What you’ll learn
- The key headline changes in the new Act and what they mean for you.
- A clear comparison of how things were under the old law and what has changed.
- Practical actions you should take now to ensure compliance and prepare for the changes.
- How Grace Miller & Co can support you through this transition.
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025 and is now (legally) on the statute‑book in England.
However, many of its provisions do not come into force immediately, as the first phase of reforms will come into effect on May 1st 2026, with further reforms being enforced over a longer period of time. This does not mean you should wait, but act now to ensure you are compliant with the law as quickly as possible.
The Government describes it as a major transformation of the private rented sector, aimed at giving renters greater security, while introducing new obligations for landlords. This might appear to be bad news for landlords, but we’ll delve into why that is not necessarily true.
For landlords, this means you need to keep a close eye on both the current legal regime (which still largely applies) and the new changes, so you don’t get caught out. If you do not currently work with a property management company, now might be the time to make that switch.
What’s changed?
Here’s a breakdown of the most important changes landlords need to be aware of under the new law, compared with how things have worked up until now.
Evictions – No-Fault (Section 21)
Before:
- Landlords could serve a Section 21 notice to regain possession without needing to give a specific reason, provided they followed the correct process and timelines.
- Commonly used to regain flexibility or deal with difficult tenants.
Now:
- Section 21 is being abolished.
- Landlords will need to use a revised Section 8 process, citing specific grounds (such as rent arrears or antisocial behaviour).
- These changes won’t take effect immediately but will be phased in through secondary legislation.
Tenancy Types – Fixed Term vs Periodic
Before:
- Many tenancies were Assured Shorthold Tenancies (ASTs), often with a fixed term (e.g. 6 or 12 months).
Now:
- The system is shifting to a single periodic tenancy model, meaning rolling tenancies with no fixed end date.
- Tenants can give two months’ notice to leave at any time.
- Landlords will only be able to end tenancies using legal grounds once the reforms are live.
Rent Increases & Bidding
Before:
- Landlords could include rent review clauses or agree new rents at the end of a fixed term.
- In competitive markets, tenants often offered to pay more than the advertised rent.
Now:
- Rent increases will be limited to once per year.
- Tenants will have the right to challenge increases through the First-tier Tribunal.
- Bidding above the asking rent will be banned — the price advertised must be the price accepted.
Pets, Children and Benefits
Before:
- Landlords could refuse tenants with pets, children, or those claiming benefits, although blanket bans were already legally risky.
Now:
- Tenants will gain the right to request a pet, and landlords must consider this reasonably.
- Landlords can still refuse a pet, but they must give a legitimate reason (e.g. property suitability or lease restrictions).
- Blanket bans on families with children or people receiving benefits will be explicitly prohibited.
Property Standards & Safety
Before:
- Landlords were already required to keep properties in good condition under existing laws. However, there were many examples of this not being enforced.
- Councils enforced against health and safety risks using the Housing Health and Safety Rating System (HHSRS).
Now:
- The Act strengthens standards and enforcement, particularly around hazards like damp and mould.
- Local authorities will have more powers and clearer responsibilities to act on unsafe or unfit properties.
- Timeframes for action may become stricter, so quick responses will be essential.
National PRS Database (Landlord and Property Registration)
Before:
- No national register existed — some councils required landlord licensing, but it varied by area.
Now:
- A national Private Rented Sector (PRS) database will be created.
- Landlords and their properties will need to be registered before marketing or letting.
- Failure to register could result in penalties and restrictions (such as being unable to issue notices or regain possession).
Lifetime Tenancy Deposits (Still in Development)
Before:
- Tenants paid a new deposit every time they moved, often tying up thousands in overlapping funds.
In the future (potentially):
- The government has expressed plans to introduce a portable or ‘lifetime’ deposit system, allowing deposits to move with tenants between tenancies.
- This is still being explored and not yet active, but it’s worth keeping on the radar.
Recommend actions for Landlords
As a landlord, especially if you operate a smaller portfolio, here are some recommendations to stop any of the changes adversely affecting you at a later date.
Audit your existing tenancies
- Check current tenancy agreements to see if they are fixed‑term ASTs, what notice clauses they include, rent‑increase clauses etc.
- Keep detailed rent ledgers, inspection records, communication logs (these will help if you need to rely on revised possession grounds).
- Review whether you have any “no pets” clauses, or blanket exclusion of benefit‑claiming tenants or children.
Prepare your documentation and processes
- Tenant communications: Adopt standard letters, notice templates, clause updates as guidance becomes available.
- Letting advertisements: Prepare to publish the asking rent and avoid “offers above asking” language once the rule is in force.
- Deposit/tenancy security arrangements: Keep up‑to‑date with deposit protection schemes and changes to deposit transfer protocols (especially if “lifetime deposits” emerge).
Maintenance and standards review
- Carry out property inspections (heating, smoke/CO alarms, electrics, damp/mould, ventilation) and record condition baseline.
- Ensure your properties have no serious hazards such as damp/mould and ensure you have the finances available to rectify any issues should they arise. Give tenants instructions on how to reduce damp in the home.
Stay informed and take remedial action
- The Act is law now, but many key changes are not yet live. Stay in touch with industry news, such as Grace Miller & Co’s newsletter, to keep up to date on regulatory changes.
- Don’t panic and assume you must make all changes today – as governmental processes will take time to catch up – work methodically through any priority changes and evidence ways in which you are meeting the new rules.
Budget for potential additional costs / compliance overhead
- With stricter standards, more documentation, possibly registration fees (PRS database) and stronger enforcement (higher civil penalties) you should factor in time and costs.
- Property management agents can make these processes less time consuming as they will have knowledge and experience in these areas.
Why this isn’t all bad news for landlords.
For smaller landlords, these reforms may initially feel like added pressure — more paperwork, more compliance, and less flexibility. But viewed strategically, there are long-term advantages. A well-managed and legally compliant property is more attractive to tenants who want stability, and these tenants are more likely to stay put.
That means fewer empty periods, lower renovation costs between lets, and less admin overall. By getting ahead of the changes now, you also reduce the risk of being caught out later, whether that’s by legal penalties or delays in regaining possession of your property.
There’s also the broader market to consider. If more landlords decide to exit the sector due to these changes, it could shift supply and demand dynamics, potentially impacting yields and local rental values. Staying informed and adaptable will be key to long term success and stable financial income.
And if you’re working with a knowledgeable local agent, like Grace Miller & Co, you’ll have someone on your side who understands the rental market and how to keep you compliant.
How Grace Miller & Co can help as your agent.
If you’d like support to discuss your portfolio,, or just understand what the changes mean for you and your property(s) in Surrey and South London, we’re here for you.
We can help with:
- Advice on maintaining property standards, and managing compliance with heightened landlord obligations
- Marketing and letting support – ensuring your adverts, tenancy set‑up and rent setting reflect the evolving regime
- Ongoing monitoring of the legal changes so you remain ahead.
The Renters’ Rights Act 2025 marks a significant shift in how the private rented sector will work in England. For landlords, particularly operating in the smaller‑scale sector, now the aspects of the Bill have been concreted into an Act, the message is clear: Prepare now.
The law is already in force, but many of the practical changes are yet to come. By auditing now, updating your documentation and processes, and working with a trusted local lettings partner, you’ll minimise risk and be well placed to adapt.
If you’d like to talk through how these reforms will apply to your specific setup, the team at Grace Miller & Co are here to advise and guide you. Contact us today.
