Understanding the Renters’ Rights Act
The Renters’ Rights Act is a primary piece of legislation designed to overhaul the private rented sector. The Act introduces a comprehensive set of reforms that affect how landlords create, manage, and terminate tenancies. One of the central pillars of the legislation is the abolition of the assured shorthold tenancy and the removal of the Section 21 no-fault eviction process. This shift establishes an assured tenancy as the standard for all residential lets.
The legislation rebalances the relationship between landlords, agents and their tenants. The Act allows tenants the security to challenge poor practices or hazardous conditions without the fear of retaliatory eviction. For landlords, the legislation replaces the Section 21 process with a reformed Section 8 system, providing updated mandatory and discretionary grounds for possession. The Act also introduces Awaab’s Law to the private sector, requiring landlords to address hazards like damp and mould within specific timeframes.
Landlords must understand that the Renters’ Rights Act requires a complete change in administrative procedures. Every landlord must recognise that the Act impacts both new and existing tenancies.
Transition to assured periodic tenancies
Under the new tenancy regime, all tenancies in the private rented sector will be assured periodic tenancies. This change effectively ends the use of fixed-term tenancies for residential properties. A periodic tenancy does not have a set end date but instead rolls from one rent period to the next, typically on a monthly basis.
The transition to assured periodic tenancies applies to both new and existing tenancies. , In most scenarios, any new tenancy agreement must now be periodic. Existing tenants who are currently on fixed-term tenancies will see their agreements converted to the new system at the end of their current term or on a date specified by the government. The removal of the fixed term means that tenants can give a maximum of two months’ notice to end the tenancy at any time, providing them with greater flexibility.
Landlords must clarify that any new tenancy agreement signed after 1 May 2026 adheres to the periodic structure. The Renters’ Rights Act mandates that rental periods cannot exceed one month in most cases, ensuring the periodic tenancy remains manageable for both parties.
Abolition of assured shorthold tenancies
The Renters’ Rights Act officially abolishes the concept of assured shorthold tenancies (ASTs). Previously, the AST was the standard agreement used by the vast majority of private sector landlords, allowing for the use of Section 21 notices to regain possession at the end of a fixed term without providing a reason. The Act ends this practice to provide tenants with open-ended security.
With the removal of shorthold tenancies, all residential tenancies fall under the category of an assured tenancy. This shift means that a landlord can only end a tenancy by serving a valid notice under Section 8 of the Housing Act 1988. This notice must cite specific legal grounds, such as rent arrears or the landlord’s intention to sell the property. This change requires landlords to maintain detailed records of tenant conduct and property management to successfully regain possession through the court system.
By removing shorthold tenancies, the government has removed the ability to end a tenancy without a specific legal reason. Asset management strategies must now account for longer potential durations of occupancy. The Act ensures that all new tenancies are created as assured periodic tenancies from the outset.
Changes to fixed-term tenancies
The elimination of fixed-term tenancies marks a significant departure from traditional rental practices. In the previous system, a fixed term provided a degree of certainty regarding rental income for a set duration. Under the Renters’ Rights Act, an open-ended periodic tenancy replaces this certainty. Fixed-term assured tenancies will no longer be a valid format for private sector landlords.
This change means that a tenant accepts the property on a rolling basis and can terminate the agreement by providing the required notice, which cannot exceed two months. Landlords can no longer insist on a six-month or twelve-month minimum term. However, the legislation provides a 12-month protected period at the start of a tenancy during which a landlord cannot use certain grounds for possession, such as selling the property or moving back in. This provides new and existing tenancies with a minimum level of security at the outset.
Under the Renters’ Rights Act, the traditional break clause becomes redundant because the periodic tenancy already allows for termination via two months’ notice. The legislation prioritises flexibility for the tenant while providing landlords with specific grounds to regain possession when necessary.
Mandatory and discretionary grounds for possession
Because the Section 21 no-fault process is no longer available, landlords must rely on reformed grounds for possession under Section 8. The Renters’ Rights Act introduces new and amended grounds to enable landlords to still manage their assets effectively. These grounds are split into mandatory grounds, where the court must grant possession if the landlord proves the ground, and discretionary grounds, where the court decides if it is reasonable to grant possession.
