’s when the biggest changes kick in: the end of Section 21 no-fault evictions and the shift to a new possession framework.
Already in Effect:
- Awaab’s Law for social housing: social landlords must fix serious health and safety hazards (damp, mould, heating) within strict time limits. Extension to the private rented sector is planned for Phase 3 (see below)
Coming 1 May 2026:
This is the big one.
- Section 21 abolished completely
- All existing tenancies convert to periodic (rolling) arrangements
- New possession framework under Section 8 becomes the only route
- Landlords who want to use Section 21 to gain vacant possession must act before 1 May 2026 (after that date, selling with vacant possession is still possible via Section 8 Ground 1A, but requires at least 12 months’ tenancy duration and 4 months’ notice)
Coming Later (Phase 2 & 3, late 2026 onwards):
- Private Rented Sector Database registration (late 2026 onwards)
- Private Renters’ Ombudsman (expected 2028)
- Decent Homes Standard extension to private rentals (Phase 3, timeline subject to consultation, proposed 2035-2037)
- Awaab’s Law extension to private rented sector (Phase 3, timeline subject to consultation)
For full implementation timelines, see the government’s official guidance.
The dates matter, but the details matter more. Let’s break down exactly what Section 21 abolition means for you.
The End of Section 21: What This Actually Means
Section 21 has been the landlord’s get-out clause since 1988.
It let you end a tenancy without giving a reason, typically with two months’ notice.
From 1 May 2026, that option disappears.
All tenancies in England, both existing and new, become rolling periodic arrangements (tenancies that continue month-to-month or week-to-week with no end date). No more fixed terms. No more guaranteed vacant possession at the end of a 6 or 12-month term.
If you want your property back, you’ll need to prove a valid ground for possession under Section 8 of the Housing Act 1988.
The Transitional Window (Critical)
Think you’ve got time to decide?
Think again.
If you’re a landlord considering selling with vacant possession, here’s the timeline that matters:
- Before 1 May 2026: You can still serve a valid Section 21 notice
- Before 31 July 2026: You must file your possession claim in court (this is the “long-stop” date)
After 31 July 2026, even properly-served Section 21 notices become invalid. You’re into the new regime.
Landlords Considering Their Options
This narrow window is reshaping the market. The Renters’ Rights Act 2025 is driving many landlords to consider their exit strategies before May 2026, those who want to sell with vacant possession are looking to market before it becomes legally impossible to evict without proving specific grounds. Auction houses have reported increased volumes of tenanted lots and properties being prepared for sale ahead of the deadline. (Pinsent Masons / Auction Link, 2025)
The Renters’ Rights Act is accelerating the trend of landlords exiting the market, particularly those with interest-only mortgages nearing expiry.
So if Section 21 is gone, what replaces it? That’s where things get complicated.
The New Eviction Framework: Section 8 Grounds Only
From 1 May 2026, Section 8 becomes your only route to possession.
Section 8 requires you to prove one or more specific “grounds”, legal reasons why you need the property back.
The government guidance sets out the full list. Here are the ones that matter most:
Mandatory Grounds (Court Must Grant Possession If Proven)
“Mandatory” sounds promising, right?
Here’s the reality check.
- Selling the property: you intend to sell within three months (cannot be used in first 12 months of tenancy; requires 4 months’ notice)
- Landlord or family moving in: you or an immediate family member needs to occupy as their only/main home (cannot be used in first 12 months; 4 months’ notice)
- Three months’ rent arrears: tenant owes at least three months’ rent both when notice served and at hearing date
- Repeated serious rent arrears: tenant has been in serious arrears multiple times (new Ground 8A introduced by the Renters’ Rights Act 2025)
- Anti-social behaviour or criminal activity: serious misconduct proven
- Property needs substantial renovation: major works required that can’t be done with tenant in situ (Ground 6)
- Tenant death: no succession rights apply (Ground 7)
Discretionary Grounds (Court Decides)
- Persistent late payment: rent consistently paid late even if eventually paid in full
- Breach of tenancy terms: tenant breaks conditions in the agreement
The catch?
Mandatory doesn’t mean automatic. You still need to follow the correct notice procedure, wait out the notice period, apply to court, attend a hearing, and prove your case.
And two of the most common grounds, selling or moving in, are blocked for the first 12 months of any new tenancy.
