{"id":9963,"date":"2026-07-07T15:31:15","date_gmt":"2026-07-07T15:31:15","guid":{"rendered":"https:\/\/rfblegal.co.uk\/?post_type=insight&#038;p=9963"},"modified":"2026-07-07T15:31:17","modified_gmt":"2026-07-07T15:31:17","slug":"structural-reform-of-the-private-rented-sector-further-developments-under-the-renters-rights-act-2025","status":"publish","type":"insight","link":"https:\/\/rfblegal.co.uk\/tr\/icgoruler\/structural-reform-of-the-private-rented-sector-further-developments-under-the-renters-rights-act-2025\/","title":{"rendered":"Structural Reform of the Private Rented Sector: Further Developments Under the Renters\u2019 Rights Act 2025\u00a0"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Our\u00a0previous\u00a0article\u00a0focused\u00a0specifically on the abolition of\u00a0\u2018section 21\u00a0evictions\u2019\u00a0following the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2025\/26\/contents\">Renters\u2019 Rights Act 2025<\/a>\u00a0(the \u201c<strong>Act<\/strong>\u201d) and the\u00a0implications\u00a0on 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\u00a0continue to,\u00a0alter the framework in which landlords and tenants\u00a0operate.\u00a0\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Short-Term\u00a0Residential\u00a0Tenancies<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Over the last\u00a030 years, most\u00a0short-term\u00a0residential tenancies were\u00a0structured as\u00a0an\u00a0Assured Shorthold Tenancy (\u201c<strong>AST<\/strong>\u201d).\u00a0These had a defined, fixed term (with renewals being\u00a0very common).\u00a0\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The provisions of the Act&nbsp;abolished ASTs from 1 May 2026. By default, tenants now have&nbsp;a&nbsp;Assured&nbsp;Periodic&nbsp;Tenancy (\u201c<strong>APT<\/strong>\u201d). This change applies retrospectively. This means ASTs&nbsp;entered into&nbsp;before 1 May 2026, automatically converted to&nbsp;a&nbsp;APT.&nbsp;&nbsp;The implication of this is that:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Obtaining\u00a0possession is dependent entirely on the\u00a0\u2018section 8\u2019\u00a0grounds\u00a0(from the Housing Act 1988\u00a0as amended by the Act);\u00a0and,\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There are no fixed terms with\u00a0tenants\u00a0having unilateral\u00a0flexibility to\u00a0terminate\u00a0with notice (generally 2\u00a0months).\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rent Review&nbsp;Clauses<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">From 1 May 2026, with\u00a0very limited\u00a0exceptions,\u00a0landlords\u00a0cannot have automatic rental review clauses and\u00a0can only increase rent by following\u00a0the\u00a0regime\u00a0in <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/1988\/50\/section\/13\">section 13 of the Housing Act 1988.\u00a0<\/a>\u202f\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;regime implements&nbsp;three principal constraints:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The\u00a0limitation of rent increases to once in any\u00a012\u00a0month\u00a0period\u00a0by giving a section 13 notice;\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A minimum\u00a0two\u00a0month\u00a0notice requirement for any rent increase;\u00a0and\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Alignment of any\u00a0rent\u00a0increase with the commencement of a rental period.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;Act also gives a tenant the right&nbsp;to&nbsp;challenge a rent increase at the&nbsp;First-Tier Tribunal (\u201c<strong>FTT<\/strong>\u201d)&nbsp;on the basis that it is above open market value. Significantly, the FTT&nbsp;now&nbsp;cannot&nbsp;determine&nbsp;a rent higher than&nbsp;the one proposed by&nbsp;the&nbsp;landlord&nbsp;even if the landlord\u2019s&nbsp;proposed rent was&nbsp;deemed&nbsp;as&nbsp;below&nbsp;market value.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This will&nbsp;likely lead&nbsp;to an increase&nbsp;in&nbsp;challenges at the FTT \u2013 as it removes&nbsp;a previous&nbsp;deterrent, namely, that the FTT would&nbsp;determine&nbsp;a higher rent than that proposed by the&nbsp;landlord.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given that where&nbsp;challenge is made&nbsp;by the&nbsp;tenant, the revised rent takes effect only from the date&nbsp;the&nbsp;FTT&nbsp;determines&nbsp;the rent,&nbsp;rather than the date specified in the&nbsp;section 13&nbsp;notice, this&nbsp;further incentivises challenges from tenants who wish to extend the period they pay their rent (pre-increase).&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It remains to be seen how the FTT will cope with this increased demand given that they are already&nbsp;experiencing difficulties with backlog.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Advance&nbsp;Rental&nbsp;Payments<\/strong>&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Pre-\u00a0tenancy\u00a0Payments\u00a0<\/strong>\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">From&nbsp;1 May 2026, landlords and&nbsp;their&nbsp;agents&nbsp;cannot invite,&nbsp;encourage&nbsp;or accept any rent or offer to pay&nbsp;this before a tenancy is&nbsp;entered into.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Payments in\u00a0Advance\u00a0once Tenancy is entered into<\/strong>\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">From 1 May 2026,&nbsp;once&nbsp;a&nbsp;tenancy is&nbsp;entered into, the landlord can request a maximum of&nbsp;one month\u2019s rent in advance. The maximum upfront rent is one month (no more asking for 3, 6 months in advance).