New grounds include Ground 1A for when a landlord intends to sell the property and Ground 1B for when a landlord or their close family member intends to move into the property. There is also a specific new possession ground for student landlords to ensure the cyclical nature of the academic year is maintained. Landlords must provide the correct notice period for each specific ground. For example, the notice period for rent arrears has increased from two weeks to four weeks to allow tenants more time to resolve financial issues.
Ground 8 remains a mandatory ground for serious rent arrears, though the Act has adjusted the threshold and notice periods. When a landlord seeks to regain possession, they must serve a valid notice that accurately cites the ground being used. Failure to use the correct ground or provide the necessary notice will result in the court refusing the possession order.
Understanding the Section 8 notice process
Regaining possession under the new system requires strict adherence to the Section 8 notice process. Since landlords cannot use no-fault evictions, they must accurately identify and evidence the ground they are using. The landlord must serve the notice in the prescribed form and clearly state the ground for possession and the date after which court proceedings may begin.
If a tenant does not vacate the property after the notice period expires, the landlord must apply to the court for a possession order. For mandatory grounds, such as serious rent arrears (Ground 8), the court must grant the order if the landlord proves the arrears exist at both the time of the notice and the time of the hearing. If a landlord fails to follow the correct procedure or provides an invalid notice, the court may strike out the claim, leading to significant delays and legal costs.
The Renters’ Rights Act requires landlords to prove their case with clear evidence, whether dealing with rent arrears or antisocial behaviour. The new rules mean that the summary possession procedure used for Section 21 is no longer available. Landlords must be prepared for a hearing where the tenant may present a defence.
Regulations on rent increase
The Renters’ Rights Act introduces strict new rules for how a landlord can implement a rent increase. Landlords can no longer use rent review clauses within a tenancy agreement to increase the rent automatically. Instead, all rent increases in the private rented sector must be conducted through the Section 13 notice process. This ensures transparency and allows the tenant to challenge the proposed rent increase.
A landlord can only propose a rent increase once every twelve months. The landlord must serve a Section 13 notice to the tenant, providing at least two months’ notice of the proposed new rent. The new rent must reflect the market rent for similar properties in the area. If the tenant believes the proposed rent increase is excessive, they have the right to challenge it via the First-tier Tribunal. The Act prevents landlords from using large rent increases to effectively evict a tenant.
The proposed new rent cannot be backdated. If the tenant believes the increase is not in line with market rates, the First-tier Tribunal will settle the matter.
Challenges at the First-tier Tribunal
When a tenant challenges a rent increase, the matter is referred to the First-tier Tribunal (Property Chamber). The tribunal will assess the property and determine the market rent. This process prevents unscrupulous landlords from using high rent increases as a form of backdoor eviction.
Under the new rules, the tribunal cannot set a rent higher than what the landlord originally requested. Furthermore, the rent increase cannot be backdated; the new rent only becomes payable from the date of the tribunal’s decision. This protection ensures that tenants are not hit with unexpected debt while awaiting a hearing. Landlords must prepare evidence of comparable market rents to support their proposed rent.
The tribunal will look at the condition of the property and local market rent when making a determination. The Renters’ Rights Act aims to create a fair market where rent increases are predictable and justified.
Prohibition of rental bidding
The Renters’ Rights Act effectively ends the practice of rental bidding. Landlords and letting agents must publish an asking rent for any property they advertise. It is now illegal to ask for, encourage, or accept any offers that are higher than the advertised asking rent.
This measure prevents prospective tenants from being forced into bidding wars that drive up the cost of housing. If a landlord is found to be accepting bids above the asking rent, local authorities have the power to issue civil penalties. Landlords must ensure that the advertised rent is a fair reflection of the property's value, as they will be bound by that figure during the initial letting process.
By banning rental bidding, the Act makes the application process more transparent for prospective tenants. Landlords can no longer benefit from tenants offering more than the asking rent to secure a home. Setting a realistic asking rent is now essential, as landlords cannot adjust it upwards even if there is high demand.
