Landlord regulatory guide: 2026/27

Renters' Rights Act 2025: s21 Abolition, Periodic Tenancies, Compliance

The Renters' Rights Act 2025 - the most substantial reform of the English private rented sector tenancy regime since the Housing Act 1988. Section 21 "no-fault" eviction abolition, conversion of assured shorthold tenancies to periodic assured tenancies, expanded Section 8 possession grounds (22 grounds with new mandatory grounds for selling and moving in), Section 13 rent-increase mechanism with 12-month minimum interval and Tribunal challenge route, mandatory PRS landlord database with £40,000 penalties, Decent Homes Standard extension, Awaab's Law extension to private rented sector, new PRS ombudsman, statutory pet-request right, and new discrimination protections.

Overview - the biggest PRS reform since 1988

The Renters' Rights Act 2025 is the most substantial reform of the English private rented sector (PRS) tenancy regime since the Housing Act 1988 introduced the Assured Shorthold Tenancy structure. The Act received Royal Assent in 2025 after extensive parliamentary passage, as the Labour-government reintroduction of the Conservative Renters Reform Bill 2023 that fell at the July 2024 General Election. Implementation is phased through 2025 and 2026: the Section 21 "no-fault" eviction abolition and conversion of ASTs to periodic assured tenancies took effect in May 2026 for new tenancies in England; the mandatory PRS landlord database, the PRS ombudsman, the Decent Homes Standard extension and Awaab's Law extension follow in autumn 2026.

The Act applies to England only - Wales and Scotland have separate devolved housing legislation (Renting Homes (Wales) Act 2016, Private Housing (Tenancies) (Scotland) Act 2016) with their own reform timetables. The Act extensively amends the Housing Act 1988 (assured tenancy regime) and the Housing Act 1996 (enforcement). For English landlords the operational impact is material across multiple dimensions: tenancy structure shifts from fixed-term to periodic; possession requires statutory grounds rather than no-fault notice; rent increases require Section 13 procedure; new mandatory registration; new property standards; new ombudsman membership.

The Act's headline reform - Section 21 abolition - has been the centrepiece of housing-policy debate since the original Conservative manifesto commitment in 2019. The shift transforms the practical economics of UK landlording: landlords must develop the documentary and evidential case for Section 8 grounds rather than simply giving 2-month no-fault notice. Possession claims under Section 8 typically take 6 to 12 months to resolve through the County Court (vs the 4 to 8 week timeline historically available under Section 21 accelerated possession). Combined with the other compliance changes, the Act has accelerated the long-running structural shift of small-portfolio "accidental landlords" out of the PRS in favour of professional and corporate landlord operators - around 18% reduction in the small-landlord segment is forecast over 2025-2028 per Cabinet Office impact assessment.

Pre-Act vs post-Act framework comparison

Feature	Pre-Act	Post-Act	Notes
Default tenancy type	Assured Shorthold Tenancy (AST) under Housing Act 1988	Periodic assured tenancy (no fixed term, monthly rolling)	All new tenancies are periodic from commencement date in May 2026. Existing fixed-term ASTs convert to periodic at expiry of current term.
No-fault eviction (s21)	Available with 2-month notice after fixed-term expiry	Abolished entirely	Section 21 cannot be used after commencement date. Possession requires a Section 8 ground.
Possession grounds (s8)	17 grounds across mandatory + discretionary	Expanded to 22 grounds with new mandatory grounds	New grounds: selling property (ground 1A), landlord/family moving in (ground 1), persistent rent arrears (mandatory at 13+ weeks).
Tenancy duration	Fixed term (6 or 12 months typical) then rolls to periodic	Periodic from start - no fixed term	Tenant can give 2 months notice at any time. Landlord must use s8 possession ground.
Rent increase mechanism	Various: rent review clause, mutual agreement, s13 notice	Section 13 notice only, maximum once per year	Tenant can challenge increase at First-tier Tribunal (Property Chamber). Must be 12+ months since last increase or start of tenancy.
Tenancy deposit cap	5 weeks rent (under £50k annual rent) or 6 weeks (£50k+)	Unchanged - 5 weeks / 6 weeks	Tenancy deposit regime under Housing Act 2004 ss212-215 continues.
Pets	Landlord can refuse without grounds	Tenant has right to request, landlord must consider on reasonable grounds	Landlord can require pet insurance or higher deposit. Outright refusal must be reasonable.
Discrimination	Limited statutory protection	New offences for "no DSS" or "no children" restrictions in advertising	Equality Act 2010 protections also continue.
Landlord database	Not required (selective licensing in some authorities only)	Mandatory national PRS landlord database from autumn 2026	Public-facing register; non-compliance penalty up to £40,000 or possession order refusal.
Property standards	Repair obligations under LLT Act 1985 + HHSRS	Decent Homes Standard extended to PRS + Awaab's Law extension	Mandatory damp/mould response timelines apply to private rented sector as already for social housing.
Ombudsman	Voluntary schemes; no mandatory PRS ombudsman	Mandatory PRS ombudsman from 2026	All private landlords must join. Tenant complaints route bypasses court for non-eviction disputes.

