The Renters’ Rights Act 2025 brings the biggest changes to the private rental sector in a generation. Many of the key reforms came into force on 1 May 2026, and landlords across Finchley and North London will need to understand how the new rules affect their properties, tenants and responsibilities.
At David Harris & Co, we are committed to helping you make informed decisions in all letting matters. Here is a straightforward guide to the most important changes.
Fixed-Term Tenancies Are Being Replaced
From 1 May 2026, traditional fixed-term Assured Shorthold Tenancies (ASTs) will be replaced by Assured Periodic Tenancies (APTs).
In simple terms, tenancies will no longer have a fixed end date. Instead, they will continue on a rolling monthly or weekly basis until either the tenant chooses to leave or the landlord has a valid legal reason to regain possession.
This change is designed to give tenants greater security and flexibility.
Section 21 Evictions Are Ending
One of the most significant reforms is the abolition of Section 21 "no-fault" evictions.
Previously, landlords could regain possession of a property without providing a specific reason. Under the new legislation, this option disappears.
Instead, landlords will need to rely on the revised Section 8 possession process and provide a recognised legal ground for ending a tenancy.
New Grounds for Regaining Possession
The Act introduces new mandatory grounds that allow landlords to recover possession if they:
● Intend to sell the property.
● Wish to move into the property themselves.
● Need the property for a close family member to live in.
However, these grounds cannot be used during the first 12 months of a tenancy. Landlords must also provide tenants with four months' notice.
There is also a special provision for student HMOs. A new Ground 4A allows landlords to regain possession at the end of the academic year if they plan to re-let the property to new students and have provided the required notice in advance.
New Rules on Rent Increases
Rent increases will become more tightly regulated.
Landlords will only be able to increase rent once every 12 months using the formal Section 13 process. At least two months' notice must be given, and the new rent must reflect the market rate.
Rent review clauses in tenancy agreements will no longer be valid.
The Act also bans rental bidding. Landlords and letting agents must advertise a clear asking rent and cannot encourage or accept offers above that amount.
In addition, landlords cannot request rent payments before a tenancy agreement has been signed. Once signed, any rent paid in advance is limited to a maximum of one month's rent.
Higher Standards for Property Condition
The Decent Homes Standard is being extended to the private rented sector for the first time.
Properties will need to be:
● Free from serious hazards.
● In a reasonable state of repair.
● Equipped with modern facilities.
● Adequately heated and energy efficient.
● Free from damp and mould issues.
Although full enforcement is not expected until 2035, landlords should begin reviewing their properties now to identify any improvements that may be needed.
Awaab's Law will also apply to private rentals, requiring landlords to investigate and address hazards such as damp and mould within strict timescales.
Another important change is the requirement for all rental properties to achieve an EPC rating of C or equivalent by October 2030.
Changes Around Pets and Tenant Selection
The Act aims to reduce discrimination within the rental market.
Blanket bans on tenants with children or those receiving benefits will no longer be permitted. Landlords can still carry out affordability checks, but each application must be considered individually.
Tenants will also gain a legal right to request permission to keep a pet. Landlords cannot unreasonably refuse such requests and must provide a written response within 28 days.
Where appropriate, landlords can require tenants to have insurance that covers potential pet-related damage.
New Registration and Compliance Requirements
The Act introduces additional administrative responsibilities for landlords.
All landlords will be required to join a new Private Rented Sector Ombudsman scheme, even if they use a letting agent. The Ombudsman will provide free dispute resolution for tenants and will have the power to award compensation in certain cases.
Landlords must also register both themselves and their properties on a new national Private Rented Sector Database.
Failure to comply with these requirements could affect a landlord's ability to regain possession using certain legal grounds.
Increased Penalties for Non-Compliance
Local authorities will have stronger enforcement powers under the new legislation.
Civil penalties of up to £7,000 can be issued for initial breaches, while serious or repeated offences may result in fines of up to £40,000.
Rent Repayment Orders are also being expanded, allowing tenants in some cases to claim back up to 24 months of rent where landlords have failed to meet their legal obligations.
The Renters’ Rights Act 2025 represents a major shift in how residential lettings will operate. While many landlords already follow good practice, the new rules introduce additional responsibilities and stricter compliance requirements.
Taking time now to understand the changes, review tenancy procedures and assess property standards will help ensure fewer issues going forward. With these regulations now in place, there is no time to waste, but as always, David Harris & Co is here to assist you.
Whatever you are worried about as a landlord, David Harris & Co is here for you.
At David Harris & Co, we understand what makes Finchley unique. Whether you’re buying, selling, or renting, our local expertise ensures we can guide you to the best decisions for your needs. Ready to explore Finchley’s rental market?
Contact David Harris & Co for expert advice and a stress-free experience. Call us on 0208 346 9122 to get started. Let’s make Finchley your next home.