This isn’t just a legal change. It’s a financial one. Here’s what it means for your bottom line.
What This Means If You’re Thinking of Selling
Let’s be direct.
If you’re a landlord weighing up whether to stay in the rental market or sell, the Renters’ Rights Act just made that decision more complicated.
Much more complicated.
Here’s why:
1. Selling with a Sitting Tenant Is Harder
Most buyers want vacant possession. Buy-to-let investors will consider tenanted properties, but they’ll factor in the new risks and discount accordingly.
Cash house buyers like us can buy with tenants in place, but the market value reflects the reality that possession is now harder to secure.
2. The Clock Is Ticking on Section 21
If you want to serve a Section 21 notice and regain possession the “old way,” you need to act before 1 May 2026.
You then have until 31 July 2026 to file proceedings in court.
After that, it’s Section 8 only, which takes longer, costs more, and requires proving grounds.
3. The Costs of Staying Are Rising
It’s not just the Renters’ Rights Act.
This is death by a thousand cuts.
- The SDLT surcharge on buy-to-let purchases jumped to 5% in October 2024 (up from 3%)
- Mortgage interest relief is capped at 20%
- Upcoming Decent Homes Standard compliance may require capital investment
- Energy Performance Certificate (EPC) minimum standards may tighten further
Buy-to-Let SDLT Surcharge Now 5%
The Higher Rates for Additional Dwellings (HRAD) surcharge, applying to buy-to-let purchases, second homes and most corporate residential acquisitions, increased from 3% to 5% on 31 October 2024. Counterintuitively, 54% of all HRAD transactions in Q1 2025 were for properties under £250,000, concentrated in Northern cities and towns where landlords acquire lower-value rental stock. The surcharge alone now adds £12,500 to the cost of a £250,000 buy-to-let purchase. (HMRC, 2025)
A growing number of landlords are exiting the market, particularly those with interest-only mortgages nearing expiry and no appetite to refinance.
The regulatory burden is real. The costs are rising. And for many landlords, it’s simply no longer worth it.
4. The Market Is Landlord-Heavy Right Now
Market reports suggest the property market is currently price-sensitive and buyer-dominated.
There are reports of increased supply of rental properties for sale, particularly flats in London, as landlords exit the sector. Auction houses have reported increased volumes of tenanted lots coming to market ahead of the May deadline.
If you’re going to sell, timing matters, and competition is heating up.
But landlord rights aren’t the only thing changing. The Act introduces sweeping new protections for tenants, and these come with compliance costs you need to understand.
Tenant Protections: What’s Expanded
The Act isn’t just about evictions. It introduces sweeping new protections for tenants across England.
And every single one of these protections comes with compliance obligations, and costs, for you.
Here’s what changes:
Security of Tenure
Tenancies are now indefinite by default.
Translation: Tenants can stay as long as they wish unless you prove a valid Section 8 ground.
Renters Losing Hope of Homeownership
Only 58% of England’s private renters now expect to ever buy a property, down from 61% a decade ago, according to the English Housing Survey 2023-24. Among those who don’t expect to buy, affordability is overwhelmingly the primary reason. Private renters now spend 39% of their gross household income on rent (excluding housing benefit), compared to just 19% for mortgage-holders. The decline in homeownership aspiration is one reason the government introduced stronger tenancy protections, for many renters, the private rental sector is now a permanent housing solution, not a temporary stepping stone. (MHCLG, 2024)
The Right to Request a Pet
Yes, you read that correctly.
Tenants can request to keep a pet in your property.
You can only refuse if you have a reasonable justification, for example, the property is unsuitable, the lease prohibits it, or the pet poses a genuine risk.
Blanket “no pets” clauses are no longer enforceable.
Decent Homes Standard for Private Rentals
The Decent Homes Standard, already mandatory in social housing, will extend to the private rented sector.
This means properties must be free from serious hazards, in reasonable repair, have modern facilities, and provide adequate heating and insulation.
The rollout to private rentals is part of Phase 3 of the implementation roadmap. The government consulted on the updated standard in mid-2025, with implementation expected via secondary legislation in the near term as part of the phased rollout of the Renters’ Rights Act. The exact timeline remains subject to confirmation following the consultation period.