Section 8 expanded possession grounds

The Act expands Section 8 grounds from 17 (under Schedule 2 Housing Act 1988) to 22 grounds. The key new and revised mandatory grounds:

Ground 1 (revised) - Landlord moving in: landlord or close family member moving into the property to use as their main residence. Requires 4 months' notice. The property cannot be re-let on the open market for 12 months after the tenant leaves (otherwise the ground is deemed mis-used).
Ground 1A (new) - Selling the property: landlord intends to sell the property. Same 4 months' notice and 12-month re-let prohibition. Designed to prevent landlords using "selling" as a back-door Section 21 by requiring genuine intent demonstrated by actual sale or by leaving the property vacant for 12 months.
Ground 4A (revised) - Persistent rent arrears: rent arrears of 13+ weeks (or 3+ months for monthly rent). Mandatory ground with quicker court process. Replaces the previous 8-week arrears ground 8 in some circumstances; ground 8 continues with the existing structure.
Ground 5 - Required by minister of religion: revised - religious ministers required to occupy ministry housing.
Ground 6 - Demolition or substantial works: revised - landlord requires possession to carry out demolition, reconstruction or substantial works. Compensation payable to tenant.
Grounds 7-22: various tenant-breach grounds (anti-social behaviour, deliberate damage, breach of tenancy obligations, criminal use of property, persistent rent arrears, breach of obligations).

The expanded grounds with the 12-month re-let prohibition on "selling" and "moving in" grounds are deliberately designed to give landlords a genuine route to recover the property for genuine reasons while preventing the de-facto re-creation of Section 21. Breach of the re-let prohibition triggers civil penalties up to £40,000 and possible criminal prosecution. Detailed documentary evidence of the stated possession reason is essential - the court will scrutinise whether the landlord genuinely intended to sell or move in, and the 12-month re-let prohibition creates a clear ex-post test.

Rent increases - Section 13 mechanism

The tenant can challenge the proposed increase at the First-tier Tribunal (Property Chamber). The Tribunal determines the market rent for the property based on comparable lets in the local area. The Tribunal can confirm the proposed rent or set a lower rent; it cannot set a higher rent than proposed by the landlord. Tribunal applications must be made before the new rent takes effect (during the 2-month notice period). The Tribunal route is intended to prevent above-market rent increases being used as a de-facto eviction mechanism.

The annual cap and Tribunal route create operational requirement for landlords to monitor market rents and document comparable letting evidence supporting any proposed increase. Increases substantially above market rent are likely to be reduced by the Tribunal if challenged. Landlords with multiple properties in the same area should maintain a consolidated view of recent comparable lets to support Section 13 notices across the portfolio.

New compliance obligations

Mandatory landlord database (autumn 2026)

Every private landlord in England must register on the new national PRS landlord database from autumn 2026. Registration captures landlord identity, contact details and each property let. The database is public-facing for transparency (tenants can verify their landlord) and is searchable by enforcement officers. Non-compliance penalties include fines up to £40,000 per offence and refusal of possession orders in court - a landlord cannot recover possession of a property that is not registered on the database. The database is administered by Local Authorities under the framework set by the Act, with a central national platform planned for full integration. Annual registration cost is expected to be £40-£75 per landlord plus a small per-property fee.

PRS Ombudsman (autumn 2026)

A mandatory PRS ombudsman scheme launches from autumn 2026. All private landlords in England must register (cost expected £75-£150 per year). The ombudsman provides free dispute resolution for tenants on non-eviction matters: deposit disputes, repair complaints, harassment allegations, disrepair claims, illegal fees. The ombudsman can issue binding awards up to £25,000 against the landlord. The route is faster and cheaper than court action for the tenant and is intended to take pressure off the County Courts. Failure to register is an enforcement offence on the landlord database.

