How the Renters’ Rights Act Caps Rent Increases and Strengthens Tenant Protections

How the Renters’ Rights Act Caps Rent Increases and Strengthens Tenant Protections - Barrain London Estate Agents

What is the Renters’ Rights Act 2025 and how does it affect private tenants and landlords?

The Renters’ Rights Act 2025 is transforming private renting in England. It introduces new limits on rent increases, ends no-fault evictions, and strengthens tenant protections while offering landlords clearer legal guidance. It changes how rent rises are handled, how tenancy agreements are ended, and what both parties should expect in practice. The renters’ legislation 2025 sets out clear responsibilities for tenants and landlords across the private rental sector.

The Renters’ Rights Act comes into force on 1 May 2026. If you’re a private tenant or landlord, now is the time to understand what’s changing and how it will affect you. Read this guide to stay informed and prepared.
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Why the Old Rent Rules Were Failing Tenants and Stressing Landlords

Previously, landlords could use Section 21 to remove tenants without giving any reason. Rental contracts often included vague or unchecked rent rise clauses with little or no notice period.

Landlords also found themselves navigating unclear legal expectations. Many incurred legal costs or faced prolonged disputes in housing tribunals. The overall system lacked stability.

This outdated setup led to frequent disputes, increased rent insecurity, and growing frustration across both sides of the tenancy.

Understanding the Renters’ Rights Act 2025: A Turning Point for Private Renting

If your landlord suddenly raises your rent sharply, you now have legal grounds to question it. The Renters’ Rights Act 2025 marks one of the most significant changes in private rental law in years.

This rent reform act applies to assured shorthold tenancies (ASTs) in England. It was introduced to address rent affordability, insecure housing, and the imbalance of power in the private rental sector.

Key dates to note:

  • October 2025: it passed Parliament on October 22, 2025, and received Royal Assent on October 27, 2025

  • November 2025: Guidance and support materials are released.

  • May 2026: Full implementation begins for all tenancies.

This article covers key updates to renting law, what tenants are now entitled to, and how landlords can meet their responsibilities under the renters’ legislation 2025.

Pro Tip: Landlords who automate a 12-month rent review calendar now will avoid compliance errors later.

Ehab Barrain

Managing Director at Barrain Estate Agents London

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How Rent Increases Are Now Capped: What’s Changed and How It Works

What do the new rent cap rules mean for tenants and landlords?

Here is what the Act now requires:

  • Rent can only be raised once in a 12-month period.

  • A written notice must be given at least two months in advance.

  • Tenants have the right to challenge any rent hike they believe is excessive.

  • Rent clauses must align with current local market conditions.

  • All rent changes need to be clearly documented.

For instance, if your rent is ÂŁ1,000 and the proposed increase is ÂŁ1,150, your landlord must provide supporting evidence. If this seems unreasonable, you can appeal through the First-tier Tribunal or the housing tribunal process.

FAQs:

  • Can rent be increased by 20%? It can only be increased by this amount if similar properties locally support that rate. If not, tenants can challenge it.

  • Are these changes for new agreements only? No. From May 2026, all tenancies will follow these new rules.

These changes aim to prevent sudden, unjustified rent spikes and create a more stable renting environment.

Stronger Tenant Protections: No-Fault Evictions Scrapped and More

Section 21 is no longer valid. Landlords must now provide a legitimate reason – such as unpaid rent or serious contract breaches – when ending a tenancy.

More protections now in place:

  • All tenancies will shift to monthly rolling agreements.

  • Rent in advance is capped at one month unless exceptions apply.

  • Tenants may request to keep pets, and refusal must be properly explained.

  • Local councils are better equipped to address unsafe housing.

Before vs After:

  • Before: Evictions could happen without explanation.

  • After: Tenants are protected from arbitrary evictions and must be given just cause.

These protections offer a greater sense of housing security and fair treatment.

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From notice periods to tribunal preparation, we help landlords avoid fines and disputes by getting everything right the first time.

