Background
England’s modern tenancy system was established under the Housing Act 1988, coming into force in 1989. The legislation introduced Assured Shorthold Tenancies (ASTs) – short-term occupancy agreements typically lasting 6 to 12 months – alongside “Section 21” no-fault evictions, which gave landlords broad powers to remove tenants with limited recourse.
By the mid-2000s, homeownership was in decline, and renting had evolved well beyond its traditional association with students and young people, becoming firmly embedded across multiple demographic groups. A growing wave of complaints, centred on housing insecurity, poor conditions, and aggressive rent increases – particularly in cities such as London – prompted lobby groups including Shelter, alongside cross-party MPs, to call for meaningful reform. There was broad political consensus that the system was overdue an overhaul.
In 2019, the UK Government – first under Theresa May, then Boris Johnson – pledged to abolish Section 21 evictions. A White Paper followed in 2022, proposing the end of no-fault evictions, the introduction of open-ended tenancies, the creation of a Private Renters’ Ombudsman, rights for pet ownership, and improved housing standards.
The Renters Reform Bill progressed through Parliament in 2023–2024, with objectives designed to deliver greater security, fairer treatment and better living conditions for tenants, while preserving landlords’ ability to regain possession where justified and ensuring a sustainable rental market. The aim was a structural shift from short-term, landlord-controlled rentals towards a stable, tenant-secure system more aligned with European rental models.
The Renters’ Rights Act completed its passage through Parliament on 22 October 2025 and received Royal Assent on 27 October 2025. The first wave of changes comes into force on 1 May 2026. It is set to reshape the private rental market for 11 million renters and 2.3 million landlords across England.
Key Reforms – What’s Changing?
- Abolition of Section 21 “No-Fault” Possession: Landlords must now cite a statutory ground to seek possession – such as intention to sell the property or breach of tenancy terms.
- End of Fixed-Term Assured Tenancies: All tenancies become rolling periodic tenancies. Tenants may leave on two months’ notice, while landlords must satisfy statutory grounds for possession. Protective measures are introduced for tenants who temporarily fall into arrears.
- Increased Rent Controls and Regulation: A new statutory process governs rent increases, with a ban on rent bidding, stronger rights for tenants to challenge increases, and the introduction of rent repayment orders.
- Ban on Tenant Discrimination: Landlords cannot discriminate against prospective tenants on the basis of benefits receipt, universal credit status, or having children.
- Right to Request a Pet: Landlords cannot unreasonably refuse a tenant’s request to keep a pet.
- Extended Enforcement Powers for Local Councils: Councils may retain revenue from financial penalties to fund future enforcement activity. Civil penalties of up to £7,000 apply for initial or minor breaches, rising to up to £40,000 for serious, continued or repeated non-compliance.
- Awaab’s Law – Forthcoming Extension to the Private Rented Sector*: The Renters’ Rights Act 2025 includes provisions to extend Awaab’s Law to the private rented sector, which will subject landlords to strict timeframes for investigating and resolving hazards. Implementation is subject to government consultation and is not yet in force for private landlords; the earliest anticipated date is 2027.
- Decent Homes Standard – Forthcoming Extension to the Private Sector*: The Renters’ Rights Act 2025 includes powers to extend the Decent Homes Standard to the private rented sector for the first time, ensuring private tenants have the right to safer, better-quality housing in line with standards previously applicable only to social housing. Implementation is subject to further consultation and is not expected until 2035 at the earliest.
- Private Rented Sector Landlord Ombudsman*: Tenants will be able to use the service free of charge to raise complaints about landlord conduct. The Ombudsman will have powers to compel apologies, remedial action, and/or compensation. The service is expected to be introduced from late 2026, with full mandatory participation by landlords anticipated by 2028.
- Private Rental Sector Database*: Landlords of assured and regulated tenancies will be required to register themselves and their properties. Failure to comply will carry financial penalties. The database will also serve as a central resource for compliance guidance, providing greater transparency for tenants. This requirement is expected to be introduced from late 2026, with full mandatory sign-up anticipated by 2027–2028.
*These reforms are subject to further consultation and/or secondary legislation before coming into force. Dates are indicative based on the government’s published implementation roadmap (November 2025).
Impact on Property Owners
Increased Legal Costs
Possession proceedings are now more complex, with greater reliance on legal representation. Contested cases will carry significantly higher costs.
Greater Regulatory Obligations
Landlords must respond promptly to hazard reports and, in due course, comply with Awaab’s Law and the Decent Homes Standard as those provisions are extended to the private rented sector. Non-compliance with the reforms already in force carries material financial penalties.
Potential Sector Exit
For some landlords, the cumulative burden of compliance costs, rental controls, and legal proceedings may render continued letting financially unviable, potentially accelerating exits from the private rental sector.
Practical Steps for Landlords
A more rigorous approach to documentation and tenant management can help mitigate risk and reduce hidden costs:
Thorough tenant screening – with increased tenant rights, getting the landlord/tenant match right from the outset is more important than ever.
Detailed schedule of condition, including photographs, signed by the tenant on entry.
Periodic inspections agreed upfront to monitor condition, cleanliness, and safety fixtures such as smoke detectors.
Rights of access – landlords have no automatic right of entry; a pre-agreed inspection schedule is essential.
Documented inspections to clearly distinguish between fair wear and tear and damage.
- The benefits of this approach include:
- Protecting property value and landlord reputation through proactive maintenance
- Preventing disputes by establishing a clear, evidenced record of condition
- Supporting legal compliance across the new regulatory framework
- Simplifying security deposit disputes
- Identifying repair and maintenance costs that may be offset against tax
- Building a reputation as a quality landlord with strong tenant relationships
Awaab’s Law — A Note*
Awaab’s Law was introduced through the Social Housing (Regulation) Act 2023, following the death of two-year-old Awaab Ishak, who died in December 2020 after prolonged exposure to mould in his family’s flat in Rochdale. His case exposed serious failures by the landlord to address dangerous living conditions and prompted legislative action.
The Law imposes strict timeframes on social landlords to investigate and remedy health hazards, with emergency hazards requiring immediate action. Landlords must keep tenants informed of progress throughout. The Renters’ Rights Act 2025 includes provisions to extend these protections to the private rented sector. However, as of May 2026, this extension is not yet in force — implementation remains subject to government consultation, with 2027 the earliest anticipated date for private landlords to become subject to these obligations.
*As of 1 May 2026, Awaab’s Law applies only to registered providers of social housing. The extension to the private rented sector requires further secondary legislation and consultation before it takes effect.
The information contained in this article is provided for general guidance purposes only and does not constitute legal or financial advice. Landlords and tenants should seek professional advice tailored to their specific circumstances.