Renters’ Rights Act
Following its Royal Assent in October 2025, the Renters’ Rights Act 2025 has been passed through Parliament and is now progressing towards implementation. The Government has confirmed that implementation will occur in three phases, to allow landlords, tenants, agents and councils sufficient time to prepare for the changes.
Introduction to Renters Rights
- The Renters Rights Act is a significant reform in the private rented sector, aiming to improve renters’ rights and protections in England.
- The Act introduces various changes, including the abolition of no-fault evictions, to provide more security for private tenants.
- Understanding renters’ rights is crucial for both tenants and private landlords to navigate the new laws and regulations.
- The private rented sector database will play a key role in ensuring compliance with the new laws and providing transparency for tenants.
At Vickery Holman we are mindful of the valuation implications, particularly for assets let under Assured Shorthold Tenancies (ASTs).
Phase 1
The first phase begins on 1 May 2026 and represents a significant structural shift for the private rented sector (PRS). The measures will apply to both new and existing tenancies from this date.
Key elements include:
- Abolishment of section 21 ‘no fault’ evictions (excluding the social rented sector which will be implemented in phase 2)
- Introduction of Assured Periodic Tenancies in the PRS (i.e., tenants can remain indefinitely unless a landlord regains possession via a valid Section 8 notice) and tenants can terminate the tenancy with two months’ notice
- Revised possession grounds
- Rent increases limited to once per year
- Landlords cannot request more than one month in advance
- Prohibition on rental biddings and upfront rent demands
- Protection for renters with children or receiving benefits
- Landlords required to consider pet requests and provide valid reasons for refusal
- Strengthened local council enforcement and expanded rent payment orders
From a valuation perspective, we are particularly cautious of the shift to Assured Periodic Tenancies and the removal of Section 21 ‘no fault’ evictions. At present, ASTs are often considered to be relatively low risk due to predictable tenancy patterns and the relative simplicity of regaining possession.
However, once tenancies become periodic and landlords are required to rely on Section 8 grounds, there is likely to be greater perceived uncertainty around achieving vacant possession. As a result, where investors price in this increased risk, valuers may need to reflect this in their yield selection and commentary, particularly whilst there is limited transactional evidence to indicate how the market will respond to the changes.
Phase 2
The second phase aims to improve transparency and dispute resolution through the rollout of a PRS Database and the establishment of a PRS Landlord Ombudsman.
The Government intends to introduce Phase 2 in two stages from late 2026:
- Regional rollout of the database of landlords and local councils
- Wider access for tenants, alongside the formal launch of the Ombudsman
The Ombudsman scheme will be developed in advance, with landlords expected to be required to join in 2028, once the service is fully operational.
Phase 3
The final phase focuses on improving property standards across the PRS. These measures remain subject to consultation, but are expected to come into force over the longer term.
- Decent Homes Standard (DHS): A minimum quality standard covering repair, safety and facilities, with proposed implementation in 2035 or 2037.
- Awaab’s Law: Proposed extension to the PRS, introducing legally enforceable timeframes for rectifying serious hazards such as damp and mould.
- Housing Health and Safety Rating System (HHRS): Implementation of the updated system as part of the pathway to introducing the DHS.
- MEES: Further detail is expected on the previously proposed requirement for PRS dwellings to meet EPC C by 2030 (unless exempt).
Conclusions
The Government has also indicated that several elements of the Act will be finalised through secondary legislation. This will include commencement regulations for the abolition of Section 21 ‘no fault’ evictions and the move to Assured Periodic Tenancies on 1 May 2026, as well as exemptions such as private PBSA. We understand that further details are expected ahead of the Phase 1 implementation date.
At Vickery Holman, we recognise the importance of understanding legislative changes and their impact on the residential investment market. Our team has experience advising on properties let under Assured Shorthold Tenancies (ASTs), professional HMOs and student accommodation. As time progresses, we expect the market to adjust as transactional evidence emerges, and our valuers will continue to monitor transactional activity to understand how investors react to the changes.
Please contact our Valuation team for further advice.