Right to request pets in rental properties
Tenants now have a strengthened right to request a pet in their rental property. Under the Renters’ Rights Act, a landlord cannot unreasonably refuse a request from a tenant to keep a pet. This makes any "no pets" clauses in a written tenancy agreement invalid unless the landlord can provide a legitimate reason for the refusal.
a tenant makes a request in writing, the landlord has 28 days to respond. If the landlord refuses, they must provide a clear rationale. A reasonable excuse for refusal might include the property being unsuitable for the specific pet or terms in a superior lease that prohibit animals. To protect the landlord’s property, the Act allows landlords to require the tenant to take out pet insurance or to pay the cost of the landlord’s own insurance policy covering pet damage.
Landlords must consider each case individually. While they can require the tenant's deposit to be protected as normal, the primary protection for pet damage will come from mandated pet insurance.
Compliance with the Decent Homes Standard
For the first time, the Decent Homes Standard (DHS) will apply to the private rented sector. Previously applicable only to the social rented sector, the DHS sets a minimum standard for housing quality. A property must meet four criteria: it must be free from Category 1 hazards under the Housing Health and Safety Rating System (HHSRS), be in a reasonable state of repair, have reasonably modern facilities, and provide a reasonable degree of thermal comfort.
The Renters’ Rights Act gives local councils the power to enforce these standards. If a property fails to meet the DHS, the landlord may be required to carry out remedial works. Failure to comply can result in rent repayment orders or civil penalties. Landlords should conduct regular inspections to ensure their properties remain compliant and do not pose a risk to the health and safety of tenants.
Local councils will use their expanded powers to inspect properties and ensure compliance. If they find Category 1 hazards, local authorities can take immediate action. This expansion of the regulatory burden aims to remove rogue landlords from the market.
Implementation of Awaab’s Law
Awaab’s Law, introduced following the tragic death of a toddler in social housing, now extends to the private rented sector. This law requires landlords to investigate and address serious hazards, specifically damp and mould, within strictly mandated timeframes.
When a tenant reports a hazard that may pose a significant risk to their health, the landlord must respond and carry out an inspection within the timeframe specified in the regulations. If a hazard is identified, the landlord must initiate repairs within a secondary timeframe. Failure to adhere to these periods can lead to legal action by the tenant for breach of contract or enforcement action by local authorities.
Landlords must ensure they have contractors available to meet the Awaab's Law timeframes. Failure to act quickly not only risks the health of the tenant but also exposes the landlord to a civil penalty or a rent repayment order.
The private rented sector database
A central component of the new regulatory framework is the private rented sector database. All landlords of assured and regulated tenancies must legally register themselves and their properties on this national database. The database acts as a "one-stop shop" for both landlords and tenants, and registration is a prerequisite for lawful letting.
For landlords, the database provides information on their legal obligations and helps demonstrate compliance. For tenants, it offers transparency regarding the status of their landlord and property. A landlord who is not registered, or who fails to keep their entry up to date, may be prohibited from serving a Section 8 notice to regain possession. Local councils will use the database to identify non-compliant properties and target enforcement activities against rogue landlords.
Landlords must keep their data current, including safety certificates and contact information. If a landlord is not on the database, they are effectively operating outside the law.
The new private rented sector landlord ombudsman
To improve dispute resolution, the government has introduced a mandatory Private Rented Sector Landlord Ombudsman service. All private sector landlords must join this ombudsman scheme, regardless of whether they use a managing agent. The service provides tenants with a free, impartial, and quick way to resolve complaints without going to court.
The ombudsman has the power to investigate tenant complaints regarding property standards, repairs, or poor management practices. If the ombudsman finds in favour of the tenant, they can compel the landlord to take remedial action, issue an apology, or pay compensation of up to £25,000. Membership is compulsory, and local authorities can issue significant fines to landlords who fail to join the scheme.
Landlords should ensure they have their own internal complaints process in place, as the ombudsman will typically expect the tenant to have tried to resolve the issue with the landlord first. The Renters’ Rights Act gives the ombudsman significant powers to enforce its decisions.
Legal obligations regarding the written tenancy agreement
The Renters’ Rights Act mandates that every tenancy must be supported by a written tenancy agreement. While many landlords already provide a written statement, it is now a statutory requirement to provide a document that includes specific information as prescribed by the government.
