Structural Reform of the Private Rented Sector: Further Developments Under the Renters’ Rights Act 2025

Our previous article focused specifically on the abolition of ‘section 21 evictions’ following the Renters’ Rights Act 2025 (the “Act”) and the implications on possession. This article considers further reforms introduced by the Act and those which are due to be implemented in the future. These have, and will continue to, alter the framework in which landlords and tenants operate.  

Short-Term Residential Tenancies 

Over the last 30 years, most short-term residential tenancies were structured as an Assured Shorthold Tenancy (“AST”). These had a defined, fixed term (with renewals being very common).  

The provisions of the Act abolished ASTs from 1 May 2026. By default, tenants now have a Assured Periodic Tenancy (“APT”). This change applies retrospectively. This means ASTs entered into before 1 May 2026, automatically converted to a APT.  The implication of this is that:  

• Obtaining possession is dependent entirely on the ‘section 8’ grounds (from the Housing Act 1988 as amended by the Act); and, 

• There are no fixed terms with tenants having unilateral flexibility to terminate with notice (generally 2 months).  

Rent Review Clauses 

From 1 May 2026, with very limited exceptions, landlords cannot have automatic rental review clauses and can only increase rent by following the regime in section 13 of the Housing Act 1988.   

The regime implements three principal constraints: 

• The limitation of rent increases to once in any 12 month period by giving a section 13 notice; 

• A minimum two month notice requirement for any rent increase; and  

• Alignment of any rent increase with the commencement of a rental period. 

The Act also gives a tenant the right to challenge a rent increase at the First-Tier Tribunal (“FTT”) on the basis that it is above open market value. Significantly, the FTT now cannot determine a rent higher than the one proposed by the landlord even if the landlord’s proposed rent was deemed as below market value.  

This will likely lead to an increase in challenges at the FTT – as it removes a previous deterrent, namely, that the FTT would determine a higher rent than that proposed by the landlord.  

Given that where challenge is made by the tenant, the revised rent takes effect only from the date the FTT determines the rent, rather than the date specified in the section 13 notice, this further incentivises challenges from tenants who wish to extend the period they pay their rent (pre-increase).   

It remains to be seen how the FTT will cope with this increased demand given that they are already experiencing difficulties with backlog. 

Advance Rental Payments 

Pre- tenancy Payments  

From 1 May 2026, landlords and their agents cannot invite, encourage or accept any rent or offer to pay this before a tenancy is entered into.  

Payments in Advance once Tenancy is entered into 

From 1 May 2026, once a tenancy is entered into, the landlord can request a maximum of one month’s rent in advance. The maximum upfront rent is one month (no more asking for 3, 6 months in advance).   

While landlords cannot ask for or require more than one month’s rent upfront, tenants can legally choose to offer advance rent voluntarily after the agreement is signed.  

Prohibition on Rental Bidding Wars 

From 1 May 2026, landlords and agents must ensure properties marketed to let under an APT have a rental figure advertised. Once set, landlords cannot seek or accept offers over the advertised amount.  

Therefore, tenants can no longer offer more money in order to try and secure a property let. We may begin to see that properties are advertised with a higher rent with it in mind to let at lower price to allow tenants who are willing to pay higher rents to come forward. 

Purpose Built Student Lettings  

Landlords should be aware that tenancies granted for purpose-built student accommodation (“PBSA”), after 1 May 2026 are not treated as an APT. This is an important exemption. They are instead common law tenancies which can expire after a fixed term. Nonetheless, a private PBSA only qualifies for the exemption if they are fully registered with and compliant with a government-approved housing management code of practice. This includes the ANUK/Unipol Code of Standards.  

Existing PBSA tenancies in existence before 1 May 2026 became APTs. There are amended possession grounds  (ground 4A) to terminate these.   

Non PBSA Lettings  

Student tenancies for non PBSA’s whether in existence before or after 1 May 2026, are APTs and subject to new possession Ground 4A which provides landlords of Houses in Multiple Occupation with a targeted route to recover possession during the period from 1 June to 30 September each year. This coincides with the end/ beginning of the academic year.   

Changes to (written) Information Provided to Tenants 

From 1 May 2026, prescribed information must be provided to tenants before an APT is entered into which includes key aspect of the Act and statements on the landlord’s obligations.   

Prohibiting rental discrimination 

From 1 May 2026, the Act prohibits direct or indirect discrimination against renters who have children or who receive benefits.  

Next Phase of Changes  

Awaab’s Law  

The Act provides for Awaab’s law to apply to private sector tenancies.  Awaab’s Law will require landlords to take action to fix reported health and safety hazards (particularly damp and mould) within set limits. The earliest estimates for implementation 2027/2028, as this requires secondary legislation.   

The New Landlord Database  

A new database is intended to be launched from late 2026 onwards. It is planned to be launched in 2 stages. The first requiring landlords to register their details on an area by area basis and then the public will be given access.  

It is envisaged that, at minimum, the public information would include the Landlord’s details, property type, number of bedrooms, information on gas and electrical safety, and energy performance.  

Conclusions 

There is the general consensus that the sector is increasingly becoming more “tenant friendly”. Significantly, tenants now have greater incentives to challenge rent, especially as the relevant date that any higher rent is payable is the date the FTT makes a decision. With decisions from the FTT sometimes taking several months, a tenant also has the benefit of the lower rent during that period. The increase in cases may also stretch an already busy FTT. 

Here at Ronald Fletcher Baker, we are well place to advise both landlords and tenants operating in this area and navigating the changes to the landscape. Should you have any queries, or require advice please contact:  B.Frost@rfblegal.co.uk and V.Goulielmos@rfblegal.co.uk .