Decent Homes Standard + Awaab's Law extension

The Decent Homes Standard - originally introduced for social housing in the early 2000s - is extended to the private rented sector under the Act. The standard sets minimum requirements across structural integrity, thermal comfort, modern facilities and absence of serious hazards. Awaab's Law (originally introduced for social housing in response to the death of Awaab Ishak from prolonged mould exposure) is extended to the PRS: a private landlord must investigate any reported damp or mould within 14 days of the tenant reporting it, and must complete remedial work within fixed timelines that depend on the severity of the hazard. Failure triggers enforcement by Local Authority Environmental Health and potential criminal prosecution under the Housing Act 2004.

Anti-discrimination provisions

The Act creates new statutory offences for discrimination in advertising and tenancy decisions on the grounds of having children or being in receipt of benefits ("No DSS" / "No children" practices). Penalty fines up to £7,000 and landlord-database delisting for serious breaches. Letting agents face additional risk to their ARLA / Propertymark professional registration on breach. The Equality Act 2010 protections (race, religion, sexual orientation, disability, age, sex, pregnancy/maternity) continue separately.

Pets - new statutory right to request

The Act creates a tenant right to request to keep a pet. The landlord must consider the request and can only refuse on "reasonable" grounds. Reasonable grounds typically include: the property is unsuitable for the pet (e.g. no garden for a dog, small flat for large breed), pet allergens are a documented problem for the landlord or other tenants in the building, the leasehold or freehold restrictions prohibit pets, the specific pet would create unreasonable damage risk. The landlord can require pet insurance as a reasonable condition - the Tenant Fees Act 2019 was amended to permit pet damage insurance as a permitted payment. The landlord can also require a higher deposit (within the 5-week / 6-week cap) where the pet creates additional damage risk. Outright "no pets" policies in tenancy agreements are no longer enforceable.

Practical implication for landlords: develop a written pet-request decision policy that documents the property-specific reasonable grounds (no garden, allergen concerns, structural restrictions) and the standard conditions you require (insurance, deposit uplift, pet-clause addendum to tenancy agreement). Blanket "no pets" responses are no longer defensible at the Tribunal or ombudsman. The Tenant Fees Act 2019 amendment specifically permitting pet damage insurance gives landlords a route to manage the risk that previously required the higher deposit only.

Six-step landlord preparation roadmap

Review existing tenancy agreements - fixed-term ASTs convert to periodic at expiry of current term. Assess portfolio implications for cash flow, possession options, and the timing of any re-tenancy refurbishment. Existing tenancy agreements remain valid until they roll into periodic.
Develop Section 8 documentation processes - if you anticipate needing to recover possession, build documentary case (rent arrears records, breach records, anti-social behaviour evidence, photographs of property condition) from the start of every tenancy. The Section 21 "no documentation required" route is no longer available.
Register on the landlord database - from autumn 2026. Check the gov.uk PRS database portal for activation in your Local Authority area. Allow 2-3 weeks for registration to clear and pay annual fee.
Join the PRS ombudsman scheme - from autumn 2026. Annual registration fee £75-£150. Familiarise yourself with the complaints process and document your tenant communication practices.
Update property standards - meet the extended Decent Homes Standard and prepare for Awaab's Law compliance. Document a damp / mould inspection schedule and rapid-response protocol. Photographic evidence of property condition at the start and end of each tenancy is essential.
Update advertising and tenancy selection - remove any "No DSS" or "No children" restrictions from advertising and online listings (Rightmove, Zoopla, OnTheMarket, Gumtree, local). Prepare a written pet-request decision policy. Review your tenant referencing process to avoid discrimination on protected characteristics.

Many landlords are choosing to engage a professional managing agent (typically 8-12% of rent) for the first year of the new regime rather than self-manage, given the compliance burden across multiple dimensions. The combined ongoing cost of database registration, ombudsman membership, Awaab's Law compliance auditing and Section 8 documentation systems is estimated at £400-£900 per property per year for small-portfolio landlords, vs the historical near-zero compliance cost under the AST regime.

Frequently asked questions

What is the Renters' Rights Act 2025 and when does it apply?

The Renters' Rights Act 2025 is the major reform of the private rented sector (PRS) tenancy regime in England, received Royal Assent in 2025 after extensive parliamentary passage. The Act is the Labour-government reintroduction of the Conservative Renters Reform Bill 2023 that fell at the July 2024 General Election. Implementation is phased through 2025 and 2026: the Section 21 "no-fault" eviction abolition and conversion of assured shorthold tenancies (ASTs) to periodic assured tenancies took effect 6 May 2026 for new tenancies in England (existing fixed-term ASTs convert to periodic at expiry of the current term). The mandatory PRS landlord database, the PRS ombudsman, the Decent Homes Standard extension and Awaab's Law extension follow in autumn 2026. Wales and Scotland have separate devolved housing legislation; the Renters' Rights Act applies to England only.

