The Renters’ Rights Act 2025 (the Act) is due to be introduced in phases from 1 May 2026, starting with immediate changes to all tenancies. However, specific provisions are due to extend to social housing landlords in 2027.
The Act seeks to rebalance the landlord-tenant relationship in England and Wales. Its aim is to modernise tenants’ rights and improve housing quality, fairness and safety. But the Act is likely to create new risks for landlords generally.
(Reference to ‘landlord’ here applies to both private and social housing landlords, unless stated otherwise.)
Key changes
Although prominently affecting private landlords currently, all landlords must familiarise themselves with the changes before 1 May 2026.
Phase 1 from 1 May 2026
- Section 21 no-fault evictions are abolished raising the bar for evictions.
- Open-ended Periodic Tenancies replace fixed term Assured Shorthold Tenancies (current fixed term tenancies will automatically convert).
- New possession grounds include a landlord requirement to sell, move or redevelop the property.
- Tenancy clauses forbidding pets will be unenforceable, unless there is a reasonable reason. These changes will not apply to social housing landlords, however there is discussion that the same standards may apply in the near future.
- Rent reviews for landlords will be limited to once a year and tenants must be given two months’ notice of any increase.
Phase 2 from late 2026
- Private landlords must join a Rental Database (requiring an annual fee), and an Ombudsman Scheme. Social landlords are currently not required to join these.
Phase 3 date TBC
- The incorporation of Awaab’s Law places obligations on landlords to investigate and address dangerous issues such as damp and mould within a strict, legally defined timeframe. The first phase of regulations came into force for social housing on 27 October 2025. The precise date of implementation for the private sector is yet to be confirmed.
- The Decent Homes Standard, as applicable to social housing since 2001, will extend to private landlords, requiring properties to be safe, well-maintained and in good repair.
Of note:- Local authorities may issue fines of up to £7,000 for non-compliance.
- Non-compliance with enforcement action may lead to prosecution or fines of up to £40,000.
Issues for landlords
All landlords should ensure current tenancy agreements are compatible and consider how insurance portfolios and additional risk management measures could manage the Act’s new requirements.
Issue 1: No pet prohibition
Pets in residences could have financial and risk implications for landlords.
Possible solution
Although currently only applicable to private landlords, all landlords should consider preparing for the increased risks and costs of no pet prohibitions.
Landlords could:
- Use tenancy agreements to mitigate risks of potential damage through clauses that reflect the new pet approval process, for example, pets cannot cause damage.
- Consider purchasing insurance policies to cover pet damage.
The immediate priority should be for landlords to check their property insurance and risk strategies to ensure adequate mitigation of potential pet related damages.
Issue 2: Rise in rent arrears
Under the Act, tenants must accrue at least three months’ arrears before the eviction process can begin, which is an increase of one month on the current position. These changes will likely apply to social landlords in 2027.
With the abolition of Section 21, all evictions must proceed through the courts. Given existing court backlogs, landlords may be exposed to greater risk and face longer periods without rental income, higher legal costs and increased exposure to arrears.
Possible solution
To manage these risks, landlords could:
- Prioritise communicating concerns with tenants.
- Consider requiring guarantors or obtaining rent guarantee insurance to assist in protecting against any potential financial losses.
Issue 3: Awaab’s Law & Decent Homes Standard
Awaab’s Law places greater compliance on landlords, requiring proactive identification of hazards through regular inspection and swift remediation.
A landlord must:
- Investigate emergencies within 24 hours and any other issues within 10 working days.
- Provide findings within three working days.
- Complete required safety work within five days of the investigation, with any supplementary works started within 12 weeks.
These timeframes apply to social housing but are expected to extend to private housing.
The Decent Homes Standard introduces a baseline requirement for property quality, energy efficiency and repair. This might require investment in properties.
Possible solution
All landlords should proactively prepare for the Act, by considering:
- Whether the property is compliant with the new standards.
- What remediation might be required to comply. Considering this now could help to spread the costs of works and reduce sudden costs.
- Regularly check properties for mould and other hazards, especially during higher risk periods.
- Review future spending. The increased landlord compliance may lead to capital expenditure and maintenance costs. These may affect rental fees if compliance costs are passed on to tenants.
- Consider introducing a system which allows tenants to report issues, and clear processes of how hazards are rectified.