For tenancies signed on or after 1 May 2026, the landlord must provide the written statement setting out the terms of the tenancy before the tenant moves in. For existing tenants, landlords must provide a government-produced information sheet by 31 May 2026, which explains how the new legislation affects their rights. Failure to provide a written tenancy agreement can result in financial penalties and can complicate any future possession proceedings.
Landlords must include details of the rent period, the rent payment date, and information about the ombudsman scheme and the database. Without a compliant written tenancy agreement, a landlord may face a civil penalty from the local council.
Limits on rent in advance and tenant fees
The Act also clarifies the rules regarding rent in advance. Landlords are prohibited from requesting more than one month's rent in advance for most tenancies. This measure prevents landlords from asking for large upfront payments, which can be a barrier to housing for many tenants.
This regulation works alongside the existing Tenant Fees Act to limit the financial burden on renters at the start of a tenancy. Landlords and agents must ensure they do not breach these rules by charging prohibited fees or disguised premiums. Any payment taken that exceeds the statutory limits is considered a prohibited payment and must be returned to the tenant, or the landlord may face a civil penalty. Taking six months' rent in advance is no longer permitted for standard assured periodic tenancies.
The limit on rent in advance applies to both new and existing tenancies upon their conversion. Landlords must ensure they only accept a single month's rent in advance alongside the tenant's deposit.
Student landlord exemptions and Ground 4A
Recognising the unique nature of the student housing market, the Renters’ Rights Act provides specific provisions for student landlords. Because student tenancies typically run in line with the academic year, the move to open-ended periodic tenancies created a risk that properties would not be vacant for the start of the next term.
To address this, the government introduced a new mandatory possession ground (Ground 4A). This allows a student landlord to regain possession of a property between June and September each year, provided they intend to let the property to new students. This ground can only be used for HMOs that are let to full-time students. Landlords must ensure that this intention is clearly stated in the tenancy agreement from the outset to utilise this ground effectively.
Ground 4A is essential for maintaining the supply of student housing, but it is a narrow exemption. Student landlords must follow the exact procedure for Ground 4A, including providing the correct notice, to ensure they can regain possession in time for the new academic year.
Role of local councils and enforcement powers
Local councils have been granted significantly expanded powers to enforce the Renters’ Rights Act. Authorities now have new investigatory powers, including the ability to require information from landlords and agents and to enter premises to check for compliance with the Decent Homes Standard.
Local authorities are encouraged to use the private rented sector database to track down non-compliant landlords. They can issue civil penalties for various breaches, including failure to register on the database, failure to join the ombudsman, or serving an invalid notice. In more serious cases, local councils can pursue criminal prosecution or apply for a banning order, preventing a landlord from letting property in England and Wales.
Councils no longer need to wait for a tenant to complain if they have evidence of non-compliance from the database. The Act provides councils with the funding and authority to target rogue landlords specifically.
Financial penalties and civil penalties
The financial repercussions for breaching the Renters’ Rights Act are substantial. Local councils can impose a civil penalty of up to £7,000 for initial or minor breaches of the Act. For more serious, persistent, or repeated breaches, the maximum fine increases to £40,000.
Common triggers for these penalties include:
- Failure to register a property on the private rented sector database.
- Failure to join the Private Rented Sector Landlord Ombudsman.
- Breaching the ban on rental bidding.
- Failing to meet the Decent Homes Standard.
- Illegally attempting to evict a tenant without following the Section 8 process.
- Discriminating against tenants with children or those receiving benefits.
Landlords must be aware that these penalties can be issued as an alternative to criminal prosecution, and the income generated from these fines often funds further enforcement activities.
Rent repayment orders for serious breaches
The scope of rent repayment orders (RROs) has been expanded under the new legislation. An RRO allows a tenant or a local authority to claw back up to twelve months of rent from a landlord who has committed certain offences.
Offences that can trigger an RRO now include:
- Failure to comply with an improvement notice.
- Failure to comply with a prohibition order.
- Breach of a banning order.
- Illegal eviction or harassment of a tenant.
- Using violence to secure entry.
- Failure to register on the mandatory database.
- Providing fraudulent information to the database.
Ensuring total compliance with all legal obligations is the only way to mitigate the risk of an RRO being issued by the First-tier Tribunal.
