Key Reforms
The Act introduces sweeping changes to the private rental sector, affecting tenancy structures, eviction processes, rent controls, and tenants’ rights. Whilst a wide range of changes will be implemented, the key reforms are outlined below.
Phase 1 Reforms
Abolition of Section 21
“No-fault” evictions will be prohibited. Any Section 21 notice served before commencement remains valid for two months after implementation, as long as the notice is still within the sixmonth validity period. The abolition of section 21 reforms during Phase 1 will not apply initially to the social rented sector.
End of Fixed-Term Tenancies
All Assured Shorthold Tenancies (ASTs) will convert to assured periodic tenancies (APTs) overnight once the legislation takes effect. Any fixed-term tenancies entered into now will be affected by the Act when it becomes effective.
Eviction Process via Section 8
Section 8 notices will become the primary route for possession, supported by expanded mandatory and discretionary grounds for possession.
Rent Increase Restrictions
Rent will only be possible to increase through Section 13 notices, which will be limited to once per year, with two months’ notice. Tenants will have the right to appeal.
Rental Bidding
Landlords will be required to publish an asking rent for their property and it will be illegal to ask for or accept offers made above this price.
Pets
It will give tenants strengthened rights to request a pet in the property before or during the tenancy, which landlords cannot unreasonably refuse.
Anti-Discrimination
It will be illegal for landlords to discriminate against prospective tenants with children or those receiving benefits.
Phase 2
Landlord Ombudsman & Digital Database
A new Ombudsman will provide impartial and binding dispute resolution without court involvement. A digital database will help landlords understand their legal obligations, alongside enhancing transparency on landlords and compliance, providing better information to tenants to make informed decisions when entering into a tenancy agreement.
The roll out of the Private Rented Sector Database will commence in Phase 2 from late 2026. Signing up to the Database will be mandatory for all landlords and they will be required to pay an annual fee which will be confirmed closer to the launch.
Phase 3
The following will be part of the Phase 3 reforms, which have not yet been given an implementation date.
Decent Homes Standard
All rental properties must meet minimum quality standards.
Awaab’s Law
Awaab’s Law has already been introduced in the social housing sector but will extend to private rentals as part of the Act, requiring timely repairs of hazards such as damp and mould.
What about existing tenancies?
If an existing tenancy in the private rented sector already has a written tenancy agreement, the landlord will not need to change it or issue a new one before 1 May 2026. Instead, landlords with existing tenancies will need to provide tenants with a copy of the government published ‘Information Sheet’ on or before 31 May 2026, which will inform tenants about the changes made by the Act.
In the meantime, landlords and agents should review existing tenancy agreements and processes to ensure future compliance, while tenants should familiarise themselves with their new rights and the implications for rent, security, and property standards.
How will the Act impact student tenancies?
The Act marks a significant shift in the student rental market by abolishing ASTs, which have long been the default for student lets. Key changes include ASTs being replaced by APTs, students gaining flexibility to leave with 2 months’ notice at any time, and the introduction of a new mandatory possession ground, Ground 4A, which will assist landlords in regaining properties for re-letting to students, subject to strict notice and timing rules.
These changes apply to all tenancies, existing and new, but exemptions cover university-owned accommodation and certain purpose-built student accommodation (PBSA) managed under approved codes of practice. Universities can continue offering fixed-term agreements, while PBSA providers may grant common law tenancies outside the APT regime.
For non-exempt student housing, such as HMOs and shared houses, tenancies will automatically convert to APTs, increasing the risk of mid-year voids and prompting a likely shift toward individual room lets. In line with the academic cycle, each year, between 1 June and 30 September, landlords may be able to rely on the new ground 4A possession rights to terminate student APTs in HMOs, provided they comply with the prescribed notice and timing requirements.
With surveys showing most students are unaware of these changes, clear communication will be essential to ensure they understand their rights under the new system.
Partner | Head of Real Estate Disputes
Robert Clark robert.clark@laytons.com
+44 (0)20 7842 8066
Chloe Hay chloe.hay@laytons.com
Trainee Solicitor | Real Estate Investment & Finance
+44 (0)20 7842 5413
Disclaimer: This publication is provided by Laytons LLP for informational purposes only. The information contained in this publication should not be construed as legal advice. Any questions or further information regarding the matters discussed in this publication can be directed to your regular contact at Laytons LLP or Laytons’ Real Estate Disputes team or Real Estate Investment & Finance team.