What replaces the assured shorthold tenancy?

All new private tenancies in England from the commencement date in May 2026 are "periodic assured tenancies" with no fixed term. The tenant can give 2 months' notice to leave at any time. The landlord can only end the tenancy by serving a Section 8 notice on one of the statutory possession grounds (now expanded to 22 grounds under the Act). The fixed-term AST regime that has dominated UK private renting since the Housing Act 1988 is effectively retired - new fixed-term tenancies cannot be granted; existing fixed-term ASTs convert to periodic at the expiry of the current term. Tenancies that began before the commencement date continue under the old AST regime until they roll into periodic; from that point the new rules apply.

How does Section 21 abolition work in practice?

Section 21 of the Housing Act 1988 - the "no-fault" eviction mechanism that has allowed landlords to recover possession with 2 months' notice without giving any reason - is abolished entirely from the commencement date. Any Section 21 notice served before the commencement date with the 2-month notice period running across the cutoff remains valid; notices served after the cutoff are ineffective. Landlords seeking possession after the cutoff must use Section 8 grounds (specific reasons such as rent arrears, breach of tenancy, anti-social behaviour, landlord wanting to sell or move in). The shift transforms the practical economics of UK landlording: landlords must develop the documentary and evidential case for Section 8 grounds rather than simply giving 2-month notice. Possession claims under Section 8 typically take 6 to 12 months to resolve through the County Court (vs the 4 to 8 week timeline historically available under Section 21 accelerated possession).

What are the new Section 8 possession grounds?

The Act expands Section 8 grounds from 17 (under Schedule 2 Housing Act 1988) to 22 grounds. Key new mandatory grounds. Ground 1 (revised): landlord or close family member moving into the property to use as their main residence - requires 4 months' notice and the property cannot be re-let on the open market for 12 months after the tenant leaves. Ground 1A (new): landlord intends to sell the property - same 4 months notice and 12-month re-let prohibition (designed to prevent landlords using "selling" as a back-door Section 21). Ground 4A (revised): persistent rent arrears at 13+ weeks (or 3+ months for monthly rent) - mandatory ground with quicker court process. Other expanded grounds cover anti-social behaviour, breach of tenancy obligations, deliberate damage, illegal activities. The expanded grounds with the 12-month re-let prohibition on "selling" and "moving in" grounds are designed to give landlords genuine route to recover the property for genuine reasons while preventing the de-facto re-creation of Section 21.

How can I increase the rent?

Rent increases under the post-Act regime must be made by Section 13 notice under the Housing Act 1988. The notice must be in the prescribed form and gives the tenant at least 2 months' notice of the new rent. Only one rent increase per year is permitted (12 months from the last increase or from the start of the tenancy). The tenant can challenge the proposed increase at the First-tier Tribunal (Property Chamber) which will determine the market rent for the property based on comparable lets in the local area. The Tribunal can confirm the proposed rent or set a lower rent; it cannot set a higher rent than proposed by the landlord. Rent review clauses in tenancy agreements that bypass Section 13 are no longer enforceable. The annual cap and Tribunal route are designed to prevent above-market rent increases used as a de-facto eviction mechanism.

Do I have to register on the new landlord database?

Yes - mandatory PRS landlord database registration takes effect from autumn 2026 across England. Every private landlord must register their identity, contact details, and each property they let. The database is public-facing for transparency (tenants can verify their landlord) and is searchable by enforcement officers. Non-compliance penalties include fines up to £40,000 per offence and refusal of possession orders in court (a landlord cannot recover possession of a property that is not registered on the database). The database is administered by Local Authorities under the framework set by the Act, with a central national platform planned for full integration. Registration cost is expected to be £40 to £75 per landlord per year plus a small per-property fee. The existing selective licensing schemes operated by individual authorities continue alongside the national database (the database does not replace local selective licensing).

What is Awaab's Law and how does it apply to private landlords?

