The Renters' Rights Act 2025: what Leicestershire landlords need to do now

The Renters' Rights Act 2025 is now law, and its biggest changes are already in force. Section 21 "no-fault" evictions are gone, every tenancy is now a rolling periodic tenancy, and there are new rules on rent increases, pets, advertising and discrimination. If you let a property in Lutterworth or anywhere else in South Leicestershire, the message is simple: getting the paperwork right now matters more than ever.

This guide covers what has changed, what you must do now, and what's still on its way — and the good news is that a good managing agent handles most of it for you.

What has actually changed, and when did it happen?

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025, and the core tenancy reforms went live on 1 May 2026. On that date every assured shorthold tenancy in England automatically converted — there was no grace period and no opt-out, and the changes below apply to both new and existing tenancies.

Section 21 is abolished — so how do I get my property back now?

Section 21 of the Housing Act 1988 has been abolished. You can no longer end a tenancy without giving a reason — every eviction now needs a valid Section 8 ground, a specific lawful reason set out in the Act.

In practice, regaining possession now means identifying a lawful ground, serving the correct notice period, and — for most grounds — being ready to prove it in court. So record-keeping becomes your best friend: keep rent statements, correspondence and evidence of your intentions. Your basic compliance also has to be watertight — deposit protection, gas safety, EPC and the How to Rent guide — because defects that once only invalidated a Section 21 notice will now be scrutinised as part of a possession claim.

What are the new Section 8 grounds and notice periods?

The Section 8 grounds have been overhauled. The two most landlords ask about are the ones for getting your own property back:

• Ground 1A (selling) and the reworked Ground 1 (you or a close family member moving in). Both are mandatory, both require 4 months' notice, and neither can be used in the first 12 months of a tenancy. After using either, there's a 12-month restriction on re-letting or re-marketing the property. If you sell with a tenant in place, the new owner inherits that sitting tenant's protections.
• Ground 8 (serious rent arrears) has been tightened. The arrears threshold has risen from two months to three months (or 13 weeks for weekly or fortnightly tenancies), and the notice period has risen from two to four weeks. The three months of arrears must exist both when you serve notice and at the hearing.

So learn which ground fits which situation and its notice period. Never evict on a sale or move-in ground then re-let within 12 months — that's an offence carrying a penalty of up to £40,000. And use the extra time before Ground 8 applies to engage with the tenant and document everything.

Can I still offer a 12-month fixed-term tenancy?

No. Assured shorthold tenancies are gone, and with them the fixed term. Every tenancy is now a periodic assured tenancy that rolls month to month (or per rent period) with no fixed end date, so a fixed term can no longer lock a tenant in.

Tenants can now leave at any time on two months' notice, while you can only end the tenancy on a Section 8 ground — so there's no longer a guaranteed six or twelve months of fixed income to plan around. For every new tenant you must issue a compliant written statement of terms at the outset; failing to do so is a civil-penalty offence. The deposit cap is unchanged: up to five weeks' rent (six weeks if the annual rent is £50,000 or more).

How do I legally increase the rent now?

Rent can be increased only once every 12 months, and only via a Section 13 notice — rent-review clauses can no longer be used to raise it. For any notice given on or after 1 May 2026 you must use the prescribed Form 4A and give at least two months' notice.

Your tenant can challenge the proposed rent at the First-tier Tribunal (Property Chamber). Here's the key change: the Tribunal can no longer set a rent higher than you proposed — only confirm or reduce it — and the increase doesn't take effect until it has decided. So set increases at a genuine market level; an over-ambitious ask invites a challenge that can only go down. You also can no longer require more than one month's rent in advance.

Is rental bidding really banned?

Yes. You (and any agent acting for you) must advertise a fixed asking rent, and you cannot invite, encourage or accept offers above it — even if a prospective tenant volunteers to pay more. "Offers over" and "price on application" are no longer allowed. Advertise every property at a single, specific figure and choose your tenant on suitability, not on who'll pay the most; breaching this carries a civil penalty.

Can I still say "no pets"?

A blanket "no pets" policy is no longer lawful. Tenants have a statutory right to request a pet, and you cannot unreasonably refuse. The request must be in writing, and you should respond — with reasons if you're refusing — within 28 days.

