Key Takeaways:

• The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025, and the government is set to outline its implementation in the weeks following.
• Long-term rentals will be primarily affected by the new law passed, but properties switching between short-, mid- and long-term letting will also have to comply.
• Future tenancies will transition to periodic tenancy structures, allowing tenants greater flexibility while protecting landlords’ rights.
• Landlords are required to register in the Private Rented Sector Database and meet the Decent Homes Standard.
• Adopting efficient property management systems will make compliance with the new legal obligations easier.

The Passage of the Renters’ Rights Act

The Renters’ Rights Act 2025 received the Royal Assent on 27 October 2025, marking its passing into law. It’s been making waves for the past few years as the provisions are set to bring significant reforms in the private rented sector in England, including London.

At the very least, this new law aims to balance the rights of landlords and tenants as part of the government’s Plan for Change. It aims to create a stronger, more positive foundation for their transactional relationship.

Prime Minister Kier Starmer shared thoughts about the Renters’ Rights Act.

“For too long, millions of renters have lived at the mercy of rogue landlords or insecure contracts, with their futures hanging in the balance. We’re putting an end to that.” – PM Starmer (Historic Renters’ Rights Act becomes law, Gov.uk)

This new law is set to protect the welfare of more than 11 million private renters in England. But what about the 2.3 million property owners and landlords?

Although the Renters’ Rights Act appears to favour renters, it also protects law-abiding landlords. It separates the good from the bad ones, so if you’ve been compliant with the rules so far, you have nothing to worry about.

In the coming weeks, the government will outline the reforms covered by this law, including instructions on how it will roll out. It’s expected to take full effect by 2026. This should give landlords, management companies and property owners enough time to adapt.

As a landlord in London, your main concern is compliance. Pay attention to how these will affect your rental properties and current lease agreements.

Key Changes Under the Renters’ Rights Act

The Renters’ Rights Bill underwent several changes before reaching its final form. It introduces several measures to regulate rental property management in England, ensuring a higher level of professionalism, fairness, and diligence.

If you’re a landlord in London, focus on three major shifts in the private rented sector.

New Tenancy Terms and Improved Eviction Grounds

The Renters’ Rights Act ends Section 21 (no-fault evictions) and replaces it with stronger repossession grounds under Section 8. Landlords can recover their property from tenants, but only for legitimate reasons. This will protect tenants from backdoor evictions in which landlords increase rents to force them out. At the same time, it also ensures the landlord retains the right to repossess their property.

This also shifts the tenancy structure from fixed-term to a more periodic one. Tenancy agreements can now roll over month-on-month, while giving tenants the right to end their tenancies with 2 months’ notice.

Higher Property Standards and Strict Compliance

The new law will also extend the Decent Homes Standard to the private rented sector, not just to social housing. This means private rentals should be free from health and safety hazards, always in a good state of repair and have adequate facilities.

It also strictly enforces the Awaab’s Law to protect tenants against health issues caused by damp and mould in rental properties.

Local authorities will be given the power to enforce civil penalties and lead investigations that will bring fairness to landlord-tenant agreements.

Landlords are also required to register their properties in the Private Rented Sector Database so local authorities can monitor compliance. This database will be under the authority of a Private Rented Sector Landlord Ombudsman, who will oversee fair resolution of tenant complaints.

Fair Market Practices and Discrimination Ban

Several practices will be banned once the Renters’ Rights Act is fully implemented.

For one, rental bidding will no longer be allowed. Landlords and property agents should publish their rental rates, and they’re not allowed to accept offers above them.

Landlords are also not allowed to discriminate against tenants with children, pets or those reliant on benefits. Pet owners, in particular, cannot be refused, but landlords can charge a separate pet insurance fee.

Did you know: 

81% of landlords admitted that the Renters’ Rights Act will make them more selective of future tenants, while 71% plan to raise rental rates as they absorb the costs associated with the new restrictions. – Landlord Today

Tips to Stay Compliant with New Regulations in London

The Renters’ Rights Act is not just red tape. It can build opportunities for landlords to grow their rental business. Compliance with rules and regulations will improve property standards, thereby elevating landlords’ rental assets and value. This is a win-win for both the tenant and the landlord.

Now that it has passed into law, how should London landlords react?

• Review all tenancy documents and agreements. Make sure they comply with the new laws. If you still have fixed-term contracts, prepare a new document for restructured periodic agreements. Use this for future tenants or any renewals.
• Stay on top of compliance records. These include EICR tests, gas safety certificates, and EPC ratings. These documents should be easily accessible for potential audits or renewal.
• Prepare for initial compliance and registration costs. The Renters’ Rights Act will require properties to meet the Decent Homes Standard. You might need to spend on improving the property. Registration for the Private Rented Sector Database might also incur costs, so plan for that expense.
• Use proptech solutions. Platforms like Opago can automate reminders, track renewals, and store digital copies of documents and certificates to make retrieval easier. These can streamline property management operations, simplifying daily tasks, reducing costs and ensuring compliance.
• Partner with a property management company. They can oversee compliance and give you updates on new rules and regulations. They can guide you in protecting your rental asset and maximising revenue. They also have the experience and expertise to review your documents and identify sections that need updating or improvement.

FAQs About the Renters’ Rights Act

When will the Renters’ Rights Act take effect in London?

The Renters’ Rights Act received Royal Assent on 27 October 2025, and the government committed to outlining how the reforms will be implemented in the following weeks. The implementation is expected to come into full swing throughout 2026. This should give London landlords enough time to adapt to the new rules and regulations.

How will the Section 21 abolition affect rental properties in London?

Whether the rental property is in Camden or Kensington, the effects of the abolition of Section 21 are the same. Landlords can only repossess their properties based on a list of legitimate grounds. The Renters’ Rights Act provides a specific list of grounds and the length of the eviction notice for each. 

If the reason for eviction is not among the list, the tenant can file a dispute.

Does the Renters’ Rights Act affect shortlets?

Most of the reforms in the Renters’ Rights Act are focused on long-term rentals and Assured Tenancy agreements. While it does not directly affect the existing rules for shortlets, such as the 90-day limit, properties that use flexible letting (a combination of short, mid and long-term letting) will be affected.

If your letting strategy switches to mid-term or long-term letting once your shortlet reaches the 90-day limit, you’ll have to make sure your property adheres to the Renters’ Rights Act.

How can I increase rent under the Renters’ Rights Act?

Based on the new legal framework, London landlords can only increase rent by serving a simple Section 13 notice. This can only happen once a year, and tenants should be given 2 months’ notice before it takes effect. They are also limited by the current market rate or the price at which it was newly advertised to let. Any amount higher than that gives the tenant the right to dispute the price with the First-tier Tribunal.

Adapt to the New Rental Landscape

The Renters’ Rights Act will bring major changes to the private rented sector. This means landlords should reconsider how they manage their rental properties. The priority should shift to fairness, safety and transparency. Although landlords face increased regulatory responsibilities, compliance with the new legal framework will elevate their property value and improve their rental business.

Complying with the Renters’ Rights Act is easier when you stay informed, proactively update documents, and work with reputable property management companies.

City Relay can help you stay compliant, protect your investment, improve profitability and maintain the premium quality of your rental property.

Find out more about our end-to-end property management solutions. Get a free rental estimate now.