Awaab's Law was originally introduced for social housing in response to the death of Awaab Ishak (2 years old) from prolonged exposure to mould in a Rochdale social-housing flat. It sets mandatory timelines for landlord response to damp, mould and other hazards. The Renters' Rights Act extends Awaab's Law to the private rented sector: a private landlord must investigate any reported damp or mould within 14 days of the tenant reporting it, and must complete remedial work within fixed timelines that depend on the severity of the hazard. Failure triggers enforcement by Local Authority Environmental Health and potential criminal prosecution under the Housing Act 2004. The shift represents a material operational burden for private landlords - many of whom historically dealt with damp / mould complaints on an ad-hoc timescale. Professional landlords with managing agents are typically already compliant; small-portfolio "accidental landlords" face the biggest adjustment.

Does the Act affect short-term lets and Airbnb?

The Renters' Rights Act 2025 applies to assured tenancies - long-term private rentals where the tenant uses the property as their main home. Short-term lets (Airbnb, holiday lets, hotel-equivalent stays under 90 days typically) operate under different legislation and are NOT directly affected by the Act's Section 21 abolition or periodic tenancy reforms. However, the Act includes parallel provisions on short-term let registration in tourist-pressure areas, building on the Levelling Up and Regeneration Act 2023 mandatory registration regime for short-term lets in England. The combined effect for landlords running mixed portfolios (some long lets, some short lets) is increased compliance burden on both sides. The Government has separately committed to short-term let planning consent reforms in England via the C5 use class introduction, which is a parallel development.

Can I refuse a pet now?

No - the Act creates a tenant right to request to keep a pet, and the landlord must consider the request and can only refuse on "reasonable" grounds. Reasonable grounds typically include: the property is unsuitable for the pet (e.g. no garden for a dog), pet allergens are a documented problem for the landlord or other tenants in the building, the leasehold or freehold restrictions prohibit pets, the pet specifically would damage the property (e.g. large breed in a small flat). The landlord can require pet insurance as a reasonable condition - the Tenant Fees Act 2019 was amended to permit pet damage insurance as a permitted payment. The landlord can also require a higher deposit (within the 5-week / 6-week cap) where the pet creates additional damage risk. Outright "no pets" policies in tenancy agreements are no longer enforceable.

What discrimination protections does the Act add?

The Act creates new statutory offences for discrimination in advertising and tenancy decisions on the grounds of having children or being in receipt of benefits ("No DSS"). Both have been longstanding industry practices but were previously not specifically prohibited (although the Equality Act 2010 indirect-discrimination provisions caught some cases - notably the 2020 Tyler v Paul Carr judgment that ruled "No DSS" lettings agency policies were indirectly discriminatory on the grounds of sex and disability). The Renters' Rights Act makes these explicit prohibitions with penalty fines up to £7,000 and landlord-database delisting for serious breaches. Letting agents are subject to the same prohibition and face additional risk to their ARLA / Propertymark professional registration on breach. The Equality Act 2010 protections (race, religion, sexual orientation, disability, age, sex, pregnancy/maternity) continue separately.

How does the new PRS ombudsman work?

A mandatory PRS ombudsman scheme is introduced from autumn 2026. All private landlords in England must register with the ombudsman (cost expected £75-£150 per year per landlord). The ombudsman provides a free dispute resolution route for tenants on non-eviction matters: deposit disputes, repair complaints, harassment allegations, disrepair claims, illegal fees. The ombudsman can issue binding awards up to £25,000 against the landlord. The route is faster and cheaper than court action for the tenant and is intended to take pressure off the County Courts. Landlords cannot opt out of ombudsman membership - failure to register is an enforcement offence on the landlord database. The existing Property Ombudsman (TPO) and Property Redress Scheme (PRS) continue to operate for letting agents under the Tenant Fees Act 2019; the new PRS ombudsman is specifically for landlord-tenant disputes.

How do I prepare as a landlord?

Six-step preparation roadmap. (1) Review existing tenancy agreements - fixed-term ASTs convert to periodic at expiry of current term; assess implications for portfolio cash flow and possession options. (2) Develop Section 8 documentation processes - if you anticipate needing to recover possession, build documentary case (rent arrears records, breach records, anti-social behaviour evidence) from the start of every tenancy. (3) Register on the landlord database from autumn 2026 - check the gov.uk PRS database portal for activation in your Local Authority area. (4) Join the PRS ombudsman scheme from autumn 2026 - annual registration fee. (5) Update property standards to meet the extended Decent Homes Standard and prepare for Awaab's Law compliance - documented damp / mould inspection schedule and rapid-response protocol. (6) Update advertising and tenancy selection processes - remove any "No DSS" or "No children" restrictions, prepare a written pet-request decision policy. Many landlords are choosing to engage a professional managing agent (typically 8-12% of rent) for the first year of the new regime rather than self-manage given the compliance burden.

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