What the new law means for landlords, tenants, and investors across England.

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The rental market in England is going through its biggest change in decades. The Renters’ Rights Act 2025 (often called “Renters Reform”) is set to reshape how renting works for everyone from landlords and tenants to investors and property professionals.

Whether you own property, rent, or are thinking about investing, understanding these changes now will help you stay ahead.

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What Is the Renters’ Reform?

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The Renters’ Rights Act is new legislation designed to make renting fairer, more secure, and more transparent.

It introduces major changes to:

• How tenancies are structured
• How rent increases work
• How and when landlords can regain possession

This is widely considered the biggest reform to the private rental sector since the 1980s

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When Is It Happening?

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• The law received Royal Assent in October 2025
• The first major changes begin from 1 May 2026
• It will be introduced in phases throughout 2026 and beyond

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Key Changes You Need to Know

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1. No More “No-Fault” Evictions (Section 21 Ban)

Landlords will no longer be able to evict tenants without a valid reason.

Instead, they must use specific legal grounds (e.g. rent arrears, selling the property).

👉 What this means:

• Tenants gain more security
• Landlords must follow stricter legal processes

2. End of Fixed-Term Tenancies

All tenancies will move to rolling (periodic) agreements with no fixed end date.

👉 What this means:

• Tenants can leave with notice
• Landlords have less control over fixed timelines

3. Rent Increases Limited

• Rent can only be increased once per year
• Landlords must give at least 2 months’ notice
• Tenants can challenge unfair increases

👉 What this means:

• More predictable costs for tenants
• More regulated income changes for landlords

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4. Ban on Rental Bidding Wars

Landlords and agents must advertise a fixed rental price no more accepting higher offers.

👉 What this means:

• A fairer system for tenants
• Less flexibility in pricing strategies

5. Limits on Rent in Advance

Landlords can only request one month’s rent upfront.

6. Stronger Tenant Rights

Tenants will:

• Have the right to request pets (landlords must reasonably consider)
• Be protected from discrimination (e.g. benefits or children)
• Benefit from stricter repair and property standards

How Will This Affect Landlords?

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More responsibility and structure

• Increased compliance and documentation
• Greater reliance on legal processes to regain possession

Reduced flexibility

• No more quick evictions
• Less control over tenancy length

But also some positives:

• Potential for longer-term, more stable tenancies
• Clearer rules can reduce disputes

Overall, the reform is seen as a shift towards balance, but with more pressure on landlords to operate professionally

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How Will This Affect Tenants?

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More security and stability

• Harder to be evicted without reason
• More time to plan and settle

Greater fairness

• No bidding wars
• Protection from sudden rent hikes

Improved living standards

• Stronger rules on repairs and property conditions

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What About Investors & the Market?

This is where things get interesting.

Short term:

• Some landlords may exit the market due to increased regulation
• Potential pressure on rental supply

Long term:

• More professionalised rental sector
• Opportunities for serious investors focused on quality and compliance

Key Facts at a Glance

• Applies to England only
• Affects most private rented tenancies
• First major changes: May 2026
• One of the biggest housing reforms in decades

What Should You Do Now?

For Landlords:

• Review tenancy agreements
• Stay up to date with compliance requirements
• Focus on tenant relationships and retention
• Send out new Renters reform document to existing tenants

For Tenants:

• Understand your new rights
• Keep communication clear with landlords

For Investors:

• Factor regulation into your strategy
• Focus on long-term value, not short-term gains

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The Renters’ Reform isn’t just a policy change it’s a shift in how the entire rental market operates.

For some, it will bring challenges. For others, opportunity. But for everyone, one thing is clear:

The future of renting in England will be more structured, more transparent, and more balanced than ever before.

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At KAPS London, we believe staying informed is the key to staying ahead and we’re here to help you navigate every step of that journey.

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If you need any guidance or answers contact us below.

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