The Renters Rights Bill Is NOW LAW

The long-awaited overhaul of England’s private rented sector has officially arrived. On 27 October 2025 the Renters’ Rights Act 2025 (formerly the “Renters’ Rights Bill”) received Royal Assent, formally becoming law. (GOV.UK) This seismic change in rented-housing law marks what the government describes as “the biggest leap forward in renters’ rights in a generation”. (GOV.UK)

In this article we explore what the Act means for tenants and landlords alike, how the rollout is expected to proceed, what previous practice it upends, and what difficulties may lie ahead. We’ll also look at key features such as the abolition of no-fault evictions, rolling tenancies, caps on rent advancements and bidding, the enhancement of property standards, discrimination protections, a new ombudsman, and more. The aim is to provide a detailed UK-English analysis and to help both renters and landlords understand the implications of this transformative piece of legislation.

Background and context

For many years the private rented sector (PRS) in England has been criticised for being insecure, for placing too much power in landlords’ hands, and for leaving tenants vulnerable. A major reform attempt — the Renters (Reform) Bill 2023 — was introduced under the previous Government but failed to complete its parliamentary journey before the 2024 general election. (en.wikipedia.org)

The incoming Government introduced the Renters’ Rights Bill in September 2024 under the new name, signalling its intention to deliver on manifesto commitments to abolish so-called “Section 21” no-fault evictions and rebalance the relationship between tenants and landlords. (Goodlord Blog)

According to the Department for Housing, Communities & Local Government the Act will affect 11 million private renters and around 2.3 million landlords in England. (GOV.UK) The timing comes against a backdrop of rising rents, longstanding concerns about property conditions, and housing market instability.

One significant pre-cursor was the expansion of “Awaab’s Law” — named after the tragic death of two-year-old Awaab Ishak in 2020, caused by prolonged exposure to untreated mould in his home. Under the new rules, aspects of Awaab’s Law will now extend into the private rented sector, raising standards and accountability. (The Independent)

In short: this is a major turning-point in the regulation of the PRS and will require both tenants and landlords to adapt. As the government itself puts it, the Act seeks “a fairer future” for renters. (GOV.UK)

What the Act changes — Key features

Below are the headline reforms introduced by the Act, followed by commentary on how those reforms may play out in practice, and what challenges remain.

Abolition of Section 21 “no-fault” evictions

Perhaps the most widely anticipated measure is the end of the use of notices under Housing Act 1988 section 21, which permitted landlords to regain possession of a property at the end of an assured shorthold tenancy (AST) without giving a reason. The Act abolishes this practice: landlords will no longer be able to use the “no-fault” route. (Shelter England)

In place of Section 21, landlords will rely on grounds under section 8 (tenant breach) or on re-possession grounds (for example sale, or landlord moving back in). The Act makes provision to simplify possession grounds and introduces new qualifying periods. (en.wikipedia.org)

For tenants this means significantly greater security — they will no longer face eviction simply because the landlord wants to regain control of their property at the end of a fixed term. For landlords, this represents a major shift in risk and process.

Move to periodic assured tenancies (“rolling tenancies”)

The Act replaces fixed-term assured shorthold tenancies with assured periodic tenancies. In other words, instead of renewing fixed-term contracts (commonly 12-month ASTs) the tenancy will run on a rolling, typically monthly, basis, unless terminated by the tenant or the landlord (under one of the legitimate grounds). (GOV.UK)

This change means that once the Act has fully taken effect, even if a tenant signs a fixed-term contract, the tenancy will convert to a periodic one automatically. The effect is greater flexibility for tenants and greater expectation of continuity. (Shelter England)

One-month limit on rent in advance and ban on large upfront payments

Another important reform concerns how much rent a landlord or agent may demand in advance before or at the commencement of a tenancy. The Act will prohibit landlords demanding more than one month’s rent (or 28 days’ rent for rental periods shorter than one month) as payment in advance. The practice of large upfront sums (such as multiple months’ rent paid before moving in) will become unlawful. (GOV.UK)

