Alongside the abolition of Section 21 “no fault” evictions, the landmark Renters’ Rights Act 2025 (the Act) introduces a range of regulatory and tenant-focused reforms designed to increase security for the approximately 11 million renters in England. In this Keynote, property litigation partner Ed John, Senior Associate Robert Mackay, and Paralegal Adam Webb explain the upcoming changes to rent caps, advance rent limits, anti-discrimination provisions, pet rights, protection against retaliatory evictions, the new Private Landlord Ombudsman, and improved housing standards.
How will rent increases be regulated under the new Act?
Under the Act, landlords will only be permitted to increase the rent once per year. This reform prevents frequent or ad-hoc rent hikes, giving tenants greater budgeting stability. If a landlord imposes an excessive increase to force a tenant out, tenants can challenge “above-market” hikes through new dispute mechanisms. Landlords must review tenancy agreements and rent review clauses to ensure compliance and remove any terms allowing multiple increases before May 2026.
What are the new rules on advance rent payments?
The Act makes it unlawful for landlords or letting agents to require more than one month’s rent in advance. Previously, some landlords demanded several months upfront, creating barriers for renters without large savings. By capping advance rent at one month, the law aims to make securing a tenancy easier. This cap is separate from tenancy deposits, which remain limited to five weeks’ rent for annual rents below £50,000 and six weeks for £50,000 or more. Landlords should update policies and retrain staff to ensure compliance.
How does the Act address discrimination in the private rented sector?
Landlords will no longer be permitted to refuse to rent to someone because they receive benefits or have children. Prospective tenants must be assessed on their merits and ability to pay, not excluded due to income source or family status. Advertising, selection criteria, and interviews must be free from discriminatory language or practices. This may require policy reviews and staff training to ensure compliance.
What protections are there against rental bidding wars?
The Act prohibits landlords and agents from encouraging tenants to bid against each other to raise rent. In some high-demand areas, tenants have previously been pressured to outbid others, effectively turning the rental process into an auction. From May 2026, advertising a property at one price and then increasing it through competition will be banned. This measure is designed to create a fairer playing field for renters and to prevent rent inflation driven by competition rather than market value. Landlords should review marketing practices to ensure compliance.
Can I now live with my pet?
Tenants will have a new right to keep pets with the landlord’s permission, which cannot be unreasonably refused and must be considered on a case-by-case basis. Blanket bans will no longer be acceptable. Landlords may still require tenants to cover damage or obtain pet insurance. Further guidance will clarify details, but landlords should review agreements now to avoid unlawful restrictions.
How does the Act protect tenants from retaliatory evictions?
The legislation strengthens protections against retaliatory evictions, where landlords seek to remove tenants for raising legitimate complaints. By requiring valid legal grounds for eviction and introducing new dispute resolution mechanisms, the Act makes it harder to evict tenants for asserting their rights. Landlords should handle complaints promptly and ensure possession proceedings are based only on legitimate grounds.
What is the Private Landlord Ombudsman and how will it help tenants?
The Act introduces a Private Landlord Ombudsman scheme. All landlords must register themselves and their properties with a central database and join the Ombudsman. This gives tenants an independent route to resolve disputes without going to court. The Ombudsman can investigate complaints and require remedial action. This reform is designed to improve standards in the private rented sector and to ensure that tenants have access to fair and effective redress. Landlords should prepare to register and familiarise themselves with the process.
How will housing standards improve?
For the first time, a “Decent Homes Standard” will apply to the private rented sector. Properties must meet minimum standards for safety, security, and repair, similar to social housing. Measures will tackle hazards such as mould and damp, with “Awaab’s Law” extended to private rentals to mandate quicker repairs. The Government has also consulted on requiring all rental properties to achieve EPC rating C or above by 2030, meaning landlords should plan for energy-efficiency upgrades.
What are the penalties for breaching the new rules?
Local housing authorities will enforce compliance and can issue fines of up to £7,000 for breaches, rising to £40,000 for repeated or serious offences. Tenants (or councils) can seek Rent Repayment Orders through the First-tier Tribunal, forcing landlords to repay rent received during non-compliance. These penalties create a strong financial incentive for landlords to act now; if you were planning to increase rent twice next year, you must change that plan.
Key takeaways for landlords
The Act represents a major shift for landlords. Review tenancy agreements, rent review clauses, and selection criteria for compliance. Ensure rent increases are limited to once per year, advance rent demands do not exceed one month, and advertising is free from discriminatory language. Update internal policies and retrain staff where necessary. Penalties for non-compliance are severe, with fines up to £40,000 and potential rent repayment orders. Acting now will help landlords avoid sanctions and maintain a positive reputation.
Key takeaways for tenants
Tenants will benefit from stronger protections: rent increases capped at once per year, advance rent limited to one month, and new rights regarding pets. Discrimination based on benefits or family status will be unlawful, and rental bidding wars banned. The Ombudsman and landlord register will provide new avenues for redress, while housing standards will rise to ensure safer, better-quality homes.
For a comprehensive analysis of the abolition of the “no-fault” eviction ground under section 21 of the Housing Act 1988 – including timelines, new possession procedures, and practical steps for landlords, click here.
If you require further guidance on compliance or wish to discuss how these changes affect your portfolio or tenancy, please contact Property Litigation partner Ed John, Senior Associate Robert Mackay, or Paralegal Adam Webb.