Where things stand

The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025, and its main tenancy reforms came into force on 1 May 2026. From that date, every private tenancy in England became subject to the new rules, including tenancies that started long before the Act was passed.

Some parts of the Act are still being phased in. The private rented sector database and the new landlord ombudsman are being introduced in stages, and the extension of the Decent Homes Standard and Awaab’s Law to private rentals will follow later. The core changes to how tenancies start, run and end are already live.

The key changes for landlords

Section 21 has been abolished

Landlords can no longer end a tenancy with a “no-fault” Section 21 notice. Any Section 21 notices served before 1 May 2026 had a short window to be used in court, and that deadline has now passed. To regain possession, landlords must now rely on a ground under Section 8.

All tenancies are now assured periodic tenancies

Assured shorthold tenancies (ASTs) and fixed terms have gone. Existing ASTs converted automatically into assured periodic tenancies on 1 May 2026, and new lets are periodic from day one, rolling monthly or weekly in line with the rent period. Tenants can end the tenancy by giving two months’ notice at any time.

New and updated possession grounds

Section 8 has been rewritten to give landlords clear routes to possession where they have a genuine reason. These include:

• Selling or moving in (Grounds 1A and 1): four months’ notice, and not available in the first 12 months of a tenancy. If you use either ground, you can’t re-let or re-market the property for 12 months afterwards.
• Student HMOs (Ground 4A): lets possession be regained over the summer, between 1 June and 30 September, so the property can be re-let for the next academic year. Tenants must be told in writing before the tenancy starts that this ground may be used.
• Rent arrears (Ground 8): the mandatory threshold has risen to three months’ arrears, at the point of notice and at the hearing, with four weeks’ notice.
• Antisocial behaviour (Grounds 7A and 14): court proceedings can begin as soon as notice is served.

Misusing a ground, for example claiming you are selling when you aren’t, can lead to a fine of up to £40,000.

Rent and money

Rent increases

Rent can be increased once a year, to the market rate, using the Section 13 process with at least two months’ notice. Rent review clauses in tenancy agreements no longer apply. Tenants can challenge an increase at the First-tier Tribunal, and any increase takes effect from the tribunal’s decision rather than being backdated.

Rent in advance and bidding

Landlords and agents can no longer ask for several months’ rent upfront, and rental bidding is banned. You must advertise a rent and can’t accept offers above it.

Penalties

Councils can issue civil penalties of up to £7,000 for a first breach and up to £40,000 for serious or repeated breaches. Rent repayment orders have also been extended.

Letting and managing the property

• Pets: tenants can ask to keep a pet, and you can’t unreasonably refuse.
• Discrimination: blanket bans on tenants with children or tenants receiving benefits are unlawful.
• Written terms: new tenancies need written terms, and existing tenants had to receive the government’s Information Sheet by 31 May 2026.
• Property standards: the Decent Homes Standard and Awaab’s Law (strict timescales for dealing with hazards such as damp and mould) are being extended to private rentals. Final dates haven’t been confirmed, but it makes sense to plan works now.
• Landlord database and ombudsman: all landlords will need to register themselves and their properties on the new database, and join the ombudsman scheme when it launches.

What it means for Liverpool landlords

Liverpool has one of the largest HMO and student rental markets in the country, so these changes land harder here than in many places. A few points stand out:

• Student HMOs: Ground 4A only works if the right notice is given before the tenancy starts. Missing it can leave you unable to secure possession for the next academic year.
• Rooms let on individual tenancies: each tenant can now leave on two months’ notice, so void management and re-letting speed matter more than ever.
• Licensing still applies: Liverpool City Council’s HMO and selective licensing requirements sit alongside the Act, not instead of it. Councils also have stronger investigatory powers under the Act.
• Arrears: with a higher threshold for mandatory possession, early arrears management and thorough referencing are your best protection.

Next steps

The Act rewards landlords who keep good records, follow the correct process and stay on top of compliance. If you’d like help reviewing your tenancies, notices or HMO portfolio under the new rules, contact Portus Lets on 0151 329 3538 or email hello@portuslets.co.uk.