The policy rationale is to remove financial barriers for tenants entering the renting market and reduce the pressure on prospective renters being asked to stump up large sums in advance. The government guide makes clear that this is to prevent “undue costs” at the outset of a tenancy. (GOV.UK)

Prohibition of rental “bidding wars” and control on rent increases

The legislation also tackles the practice where landlords or letting agents invite higher offers than the advertised rent — so-called bidding wars. Under the Act landlords will not be able to accept more than the advertised rent for a property. (The Independent)

Additionally, rent increases for existing tenants will be regulated. The bill stipulates that rent can only be raised once a year, landlords must provide at least two months’ notice, and tenants will have the ability to challenge increases they believe exceed market rent. (Shelter England)

Decent Homes Standard extended, and strengthened property safety / habitability obligations

The Act introduces a “Decent Homes Standard” for private rented accommodation, extending obligations that were previously more commonly applied in social housing. Under this duty landlords must ensure homes are safe, free from serious hazards (including damp & mould), have adequate heating, insulation, ventilation, and so on. (en.wikipedia.org)

In practice this means that properties in the PRS will be subject to more rigorous enforcement, enhanced local authority powers, and in some cases bigger penalties for non-compliance. The extension of Awaab’s Law into the private rented sector underscores the seriousness: landlords will be required to take swift action in certain hazardous situations. (Ideal Home)

Ban on blanket discrimination and improved pet access

The Act addresses a number of practices that have long drawn condemnation — rejecting tenants simply because they receive benefits, have children, or own pets. It outlaws blanket bans on such groups, meaning a blanket “No DSS”, “No pets”, “No children” advertising approach will no longer be lawful. (GOV.UK)

That said, landlords retain some discretion: they can refuse a tenant’s pet request on reasonable grounds (for example damage risk, insurance cover) but they cannot impose an across-the-board ban. (Goodlord Blog)

Creation of a Private Rented Sector Database and Ombudsman

Transparency and accountability are key themes in the reforms. The Act mandates the creation of a national digital database covering the private rented sector: this will log landlord details, banning orders, enforcement action, property compliance history, and so on. (Goodlord Blog)

Alongside this the government is establishing a dedicated private rented sector ombudsman — offering a route for tenants and landlords to resolve disputes outside the courts, and thereby reducing legal costs and uncertainty. (The Independent)

Phasing, commencement and implementation caveats

While Royal Assent has been achieved, not all measures will take effect immediately. Many reforms will be introduced via commencement regulations, and a phased rollout is expected. For example, the government guide states that a “smooth transition” will be allowed for rent in advance changes. (GOV.UK)

Various commentary pieces suggest that the full effect may not arrive until early to mid-2026 for certain provisions. (Shelter England) This means that while the Act is now on the statute book, its practical application will trickle in over time.

What this means for tenants

From the tenant’s perspective these reforms represent a significant shift in power, security, and rights. Let’s consider the practical implications.

Greater security of tenure

Perhaps the single biggest benefit is the end of Section 21 no-fault evictions. Tenants will no longer be subject to being given notice simply because the landlord wants to regain possession and does not need to give a reason. This removes a longstanding form of insecurity in the PRS.

Moreover, the move to periodic assured tenancies means that even when a fixed-term contract ends, the tenancy continues on a rolling basis rather than forcing the tenant to renegotiate or risk eviction. For many this means more stability and fewer “end of term” anxieties.

Protection against exploitative upfront costs

The one-month rent in advance rule helps lower the barrier to entry — particularly for younger renters, key-workers, and those with more limited savings. Paying several months’ rent up front can lock out many prospective tenants; this change removes that hurdle.

Fairer rent-setting and increases

With bidding wars banned, tenants should no longer face open-ended competition among would-be renters pushing up final rents. Rent increases will only be permitted once a year and landlords must provide proper notice — this makes budgeting for tenants easier and adds predictability.

Moreover, tenants will have the ability to challenge increases they believe are excessive relative to market rent — giving them a tool to resist rip-off hikes. (Although the practical efficiency of this challenge mechanism remains to be seen.)

