Renters' Rights Act 2025: Key Considerations

 By Eunan Timmins, Senior Manager, Client Services 

The Renters’ Rights Act 2025, which came into effect on 1 May 2026, introduces significant reforms to the private rented sector in England. The legislation fundamentally reshapes the legal framework governing residential tenancies and places new obligations on landlords, including those operating through corporate structures and trusts.

For clients holding UK residential property, it is essential to understand both the immediate actions required and the longer-term implications of the Act.

Overview of the key changes

The Act represents a substantial shift away from the traditional short-term tenancy model. The most notable changes include:

• Move to periodic tenancies: All assured and assured shorthold tenancies have transitioned to assured periodic (rolling) tenancies, removing the concept of fixed-term arrangements entirely.
• Abolition of ‘no-fault’ evictions: Section 21 evictions have been abolished. Landlords must now rely on defined statutory grounds to recover possession of a property.
• Changes to rent reviews: Rent increases are limited to once per year and must follow a statutory process, including notice requirements.
• Enhanced tenant rights: Tenants now have strengthened protections, including the right to request permission to keep a pet, which cannot be unreasonably refused.
• New compliance obligations: Landlords must provide specified information to tenants and ensure compliance with updated regulatory requirements.

Immediate priority: Tenant notification deadline

A critical requirement under the new regime is the obligation to provide tenants with the Renters’ Rights Act Information Sheet 2026.

For existing tenancies:

• This information must be issued to all affected tenants by 31 May 2026
• The requirement applies regardless of whether tenancy agreements are updated

Failure to meet this deadline may affect a landlord’s ability to rely on certain statutory rights, including grounds for possession.

Responsibilities of trustees and directors

Where UK residential property is held within trust or corporate structures, trustees and managers retain responsibility for ensuring compliance.

Key responsibilities include:

• Identifying all affected properties
• Ensuring tenant notifications are issued within the required timeframe
• Monitoring and instructing letting agents, where applicable
• Ensuring decisions relating to rent, possession and tenant requests are:
  • Reasoned
  • Documented
  • Capable of withstanding legal scrutiny

It is important to note that while letting agents may assist with administration, legal responsibility remains with the landlord, including trustees and directors.

Implications for landlords

The reforms introduce greater protection for tenants but also increase the operational and compliance burden for landlords.

Key implications include:

• Reduced flexibility in recovering possession of properties
• Increased need for documentation and record-keeping
• Greater reliance on formal legal processes
• Potential impact on investment strategy and rental income planning

Landlords should also be aware that court processes for possession may be more complex and time-consuming under the new framework.

Risks and penalties for non-compliance

The Act introduces a strengthened enforcement environment. Failure to comply with the new requirements may result in:

• Financial penalties
• Loss of the ability to regain possession of a property
• Reputational and governance risk

In more serious cases, breaches may lead to increased regulatory scrutiny and enforcement action.

Looking ahead: Further regulatory developments

The Act is part of a broader programme of reform. Further developments expected later in 2026 include:

• A compulsory landlord registration scheme, requiring landlords to register both themselves and their properties
• Additional obligations relating to transparency, compliance monitoring and enforcement

Landlords should therefore take a proactive approach in preparing for ongoing regulatory change.

Conclusion

The Renters’ Rights Act 2025 represents one of the most significant overhauls of the UK rental market in recent years. While the immediate priority is ensuring compliance with the 31 May 2026 tenant notification deadline, the wider impact of the Act will require careful consideration and ongoing management.

Trustees, directors and property owners should engage early to ensure:

• Compliance obligations are met
• Appropriate processes are implemented
• Risks are effectively managed

At Suntera Global, we are working closely with clients to support compliance and provide guidance on navigating these changes.

For further information or to discuss how the Act may impact your structures, please contact Eunan using the details below.

You can also find additional guidance on the UK Government’s private renting pages, including the Renters’ Rights Act Information Sheet 2026, which provides a useful overview of the changes and their practical implications.

Learn More with Eunan

Eunan has worked in the Corporate Services Industry for 22 years, dealing with multi-jurisdictional private and intermediary clients, with an expertise in marine and aviation services.

VIEW PROFILE