Back to overview

Commercial Question

Phase one of the Renters Rights Act explained

updated on 03 February 2026

Question

What changes does phase one of the Renters’ Rights Act 2025 have on the private rented sector? 

Answer

The Renters’ Rights Act 2025 (the 2025 act) represents one of the most significant overhauls of landlord and tenant law in decades. Phase one of the 2025 act comes into force on 1 May 2026, and for anyone pursuing a career in housing, property litigation or real estate, the reform marks a major shift in how the private rented sector in England will operate.

At its core, the 2025 act moves the system away from the model introduced by the Housing Act 1988 (HA 1988), which gave landlords greater flexibility through assured shorthold tenancies (ASTs) and the now‑familiar ‘no‑fault’ eviction process under section 21. The 2025 act reverses that balance, strengthening tenant security, while reshaping the routes available to landlords that need to regain possession.

For aspiring lawyers, the changes demonstrate how political pressure, market forces and social expectations can drive large‑scale legal reform.

Tenancy reform

One of the headline changes is the removal of fixed‑term assured tenancies. From 1 May 2026:

  • most new and existing assured tenancies of less than 21 years will become periodic with some exceptions (eg, private purpose-built student accommodation will be exempt);
  • tenancy periods can’t exceed one month, ending quarterly rental structures; and
  • written tenancy agreements are mandatory, although existing agreements remain valid if accompanied by a government-issued information sheet.

This marks a fundamental departure from the fixed‑term AST model that’s dominated the private rented sector for more than 30 years. Periodic tenancies remove automatic end dates and provide tenants with greater stability, while also introducing additional procedural considerations for landlords advising on termination strategies.

Tenants will be able to leave on two months’ notice, unless the agreement allows a shorter period. However, landlords will only be able to regain possession on one of the statutory grounds in section 8 of the HA 1988.

Seeking possession

The abolition of section 21 comes into effect on 1 May 2026. The last date a landlord can serve a section 21 notice is 30 April 2026. No‑fault eviction has been one of the backbones of modern possession proceedings, enabling landlords to recover properties efficiently and predictably.

From 1 May 2026:

  • section 21 disappears entirely in the private rented sector;
  • landlords must rely solely on amended and expanded section 8 grounds;
  • the new grounds for possession will sit in schedule 2 of the HA 1988, updated by schedule 1 of the 2025 act; and
  • misuse of grounds will carry new sanctions, including fines, meaning landlords must evidence genuine intent.

Where a section 8 or section 21 notice has already been served under the old procedure prior to 1 May 2026, landlords will be entitled to continue the current possession process with a deadline to issue proceedings for any existing section 21 claim by 31 July 2026.

For trainees and junior lawyers working in property litigation, this increases the complexity of advising on possession strategies. Case preparation is likely to become more evidence‑heavy and procedurally demanding, and clients will need careful guidance on selecting and substantiating the correct ground.

Rent reform

The 2025 act also changes how rents are advertised, set and increased.

From 1 May 2026:

  • marketing materials must include the proposed rent;
  • landlords and agents will be banned from encouraging tenants to bid above the advertised figure;
  • rent can only be paid in increments of a month or less;
  • landlords can’t accept rent before the tenancy is entered into; and
  • tenants can’t be required to pay more than one month’s rent in advance.

Rent reviews will also become more standardised. Landlords:

  • may only increase rent once per year;
  • must use a section 13 notice and provide tenants with at least two months’ notice; and
  • can only increase to (at most) the open-market rate.

Tenants can challenge increases before the First‑tier Tribunal (FTT), which will determine the lawful rent at the lower of the landlord’s proposed figure and the current market rate.

For legal advisers, this introduces tighter regulatory boundaries and increases the likelihood of disputes being escalated to the FTT.

Anti-discrimination

For the first time, the 2025 act prohibits landlords from refusing to rent to tenants:

  • in receipt of housing benefits; or
  • with children.

Exceptions exist but these are narrow. This builds on wider policy conversations about fairness and access to housing, and places new compliance obligations on landlords and agents.

Pets

The 2025 act implies a term into all assured tenancies allowing tenants to keep pets, provided they seek written consent. Landlords:

  • must not unreasonably refuse permission; and
  • must take a pragmatic, case‑specific approach.

Government guidance stops short of defining what’s “reasonable”, creating a potential source of disputes.

Why this matters for aspiring lawyers

The 2025 act is more than a technical amendment to housing law. It reflects a broader policy intent to rebalance the private rented sector and enhance consistency across the market.

For future solicitors, this reform is commercially significant because:

  • real estate and housing teams will likely see increased advisory demand as clients adjust to the new framework;
  • litigation work is likely to rise, particularly around possession claims and rent challenges;
  • regulatory compliance becomes more complex, requiring sharper understanding of statutory duties; and
  • drafting and negotiation skills will be critical as standard tenancy terms evolve.

The 2025 act is a reminder that law doesn’t stand still. Political change, public sentiment and economic pressure can reshape entire legal frameworks. Existing and aspiring practitioners must continually adapt to a changing landscape.

Charlotte Ash is an associate at Devonshires.