Renters’ Rights Act 2025 - what it means for local authorities

The Renters’ Rights Act 2025 goes beyond the abolition of assured shortholds and section 21 no-fault evictions. It also introduces a raft of measures intended to re-balance the legal relationship between residential landlords and their tenants at a time of housing crisis.

Standing behind these reforms are the districts and unitaries which will have the difficult job of policing the new legislation.

Indeed, the reason why new investigatory powers were brought into effect on 27 December 2025 was to give those councils a four-month head start to get their enforcement policies in place before the grand launch of the new legislation on 1 May 2026. Other key structural changes introduced by the 2025 Act, include:

• The abolition of fixed term residential tenancies, which means that tenants can vacate on giving as little as 2 months prior written notice to the landlord;
• Increased regulation of tenancy documentation;
• An obligation on landlords and letting agents to quote a fixed rent when marketing a proposed residential letting and not being allowed to accept anything more than the quoted rent;
• Increased restrictions on the amount of money which landlord can ask by way of advance rent;
• A 12 months moratorium on re-letting, in circumstances where a landlord relies on one of the new non-fault grounds to recover possession in circumstances where they intend to sell the property or occupy for their own purposes.
• A prohibition on discriminating against prospective tenants who either have children or are on benefits. Whilst this does not prevent a landlord from carrying out a financial assessment on a prospective tenant, state benefits must not be treated less favourably than other private income.
• It is also made illegal for a landlord to ‘bluff’ a tenant into vacating by pretending to rely on a ground for possession which they cannot substantiate.

Just to complicate things further, the 1 May 2026 launch will not apply to all residential lettings. Only those in the private rented sector. Social lettings will for the time being continue to be governed by the existing regime until the reforms are extended to social landlords later in 2026. It means that for the time being there will be two separate tenancy regimes running side by side.

The cost of getting it wrong

For private landlords and letting agents who get it wrong, there will be no second chances. There will be no warning letters. Only financial penalties. Nor is the new enforcement regime intended to be complaints-led.

Government guidance asks local authorities to be proactive in the enforcement of the new tenancy legislation and make full use of the investigatory powers and financial penalties which are made available to them. Local authorities will be incentivised to do this by being able to keep and recycle financial penalties into more enforcement.

Within the legislation there are at least three separate financial penalty regimes and a maximum range of penalties from £4,000 up to £40,000 depending on the nature and seriousness of the breach. The government also encourages councils to use financial penalties in preference to prosecution where it is possible to do so. Some circumstances giving rise to financial penalties require proof on a balance of probabilities whilst the most serious require proof beyond reasonable doubt. In each case, the process is the same.

The council will investigate and issue notice to the landlord or letting agent proposing a penalty of a certain amount and giving an opportunity for representations to be made. On the expiration of the period for representations, the council will serve notice of its decision. The landlord will then have a right of appeal to a first-tier tribunal until the order becomes final.

New investigatory powers already in force enable councils to ask questions, enter business premises and seize documents.

Will the new legislation work?

The Renters Rights Act 2025 does not exist in isolation. Its success is dependent on a courts and tribunal system which actually works. The abolition of the accelerated possession procedure now means that all possession claims will have to go to a court hearing, where the landlord will need to prove its case. Taking account of the time needed to get to a possession hearing followed by a bailiff eviction, that eviction process could take up to a year. Add to that the longer lead-in times introduced by the 2025 Act for all grounds of possession, save those based on antisocial behaviour.

It also means more work for first-tier tribunals, who will be tasked with adjudicating appeals against fixed penalties. And of course it means more work for local housing authorities tasked with enforcing the new regime. This workload could increase in 2027 when the government introduces its expected landlord registration scheme, which councils will also be required to police. By 2035, the government is also expected to have introduced its Decent Homes Standard for all residential lettings.

How will it affect the Lettings Market?

The speed at which the legislation is being introduced and the fact that it applies retrospectively, means that many private landlords may not even have a chance to get out of the market. Any landlord who has not served their section 21 notice before 1 May 2026 and issued possession proceedings by the cut off date of 31st July 2026, will be caught by the new regime. We could also see a growing professionalisation of the residential lettings market, as small residential landlords drop out and are replaced by larger professional landlords who are better able to navigate the new legislation. It could also provide opportunities for social landlords to replenish their housing stock as more ex-rental properties come onto the market.

We could also see the re-emergence of avoidance schemes, such as company lets. Or private landlords choosing to lease their properties through intermediaries, such as local authorities or housing associations, who can then shoulder those landlord responsibilities and guarantee a return of vacant possession at the end of the lease.

V. Charles Ward Is a senior property lawyer with HB Public Law and the author of Housing Regeneration: a plan for implementation. He is also the author of The Renters’ Rights Act: a practical guide, which is being published through Taylor and Francis and will be released later this year.