Renters’ Rights Act 2025: 10 Key Changes for Landlords and Tenants | Mortimers

Renters’ Rights Act 2025: 10 Key Changes for Landlords and Tenants

Major updates have been introduced under the Renters’ Rights Act, bringing significant reforms to the private rented sector.

These changes impact how Landlords, Letting Agents, and Tenants manage tenancies, rent, and property standards.

Below is a summary of the 10 essential updates both Landlords and Tenants should be aware of.

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Tenancy and Possession

  • Section 21 (“no-fault”) evictions will be abolished. Any valid notices served before the new rules take effect will still be enforceable.
  • Section 8 notices will continue, with new and updated grounds for possession, including selling the property, moving in, or a tenant breach.
  • Misusing possession grounds (for example, falsely claiming a sale) could result in prosecution or fines of up to £40,000.
  • Landlords must now use the revised Form 3 for eviction notices, as Form 6A will no longer be valid.
  • Sale-related notices cannot be issued within the first 12 months of a tenancy.

Tenancy Terms

  • Tenants must give two months’ notice, ending on the final day of their rental period.
  • Licences and contractual tenancies are not yet covered, pending further Government clarification.

Rent and Payments

  • Rent increases can only be made through a Section 13 notice. Tenants may challenge increases through the First-tier Tribunal, which will decide the market rate.
  • While a challenge is being reviewed, tenants must continue to pay the current rent.
  • Rent in advance is capped at one month’s rent.

Landlord Ombudsman and Redress

  • A mandatory Landlord Ombudsman Scheme will be launched, similar to existing agent redress schemes.
  • All landlords must register, even if they use a managing agent.
  • Annual fees per property will apply (details yet to be confirmed).
  • The scheme will handle tenant complaints only — landlords cannot raise complaints against tenants.
  • Letting agents will be prohibited from advertising or letting properties for landlords who are not registered.

Private Rented Sector (PRS) Database

  • A new national PRS database will record landlord information, property details, and compliance history.
  • Some information will be publicly available, including offences, financial penalties, and property standards.
  • Registration fees and late penalties will apply.
  • The PRS Database will eventually replace the “Rogue Landlord Database” and connect with the Property Portal.
  • Local authorities will continue to oversee enforcement, and selective licensing schemes will remain in place for now.

Rental Discrimination and Bidding

  • “No DSS” or blanket bans against tenants with children or those on benefits will become unlawful.
  • Landlords may still assess affordability and suitability on a case-by-case basis.
  • Bidding wars will be banned — landlords and agents cannot request or accept rent higher than the advertised price.
  • Breaches could result in fines of up to £7,000 for minor breaches and up to £40,000 for serious or repeated offences.

Pets

  • Tenants now have the right to request pets, and landlords cannot unreasonably refuse consent.
  • Additional pet deposits are not permitted.
  • Where a superior landlord or head lease restricts pets, consent may be refused.
  • Disputes can be referred to the Ombudsman or the courts.

Property Standards

  • The "Decent Homes Standard" is a set of housing standards originally for social housing that is now being extended to the private rental sector.
  • Private landlords to maintain their properties to a safe, warm, and habitable standard, addressing health hazards like damp and mold within set timeframes.
  • Local authorities can issue improvement notices and rent repayment orders for non-compliance.
  • Fines up to £40,000 may apply for breaches.

Awaab’s Law (Damp and Mould)

  • Awaab’s Law will be extended to the private rented sector following consultation in 2026.
  • Landlords will need to investigate issues within two weeks and begin repairs within seven days (subject to final guidance).
  • Failure to act may lead to enforcement action or compensation.

Enforcement and Penalties

  • Local councils will gain enhanced investigatory powers.
  • Fines include:
    • Up to £7,000 for minor or first-time offences.
    • Up to £40,000 for serious or repeat breaches.
  • Councils may enter properties without prior notice, but landlords must be notified within 24 hours after entry.

Further Guidance

For full details, please refer to the official Government guidance or speak to a member of our Lettings team for professional advice.

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