The Renters’ Rights Act 2025 represents one of the most significant overhauls of the private rented sector in England for decades. Having received Royal Assent in late October 2025, this new legislation promises to reshape how landlords and tenants interact, how tenancies are managed, and how property compliance is enforced. Although the timeline for implementation is still to be confirmed, likely in early to mid-2026, the implications are already sending ripples through the housing and insurance industries.
As a specialist provider of landlord insurance, Ashburnham Insurance recognises that these changes are not merely administrative in nature. They redefine risk, accountability, and the legal landscape within which property owners operate. For landlords, understanding and preparing for these reforms now is essential to safeguard their investments and maintain compliance.
Understanding the Shift in Rental Legislation
At its core, the Renters’ Rights Act aims to create a fairer, safer, and more transparent rental market. It strengthens tenants’ rights while placing new responsibilities on landlords to ensure quality housing and proper conduct. The reform builds on the earlier “Renters’ Reform” proposals but goes further, embedding greater accountability and enforcement into law.
One of the most transformative changes is the abolition of Section 21 “no-fault” evictions. This long-standing provision has allowed landlords to reclaim possession of their properties without providing a reason, but under the new system, that option disappears. Instead, landlords must rely on specified grounds for possession, such as rent arrears or breaches of tenancy, through Section 8 of the Housing Act 1988. This shift will make evictions more structured but also potentially more time-consuming. While it offers tenants greater security, it requires landlords to be far more meticulous with documentation, compliance, and communication.
Alongside this, the familiar assured shorthold tenancy (AST) model will be replaced. Fixed-term agreements will give way to open-ended, periodic tenancies, allowing tenants to give notice at any time, typically with two months’ warning. The traditional 6 or 12-month contracts that have long underpinned rental income predictability will soon become a thing of the past. For landlords, this means increased fluidity and potentially higher turnover, which can impact cash flow and insurance risk.
Changes to Rent, Standards, and Property Oversight
Rent increases will also come under stricter control. Under the Act, landlords will generally be limited to one rent increase per year, following a clear process of notification and justification. Moreover, “rental bidding wars” will be banned, preventing agents or landlords from encouraging tenants to offer more than the listed rent. This move aims to make the market more transparent and predictable for tenants but may constrain landlords’ flexibility to adjust for market conditions.
The legislation also enshrines higher property standards by extending the “Decent Homes Standard” to the private rented sector. This means every rental home must be safe, warm, and free from serious hazards such as damp or mould. The introduction of “Awaab’s Law”-style measures will place an even greater emphasis on timely repair and maintenance responses. Non-compliance could lead to enforcement action, financial penalties, or even rent repayment orders.
Furthermore, landlords will face tighter oversight through a new national database of landlords and rental properties, coupled with a mandatory redress scheme. These measures will make it easier for tenants to raise complaints and for local authorities to monitor compliance. For landlords, this means additional administrative duties but also greater transparency within the sector. From an insurance standpoint, evidence of registration and compliance will likely become prerequisites for cover, as insurers seek to mitigate regulatory risk.
What It Means for Landlords
For landlords, the Renters’ Rights Act represents a shift in how property management must be approached. The removal of no-fault evictions, combined with longer tenancy security for renters, makes good tenant relationships and thorough due diligence more important than ever.
Landlords will need to review existing tenancy agreements and adapt them to the new periodic structure. Rent increase clauses, termination processes, and property management responsibilities will all need to be updated. Property inspections will take on renewed importance, as maintaining compliance with the Decent Homes Standard will be a legal obligation rather than a best practice.
Financially, landlords should also plan for transitional costs. Upgrading properties to meet the new standards, registering with the national database, and working with managing agents will all involve expenditure. These costs, while potentially significant, can be offset by the stability of longer-term tenancies and the reputational benefits of being a compliant, trusted landlord.
From an insurance perspective, the changes bring both challenges and opportunities. The potential for longer occupancy periods may increase maintenance claims, while the loss of rapid possession routes could raise concerns about rent arrears and void periods. However, landlords who adapt early, maintain excellent property standards, and demonstrate compliance are likely to be viewed more favourably by insurers.
The Tenant’s Perspective
For tenants, the RRA brings unprecedented rights and protections. They will be able to end a tenancy more easily, request permission to keep pets (which landlords cannot unreasonably refuse), and live in homes that meet consistent safety and quality standards. Discriminatory letting practices, such as refusing applicants with children or those in receipt of benefits, will also be prohibited.
While this increased protection is positive for renters, it also introduces new layers of liability for landlords. Mistakes in eviction processes, rent adjustments, or discrimination laws could now carry heavier penalties. This makes proper record-keeping, transparent communication, and legal awareness essential. Insurers will inevitably pay close attention to compliance, as non-adherence could invalidate certain policy conditions or affect claims outcomes.
Preparing for the Transition
Although many of the changes are expected to take effect from 2026, landlords should start preparing now. Conducting a full audit of existing properties and tenancy agreements is the first step. Ensuring that each property meets or exceeds safety and maintenance requirements will not only help with compliance but also protect against potential claims.
Updating rental processes will be equally important. This includes revising tenancy templates, reviewing how rent increases are communicated, and ensuring marketing materials comply with new fairness standards. Landlords should also familiarise themselves with the forthcoming landlord database and redress scheme to ensure timely registration once operational.
Above all, communication with insurers should be proactive. Keeping your insurer informed about how you are adapting to the new requirements helps ensure your cover remains valid and comprehensive. Insurers can provide guidance on appropriate cover levels, compliance-linked requirements, and ways to manage evolving risk exposures.
Adapting to a New Rental Landscape
The Renters’ Rights Act 2025 signals a major turning point in the balance between tenant protection and landlord responsibility. While it introduces challenges in the form of increased regulation and reduced flexibility, it also offers opportunities for professional, compliant landlords to thrive in a more transparent and reputable marketplace.
At Ashburnham Insurance, we see this new framework as a chance for landlords to reinforce trust, elevate property standards, and strengthen long-term relationships with tenants. By acting early, reviewing your portfolio, updating procedures, and ensuring your insurance reflects the new environment, you can not only stay compliant but also protect your investment for the future.
Change is inevitable, but with preparation and the right support, it can be managed effectively. The Renters’ Rights Act may transform the sector, but with foresight and diligence, landlords can turn these challenges into opportunities for sustainable success.