Renters' Rights Act: what changes for tenancy agreements

Why it matters

Failure to update tenancy agreements to comply with the Renters' Rights Act 2025 could render clauses unenforceable, create confusion, and potentially expose landlords to legal challenges or difficulties in regaining possession. Incorrect notice periods or invalid possession grounds may lead to delays in recovering a property or financial penalties. Furthermore, operating outdated tenancy models could undermine the landlord's professional standing and compliance with broader legislative requirements.

Legal requirements

• All new tenancies in England commencing from 2026 must be periodic tenancies, not fixed-term contracts.
• Tenancy agreements must not include clauses that attempt to create a fixed term or penalise tenants for ending a periodic tenancy with statutory notice.
• Landlords must use the updated grounds for possession when seeking to end a tenancy, as Section 21 'no-fault' evictions are abolished.
• Any contractual rent review clauses must align with the statutory minimum notice period for rent increases and comply with the single annual increase limitation.
• The tenancy agreement must clearly state the tenant's right to give a minimum of two months' notice to end the periodic tenancy at any time.
• Landlords must ensure their agreements accurately reflect their ongoing repairing obligations under the Landlord and Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018.
• The agreement must outline landlord's statutory duties regarding gas safety, electrical safety, and energy performance certificates.
• For properties in England, the agreement must prohibit 'no-fault' break clauses for tenants, as they are now free to give statutory notice at any time.

Practical guidance

• Review your existing standard tenancy agreement template immediately to identify all clauses impacted by the Renters' Rights Act 2025.
• Remove all references to 'fixed terms', 'assured shorthold tenancies', and any 'break clauses' for tenants.
• Update the section on 'Ending the Tenancy' to reflect the tenant's right to give two months' notice and the landlord's new possession grounds.
• Ensure any rent review clauses specify that rent can only be increased once every 12 months, with a minimum of one month's notice.
• Verify that the agreement clearly outlines the tenant's new right to request to keep a pet, which the landlord cannot unreasonably refuse.
• Cross-reference your revised template against the latest version of the 'How to Rent Guide' for any additional required information.
• Seek professional legal advice to draft a fully compliant tenancy agreement template, especially if managing multiple properties or complex situations.
• Train staff on the changes to ensure all new tenancies are created and managed in accordance with the new legislation.

Transition to Periodic Tenancies: What it Means for Agreements

The most fundamental change introduced by the Renters' Rights Act 2025 for tenancies in England is the abolition of assured shorthold tenancies and the move to a single system of periodic tenancies. This means that from the commencement date, all new tenancies will begin as periodic, 'rolling' tenancies, with no initial fixed term. Tenants will have the flexibility to give notice to leave at any point, subject to their statutory notice period, typically two months. Tenancy agreements must be rewritten to remove any clauses that imply a fixed term or impose penalties for early departure. Clauses relating to automatic renewal or contractual break clauses for tenants will become obsolete and should be removed. Landlords will need to adapt their business models to account for this increased tenant mobility, focusing on property quality and responsive management to encourage longer-term occupation.

New Rules for Notice Periods and Possession Grounds

With the abolition of Section 21 'no-fault' evictions, landlords will now only be able to regain possession of their property using specific, updated grounds for possession, as outlined in the Housing Act 1988 (as amended by the Renters' Rights Act 2025). Tenancy agreements should no longer refer to Section 21 and must instead detail the circumstances under which the landlord can seek possession, such as arrears of rent, breach of tenancy terms, or the landlord's intention to sell the property or move into it themselves. The Act also standardises the notice period tenants must give to end a periodic tenancy, setting it at a minimum of two months. Tenancy agreements must accurately reflect this tenant right, ensuring clarity and compliance with the new legal framework for ending a tenancy.

Rent Review Procedures and Pet Clauses

The Renters' Rights Act 2025 introduces new stipulations for rent reviews and pet ownership that impact tenancy agreement drafting. Landlords will generally be restricted to increasing rent only once every 12 months, and they must provide a minimum of one month's notice for any proposed increase. Any contractual rent review clauses in tenancy agreements must align with this statutory procedure to be enforceable. Furthermore, the Act grants tenants a right to request to keep a pet, which landlords cannot unreasonably refuse. Tenancy agreements should include a clear clause outlining this right and the process for making such a request. While landlords can require pet insurance to cover potential damages, they cannot charge a separate pet fee, due to the Tenant Fees Act 2019.

Regional Variations: Scotland, Wales, and Northern Ireland

It is crucial for landlords to remember that the Renters' Rights Act 2025 applies specifically to England. Devolved nations have their own distinct legislative frameworks for residential tenancies. In Scotland, the Private Residential Tenancy (PRT) under the Private Housing (Tenancies) (Scotland) Act 2016 already operates on an open-ended model, similar to the new English system, with no fixed terms. Landlords there should consult "The Private Residential Tenancy: a complete guide for Scottish landlords". Wales introduced the Renting Homes (Wales) Act 2022, which came into force in December 2022, replacing assured shorthold tenancies with 'occupation contracts'. More information can be found in "The Renting Homes (Wales) Act: a complete guide for landlords". Northern Ireland continues to operate under different legislation, and landlords should refer to "Safety and fitness duties for Northern Ireland landlords" and "Landlord registration and HMO licensing in Northern Ireland" for their specific obligations.