The landmark Renters’ Rights Act has officially received Royal Assent, marking the most significant shake-up of England’s private rented sector in decades.

This transformative legislation is designed to rebalance the landscape, fundamentally shifting power dynamics. For landlords, investors, and agents, it introduces a new operational framework that will apply retrospectively to both new and existing tenancies.

Here’s a detailed breakdown of the key changes:

✅ An End to ‘No-Fault’ Evictions (Abolition of Section 21)

• What’s changed: The controversial Section 21 process, which allowed landlords to evict tenants without stating a reason, is now abolished.
• What it means: Landlords must now rely on specific and legitimate grounds for possession under the updated Section 8 (e.g., serious rent arrears, anti-social behaviour, or the landlord wishing to sell the property). This gives tenants much greater security and stability in their homes.

✅ The Shift to Periodic Tenancies

• What’s changed: The default model of fixed-term tenancies (e.g., 12-month contracts) is being removed.
• What it means: All tenancies will automatically become rolling, open-ended (periodic) agreements. This provides flexibility for tenants to leave with two months’ notice, impacting rental income forecasting for landlords.

✅ Stricter Controls on Rent Increases

• What’s changed: Rent can now only be formally increased once per year, strictly via a Section 13 notice.
• What it means: Tenants have a stronger right to challenge what they deem to be an above-market rent increase at a Tribunal, introducing a new layer of scrutiny and fairness.

✅ The Right to Request a Pet

• What’s changed: Tenants now have the legal right to request to keep a pet.
• What it means: Landlord consent cannot be unreasonably refused. While landlords can require tenants to have pet insurance to cover potential damage, an outright ban is no longer permissible.

✅ New Compliance Obligations for Landlords

• Mandatory Registration: Landlords must join the new Private Rented Sector Database.
• Ombudsman Scheme: Mandatory membership to a Landlord Ombudsman Service will provide a low-cost avenue for dispute resolution.
• Extended Standards: The Decent Homes Standard is being extended to the private sector, legally requiring properties to be safe, warm, and in a good state of repair.
• Hefty Penalties: Serious or repeated breaches of the new rules can lead to fines of up to £40,000.
• Implementation Timeline: The changes are expected to be fully implemented from Spring 2026, though the high-profile abolition of Section 21 may be fast-tracked to take effect sooner.

What You Should Do Now

For Landlords & Investors:

• Review Your Portfolio: Assess which tenancies might be impacted first and understand the new Section 8 grounds for possession thoroughly.
• Systemise Documentation: Ensure your property inventories, safety certificates, and communication records are impeccable. This will be crucial for any future Section 8 claims.
• Update Processes: Prepare for annual rent review cycles and develop a fair pet policy that includes clauses on pet insurance.
• Seek Professional Advice: Consult with your letting agent, property lawyer, or membership body to understand the specific implications for your business model and compliance requirements.

For Tenants:

• Understand Your New Rights: Familiarise yourself with the new rules on pets, rent increases, and eviction protections. You cannot be asked to leave without a legitimate reason.
• Communicate Proactively: If you wish to have a pet, prepare a reasonable request for your landlord, perhaps offering to provide evidence of pet insurance.
• Know How to Challenge: Understand the process for challenging an unfair rent increase via the Tribunal.
• Wait for Guidance: While the law is passed, the exact processes for the Ombudsman and Database are still being set up. Keep an eye on official government channels for updates as the 2026 implementation date approaches.

This is a pivotal moment that promises greater security for tenants but will also test landlord confidence. Preparation and education are key for all parties navigating this new landscape.

Author – Farah Hussain