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What Tenants Need to Know – Rights, Red Flags and How to Challenge Rent Hikes

Step-by-step guide to handling a rent increase:

  1. Ask for written confirmation of the proposed increase.

  2. Compare rent with similar properties in your area.

  3. Request justification in writing from your landlord.

  4. Submit a formal challenge to the tribunal if needed.

Warning signs to be aware of:

  • Rent raised more than once in a single year.

  • No written notice given.

  • Increase much higher than local rates.

  • Pressured into accepting without time to consider.

Shelter, GOV.UK and Citizens Advice offer guidance, template letters, and advice to help tenants address issues confidently.

Landlords: How to Stay Compliant and Avoid Costly Mistakes

Landlords need to:

  • Check existing contracts for outdated or non-compliant clauses.

  • Track rent reviews to stay within the allowed 12-month window.

  • Provide written notices for every rent change.

  • Get support from letting agents or landlord organisations.

  • Carry out regular letting compliance checks to avoid legal risk.

Failing to comply may result in disputes, tribunal cases, or even fines. Clarity and documentation are now more important than ever.

Pro Tip: Tenants should always request rent increase notices in writing and compare them against local listings before responding.

Ehab Barrain

Managing Director at Barrain Estate Agents London

Managing the Transition: Existing Contracts, Loopholes and Legal Grey Areas

Tenancies signed before May 2026 must follow the new rules once the law is active.

  • Fixed-term agreements automatically become rolling tenancies when renewed.

  • Index-linked or older escalation clauses may be challenged.

  • Landlords are not allowed to rush through rent increases to avoid new rules.

For example, if your tenancy began in March 2025, rent changes from May 2026 must follow the updated rules.

The Human Impact: How the Changes Affect Renters and Landlords Day-to-Day

Renting is now more predictable. These updates are reshaping the way tenants and landlords interact across the private rental sector.

Key changes you will notice:

  • Fewer surprise evictions and more open dialogue.

  • Landlords now plan increases with legal timelines in mind.

  • Letting agents are helping manage compliance and paperwork.

  • Rent reviews are more transparent and easier to dispute if unfair.

The goal is a more balanced and respectful rental experience that supports fair housing outcomes for everyone.

The Role of Letting Agents in a Post-Reform Landscape

Letting agents now play an even more important role under the updated rules. With compliance becoming more complex and penalties more severe, many landlords are turning to professional agents to manage rent reviews, serve notices, and ensure tenancy agreements are up to date.

Services letting agents can now provide:

  • Keeping rent review calendars and issuing compliant notices.

  • Ensuring tenancy agreements reflect the new legal standards.

  • Mediating tenant disputes and advising on fair rent increases.

  • Monitoring market trends to justify pricing decisions.

  • Preparing documentation for tribunal cases if needed.

Working with a reputable letting agent can help landlords avoid costly mistakes and offer tenants a more professional, consistent experience.

Key Dates, Your Action Checklist and Resources for 2026 and Beyond

Timeline:

  • May 2025: Law becomes official.

  • November 2025: Resources and implementation guidance released.

  • May 2026: All changes fully apply.

  • Other notable dates: Some elements, like new investigatory powers for local councils, begin earlier on December 27, 2025. Later phases (e.g., the Private Rented Sector Database and Landlord Ombudsman) roll out from late 2026 onward, with standards like the Decent Homes Standard potentially by 2035-2037.

Tenant checklist:

  1. Identify whether your current tenancy is fixed-term or periodic.

  2. Understand the rules around rent increases and how evictions must now be handled.

  3. Keep all written notices, rent records, and any communication from your landlord.

  4. Compare your rent with similar local properties to stay informed.

  5. Reach out to housing support organisations if you need advice or guidance.

Landlord checklist:

  1. Go through all your tenancy agreements and remove clauses that do not comply with the new law.

  2. Eliminate any rent escalation terms that conflict with the Renters’ Rights Act 2025.

  3. Set reminders to review rents no more than once every 12 months.

  4. Seek professional help from letting agents or legal advisors if there is any uncertainty.

  5. Record every rent-related communication in writing to stay legally protected.

Trusted support sources:

With support and a clear understanding of the rules, renters and landlords can navigate these changes with confidence.

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