The Renters’ Reform Act in detail

A Comprehensive Guide to the New Legislative Landscape

The private rented sector in England is currently undergoing its most significant transformation in over three decades. With the Renters’ Rights Act having received Royal Assent, the period of speculation regarding the future of tenancies has concluded. The Act represents a fundamental shift in the power dynamic between landlords and tenants, introducing a new regulatory framework designed to provide greater security for renters while imposing stricter standards on property management.

This legislation is not merely an amendment to existing laws but a complete overhaul of the assured tenancy system. It affects almost every aspect of the rental process, from the initial advertisement of a property to the grounds upon which a tenancy can be terminated. For property owners, investors, and tenants alike, understanding the nuances of this Act is essential for navigating the modern housing market.

The Transition to Assured Periodic Tenancies

The cornerstone of the Renters’ Rights Act is the abolition of the Assured Shorthold Tenancy (AST), which has been the standard rental agreement since 1988. In its place, the government has introduced the Assured Periodic Tenancy (APT). This change is not optional; upon the commencement date of the Act, all existing ASTs will automatically convert into APTs.

The defining characteristic of an APT is that it is indefinite and open-ended. The concept of a “fixed term”—where a tenant is committed to a property for six or twelve months—has been eliminated. This applies even to the student market, which previously relied heavily on fixed-term cycles to align with the academic year. Under the new system, tenancies run from month to month with no end date. There are no renewals because there is nothing to renew; the tenancy simply continues until either the tenant serves notice or the landlord successfully applies for possession under specific legal grounds.

For tenants, this provides unprecedented flexibility. A tenant can choose to leave at any point, provided they give at least two months’ notice in writing. This notice must be timed to expire at the end of a rent period. If an existing tenancy agreement already stipulates a shorter notice period, such as one month, that shorter period may still apply. Conversely, landlords no longer have the “safety net” of a fixed term to guarantee rental income for a set duration.

Rental Bidding and Financial Regulations

The Act introduces stringent new rules regarding how rent is advertised and collected. In an effort to curb the practice of “rental bidding wars,” where prospective tenants compete by offering more than the asking price, the Act mandates that all advertisements and listings must state a proposed rent. Landlords and letting agents are strictly prohibited from accepting any offer that exceeds this stated amount. While applicants are free to offer less than the proposed rent, the “ceiling” is firmly set by the advertisement.

Furthermore, the legislation standardises rent periods. For all new tenancies, the maximum rent period allowed is one month. This is designed to prevent landlords from demanding large sums of rent in advance, a practice that often disadvantaged those without significant savings. The Act specifies that any term in a new tenancy agreement requiring rent to be paid in advance of the rent period is null and void.

While tenants may choose to pay rent in advance voluntarily once the agreement is signed, a landlord cannot legally compel a tenant to pay more than one month’s rent at a time. It is permissible to require the first month’s rent before the tenant moves in, but this payment cannot be requested until the tenancy agreement has been formally signed by both parties.

Rent Increases and the Role of the Tribunal

The mechanism for increasing rent has also been overhauled. Landlords can no longer rely on rent review clauses within a contract; such clauses are now legally void. The only way to increase rent is by serving a Section 13 notice using the prescribed “Form 4.”

This process grants tenants significant protections. If a tenant believes a proposed increase is unfair, they can challenge the notice at the First-tier Tribunal. Crucially, making an application to the tribunal delays the start of the rent increase until a judicial decision is reached. While the tribunal does not have the power to increase the rent beyond what the landlord requested, it can reduce it if the judge determines that the proposed figure exceeds the current market rate for similar properties in the local area. This ensures that rent increases remain tethered to economic reality rather than arbitrary demands.

The End of Section 21 and New Grounds for Possession

Perhaps the most discussed element of the Act is the total abolition of Section 21 “no-fault” evictions. Under the previous regime, landlords could terminate a tenancy at the end of a fixed term without providing a reason. This is no longer possible. Every eviction must now be justified by a valid legal ground under an expanded Section 8 framework.

The grounds for possession are categorised into mandatory and discretionary. Common grounds include:

• Sale of the Property: If a landlord intends to sell the dwelling, they may regain possession, though specific notice periods and evidence will be required.
• Occupation by Landlord or Family: Landlords can terminate a tenancy if they or a close family member intend to move into the property as their primary residence.
• Rent Arrears: The Act maintains provisions for possession in cases of significant unpaid rent, though the thresholds and notice periods have been refined.
• Antisocial Behaviour and Breach of Contract: Serious misconduct or failure to adhere to the terms of the tenancy remains a valid reason for seeking possession through the courts.
• Redevelopment: If the landlord intends to carry out substantial works that cannot be performed with the tenant in situ.