Faster Repairs for Health Hazards
“Awaab’s Law”, named after two-year-old Awaab Ishak, who died from exposure to mould, requires landlords to fix serious health and safety hazards within strict time limits.
Currently, Awaab’s Law applies to social housing only. As of 27 October 2025, social landlords must investigate significant hazards like damp and mould within 10 working days, provide a written summary of findings within 3 working days, and carry out relevant safety work within 5 working days. Emergency hazards must be investigated and made safe within 24 hours.
The government plans to extend Awaab’s Law to the private rented sector in Phase 3 of the implementation roadmap, with legally enforceable timeframes for PRS landlords. The timeline for this extension is subject to consultation.
A Free Dispute Resolution Service
The new Private Renters’ Ombudsman will provide free, binding dispute resolution for tenants.
The Ombudsman is expected to launch in 2028 as part of Phase 2 of the implementation roadmap. Once operational, landlords must be registered members. The Ombudsman will be able to award compensation, order refunds, and require specific actions, decisions will be legally binding.
Tenant protections are one thing. But what about your ability to adjust rent to match market conditions? That’s being restricted too.
Rent Increases: The New Rules
Want to raise the rent?
Landlords can only increase rent once per year.
From 1 May 2026, all private-rented-sector rent increases must use the Section 13 process with at least two months’ advance notice. Rent review clauses and other contractual rent-increase routes will no longer be permitted after that date.
Tenants Can Challenge Rent Increases
Here’s where it gets interesting.
If a tenant believes your proposed rent increase is above market rate, they can challenge it at the First-tier Tribunal (Property Chamber).
The tribunal will cap the increase at the market rent for a comparable property in the area.
You cannot increase rent above the amount you advertised when the tenant moved in during the first 12 months of the tenancy.
So that’s what’s changing. Now here’s what you need to do about it, whether you’re staying in the market or planning your exit.
What Landlords Need to Do Now
Staying in the game?
If you’re staying in the rental market, here’s your compliance checklist:
1. Register on the Private Rented Sector Database
This one’s non-negotiable.
The government will launch a mandatory national database for all private landlords in England.
Registration will be required to let property legally. Details on the registration process, timelines, and fees are expected shortly from the Department for Levelling Up, Housing and Communities.
2. Review Your Properties Against the Decent Homes Standard
Assess whether your properties meet the new standard. Budget for any necessary upgrades, particularly insulation, heating systems, and damp-proofing.
Local authorities will have enforcement powers, including fines and rent repayment orders.
3. Update Tenancy Agreements
From 1 May 2026, all tenancies become periodic (rolling).
If you currently issue fixed-term agreements, you’ll need to adjust your processes. Consult your letting agent or legal adviser for compliant templates.
4. Plan for Potential Tribunal Costs
If you need possession under Section 8, including for rent arrears, you’ll need to go through county court proceedings, not a tribunal. Factor in legal costs and time. (Tribunals are relevant for limited matters such as rent increase challenges and some rent repayment order cases, not standard possession claims.)
Section 8 possession claims are more expensive and time-consuming than Section 21 ever was.
5. Consider Your Exit Strategy
Not every landlord will want to stay in the market under the new regime.
If you’re thinking about selling, the timeline matters:
- Sell now: Simplest route if you want vacant possession or if your property needs significant compliance work
- Serve Section 21 before 1 May 2026: Gives you the option to regain possession under the old rules (but you must file court proceedings by 31 July 2026)
- Stay and comply: Commit to the new framework, understand it’s a long-term, regulated business now
Cash buying companies can typically complete purchases within 28 days from offer acceptance. Many of the sellers using these services are in exactly the situation you might be facing now: landlords exiting, interest-only mortgages expiring, chain breaks, and properties that need work.
Sound familiar?
Need to Sell Quickly?
If that sounds familiar, get in touch. We’ll give you a no-obligation cash offer.
Call us on 020 8634 0224
Frequently Asked Questions
Still got questions? These are the ones we’re getting asked most.
Does the Renters’ Rights Act apply to Wales?
No. The Act applies to England only.
Wales has its own separate rental legislation: the Renting Homes (Wales) Act 2016, which came into force in December 2022. It already abolished Section 21 and converted tenancies to rolling “occupation contracts.”
