Yule Want To Mark These Dates: Essential Renters' Rights Changes

As the year draws to a close and the winter calendar fills with seasonal gatherings, it's important to prepare for significant changes arriving next year with the Renters' Rights Act 2025. The Act introduces sweeping reforms to the private rented sector in England, aiming to enhance tenant protections and modernise landlord obligations. The changes will be phased in from May 2026, with further measures planned for late 2026 and beyond. This post outlines the key milestones, compliance steps, and practical implications for landlords, tenants, and investors.

Overview of the Phase 1 Changes

The Act is being rolled out in phases, so different obligations start at different times. Effective from 1 May 2026, highlights include:

• All new and existing tenancies will convert to rolling, periodic tenancies with a maximum period of one month.
• The Act abolishes Section 21 'no-fault' terminations. Landlords must instead use section 8 of the Housing Act 1988 and rely on one of the listed grounds for possession, including new and expanded grounds.
• Tenants may terminate the tenancy at any time by giving at least two months' notice. However, the notice must expire at the end of a rental period, which can create a trap for the unwary.
• Landlords must follow the statutory process for all rent increases, as the Act prohibits the inclusion of rent review clauses in new tenancies and the operation of any such clauses in existing tenancy agreements. To increase rent, a landlord must serve a section 13 rent increase notice, limited to once per year. Tenants can challenge this notice through the First-tier Tribunal. Rental forecast models will need adjustment, since any increase only takes effect on the Tribunal's determination date. The Tribunal will cap the increase at either the market rent or the amount proposed in the landlord's notice. If tenants submit a high volume of challenges, the process may face significant delays, potentially leaving landlords with sitting tenants paying outdated rents for months in a rising market. The Tribunal may also defer a rent increase for up to two months after its decision if it finds the tenant would face undue hardship. If delays escalate and the Tribunal becomes overwhelmed, secondary legislation may allow the Tribunal to backdate rent increases to the date of the landlord's notice, though it remains to be seen whether this mechanism will be used.
• Landlords cannot demand advance rent payments of more than one month for new tenancies created after 1 May (Advance payment terms will still apply to existing tenancies granted before 1 May).
• Landlords must not collect any rent before both parties sign the tenancy agreement. The Act also bans rental bidding practices.
• Tenants may request to keep a pet and landlords must not unreasonably refuse such requests.
• Landlords must provide written tenancy agreements for all new tenancies; further details will follow.

Key Dates for the Calendar

So, while many are marking their diaries for festive events, we recommend adding these critical dates to your 2026 calendar:

Steps for a smooth transition into the new rental landscape

Landlords should consider auditing their tenancy templates, policies and resident‑facing communications. We expect the details of what landlords must include in their written tenancy agreements to be shared in draft regulations in January 2026, which should form the basis of review of existing templates. Any terms purporting to create fixed terms, contractual rent increases, advance rental payments and blanket bans on pets will be void after 1 May and in some circumstances could lead to a civil penalty, so these should be removed from any templates.

Looking Ahead

Phase 2 of implementation of the Act will begin in "late 2026" and includes the rollout of the new PRS landlord database which will be mandatory for landlords in the private rented sector, and the Ombudsman/landlord redress scheme, intended to provide further protection for tenants from non-compliant landlords. We know that landlords will fund these services through annual fees and charging models, but we await the details in secondary legislation.

Phase 3 will introduce the Decent Homes Standard for the private rented sector, with a recent government consultation proposing implementation in 2035 or 2037 – to be confirmed in the government's consultation response. Proposals for amended requirements around minimum energy efficiency standards (MEES) and extending Awaab's Law beyond social housing are also in the longer-term pipeline. Awaab's Law, named after the death of 2-year-old Awaab Ishak in 2020 due to mould exposure in his home, sets clear, legally enforceable timelines for landlords to address hazards in accommodation, including damp and mould.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.