Renters’ Rights Act – what is the impact on tenancy agreements?
What is the impact of the Act on Assured Shorthold Tenancies (ASTs)?
From 1 May 2026, Assured Shorthold Tenancies (ASTs) will be abolished and will become assured periodic tenancies, with rental periods not permitted to exceed one month. Any terms in an existing tenancy that provide for either a fixed term or longer rent periods will have no effect.
The conversion of all ASTs to periodic assured tenancies means that tenants will be able to stay in their homes until they decide to end the tenancy by giving two months’ notice.
Is this the end of notices under section 21 of the Housing Act 1988 (S.21 Notice)?
Yes. Any S.21 Notice served after 30 April 2026 will not be valid.
What if a lease prohibits subletting otherwise than pursuant to an AST?
These will be read to allow subletting by way of an assured tenancy. This means that, from 1 May 2026, a superior landlord will not be able to withhold consent to a subletting pursuant to an assured tenancy, and such a subletting will not give rise to a breach of the lease.
How have rents and rent reviews been affected by the Renters’ Rights Act?
What does the Act say about rents?
Landlords will only be permitted to advertise with a specific proposed rent, and, if they accept an offer that exceeds the proposed rent, they can be fined.
How will the Act change rent reviews?
From 1 May 2026, rent increases must follow a statutory notice process; contractual terms will be of no effect. Landlords will only be able to propose a rent increase once every 12 months, giving at least two months’ notice.
Tenants will be able to challenge the proposed rent by applying to the First Tier Tribunal (FTT). The FTT will then determine the open-market rent. The new rent amount will be the lower of the open market rent and the proposed rent.
Rent Repayment Orders
Landlords (and superior landlords) will be liable for Rent Repayment Orders if they fail to comply with parts of the Act.
Watch our Renters’ Rights Act webinar to learn more about the key changes affecting landlords.
Renters’ Rights Act 2025
The Renters’ Rights Act 2025 (the Act) received Royal Assent on 27 October 2025 and fundamentally changes the law relating to residential tenancies.
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