Because the court process will now be the only route for possession, the government has pledged to improve the efficiency of the county court system to handle the anticipated increase in Section 8 hearings.

Pets, Children, and Benefits: Ending Discrimination

The Renters’ Rights Act aims to make the private rented sector more inclusive by removing barriers for specific groups of tenants. One of the most popular provisions is the “right to request” a pet. Landlords must allow tenants to keep pets unless they have a “reasonable” ground for refusal. An example of a reasonable refusal would be a superior lease on a flat that explicitly prohibits animals. To mitigate the risks for landlords, the Act allows them to require tenants to take out pet insurance to cover potential damage to the property.

The Act also tackles systemic discrimination. It is now illegal for landlords or agents to have blanket policies that exclude families with children or individuals who receive social security benefits (often referred to as “No DSS” policies). While landlords can still turn down applicants based on affordability, credit checks, or overcrowding concerns, they cannot reject a tenant simply because of their status as a parent or benefit claimant.

The Private Rented Sector (PRS) Database and Ombudsman

To improve transparency and accountability, the Act introduces two new central entities: the PRS Database and the Landlord Ombudsman.

The PRS Database will serve as a digital record where every landlord must register themselves and their properties. While the exact requirements for uploads are being finalised, it is expected that landlords will need to provide evidence of compliance, such as Gas Safety Certificates and Electrical Installation Condition Reports (EICRs). This database will allow local authorities to target enforcement efforts more effectively against “rogue” landlords while giving tenants peace of mind that their landlord is meeting legal obligations.

Complementing the database is the Landlord Ombudsman. All landlords, including those who use letting agents, must register with this independent redress scheme. The Ombudsman will provide a streamlined, out-of-court process for tenants to lodge complaints regarding issues such as repairs, communication, or unfair treatment. This is intended to be a quicker and cheaper alternative to legal action for resolving disputes.

Safety Standards: The Decent Homes Standard and Awaab’s Law

For the first time, the Decent Homes Standard—previously applicable only to social housing—will be extended to the private rented sector. This sets a clear national benchmark for what constitutes a safe and liveable home. Properties must be free from serious health and safety hazards, be in a reasonable state of repair, have reasonably modern facilities, and provide a reasonable degree of thermal comfort.

In tandem with this, “Awaab’s Law” will be integrated into private sector regulations. Named after Awaab Ishak, a toddler who died due to prolonged exposure to mould in social housing, this law sets strict, legally binding timeframes for landlords to address serious hazards like damp and mould. If a landlord fails to act within these windows, they will be in breach of the law and subject to significant penalties. Current projections suggest these standards will be fully implemented across the sector by 2035, following a period of consultation and phased rollouts.

Enforcement and Penalties

The Renters’ Rights Act is designed to be self-enforcing through a system of heavy financial penalties. Local authorities have been granted enhanced powers to issue civil penalties of up to £7,000 for various breaches, such as attempting to let a property on a fixed-term basis after the Act has commenced.

Furthermore, the scope of Rent Repayment Orders (RROs) has been significantly expanded. Tenants can apply to the First-tier Tribunal for an RRO if their landlord commits any of 13 specified offences, including repeated failure to register on the PRS Database or illegal eviction. Under the new rules, a landlord can be ordered to repay up to two years’ worth of rent to the tenant—a doubling of the previous limit.

Local authorities also have the right to demand information and, in certain circumstances, enter business premises without a warrant to investigate suspected breaches of legislation related to rental discrimination, HMO licensing, and the Ombudsman requirements.

Conclusion

The Renters’ Rights Act represents a paradigm shift for the English housing market. By removing the uncertainty of no-fault evictions and standardising the quality of homes, the government aims to turn renting into a viable, long-term alternative to homeownership. For landlords, the “waffle-free” reality is that the era of informal management is over. Success in this new environment requires a professional approach, meticulous record-keeping, and a deep understanding of the statutory requirements.

As the sector moves toward the implementation dates—with some provisions, such as those regarding local authority enforcement, taking effect as early as late December—it is imperative for all stakeholders to stay informed. The complexity of this legislation means that “business as usual” is no longer an option; instead, a new era of regulated, periodic, and high-standard tenancies has begun.