Stronger housing-condition rights

Tenants in the private rented sector now gain strengthened rights to safe, properly maintained housing — including responsiveness to hazards like damp and mould. Under the extended Awaab’s Law regime and Decent Homes obligations, tenants will have firmer ground to demand action and escalate complaints.

Reduced discrimination, improved pet access

The elimination of blanket bans — on tenants with benefits, children, or pets — means more access to the rental market for groups that long faced prejudice. While a landlord may still refuse a specific pet application if reasonable grounds exist, the broad “no pet” policy which faced criticism will become unlawful.

Things to watch

Despite the reforms, some caveats remain. Because implementation is phased, certain tenancy agreements signed before commencement may not be fully covered initially. Moreover, tenants should be aware that while, for example, Section 21 is abolished, landlords may still take action via Section 8 for breaches or other possession grounds, meaning evictions are not impossible. (Shelter England)

Also, although rent increases are restricted, the market may still respond by setting higher initial asking rents to capture value. Some commentators caution that landlords may pass costs on indirectly. (The Independent)

What this means for landlords and agents

For landlords and letting agents these reforms herald a new regulatory and operational landscape. Many long-standing practices will need review and procedural reform.

Increased compliance burden and operational risk

With the extension of the Decent Homes Standard and Awaab’s Law into the private rented sector, landlords now face heightened obligations around property condition, hazard remediation, and documentation. Non-compliance could lead to increased enforcement action, rent-repayment orders, banning orders and higher penalties. (The Independent)

The new landlord database and the overseen ombudsman also add a level of transparency and obligation which may increase reputational and regulatory risk. Landlords will need to ensure they are registered when required, that their property portfolios comply with the new rules, and that communications with tenants and local authorities are properly documented.

Change in eviction and possession strategy

With Section 21 abolished, landlords will no longer have what was perhaps their cleanest route to regain possession at the end of a tenancy in many cases. Instead they will rely on the remaining grounds (Section 8 or similar). This means landlords must maintain better tenant-landlord relationships, ensure tenancy agreements are properly governed, keep accurate records, monitor tenancy performance, and act earlier where issues arise (e.g., arrears, anti-social behaviour) if they wish to maintain control of their assets.

Reviewing rent strategy

The one-year cap on rent increases and the prohibition on bidding wars mean landlords may need to revisit their pricing approach. While they may still set initial asking rents at market-appropriate levels, the need for transparency and fairness may reduce some flexibility. Landlords may also find that tighter margins or longer-term tenancies replace rapid turnover gains. Some landlording business models may therefore require adjustment. (Total Landlord Insurance)

Transition and adaptation

As many commentators note, this is a transformation, not merely an incremental adjustment. Landlords and letting agents should treat this as a trigger to audit their portfolios — reviewing tenancy documentation, ensuring they are aware of upcoming changes, updating management processes, and training staff accordingly. Resources and guidance exist but are not yet fully formed in some areas (such as exactly how certain standards will be defined). (Shelter England)

Risk of unintended consequences

Some landlords and representative bodies have expressed concern that the increased regulatory burden may lead to supply withdrawal, rent rises, or reluctance to enter the market — which could exacerbate housing shortages. For instance the National Residential Landlords Association (NRLA) has warned that the pace of change and cost burden may produce unintended effects. (LandlordZONE)

Implementation timeline and phased roll-out

Although the Act is now law, it is not the case that all provisions became effective the moment Royal Assent was granted. Many measures will come into force gradually, via commencement regulations, and some will only apply to new tenancies or after certain deadlines.

According to official guidance, the “rent in advance” prohibition will follow after a transition period to allow sector adaptation. (GOV.UK) Shelter and other advisers believe that full implementation for many parts is likely in early to mid-2026. (Shelter England)

For instance, although the Act has abolished Section 21 in principle, notices served before commencement may still be valid until expiry; and landlords will still need to apply the new possession grounds over time. (Letting a Property)

Goodland (a letting technology provider) summarises that the Bill will likely become law late 2025, but its full effect on the ground will occur later. (Goodlord Blog)

Landlords must therefore pay careful attention to:

• The date of commencement regulations for each provision.
• Whether the rule applies to new tenancies only or to existing tenancies.
• Whether transitional arrangements apply (for example existing fixed-term tenancies may run out under old terms before converting).
• Where guidance is still being developed (for example what exactly constitutes the new decent homes standard in the private rented sector).

