What the New Renters’ Rights Bill Really Means for Landlords: A Practical Breakdown

Tuesday, December 9th, 2025

With the Renters’ Rights Bill now officially law, headlines and industry chatter have been filled with speculation, uncertainty – and in some cases, unnecessary alarm. As always, our priority is to give landlords clear, practical guidance based on the legislation itself, not the noise surrounding it.

The government will introduce the Act in three stages:

  • Phase 1: 1 May 2026

  • Phase 2: Late 2026 (likely to shift)

  • Phase 3: Expected between 2035–2037

Below, we explain the key changes arriving in Phase 1, which contains the most significant updates for landlords.

1. Tenancies: A Move to Mandatory Periodic Agreements

From 1 May 2026, all new tenancies under the Housing Act 1988 will automatically become 4A assured periodic tenancies. These must:

  • Be periodic at all times

  • Have a period no longer than one month (shorter periods such as 28 days are allowed)

  • Not include fixed terms or expiry dates

Importantly, granting or suggesting a fixed-term tenancy will become an offence, with penalties up to £7,000. Even if a superior lease or mortgage conditions currently require a fixed term, those clauses will have no legal effect after May 2026.

New Documentation Requirements

  • Every new tenancy must include a tenancy statement – we expect draft regulations early next year, and this will be built into our agreements for May 2026 onwards.

  • Existing tenants must receive a government-issued information sheet by 1 May 2026 outlining how their rights change.

  • All existing fixed-term tenancies will automatically convert to monthly periodic tenancies on 1 May 2026. Advance rent does not need to be refunded unless the tenant leaves early.

2. Discrimination Rules Strengthened

The courts have already ruled that blanket bans such as “No DSS” or “No children” are unlawful. The new legislation reinforces this, benefits must now be included in affordability assessments.

Landlords can still assess affordability using the same criteria as before, but cannot require guarantors simply because a tenant receives benefits if they otherwise pass affordability.

There are legitimate exceptions, including:

  • Retirement-only properties

  • Overcrowding risks

  • Situations where occupancy would breach safety or space standards

These remain fully permissible.

3. Pets: A More Structured Process

While landlords may still advertise “No pets,” the process for considering requests becomes formalised:

  • Tenants must submit requests in writing

  • Landlords must respond within 28 days

  • Any refusal must be reasonable

Reasonable refusals include lease restrictions, unsuitable shared spaces, or inappropriate pet size/breed for the property.

If a tenant keeps a pet without consent, this constitutes a breach of contract and landlords can seek possession.

4. Rent: What Is and Isn’t Changing

Rent can’t be charged in advance periods such as six or twelve months. Tenants may offer this voluntarily, but landlords and agents cannot request it.

A common myth is that landlords cannot require payment before move-in, this is untrue.

The actual rules:

You cannot request rent until after the tenancy agreement is signed.
Deposits are not affected by this rule.

You can still take:

  • Holding deposit

  • Tenancy deposit

  • First month’s rent (once the agreement is signed)

Rent Advertising

Whatever rent you advertise becomes the maximum legal rent. You cannot accept higher offers.

Rent Increases

All rent rises must go through the Section 13 process only:

  • No increases in the first 12 months

  • Two months’ notice is required

  • Tenants can dispute increases (and even the initial rent)

  • Tribunals will not raise rents above the contractual amount

Our legal trainers recommend serving a Section 13 notice at the highest achievable market rent, then negotiating a lower amount with the tenant, discouraging appeals while allowing earlier implementation.

5. Guarantors: Narrowed Liability Rules

New rules limit guarantor liability in situations such as tenant death. Liability ends immediately when:

  • A sole tenant with a guarantor dies

  • All tenants in a joint tenancy die

  • A guarantor covers a family member who dies

These changes make thorough referencing even more important.

6. Possession: Section 21 Abolished, New Grounds Updated

The removal of Section 21 means all possession claims must now fall under an enhanced Section 8 framework. Open court hearings will be required, which may create delays.

Key Grounds:

Ground 1 – Landlord or family moving in

  • Four months’ notice

  • Cannot be used in first 12 months

  • A 12-month “restricted period” applies after possession

Ground 1A – Selling the property

  • Four months’ notice

  • 16-month minimum period during which you cannot re-let

  • Agents must take care: switching agents to bypass restrictions is an offence

Ground 6 – Redevelopment

  • Substantial works require vacant possession

  • Tenant must have lived in the property at least six months

Ground 8 – Serious rent arrears

  • Requires three full months of arrears at both notice and court hearing

  • With arrears buildup, notice period, court delays, and bailiff action, landlords may face a year without rent

Rent Guarantee Insurance is strongly recommended.

Restrictions That May Block Possession Notices

As with Section 21, landlords must have:

  • Provided the tenancy statement

  • Registered with the PRS database (when Phase 2 launches)

  • Protected the deposit correctly

  • Provided gas safety certification

7. Phase 2 – PRS Database & Redress Scheme

Phase 2 introduces:

  • A new PRS landlord database

  • A national landlord redress scheme

Rollout will be staggered to avoid overwhelming the system.
HMRC will have access, so landlords not declaring income should take note.

8. Phase 3 – Property Standards

Phase 3 will introduce:

  • The Decent Homes Standard

  • Awaab’s Law requirements

Our landlords already maintain high property standards, so minimal change is anticipated.

Our Perspective: What This Means for Landlords

The removal of fixed terms and Section 21 represents a significant cultural shift. Fixed terms offered predictability, and Section 21 provided a straightforward, non-adversarial route to possession.

However, possession routes do remain available—and with our high-quality tenant base, many landlords will experience little day-to-day change.

What will matter more than ever:

  • Rigorous tenant vetting

  • Experienced staff conducting viewings

  • Comprehensive referencing, including checks on previous landlords

  • Rent guarantee insurance

  • Careful management of rent increases under the new system

We will be strengthening our processes over the coming months to ensure our landlords remain fully protected.

We’re Here to Help

If you’d like to discuss how these changes might affect your properties or to plan ahead for specific scenarios, we’re always happy to talk through the details.