Landlord Client Alert: Preparing for the Renters Reform Act 2025
We want to ensure you are fully prepared for the most significant changes to the private rental sector in England in over 30 years. The Renters Reform Act 2025 (which may also be referred to as the Renters' Rights Act) fundamentally reshapes the landlord-tenant relationship, focusing on increased security and fairness for tenants.
Below is a simple breakdown of the main changes and the expected timeline.
🟢 The Core Change: Assured Shorthold to Assured Periodic Tenancies
The Act introduces a new, single framework for tenancies, replacing the current system and ending fixed-term contracts.
The Shift: ASTs vs. APTs
• Tenancy Type:
• Old System (AST): Can be fixed-term (e.g., 6 or 12 months) or periodic.
• New System (APT): All tenancies are periodic (rolling) from day one, with rent usually paid monthly.
• Fixed Term Contracts:
• Old System (AST): Provided guaranteed income for the fixed term.
• New System (APT): Fixed terms are abolished and are no longer legally enforceable.
• Ending the Tenancy (Landlord):
• Old System (AST): Landlords could use a Section 21 ('no-fault') notice to end the tenancy.
• New System (APT): Section 21 is abolished. Landlords can only end a tenancy using a specific, legally defined reason (Grounds) under Section 8.
• Ending the Tenancy (Tenant):
• Old System (AST): Tenant was generally committed for the fixed term.
• New System (APT): Tenants can leave at any time by giving the landlord a two-month notice period.
What this means for you:
• You will need a valid legal reason (Ground) to seek possession of your property.
• New, or reformed, grounds for possession are being introduced for landlords who genuinely want to sell the property or move themselves or a family member into the home.
• You will have less certainty over the exact duration of a tenancy, making tenant retention and excellent property management even more critical.
🟢 Other Key Changes for Landlords
• Pets: You must not unreasonably refuse a tenant's request to keep a pet. The tenant has the right to request a pet, and you can require the tenant to purchase pet insurance to cover any potential damage.
• Decent Homes Standard: The new law will introduce the Decent Homes Standard to the private rented sector, making sure all rental properties are safe and in a good state of repair.
• Eviction for Arrears: The mandatory ground for evicting tenants for rent arrears will be adjusted, increasing the threshold from 2 months' to 3 months' rent arrears to grant a mandatory possession order.
• Discrimination Ban: It will be illegal for landlords or agents to impose blanket bans on renting to tenants who are in receipt of benefits or who have children.
• Rent Increases: Rent increases will be limited to once per year, and you must use a prescribed form with two months' notice. Tenants can challenge excessive rent increases at the First-tier Tribunal.
🟢 Expected Implementation Timeline
The Renters Reform Act received Royal Assent on 27th October 2025, becoming law. However, the key changes will be rolled out in stages to allow landlords, agents, and the courts time to adapt.
Roll-Out Stages
• Phase 1: Early 2026 (Expected Q2)
• What Happens: The new system comes into effect for all new tenancies. New agreements will be Assured Periodic Tenancies, and the ban on Section 21 evictions applies to them.
• Phase 2: Late 2026 (Expected)
• What Happens: The new system is extended to all existing tenancies. All existing Assured Shorthold Tenancies will automatically convert to Assured Periodic Tenancies, and the ban on Section 21 will apply to these tenancies too.
• Decent Homes Standard: To be Confirmed (Expected later, possibly 2027 onwards)
• What Happens: The requirements of the Decent Homes Standard will be phased in for the private rented sector.
Disclaimer: This timeline is based on current government projections and is subject to change as secondary legislation and detailed guidance are issued.
🟢 Next Steps for You
We recommend reviewing the current condition of your property to ensure it meets, or can easily meet, the standards of the upcoming Decent Homes Standard. Now is the time to streamline your maintenance and compliance processes.