You can still refuse where you have a genuine, reasonable justification — for example, if a superior landlord or lease prohibits pets, or the property is unsuitable — but put the reason in writing. What you cannot do is take an extra "pet deposit" above the five-week cap, or require pet insurance; that provision was dropped from the final Act. Pet damage comes out of the normal deposit, so a thorough inventory and your own landlord insurance are the sensible safeguards.

Can I still refuse tenants on benefits or with children?

No. It is now unlawful to discriminate against prospective tenants because they receive benefits or have children. "No DSS", "no benefits" and "no children" policies are banned — in adverts, in referencing and in tenancy terms — whether applied by you or by an agent. Remove any such wording from your adverts and instructions. You can still run normal affordability and suitability checks; you just cannot rule someone out because they receive benefits or have children.

What could happen if I get it wrong?

Local authorities gained expanded investigatory powers, including powers of entry, from 27 December 2025. The Act carries a tiered civil-penalty regime: up to £7,000 for a first or minor breach (such as failing to provide the written statement of terms, serving an invalid notice, or breaching the bidding ban), and up to £40,000 for serious, repeated or continuing breaches (such as re-letting inside the 12-month restricted period). Tenants can also seek Rent Repayment Orders of up to two years' rent.

The cheapest insurance against all this is good process: correct forms and notice periods, no prohibited practices, prompt repairs and full documentation — the sort of continuous compliance a good fully managed service handles for you.

What's still coming but not yet in force?

Several parts of the Act are on the way but not yet law. It's worth knowing about them, but there's nothing you must do today.

• PRS Database and landlord registration. A national database will require you to register yourself and each let property, expected to roll out from late 2026 through 2027. Once live, registration becomes a precondition for lawful letting and for using certain possession grounds.
• PRS Landlord Ombudsman. A mandatory redress scheme for all private landlords, expected around 2028, able to order apologies, remedial action or compensation.
• Decent Homes Standard. The minimum-condition standard used in social housing is proposed to extend to the private rented sector, with a proposed application date around 2035.
• Awaab's Law. Legally binding timescales for fixing serious hazards such as damp and mould. Already live in social housing; its extension to the PRS is still to be confirmed and subject to consultation.

The one habit to adopt now is good record-keeping: log every repair report with a date, respond quickly to damp and mould, and keep older properties in good order. Do that and you'll be ready as each of these lands.

What does this all mean for landlords in Lutterworth and South Leicestershire?

The Act applies the same way in Lutterworth, Market Harborough, Rugby and across South Leicestershire as anywhere else in England. What differs is how you feel about carrying it all yourself. For a lot of local landlords, the honest reaction to Section 21 going and everything now running through Section 8 paperwork has been "I'm not sure I can keep doing this on my own."

That's a perfectly reasonable place to land. As a small, family-run firm in Lutterworth, this compliance is our day job — the right forms, the right notice periods, pet requests and rent increases handled properly — so you don't have to. Whether you want full management or just help finding the right tenant through our let-only service, the aim is the same: to take the stress off you.

Frequently asked questions

Is the Renters' Rights Act actually law yet?

Yes. It received Royal Assent on 27 October 2025, and the core tenancy reforms went live on 1 May 2026. Section 21 abolition, periodic tenancies, the new rent-increase rules, the bidding ban, pet requests and the discrimination ban are all in force now, for both new and existing tenancies.

How much rent arrears do I need before I can use Ground 8?

The threshold is now three months' arrears (or 13 weeks for weekly or fortnightly tenancies), up from two months, and the notice period is four weeks. The three months of arrears must exist both when you serve notice and at the hearing.

Can I refuse a tenant's request for a pet?

Only if you have a genuine, reasonable reason — for example, a superior landlord or lease that prohibits pets, or a property that's genuinely unsuitable. You must respond in writing within 28 days, and you can't charge a pet deposit or require pet insurance.

Do I need to register on the landlord database yet?

Not yet — the PRS Database is not in force. Roll-out is expected from late 2026, phasing through 2027. When it opens you'll need to register each property, so it's worth keeping your compliance documents in order in the meantime.

Feeling unsure? Let's take the stress off you

The Renters' Rights Act is a big change, but you don't have to navigate it alone. If you'd like to know where you stand — or you're weighing up whether now's the time to hand the compliance to someone who does it every day — we're happy to talk it through, no pressure. Book a free rental valuation or get in touch with our Lutterworth team, and we'll help you let with confidence.