The Phased Implementation: Law vs. Live

The government has chosen to implement the Act in phases, requiring secondary legislation to bring the full reforms into force. This multi-stage approach is designed to prevent a chaotic, two-tier system, but requires diligent monitoring from property owners.

 

Phase 1: Immediate Enforcement Powers (Expected Dec 2025)

The first changes to take effect will involve empowering local authorities (LHAs):

  • LHA Investigatory Powers: Approximately two months after Royal Assent (expected late December 2025), LHAs will gain significantly stronger investigatory powers. This allows them to demand information from landlords, agents, and even third parties, and conduct inspections to investigate suspected breaches of housing law, including illegal eviction and poor property standards.
  • The Message: Landlords and agents must ensure all compliance documents (gas safety certificates, EPCs, Right to Rent records) are meticulously maintained and easily accessible, as local authority scrutiny is about to accelerate dramatically.

 

Phase 2: The ‘Big Bang’ Tenancy Conversion (Expected Early to Mid-2026)

This is the most disruptive phase, when the foundational changes to the tenancy structure take effect for all tenancies:

  • Section 21 Abolished: The abolition of ‘no-fault’ evictions comes into force.
  • ASTs Converted: All existing Assured Shorthold Tenancies (ASTs) will automatically convert into the new standard of periodic assured tenancies.
  • New Tenancies: Any new tenancy granted after this commencement date will be a periodic tenancy from day one.

 

Phase 3: Long-Term Standards & Redress (Expected 2027+)

Other major components require substantial infrastructure (court reform, ombudsman bodies) and will be implemented at a later date, often requiring years of preparation:

  • Mandatory Ombudsman & Database: The requirement for all landlords to join the new Private Rented Sector Ombudsman and register on the National Landlord Database will follow later, likely in 2027 or beyond.
  • Decent Homes Standard (DHS): While the Act extends the DHS to the PRS, the government has indicated a long lead time for full compliance (potentially extending to 2035 or 2037). However, landlords must start budgeting and planning property improvements now to meet these higher safety and quality thresholds.

 

The Six Pillars of Change for Landlords

#1. The End of No-Fault Evictions (Section 21)

The cornerstone of the Act is the abolition of Section 21 notices. This means that a landlord can no longer terminate a tenancy simply because the fixed term has expired or they wish to re-let the property quickly. This marks a fundamental shift away from short-term contracts toward genuine security of tenure for tenants.

 

#2. The Shift to Periodic Tenancies

The Assured Shorthold Tenancy (AST) and its fixed-term structure will cease to exist. All tenancies will become a single system of periodic (rolling) tenancies. This grants tenants the right to terminate a tenancy by giving just two months’ notice at any time. For landlords, this increases the risk of unexpected void periods and complexity in financial forecasting, making tenant retention and service quality paramount.

 

#3. Overhaul and Expansion of Section 8 Grounds

Since Section 21 is gone, landlords must now rely exclusively on the expanded and reformed Section 8 grounds to regain possession. This is a fault-based process requiring landlords to prove a legal justification in court.

 

Ground Status Key Change Required Notice
Landlord Moving In (Ground 1) Mandatory Landlord or family member requires the property to live in. 4 months
Selling Property (New Ground 1A) Mandatory Landlord intends to sell the property. 4 months
Rent Arrears (Ground 8) Mandatory Mandatory threshold for eviction is increased from two months’ to three months’ rent arrears. 4 weeks

Crucially, the “selling” and “moving in” grounds carry a 12-month protected period at the start of a tenancy, during which they cannot be used.

 

#4. Mandatory Registration and Redress

The Act introduces significant accountability measures:

  • PRS Ombudsman: All private landlords must mandatorily join a new Ombudsman scheme. This provides tenants with quick access to binding dispute resolution, meaning complaints no longer need to escalate immediately to the slow County Court system.
  • National Database: A new national database will require mandatory registration of landlords and their properties, improving transparency and making it easier for local authorities to enforce compliance.

 

#5. Stronger Protections on Property Standards and Pets

The quality and safety of rental stock are now legislative priorities:

  • Awaab’s Law and DHS: The Decent Homes Standard (DHS) and Awaab’s Law (which sets strict timeframes for addressing health hazards) will be extended to the PRS. This requires landlords to ensure properties are free of serious hazards, in good repair, and meet specific modern standards.
  • Pet Parity: Landlords can no longer issue blanket bans on pets. They must now reasonably consider and respond to a tenant’s request for a pet within 28 days. They retain the right to require the tenant to purchase pet insurance to cover potential damage.

 

#6. New Rules on Rent Increases and Bidding Wars

The Act restricts practices that were seen as exploitative:

  • Rent Increases: Landlords can only increase rent once per year (using the statutory Section 13 notice procedure). Tenants gain the right to challenge the increase at the First-tier Tribunal (FTT) if they believe it is above the market rate.
  • No Rental Bidding: It is now illegal to ask for or accept offers that exceed the advertised rent, ending rental bidding wars. Furthermore, landlords are restricted from asking for more than one month’s rent in advance.

 

The Crown Luxury Homes Compliance Advantage

For landlords, the sheer complexity of the Renters’ Rights Act means that self-management has become a disproportionately high-risk activity. Success in the new era depends entirely on flawless, proactive compliance.

 

The Compliance Shield

By delegating management to a professional agent, the landlord establishes a crucial compliance shield. Crown Luxury Homes provides this protection by:

  • Possession Assurance: We ensure all documentation and service notices are legally correct, giving our landlords the strongest possible position to use the new Section 8 grounds effectively in court, should it become necessary.
  • Maintenance & DHS Preparation: We conduct thorough audits of our portfolio against the incoming Decent Homes Standard, creating a strategic plan for necessary upgrades—protecting our clients from future LHA fines and Rent Repayment Orders (RROs).
  • Record-Keeping: We maintain impeccable, legally mandated records of maintenance, tenancy breaches, and communication, which are now critical evidence for any Section 8 claim.
  • Mitigating Voids: Our focus on five-star tenant service is designed to minimise tenant turnover, mitigating the financial risk introduced by the tenant’s right to give two months’ notice at any time.

The Renters’ Rights Act is not a law to fear, but a law to master. It demands professionalisation, and the failure to adopt a proactive strategy before the “Big Bang” commencement date is no longer an option.

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