&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While landlords cannot ask for or require more than one month&#8217;s rent upfront, tenants can legally choose to offer advance rent voluntarily after the agreement is signed.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Prohibition on&nbsp;Rental Bidding&nbsp;Wars<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">From 1 May 2026, landlords and agents must ensure&nbsp;properties&nbsp;marketed to let under an APT&nbsp;have a rental figure advertised. Once&nbsp;set, landlords cannot&nbsp;seek&nbsp;or accept&nbsp;offers&nbsp;over the advertised amount.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, tenants can no longer offer more money&nbsp;in order to&nbsp;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.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Purpose Built&nbsp;Student&nbsp;Lettings&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Landlords should be aware that&nbsp;tenancies granted for&nbsp;purpose-built&nbsp;student accommodation&nbsp;(\u201c<strong>PBSA<\/strong>\u201d), after 1 May 2026&nbsp;are not treated as an&nbsp;APT. This is an important exemption. They are instead&nbsp;common law tenancies&nbsp;which can expire after a fixed term.&nbsp;Nonetheless, a private PBSA only qualifies for the&nbsp;exemption if&nbsp;they are fully registered with and compliant with a government-approved housing management code of practice. This includes the ANUK\/Unipol&nbsp;Code of Standards.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Existing PBSA tenancies&nbsp;in existence before&nbsp;1 May 2026 became&nbsp;APTs.&nbsp;There are amended&nbsp;possession&nbsp;grounds&nbsp;&nbsp;(ground&nbsp;4A)&nbsp;to&nbsp;terminate&nbsp;these.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Non PBSA&nbsp;Lettings&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Student tenancies&nbsp;for non PBSA\u2019s whether&nbsp;in existence&nbsp;before or after 1 May 2026, are&nbsp;APTs and subject to&nbsp;new&nbsp;possession&nbsp;Ground 4A&nbsp;which&nbsp;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.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Changes to (written)&nbsp;Information&nbsp;Provided to Tenants<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">From 1 May 2026,&nbsp;prescribed information&nbsp;must be provided to tenants&nbsp;before an&nbsp;APT is entered into which includes key aspect of the Act and statements on the landlord\u2019s obligations.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Prohibiting rental discrimination<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">From 1 May 2026, the Act prohibits&nbsp;direct or indirect discrimination against renters who have children or who receive benefits.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Next Phase of Changes&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Awaab\u2019s Law&nbsp;<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Act provides for Awaab\u2019s law to apply to private sector tenancies.&nbsp;&nbsp;Awaab\u2019s Law will require landlords to&nbsp;take action to fix&nbsp;reported health and safety hazards&nbsp;(particularly damp and mould)&nbsp;within set limits. The earliest estimates&nbsp;for implementation&nbsp;2027\/2028,&nbsp;as this requires secondary legislation.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The&nbsp;New&nbsp;Landlord&nbsp;Database&nbsp;<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A new database is&nbsp;intended to be launched from late 2026 onwards. It is planned to be launched in 2 stages. The first&nbsp;requiring landlords to register&nbsp;their details&nbsp;on an&nbsp;area by area&nbsp;basis and&nbsp;then the public will be given access.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is envisaged that,&nbsp;at minimum,&nbsp;the&nbsp;public information would include the Landlord\u2019s details,&nbsp;property type, number of bedrooms,&nbsp;information on&nbsp;gas and electrical safety, and energy performance.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Sonu\u00e7lar<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There is the&nbsp;general consensus&nbsp;that the sector is increasingly becoming more \u201ctenant friendly\u201d.&nbsp;Significantly, tenants now have greater incentives to challenge rent, especially as the relevant date that any higher rent is payable&nbsp;is&nbsp;the date the FTT&nbsp;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&nbsp;FTT.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here at Ronald Fletcher Baker, we are well place to advise both landlords and tenants&nbsp;operating&nbsp;in this area and navigating the changes to the landscape. Should you have any queries, or require advice please&nbsp;contact:&nbsp;&nbsp;<a href=\"mailto:B.Frost@rfblegal.co.uk\" target=\"_blank\" rel=\"noreferrer noopener\">B.Frost@rfblegal.co.uk<\/a>&nbsp;ve&nbsp;<a href=\"mailto:V.Goulielmos@rfblegal.co.uk\" target=\"_blank\" rel=\"noreferrer noopener\">V.Goulielmos@rfblegal.co.uk<\/a>&nbsp;.&nbsp;&nbsp;<\/p>","protected":false},"author":12,"featured_media":9964,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-9963","insight","type-insight","status-publish","format-standard","has-post-thumbnail","hentry","category-property-litigation"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.9 - aioseo.com -->\n\t<meta name=\"description\" content=\"Our previous article focused specifically on the abolition of \u2018section 21 evictions\u2019 following the Renters\u2019 Rights Act 2025 (the \u201cAct\u201d) and the implications on possession. 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