The Renters’ Rights Act 2025 comes into force in May 2026, abolishing Section 21 no-fault evictions, introducing a national Property Portal, extending the Decent Homes Standard to the private rented sector for the first time, and giving tenants new rights around pets and rent increases. For London landlords, this is the most significant regulatory change since the Housing Act 1988 — and preparing now is essential to avoid costly mistakes.
Here is a practical breakdown of every change that affects your property, your tenants and your bottom line.
What Is the Renters’ Rights Act and When Does It Take Effect?
The Renters’ Rights Act received Royal Assent in 2025 and its core provisions take effect from May 2026. The Act replaces the previous Renters’ Reform Bill and goes further than many landlords expected. Its headline measure is the abolition of Section 21, the mechanism that allowed landlords to end an assured shorthold tenancy without giving a reason. From May 2026, every possession claim in England must be made under Section 8, which requires the landlord to prove specific statutory grounds. The Act also creates a new national Property Portal where all landlords and properties must be registered, extends the Decent Homes Standard to private rented housing, limits rent increases to once per year via a prescribed statutory process, and gives tenants the right to request a pet which landlords cannot unreasonably refuse.
How Does the Abolition of Section 21 Affect London Landlords?
The abolition of Section 21 is the single biggest change in the Act and it fundamentally alters the risk profile of residential letting in London. Under the previous system, a landlord could regain possession by serving a two-month notice without stating any reason. That route is now closed permanently.
All possession claims must now proceed under Section 8 of the Housing Act 1988, using one of the statutory grounds. The Act introduces several new and revised grounds, including a strengthened ground for landlords who wish to sell the property (Ground 1A) and a revised ground for landlords who wish to move back into the property (Ground 1). However, landlords cannot use the sale or occupation grounds during the first 12 months of a tenancy, and a mandatory four-month notice period applies.
According to Ministry of Justice court statistics, the average time from possession claim to bailiff enforcement is currently 33.8 weeks. With Section 21 gone and all claims now contestable under Section 8, practitioners expect tribunal caseloads to increase substantially and timelines to lengthen further. For landlords who experience serious rent arrears or antisocial behaviour, the mandatory ground for at least two months’ arrears (Ground 8) remains, but tenants can now challenge this at tribunal. This means that even clear-cut arrears cases may take significantly longer to resolve than under the previous system.
What Are the New Section 8 Grounds for Possession?
The Act revises and expands the grounds available under Section 8. The most relevant for London landlords are:
- Ground 1 (revised): Landlord or close family member requires the property as their principal home. Four months’ notice required; cannot be used in the first 12 months.
- Ground 1A (new): Landlord intends to sell the property. Four months’ notice required; cannot be used in the first 12 months.
- Ground 6 (revised): Landlord intends to carry out substantial redevelopment. Strengthened evidence requirements.
- Ground 8 (revised): Mandatory ground for serious rent arrears of at least two months. Tenants can now challenge at tribunal.
- Ground 14 (revised): Antisocial behaviour. Strengthened to cover a broader range of conduct.
The new grounds give landlords legitimate routes to possession, but each carries specific notice periods, evidence requirements and the risk of a contested hearing. Legal costs for a contested Section 8 claim typically start at £2,000 to £5,000 and can escalate significantly if the case reaches a full tribunal hearing.
What Is the Decent Homes Standard and Does It Apply to Private Landlords?
For the first time, the Decent Homes Standard — previously applicable only to social housing — will be extended to the private rented sector. Under this standard, a property must be free from serious hazards under the Housing Health and Safety Rating System (HHSRS), be in a reasonable state of repair, have reasonably modern facilities and services, and provide a reasonable degree of thermal comfort.
Local authorities will have strengthened enforcement powers to inspect private rented properties and issue improvement notices where the standard is not met. Penalties for non-compliance include civil penalties of up to £30,000 per offence and, in serious cases, criminal prosecution. London landlords who have deferred maintenance or have older properties with outdated heating, kitchens or bathrooms should commission a property condition survey now to identify any works needed before enforcement begins.
What Is the Property Portal and Do I Need to Register?
