Renters Rights Act 2025 as Renters Rights Bill Receives Royal Assent

The Renters Rights Bill received Royal Assent on Monday 27^th October to become the Renters Rights Act 2025.  This Act was the new Labour Government’s reform of the former Renters Reform Bill, started by the then Conservative government.  The dates when individual parts of this legislation come into force will be published over the coming weeks/months.

Summary of Key Points

Rolling Contracts Only

No more Assured Shorthold Tenancy (AST) agreements i.e., no more fixed term tenancy contracts.

• All existing tenancy agreements are converted to, and new ones are opened ended, rolling tenancy agreements.  There is no end date.
• The old 1 year ‘tie in’ for the tenant as part of the rental agreement is removed.
• Tenants must now give 2 months notice that they wish to terminate the tenancy.

Eviction Rights

• S21 ‘No Fault’ Eviction Notices are banned.
• There can be no eviction within the first 12 months of the tenancy if rent paid is up to date.
• Landlords can evict with 4 months notice if:
• Landlord plans to sell or move themselves or an elderly relative into the property.
• Rent arrears of 3 months accrue (it used to be 2 months arrears), 4 months notice can be given.
• If the tenant remains in the property after the notice period has passed, the landlord can take Court/Bailiff action to evict the tenant.
• Student Lets
• 2 weeks notice required for purpose-built University/State owned ‘hall of residence’ type property.
• For private landlords with Houses of Multiple Occupation (HMO0, usually bed-sit type properties with shared facilities:
• Tenancy agreement must have been signed more than 6 months ago and if 50% or more of the HMO occupants must have been students, landlord can give 4 months notice.
• If the above 6 months/50% rules do not apply, normal ‘open ended’ rolling tenancy rules apply.

No Bidding Wars

There can be no ‘gazumping’ with the property going to the highest ‘bidder’, the rent advertised is the rent that must be charged.

Security Deposits

• Deposits for properties with rents below £50,000 pa, a maximum deposit equivalent to 5 weeks rent can be requested.
• Deposits for properties with rents above £50,000 pa, a maximum deposit equivalent to 6 weeks rent can be requested.
• Deposits must be lodged by the landlord on a government approved independent and secure, deposit protection scheme such as the Deposit Protection Service (DPS) https://www.depositprotection.com
• This deposit cannot be paid to the landlord or the tenant until both agree e.g., when tenant leaves and there is agreement that all is well or an agreed cost for some damage/repairs or via legal action e.g., forced eviction due to arrears and Court awards the landlord the deposit due to arrears.
• Upfront rent (in addition to deposit):  landlords can request a maximum of 1 month’s rent is also paid.

Rent Increases

• The landlord can only increase the rent once a year.
• 2 months notice of the rental increase must be given.
• Rent can only be increased up to the market rent value.  E.g., if the market rate for a 1 bed apartment is £800pm, the landlord cannot increase to £1,000, £1,200 pm etc.
• If the tenant disputes the increase, they can challenge this via an independent Tribunal Service for an independent ruling on the market value and fairness increase.

Discrimination

It is now against the law to discriminate against potential tenants that receive state benefits or if they have children.  No longer will adverts say, “no children” or “no benefits claimants”.

Pets

Tenants can request they are allowed pets.  Landlords cannot unreasonably refuse a tenant having a pet.

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