In short: the clock is ticking. But the period of adjustment means there is a window for preparation.

Practical issues, uncertainties and risks

While the reforms are extensive and represent major change, there are important practical issues and uncertainties that all stakeholders should bear in mind.

Backlog and strain on courts

One criticism levelled at the reform is that if Section 21 is suddenly abolished without equivalent capacity in the courts and possession systems, there is a risk of backlog and delay. As one commentator notes:

“If they put this on right now … the courts would crumble.” (paraphrased)

Indeed, the complexity of possession grounds under Section 8, potential disputes, and higher numbers of tenants staying longer may increase demand for adjudication and tribunal work. (The Week)

Landlord exits and supply withdrawal

As touched on earlier, the higher regulatory burden, increased risk of non-compliance penalties, and cost of adapting may lead some landlords to exit the market, reduce investment, or off-load portfolios. The concern is that reduced supply could push rents up in the longer term, offsetting some of the benefit to tenants. Some industry bodies warn of this scenario. (LandlordZONE)

Rent inflation via initial asking price

While bidding wars are banned, there remains a concern that landlords may simply advertise at a higher “list” rent and thus capture gains that way. Some analysis suggests that banning bidding wars may have unintended effects on rent levels in markets with supply constraints. (The Independent)

Defining and enforcing the new standards

The Decent Homes Standard, as applied to the private rented sector, requires clear definitions. For many landlords the question of what constitutes a “serious hazard”, or what timescales apply for remediation, remains open. The government has indicated more regulations will follow, but in the interim uncertainty remains. (Letting a Property)

Transitional legal uncertainty

Because the Act has many commencement dates and some retrospective application issues, there is a risk of confusion. Landlords, tenants and agents must watch closely for regulatory updates, otherwise may inadvertently breach new rules or rely on outdated practices.

Impact on certain segments: student housing, short-lets, HMO

Certain parts of the private rented sector may face particular challenges. For instance, student housing providers, short-lets, houses in multiple occupation (HMOs) and furnished holiday lets may need to re-examine how the reforms apply to them. Commentary from legal firms suggests that the breadth of the reforms means specialist advice will be needed. (jonesday.com)

What to do now — advice for tenants and landlords

Given the significance of the reforms, here are practical steps stakeholders should consider.

For tenants

• Review your current tenancy agreement: check whether it is a fixed-term AST or other form; note when your term ends, how rent increases have been structured, and whether your landlord has complied with safety and maintenance duties.
• Keep a good record of your property’s condition: take photos, note any damp/mould issues, keep correspondence with your landlord. As higher standards and enforcement regimes come in, documentation will help.
• Monitor when the new rules apply: if your tenancy was signed before the commencement date of specific reforms, the old rules may still apply for now. Stay up to date with guidance from bodies such as Shelter England. (Shelter England)
• If you are offered a new tenancy, be alert to the changes: expect the landlord/agent to comply with the one-month rent in advance rule, no blanket bans on pets or children/benefits, and that bidding wars are banned.
• Likewise ask about rent increase provisions: under the new regime you should expect no more than one rent increase a year, with at least two months’ notice. If you are uncertain whether an increase is fair, you may have the right to challenge it.
• If you experience problems (e.g., serious damp, required repairs), know that the law is tipping in your favour — the new standards give you stronger legal ground, though implementation may take time.