The Act creates a national Property Portal — a mandatory digital register of all private landlords and their rental properties in England. Every landlord must register themselves and each of their properties on the portal before letting or continuing to let. The portal will display a landlord’s compliance status, including gas safety certificates, electrical installation condition reports, Energy Performance Certificates and any enforcement action.
Letting a property without registration will be a criminal offence. The portal is expected to launch alongside the main provisions of the Act in 2026. Landlords should ensure all compliance documentation is current and digitally accessible in preparation.
How Do the New Rent Increase Rules Work?
Under the Act, landlords may only increase rent once per year using a prescribed Section 13 notice. The increase must reflect market conditions and tenants have the right to challenge any proposed increase at the First-tier Tribunal. The tribunal will determine the market rent for the property and the landlord cannot charge more than the tribunal’s assessment.
This means that landlords who previously used tenancy renewals as an opportunity to adjust rent upwards will now face a more structured and potentially slower process. Annual rent reviews should be planned carefully, supported by comparable evidence from the local market, and served in the correct statutory format to avoid challenge.
What Are the New Rules on Pets in Rented Properties?
Tenants now have the right to request permission to keep a pet, and landlords cannot unreasonably refuse. Where a landlord consents, they may require the tenant to take out pet damage insurance at the tenant’s expense. A refusal must be given in writing within 42 days, with reasons, and tenants can challenge an unreasonable refusal.
For London landlords with leasehold flats, this creates a potential conflict where the head lease prohibits pets. Landlords should review their head lease and, where necessary, seek a variation or clarification from the freeholder before the provisions take effect.
Are Company Lets Affected by the Renters’ Rights Act?
This is a critical point that many landlords overlook. The Renters’ Rights Act — like the Housing Act 1988 it amends — applies to assured shorthold tenancies granted to individual tenants. Company lets, where the tenant is a limited company rather than an individual, fall outside the Housing Act 1988 entirely and are therefore not affected by these changes.
Under a company let, the tenancy is governed by common law and the terms of the lease agreement, not by the statutory framework of the Housing Act. This means that Section 21 abolition, the new Section 8 grounds, rent increase restrictions, pet rights and the Decent Homes Standard enforcement provisions do not apply to company lets in the same way. The landlord and the company tenant negotiate terms commercially, and possession is governed by the contractual notice provisions in the lease rather than by statute.
This is one of the key reasons why guaranteed rent schemes operated through a company lease structure offer London landlords significant regulatory protection. When a property company takes a lease on your property, the arrangement is a company let. The statutory changes under the Renters’ Rights Act do not alter the landlord’s position because the landlord’s tenant is the company, not an individual. The company then manages its own occupancy arrangements with the end occupants, absorbing all of the regulatory complexity on the landlord’s behalf.
Frequently Asked Questions
When exactly does the Renters’ Rights Act come into force?
The core provisions, including Section 21 abolition and the new possession grounds, take effect from May 2026. Some elements, such as the Property Portal, may be phased in over subsequent months.
Do the changes apply to existing tenancies or only new ones?
The Act applies to all assured shorthold tenancies, both new and existing. Landlords with current tenants will not be able to use Section 21 from the implementation date, regardless of when the tenancy started.
Can I still evict a tenant who does not pay rent?
Yes. Ground 8 (mandatory possession for at least two months’ arrears) remains available, and Ground 10 (discretionary possession for any level of arrears) also continues. However, tenants can now challenge these claims at tribunal, which may extend timelines.
What should I do right now to prepare?
Review all compliance documentation (gas safety, EICR, EPC). Commission a property condition survey against the Decent Homes Standard. Set up MTD-compatible accounting software if your rental income exceeds £50,000. Consider whether a company let or guaranteed rent structure would reduce your regulatory exposure.
How does Elite Property London help landlords navigate these changes?
Elite Property London operates a guaranteed rent scheme using a company lease structure, which means your property sits outside the Housing Act framework entirely. We handle all compliance, tenant management and regulatory requirements through our property management service, so you receive guaranteed income with none of the new regulatory burden.
Gerda Micke is the Founder and Director of Elite Property London, a specialist property management company offering guaranteed rent and full property management to London landlords.
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