If your property is in Wales, the tenancy reform provisions of the Renters’ Rights Act (Section 21 abolition, periodic tenancies, etc.) do not apply to you. Wales is governed by the Renting Homes (Wales) Act 2016. However, the Act’s rental discrimination provisions do extend into Wales from 1 June 2026, prohibiting landlords from discriminating against tenants with children or those receiving benefits.
When do my existing tenancies convert to periodic?
1 May 2026.
On that date, every assured shorthold tenancy in England automatically becomes a rolling periodic tenancy, regardless of whether it’s currently fixed-term or periodic.
If your tenant is mid-way through a 12-month fixed term on 1 May 2026, that term ends immediately and becomes periodic.
Can I still use Section 21 on tenancies that started before the Act?
Yes, but only if you act quickly.
You can serve a valid Section 21 notice on most existing tenancies before 1 May 2026: but not all. If your assured shorthold tenancy started on or after 1 January 2026, you cannot serve a section 21 notice because you will not have time to do so before the reforms take effect (section 21 cannot normally be served within the first four months of a tenancy).
Once served, you must file your possession claim in court before 31 July 2026 (the long-stop date).
If you miss either deadline, the notice becomes invalid and you’ll need to use Section 8 grounds instead.
Do the new rules apply to company lets and holiday lets?
It depends.
Company lets: Where the tenant is a company (rather than an individual), the tenancy is excluded from the assured tenancy regime under the Housing Act 1988 and the Renters’ Rights Act does not apply. Company lets are contractual arrangements outside the statutory framework. If you’re unsure whether your arrangement qualifies as a company let or an assured tenancy, seek legal advice.
Holiday lets: Genuine holiday lets (properties let for short-term holiday use only) are excluded from the Act. However, if you’re letting a property as a holiday let to avoid the Act’s requirements, local authorities have enforcement powers to reclassify it.
What about student HMOs and purpose-built student accommodation?
Student HMOs (houses in multiple occupation): Covered by the Act. Section 21 is abolished, but specific Section 8 grounds exist for student lettings where you need to recover the property for the next academic year.
Purpose-built student accommodation (PBSA): Some exemptions apply. Check with your legal adviser or managing agent.
Can I prevent tenants from having pets?
Not with a blanket ban.
Tenants have the right to request a pet. You can only refuse if you have a reasonable justification, for example:
- The property is unsuitable for the pet (size, lack of outdoor space, building restrictions)
- Your lease or freeholder prohibits pets
- The pet presents a genuine risk to other residents or the property
“I don’t like pets” is not a reasonable justification under the Act.
If you agree, you can require the tenant to have pet insurance covering damage.
Will the Decent Homes Standard force me to spend thousands on renovations?
Possibly, it depends on the current condition of your property.
The Decent Homes Standard requires properties to:
- Be free from Category 1 hazards under the Housing Health and Safety Rating System (e.g., damp, mould, unsafe electrics, serious disrepair)
- Be in a reasonable state of repair
- Have reasonably modern facilities (kitchen less than 20 years old, bathroom less than 30 years old)
- Provide effective heating and insulation
If your property already meets these criteria, you won’t need major work.
If it doesn’t, particularly older properties with poor insulation, outdated heating, or damp issues, you may need to invest significantly.
Local authorities will enforce the standard through inspections, fines, and rent repayment orders. Non-compliance can also make it harder to evict tenants using Section 8 grounds.
Does this mean I’ve lost control of my property?
Not entirely, but the balance has shifted.
You still own the property. You can still increase rent (once per year, subject to tribunal challenge). You can still recover possession, but only by proving a valid Section 8 ground and following the correct legal process.
What you’ve lost is the unilateral right to end a tenancy without reason. That’s the trade-off.
For landlords who operate professionally, treat tenants fairly, and maintain their properties well, the changes are manageable.
For landlords who relied on Section 21 to avoid dealing with disputes or poor property conditions, the new regime makes life much harder.
What happens to rent-to-rent agreements?
Rent-to-rent arrangements, where an intermediate tenant rents a property from the landlord and then sub-lets to other tenants, are still legal under the Act.
