The Renters’ Rights Act has officially received Royal Assent, marking the most sweeping overhaul of England’s private rented sector in decades.
The new law abolishes Section 21 “no-fault” evictions, replaces fixed-term tenancies with open-ended agreements and places limits on rent increases – signalling a fundamental shift in the balance of power between landlords and tenants.
It also introduces a national landlord register, a new private rented sector ombudsman and an updated Decent Homes Standard that extends to private landlords for the first time.
Awaab’s Law, which enforces strict time limits for resolving serious health and safety issues, will also apply to private rented homes.
NO TIMETABLE
While the exact implementation timetable has yet to be finalised, the Department for Housing has confirmed that secondary legislation will follow “in due course”, with a phased rollout expected through 2026 and beyond.
The changes will trigger a period of significant transition for landlords, letting agents and tenants alike – one that will reshape the rental landscape for years to come.
RECORD HIGH RENTS
The Act comes into force amid fresh data from Rightmove showing the rental market remains under acute strain, even as supply begins to recover.
The average advertised rent outside London has reached a new record of £1,385 per calendar month, up 3.1% year-on-year, while rents in the capital hit £2,736, up 1.6% annually.
The number of available homes to rent is now 9% higher than a year ago and just 23% below 2019 levels – the closest the market has come to pre-pandemic supply in four years.
However, the number of new listings is up by only 1%, suggesting that fresh stock entering the market is still limited.
Despite earnings rising by around 5% over the past year, affordability remains stretched. The average tenant now spends 44% of their income on rent, up from 40% five years ago.
Meanwhile, a 20% deposit for a typical first home has risen by £5,000 since 2019, leaving more households dependent on the rental market for longer.
The average interest rate on a new buy-to-let mortgage is 4.87%, down from last year but still far higher than the 2.93% seen before the 2022 mini-Budget.
INCREASED SECURITY
Colleen Babcock, property expert at Rightmove, said the legislation was “intended to give tenants more security and flexibility in their rental home.”
“In our data, we’re already seeing a trend of tenants staying put for longer, and this legislation could increase that further,” she says.
“Pets remain the number one thing renters search for when looking for a home, so the right to request a pet should have a big impact.”
LANDLORDS DIVIDED
Rightmove’s survey data suggests a mixed reaction among landlords. Fewer than half (43%) said they were fully aware of the Renters’ Rights Bill and felt prepared for the changes, while one in five admitted they knew little or nothing about it.
One in three landlords is considering exiting the market at some point in the future, with two-thirds (66%) saying they feel unsupported by government policy. New taxation and regulatory changes are the leading source of frustration (68%), prompting some to plan reductions in their portfolios over the next year.
However, half of landlords (51%) said they planned to maintain their portfolio size over the next 12 months, while one in five (20%) intends to expand. Nearly a third (29%) cited high mortgage rates as the main obstacle to growing their portfolios.
BIG CHANGE
Christian Balshen, Rightmove’s Director of Agency Partnerships, says: “The new legislation is a big change for landlords and it’s vital they remain compliant. Selecting the right agent to understand and prepare for these changes will be crucial.”
Babcock adds that the majority of landlords still see opportunity in the sector: “The fundamentals remain strong, but landlords need to ensure the numbers still add up. Without careful policy management, more could exit the market, which would ultimately harm tenants.”
MAJOR TRANSITION
For letting agents, the Act represents one of the largest operational shake-ups in decades.
“There’s a cost to getting it wrong,” warns Balshen. “Over the coming weeks, agents have an opportunity to guide and reassure their landlords.”
Grace Milham, Group Operations Director at The Property Franchise Group, says her organisation was “well advanced in its rollout plan” to prepare agents for the changes, which are expected to take effect from early 2026.
“There are 14 key areas of change for landlords, and we have not underestimated the scale of work required,” she says.
“We have a comprehensive training and documentation programme to ensure a smooth transition once the legislation commences.”
Among the most significant reforms are:
- The abolition of Section 21 and introduction of new Section 8 grounds for possession
- The move to periodic tenancies
- A ban on rental bidding and rent in advance
- New rules around pets and family discrimination
- The introduction of a Decent Homes Standard and Landlord Ombudsman
- Stronger enforcement and rent repayment orders
INDUSTRY REACTION
The lettings and property sector broadly welcomed the Act’s Royal Assent as a long-awaited moment of clarity after years of uncertainty.
Marc von Grundherr, Director of Benham and Reeves, said: “The Renters’ Rights Act brings to an end years of uncertainty, but in doing so it opens a new chapter of compliance and complexity. Landlords may be wary of reduced flexibility, but they can now plan accordingly.”
Dr Neil Cobbold, Commercial Director at Reapit, said the Act would “bring clarity and tremendous opportunity” for letting agents.
“Only 4% of landlords are full-time, and nearly half own just one rental property,” he says. “They will need professional support from agents more than ever. This isn’t an ‘everything changes tomorrow’ moment – some provisions won’t come into force until the mid-2030s – but agents who can demonstrate expertise will thrive.”
Beverley Kennard, Head of Lettings Operations at Knight Frank, called the reforms “a significant milestone designed to tackle rogue practices, not penalise responsible landlords.”
She adds: “With the right preparation and advice, the private rented sector will remain a stable and worthwhile place to invest.”
LEVEL PLAYING FIELD
Paul Offley, Compliance Officer at The Guild of Property Professionals, says: “Good agents and landlords who already operate to high professional standards have nothing to fear.
“This legislation should level the playing field and drive out poor practices that damage the sector’s reputation.”
And Brendan Geraghty, Chief Executive of the Association for Rental Living, says the Act would help “professionalise the sector and improve the rental experience,” particularly for the fast-growing Build to Rent market.
Meanwhile, Sián Hemming-Metcalfe, Operations Director at Inventory Base, urged government stability.
“The focus should now be on supporting responsible landlords rather than penalising them. The private rented sector is essential to housing supply, and constant legislative change only fuels uncertainty.”
NEW ERA FOR RENTING
While the Renters’ Rights Act has divided opinion, few dispute its significance. It promises stronger protections and greater security for tenants but brings new compliance challenges and financial pressures for landlords.
As Graham Hayward, Managing Director of Housing Hand, puts it: “The challenge now is the implementation plan and sequence – and ensuring that everyone, from landlords to renters, understands what this new era of renting really means.”
For millions of renters across England, that new era has now officially begun.
