Key reforms are to end assured shorthold tenancies and put a stop to section 21 ‘no fault’ evictions. The government says the changes under the Act will “end the scourge of section 21 evictions” and make the residential rental system more secure and stable. Unsurprisingly, it favours the tenants.

From May, it will be illegal for landlords to discriminate against prospective tenants on the basis they are on benefits or have children. Landlords will also be prevented from asking or accepting rent above the advertised rent, putting an end to bidding wars between prospective tenants. Later this year, a Private Rented Sector Database will be created; and a new Private Rented Sector Landlord Ombudsman will be appointed.

Tenancies

From 1 May, assured shorthold tenancies in the private rented sector will become periodic, and this will happen without a transitional period to ensure tenants have immediate security. (A new system for private registered providers of social housing will follow.)

Landlords will no longer be allowed to request large payments at the start of a tenancy – a practice that is a significant barrier for many tenants. When a tenancy agreement has been signed, landlords may only ask for one month’s rent (or 28 days’ rent where the rental period is less than one month) before commencement. Landlords will also be banned from increasing rents more than once a year.

Safeguards

Tenants will also be given more time to find alternative accommodation if landlords take steps to evict to move in or sell the property; and backdoor evictions will also be made more difficult.

In cases where there are ‘serious hazards’ at the property, landlords will be expected to take action quickly to improve health and safety. The Decent Homes Standard will also be applied to the sector in due course.

What does this mean for property owners?

For residential landlords, the changes may impact their ability to obtain vacant possession for a sale or transfer of the property. While they will be able to evict tenants with clear reasons - eg rent arrears, anti-social behaviour or a sale – it will be harder to gain possession of the property for other reasons.

There will be a new form of wording for tenancy agreements (expected to be confirmed in January 2026); along with further government information and guidance that landlords should watch out for.

The reforms are significant and early compliance will be expected. Local authorities will have enhanced powers to act if landlords fail to comply with the new rules. For example, a landlord who demands a large payment ahead of a new tenancy could be fined up to £7,000; and landlords/ letting agents could face multiple penalties for continued and repeated breaches. Landlords could also be required to repay rent to the affected tenants.

You can find out more about the reforms to the private rented sector by joining our webinar on the Renters' Rights Bill 2025. This webinar is also included in our online Residential Property webinar event package available here.