Renters Rights Act 2025: What UK Landlords Need to Know

The key changes under the Renters' Rights Act 2025 are the abolition of Section 21 no-fault evictions, the end of fixed-term assured shorthold tenancies (ASTs), the extension of Awaab's Law to the private rented sector, new rent increase controls via Section 13 of the Housing Act 1988, and the creation of a PRS Database and Ombudsman. Each of these reforms is detailed below.

1. Abolition of Section 21 (No-Fault Evictions)

Landlords will no longer be able to evict tenants without giving a reason. All possession claims must use Section 8 of the Housing Act 1988 grounds, which require a specified reason such as:

• Rent arrears (Ground 8 — mandatory ground for 2+ months arrears)
• Antisocial behaviour
• Landlord intends to sell the property (new ground — 4 months notice)
• Landlord or family member intends to move in (new ground — 4 months notice)
• Property to be demolished or substantially redeveloped

The "sell" and "move in" grounds cannot be used in the first 12 months of a tenancy.

2. End of Fixed-Term Tenancies

All assured shorthold tenancies (ASTs) will become periodic from day one. This means:

• No more 6-month or 12-month fixed terms
• Tenants can leave with 2 months' notice at any time
• Landlords can only seek possession through Section 8 grounds
• Existing fixed-term tenancies will convert to periodic when the Act commences

3. Awaab's Law for Private Landlords

Named after Awaab Ishak, who died from mould exposure in social housing, Awaab's Law sets strict timescales for landlords to address hazards:

• Emergency hazards: must be addressed within 24 hours
• Non-emergency hazards: must be investigated within 14 days and repaired within a specified period
• Failure to comply gives tenants grounds to seek a Rent Repayment Order

4. Rent Increase Limits

• Rent can only be increased once per year
• Must use the formal Section 13 process
• Tenants can challenge "above market rate" increases at a First-tier Tribunal
• Rental bidding (asking tenants to offer above the advertised rent) is banned

5. Pets in Rental Properties

Tenants will have the right to request keeping a pet. Landlords cannot unreasonably refuse but can require pet damage insurance paid for by the tenant.

6. PRS Database and Ombudsman

• All landlords must register on the new Private Rented Sector Database
• All landlords must join a new PRS Ombudsman
• Local councils will have enhanced enforcement powers
• Tenants can check landlord compliance status before renting

The Renters' Rights Act 2025 comes into effect in phases, with Phase 0 (PRS Database registration and Ombudsman appointment) already in force. Phase 1, which abolishes Section 21 for new tenancies and introduces Awaab's Law and rent increase reforms, is expected during 2026. Phase 2 will convert all existing tenancies to periodic and complete the Section 21 abolition. The full timeline is set out below.

The financial impact on landlords includes higher possession costs (estimated at £3,000-£5,000+ per case through the County Court), new PRS Database and Ombudsman registration fees, and additional compliance spending to meet Awaab's Law timescales. The Department for Levelling Up, Housing and Communities (DLUHC) has acknowledged transitional costs in its impact assessment. Here is a breakdown of the key cost areas.

Increased Possession Costs

Without Section 21, landlords must use Section 8 of the Housing Act 1988 — which requires proving grounds in court. Estimated possession costs are expected to rise from £1,500-£3,000 to potentially £3,000-£5,000+ per case, particularly for disputed claims.

PRS Database Registration

Registration fees have not yet been confirmed. Expected to be a modest annual fee per property or per landlord.

Ombudsman Membership

Membership fees are expected to be similar to existing ombudsman schemes — approximately £100-£200 per year.

Compliance Costs

Awaab's Law timescales will require landlords to have faster response systems for maintenance issues. Budget for:

• Emergency repair call-out cover (if not already in place)
• Regular property inspections to identify hazards proactively
• Digital record-keeping systems to evidence compliance

The penalties for non-compliance with the Renters' Rights Act 2025 are severe. Landlords who fail to register on the PRS Database face fines up to £7,000 (first offence) or £40,000 (repeat offence). Breaching Awaab's Law timescales can trigger Rent Repayment Orders worth up to 12 months' rent. Local authorities gain enhanced civil penalty powers under the Act.

Civil Penalties

• Failure to register on the PRS Database: fines up to £7,000 (first offence) or £40,000 (repeat)
• Failure to join the Ombudsman: up to £7,000
• Breach of Awaab's Law timescales: Rent Repayment Orders (up to 12 months' rent)
• Requesting rent bids: civil penalty
• Unreasonably refusing a pet request: enforced by the Ombudsman

Enhanced Council Powers

Local authorities will gain new powers to investigate and penalise non-compliant landlords, including the ability to issue civil penalties without going through the courts in many cases.

Rent Repayment Orders

Tenants can apply for Rent Repayment Orders (up to 12 months' rent returned) if the landlord has committed certain offences, including failing to comply with Awaab's Law or using an unlawful eviction notice.

Start preparing now, even before the exact Phase 1 date is confirmed:

Immediate Actions

• Register on the PRS Database — Phase 0 is already in force
• Join the PRS Ombudsman — required for all landlords
• Review your tenancy agreements — remove any clauses that conflict with the new rules (e.g., blanket pet bans)
• Update your rent increase process — ensure you use the formal Section 13 process and limit increases to once per year

Before Phase 1

• Learn the Section 8 grounds — these are now your only route to possession
• Set up a maintenance response system — Awaab's Law requires 24-hour response for emergencies
• Document everything — compliance records, tenant communications, maintenance responses, and rent payment history will be critical evidence if you ever need to seek possession
• Review your insurance — ensure your landlord insurance covers the new regulatory environment

Ongoing Compliance

• Keep digital records of all tenant interactions and compliance documents
• Respond to maintenance requests within Awaab's Law timescales and record your response
• Maintain up-to-date gas safety, EPC, EICR, and other certificates
• Use property management software to automate compliance tracking and generate audit trails