Simon Foster, real estate partner at Shoosmiths, provides legal analysis on the key provisions and implementation of the Renters’ Rights Act, drawing on insights from Shoosmiths’ guides.

Published 15 December 2025

Implementation roadmap confirmed

In November 2025, the Government published its official roadmap for the Renters’ Rights Act 2025, confirming a phased rollout beginning in May 2026. The headline reforms - the abolition of fixed-term tenancies and the Section 21 “no fault” route for obtaining possession - take effect on 1 May 2026.

A second phase introducing the PRS Database and Ombudsman Scheme will follow from late 2026, with a third phase addressing property condition standards, including the Decent Homes Standard, coming later. Landlords should plan proactively around these dates.

Periodic tenancies replace fixed terms

From May 2026, all assured shorthold tenancies will convert to open-ended periodic agreements, ending fixed terms. Tenants may leave at any time with two months’ notice. Landlords will be able to end a tenancy only by proving a statutory ground under Section 8. Any fixed-term tenancies running beyond May 2026 will automatically transition to periodic; landlords should plan now for that shift.

Section 8: Updated grounds and timings

Obtaining possession will require a statutory ground to be made out, all of which grounds are contestable. Key changes include longer notice periods for landlord sale or occupation (four months, after a 12-month minimum tenancy), stricter criteria for serious rent arrears (three months unpaid), and new grounds where remedial works are required. All evictions will require notice and (if the tenant fails to leave or disputes the landlord’s grounds) a possession order, making early management of tenancy issues essential.

Potential delays and digital reforms

Possession proceedings may become more protracted. Although the Government is investing in a digital courts process and a rent tribunal, these systems will take time to embed. Current possession claims already exceed six months on average; this could grow once Section 21 is abolished. Early engagement on arrears or anti-social behaviour will help minimise void periods.

Annual rent increases only

Rent can be increased only once per year, via the Section 13 process, and with two months’ notice. Contractual rent review clauses will be unenforceable. Tenants may challenge increases through the First-tier Tribunal, which may reset rents to market level. If challenged, any new rent applies only from the tribunal decision date, not retrospectively.

Pet requests and fair access

Landlords must consider pet requests reasonably and respond within 28 days. Discrimination based on benefits or family status will be unlawful, requiring a fundamental shift in advertising and vetting practices. Screening must focus solely on references and affordability.

Advance rent and bidding bans

The Act bans asking for or accepting more than one month’s rent upfront. Rental bidding - inviting or accepting offers above the advertised price - is also prohibited. Landlords should adjust leasing strategies, increasingly relying on guarantors, improved referencing, and rent guarantee insurance or similar products (at the landlord’s cost) where appropriate.

Mandatory PRS Database and Ombudsman

From late 2026, landlords must register themselves and each property on the PRS Database. Registration is mandatory for seeking possession. A new PRS Ombudsman Scheme, expected to be compulsory by 2028, will provide tenants with a route for redress. Civil penalties begin at £7,000 and can reach £40,000 for serious or repeated breaches, with criminal sanctions possible for fraudulent information. Operators should begin assembling property and compliance records now.

Future property standards

The Act paves the way for raising minimum standards, including the rollout of the Decent Homes Standard and the introduction of Awaab’s Law for the resolution of hazards in rented premises.

Long-term planning for energy performance, habitability and safety improvements is key to easing future compliance pressures.

Operational readiness and letting agent oversight

Landlords should assess whether their systems and staffing can handle increased administrative demands, including notices, rent reviews, and Ombudsman processes. Those using letting agents must ensure compliance alignment, as liability ultimately sits with the landlord.

Practical actions

Landlords should audit their portfolios and tenancy documents now.

Where possession may be required before 2026 for business reasons, consider the lawful use of Section 21 while still available. It is also critical to update tenancy templates to remove outdated clauses and compile all property-level compliance documents - EPCs, safety certificates, deposit records - ahead of database registration to ensure a smooth transition.

Ascend’s operational analysis

Chris Norman, head of compliance at Ascend – the UK’s largest third-party operator of single-family rental (SFR) homes – takes a look at the on-the-ground impact of the Renters’ Rights Act.

The Renters’ Rights Act presents arguably the most comprehensive overhaul of landlords’ obligations since the Housing Act 1988. The legislation could support professional institutions whose model has always focused on providing a high-quality service, product and security of tenure. In many areas, the legislation is merely codifying what is already best practice among leading operators.

The most significant change is the outlawing of fixed-term agreements and the shift to periodic tenancies, with rental increases undertaken exclusively through the Section 13 process. This introduces a potential increase in vacancy risk, with tenants able to leave at any time with two months’ notice.

There are also concerns over rent tribunals and whether the current system will have the capacity to resolve disputes efficiently. However, institutional landlords – whose focus on resident experience and secure tenure typically drives longer average tenancies – are well placed to navigate these risks.

Many institutional SFR operators, including Ascend, already use Section 13 notices and rolling tenancies - after an initial fixed term - as standard. Rolling tenancies support enhanced resident experience, and in a sector with generally low churn, vacancy risks are somewhat mitigated. The impact of the changes could be felt more acutely in multifamily build to rent (BTR), where shorter average tenancy lengths and a more seasonal rental market mean operators have historically preferred the certainty of fixed term agreements. There may be a period of adjustment to this model for multifamily operators, with schemes that have strong year-round demand in a better position to make the shift.

Shorter average tenancies may increase administration costs as operators process more onboardings and check-outs. However, some operational efficiencies may arise: lease renewals will no longer require significant resource, and uplifts may be achieved more swiftly under the Section 13 process. Robust operational systems - including Ascend’s proprietary technology platform - will become increasingly crucial for managing administrative demands, realising efficiencies and maintaining compliance with the new legislation.

On rental security, the ban on upfront payments of more than a month’s rent will not affect most leases but will create challenges for tenants with limited credit history or without guarantors. Leases to students outside PBSA - particularly international students - may be especially impacted.

As referencing agencies will be unable to approve applicants who cannot demonstrate affordability or provide a UK-based guarantor, and paying rent in advance will no longer be an option, operators may be reluctant - or, due to financing covenants, unable - to accept these tenants. While rental guarantee insurance may fill some gaps, it remains expensive or unavailable at scale for certain platforms. The market will ultimately need to innovate within the new rules to ensure tenants are not unfairly excluded.

New administrative requirements, including compulsory registration with an online landlord database, will be an additional cost. These obligations, alongside the new PRS Ombudsman, are focused on tenant representation and may prove more onerous on landlords over time. Again, professional and institutional operators who already hold themselves to high standards will be least affected.

Ultimately, while the Renters’ Rights Act introduces new risks for landlords, operational compliance will depend on leveraging technology to ensure adherence. Platforms such as Ascend Intelligence, Ascend’s in-house property management tech stack, can support compliance, efficiency and resident experience - factors that will become even more pivotal as tenants gain greater ability to give notice and move if service levels drop.

Institutional landlords’ higher operational standards, absorptive capacity and focus on security of tenure position them well to adapt. The obligations created by the Renters’ Rights Act bring challenges, but also opportunities for both multifamily and SFR operators.