Renters’ Rights Act explained: what does it mean for landlords and tenants?

The act was implemented on May 1st. It applies only to Assured Shorthold Tenancies.

So, what’s in the act?

1. The end of Assured Shorthold Tenancies.

a. Section 21 has been abolished; it has been replaced with section 8, which will allow landlords to gain possession of their property using prescribed grounds only.

b. The prescribed grounds for possession have been updated to include mandatory grounds if a landlord wants to sell or move back in; in these cases landlords will be required to give 4 months’ notice and such notice cannot expire earlier than 12 months from the start date of the tenancy. The mandatory and discretionary grounds will also be updated for a tenant who is in rent arrears, involved in anti-social behaviour or breaches the terms of their tenancy agreement.

c. The end of fixed term tenancies; tenancies are now periodic from the start of the tenancy, meaning they have no end date.

d. Rent periods are limited to monthly or less, and rent is only payable on the due date, unless the tenant wishes to pay sooner.

2. Rent increases are restricted to once a year, and by way of a formal Section 13 notice only, with tenants having the ability to challenge a rent increase through the First Tier Tribunal.

3. Tenants can serve 2 months’ notice (or less if agreed otherwise) in writing to end their tenancy from the start of their tenancy, and common law suggests a tenant’s notice should expire at the end of a rental period. For example, if the tenant’s notice period is two months, and the rent due date is 1st of the month and the tenant serves notice on 15th June, the notice would be to 31 August. If one tenant gives notice to leave, they are binding all tenants to that notice.

4. Tenants have the right to request a pet and a landlord cannot unreasonably refuse such a request unless, for example, the superior landlord doesn’t allow pets.

5. Agreed rent cannot be higher than the advertised rent and bidding will not be allowed above the advertised rent.

6. Landlords cannot discriminate against those who receive benefits or those with children living with them or visiting.

The details of the following changes will be set out in secondary legislation, the dates of which are still to be confirmed.

7. Landlords will have to sign up to a Landlord Redress Scheme, with landlords required to sign up before the property is marketed. This will allow tenants to seek redress against landlords and is expected to be cheaper and quicker than going through the court system.

8. Landlords will need to sign up to a PRS database, registering themselves and their property before the property is marketed.

9. All tenants must be provided with a written tenancy agreement.

10. Awaab’s Law will apply to the Private Rented Sector, outlining set times to investigate and repair certain issues.

11. Decent Homes Standard will also apply to the Private Rented Sector to ensure minimum acceptable property standards.

• Learn more about the RRA if you're a landlord 
• Learn more about the RRA if you're a tenant

When are these changes coming in?

Implementation of the act will come in three phases. The first phase of the act took effect 1 May 2026.

Phase One implemented tenancy reform measures on both new and existing tenancies. This includes the abolition of Section 21 notices, a transition to Assured Periodic Tenancies, caps on rent in advance, anti-discrimination measures, a ban on rental bidding, a limit on rent increases to once a year, and provisions allowing tenants to make pet requests.

Phase Two will take place from 2027 and into 2028 and will include the introduction of the PRS database and the Landlord Ombudsman.

Phase Three is likely to occur between 2035 and 2037 and will include the implementation of Awaab’s Law and the Decent Homes Standard.

What will enforcement look like?

Local authorities’ enforcement powers have been strengthened and extended, with civil penalties being increased up to £7,000 for initial or minor non-compliance and up to £40,000 for repeat offences.  Rent Repayment Orders could be demanded on some of the new offences, with penalties being increased from 12 to 24 months’ rent; superior landlords and company directors could now also be liable.

The government have produced a set of guidance alongside the act, which can be found here.

How can we support you?

At Knight Frank, a high percentage of the new tenancies we agree are non-ASTs, due to our excellent relationships with Relocation Agents who source many of our corporate tenants, and much of the above won’t apply.

Our average tenancy length is 2 years and continues to increase. Over the last 2 years, over 80% of Knight Frank tenants served notice to end their tenancy, rather than landlords, and rent arrears occurred in less than 1% of our total rent roll.

If you choose to have your property managed by Knight Frank, you will have an expert responding to any property-related issues and access to our panel of contractors. This is why, as a client of Knight Frank, you can rest assured that your asset is in the best possible hands.

As your partners in property, we will continue to keep you updated as things progress. If you have any queries, please contact Beverley Kennard, Partner, Head of Lettings Operations or Gary Hall, Partner, Head of Lettings.