For landlords / letting agents

• Conduct an audit of your current portfolio: identify all tenancy agreements, note fixed-terms and end-dates, rent increase clauses, rent in advance practices, property condition, compliance with HHSRS (Housing Health and Safety Rating System) etc.
• Review all documentation and practices: ensure you have an up-to-date tenancy agreement, tenant information packs, legitimate pet-policy frameworks, transparent marketing (no blanket bans on children or benefits), and ensure you understand the new periodic tenancy regime.
• Ensure your properties meet the forthcoming Decent Homes Standard: review heating, insulation, ventilation, mould/damp, roof/leaks, fire/CO detectors, electrical and gas safety certificates — and be ready to act quickly to documented hazards.
• Prepare your rent-setting and rent-increase strategy: given the ban on bidding wars and the once-a-year increase limit, you may wish to price rentals realistically, invest in long-term tenancy relationships rather than churn, and consider the role of initial quoting strategy.
• Register and engage with the upcoming landlord database and ombudsman scheme: keep records and plan for transparency obligations. Training for staff/agents will be essential.
• Keep abreast of commencement regulations: monitor when specific provisions come into force (for example new tenancies vs existing, or for particular classes of tenancy) so you don’t inadvertently breach the law. Engaging legal or compliance advice early is recommended.
• Prepare for increased costs in enforcement and compliance: budget for the possibility of more inspections, compliance work, rent-repayment orders, and enforcement action. Factor in how the new regime may affect yield, turnover, and tenant retention.
• Communicate proactively with tenants: in a more regulated environment, strong landlord-tenant relationships and clear communication will reduce risk. Consider offering longer-term tenancies with reliable tenants, and invest in property condition as part of your business model.

Looking ahead: likely market impact

While the reforms are ambitious and generally favourable to tenants, the broader market impact remains uncertain. Below are some likely dynamics:

Tenant retention may become more attractive

With longer-term security and fewer disruptions, landlords may invest more in maintaining properties and retaining good tenants rather than chasing frequent turnover. This could lead to a shift in business models towards stability, which may benefit both parties.

Initial asking rents may rise

Because landlords lose some levers (like bidding wars, frequent increases, upward negotiation pressure), some may respond by setting higher initial asking rents to capture value, or choosing tenants more selectively. This effect may temper some of the intended benefits for tenants. Analysts have already flagged this risk. (The Independent)

Supply constraints may increase

If some smaller or marginal landlords withdraw from the market due to increased cost and regulatory burden, available rental stock could shrink — putting upward pressure on rents in tight areas. The NRLA and others warn this is a real risk. (NRLA)

Tenant diversity in demand may change

With increased security and rights, more tenants may feel confident to rent long-term, get pets, or request other amendments. This could shift demand profiles, influence landlord offers, and reshape what is expected from PRS properties.

Enforcement and regulatory capacity will be tested

The success of the reforms depends heavily on enforcement — local authorities, the new database and ombudsman, tribunals and the courts all need capacity. If enforcement falls short, the reforms may not deliver the full intended effect. Some commentators caution this may be the weak link. (The Week)

Geographical variation and segmentation

The impact of the reforms will not be uniform across England: high-demand urban areas (London, Manchester, etc) may experience different pressures than lower-demand rural areas. Likewise, specialist segments (student housing, HMOs, short lets) may see unintended consequences or require bespoke responses.

Summary and conclusion

The passage of the Renters’ Rights Act 2025 marks a defining moment for England’s private rented sector. For tenants, it delivers stronger rights, increased security, fairer rent regimes and enhanced housing-condition protections. For landlords and agents, it brings a wave of regulatory change, new obligations, and the need to adapt business models accordingly.

However, the devil lies in the detail: the phased rollout means that some parts of the law will not apply immediately, transitional arrangements will apply, and the exact shape of secondary regulations (such as the definition of the Decent Homes Standard) remains to be determined. The legislation’s success will rely heavily on implementation, enforcement, and market response.

All parties — tenants, landlords, agents, local authorities — should use this period as a time for preparation rather than reaction. Tenants should audit their rights and agreements; landlords should review their practices, systems and compliance; agents should train staff and update processes; and local authorities should gear up to enforce.

In the most positive scenario, the Act could usher in a new era of stability, fairness and quality in England’s private rented sector — aligning it more closely with what many have long argued is overdue: a housing system in which renting is not a second-class option, but a viable, secure and respected long-term choice.