Anti-discrimination measures for families and benefits
The Renters’ Rights Act aims to create a fairer private rented sector by prohibiting discrimination against specific groups. It is now illegal for a landlord or managing agent to have a blanket policy that refuses tenancies to people with children or those who receive housing benefits.
Landlords must assess every application from prospective tenants on its individual merits. While a landlord can still carry out affordability checks, they cannot automatically exclude someone because their income comes from benefits. If a landlord is found to be discriminating, they may face enforcement action from local authorities, including financial penalties.
Ads should not contain "No DSS" or "No children" language. Landlords and agents should focus on the ability of the prospective tenants to pay rent and look after the property.
- Investigatory powers and data sharing
To support enforcement, the government has improved data sharing between different agencies. Local authorities, the Department for Work and Pensions (DWP), and HMRC can share information to identify landlords who are not paying tax or who are letting sub-standard housing.
The new investigatory powers allow local councils to demand documentation and evidence of compliance at short notice. Landlords should maintain an organised compliance file for every property, including gas safety certificates, EICRs, EPCs, and evidence of deposit protection. Being able to produce these documents quickly can prevent an informal enquiry from escalating into a formal investigation.
Local councils can also share information with other regulators if there is a cross-sector concern. Landlords must ensure that the information they provide to the private rented sector database is accurate, as providing false information is a serious offence.
Impact on superior landlords and headleases
The Renters’ Rights Act also considers the position of superior landlords. If a landlord is a leaseholder (the mesne landlord) who lets the property to a sub-tenant, and the superior landlord (the freeholder) takes action to end the headlease, the rights of the sub-tenant are now better protected.
Under the new rules, the sub-tenant will often become the direct tenant of the superior landlord if the mesne landlord’s interest is terminated. This prevents tenants from being evicted due to disputes further up the ownership chain. Superior landlords must be aware of these obligations when managing buildings with multiple tenancies.
If a superior landlord becomes the direct landlord, they must ensure the property meets the Decent Homes Standard and that they are registered on the database as the new landlord for that specific assured tenancy.
Protecting rental income and property assets
With the removal of Section 21, landlords must be more proactive in protecting their rental income and assets. The reformed Section 8 grounds provide the necessary tools, but they require a higher burden of proof.
To protect your legal position, ensure that:
- You track every rent payment date and document missed payments immediately.
- You keep all communications with tenants in writing.
- You carry out regular property inspections and document them with photos.
- You renew all safety certificates on time and provide copies to tenants.
- Your written tenancy agreement reflects all new mandatory requirements.
By maintaining high standards of documentation, landlords can ensure they have the evidence required to satisfy the court if they need to regain possession.
How AST Assistance can help
The Renters’ Rights Act has introduced stricter obligations for landlords across tenancy management, rent increases, possession proceedings, complaint handling and compliance. Where landlords continue using outdated processes or documents, there is a growing risk of invalid notices, enforcement action, tribunal disputes and financial penalties.
AST Assistance provides landlord-focused support designed to help landlords understand the new rules, protect their position and take corrective action where problems have already arisen. Whether you are updating your tenancy agreements, reviewing your possession strategy or responding to a tenant complaint, our team can provide practical guidance tailored to your circumstances.
Our services include:
- Reviewing tenancy agreements and landlord procedures for compliance with the Renters’ Rights Act.
- Advising landlords on the transition to assured periodic tenancies.
- Supporting Section 8 possession claims and possession planning.
- Assisting with rent arrears, tenant breaches and anti-social behaviour cases.
- Preparing landlords for the private rented sector database and ombudsman requirements.
- Helping landlords respond to tenant complaints, tribunal disputes and enforcement concerns.
- Identifying procedural mistakes and advising on damage control where rules may already have been breached.
For landlords unsure whether their current processes comply with the new law, AST Assistance’s Renters’ Rights triage service provides an opportunity to assess risks early, understand your legal position and take steps to reduce further exposure before issues escalate.
If you need support understanding your obligations, correcting compliance issues or protecting your rights as a landlord under the Renters’ Rights Act, contact AST Assistance today on 01706 619954 or send an online query and we will be in touch at a time that suits your convenience.