However, the legal position is complex:
- If the head tenant occupies the property as their only or principal home, they are protected by the Renters’ Rights Act as an assured tenant
- If the head tenant operates rent-to-rent as a business and does not live in the property, they are likely NOT protected by the Act, the tenancy may be a common law or contractual arrangement outside the assured tenancy regime
- Sub-tenants who do occupy their rooms as their only or principal home have protections under the Act
Rent-to-rent arrangements are higher-risk under the new framework. The legal protections depend entirely on whether occupiers use the property as their home. If you’re considering one, take legal advice and ensure airtight contracts.
Can I still use a portable deposit scheme?
The Act enables a portable deposit scheme framework, which would allow tenants to transfer their deposit from one tenancy to the next without waiting for the previous landlord to release funds.
However, the scheme is not yet enacted or operational. The Act provides enabling powers, but the regulations needed to implement the scheme have not yet been made. Details on how the scheme will work, including whether participation will be voluntary or mandatory, are still being finalised by the government.
This could reduce delays at the start of new tenancies, but it also adds administrative complexity for landlords managing deposit transitions.
Where can I find the full text of the legislation?
The full text of the Renters’ Rights Act 2025 is available on legislation.gov.uk.
For plain-English guidance and implementation timelines, see the government’s policy statement and guidance.
If you’re a landlord navigating these changes and need legal advice specific to your situation, speak to a solicitor or legal adviser specialising in landlord-tenant law.
Should You Sell Before May 2026?
Here’s the honest answer: it depends on your situation.
You should consider selling if:
- You’re already thinking about exiting the rental market
- Your property needs significant work to meet the Decent Homes Standard
- You have an interest-only mortgage nearing expiry and refinancing isn’t attractive
- You want vacant possession and don’t want to navigate the new Section 8 process
- The rising costs (SDLT surcharge, compliance, legal fees) no longer make the investment viable
- You’ve had difficult tenants and the thought of losing Section 21 makes you anxious
You might want to stay if:
- You have good tenants, well-maintained properties, and strong cash flow
- You’re in the rental business for the long term and willing to adapt
- Your properties already meet or exceed the Decent Homes Standard
- You’re comfortable with the new compliance, registration, and tribunal processes
- You believe rental yields will improve as smaller landlords exit the market
There’s no one-size-fits-all answer.
Many landlords are reconsidering their position. The combination of Section 21 abolition, higher SDLT, tighter mortgage rules, and compliance costs is leading a significant number of landlords to exit the sector.
If you decide to sell, the earlier you act, the more options you have.
And if you need to sell quickly, whether to beat the 1 May deadline, avoid costly renovations, or simply move on, we can help.
We buy properties in any condition, with or without tenants, and complete in as little as 28 days on average. No estate agent fees. No repairs needed. Legal fees paid.
Want to know what we could offer for your property? Call us on 020 8634 0224 or request a free valuation.
Final Thoughts
The Renters’ Rights Act 2025 is now law.
It’s the biggest change to England’s private rental sector in a generation, and it’s forcing landlords to make hard decisions.
Stay and comply with the new regime? Or sell and exit while you still have Section 21 as an option?
There’s no middle ground here.
Whatever you decide, make sure you’re working with the right timelines, the right advice, and the right partners.
Your next step:
- If you’re staying: Start compliance work now. Register on the PRS Database when it launches. Budget for Decent Homes upgrades. Update your tenancy agreements. Get legal advice on Section 8 procedures.
- If you’re selling: Act before 1 May 2026 if you want to use Section 21. Get a valuation now, even if you’re not ready to commit. Understand your options (vacant possession vs tenanted sale vs cash buyer).
- If you’re unsure: Talk to someone who’s been through this before. Get professional advice. Don’t leave it until the deadline forces your hand.
We’ve been buying properties for over 20 years. We’ve seen every kind of landlord situation, repossessions, broken chains, interest-only expiries, difficult tenants, properties in disrepair.
If you’re weighing your options, we’re here to help.
No pressure. No obligation. Just an honest valuation and a straightforward offer.
Call us on 020 8634 0224
Or visit propertyrescue.co.uk
Disclaimer: This article provides general information about the Renters’ Rights Act 2025 and is not legal advice. Landlord-tenant law is complex and changes frequently. For advice specific to your circumstances, consult a solicitor or legal adviser specialising in property law. Property Rescue is a property buying company, not a law firm.
All information is correct as of 9 March 2026 to the best of our knowledge, based on legislation and government guidance available at that date.