28 Nov 25
Guest post by Nikita Asher and Faye Craggs – senior associates at Trowers & Hamlins
The government’s landmark bill to reshape the private rented sector is now on the statute book. Nikita Asher and Faye Craggs explain the likely impact
The Renters’ Rights Act which received royal assent on 27 October 2025, represents the most significant overhaul of the rented sector in decades, reshaping landlord responsibilities and tenant protections.
Move to open ended periodic tenancies
The act will eradicate the use of fixed term assured shorthold tenancies (ASTs) with a move to open ended assured periodic tenancies meaning tenants will be able to remain at the property until such time as they terminate the tenancy by giving two months’ notice, or the landlord terminates using the revised grounds for possession.
The abolition of Section 21 of the Housing Act 1988 means landlords will no longer be able to evict tenants without providing a valid reason under the revised grounds for possession.
Some of the key changes in this area relate to where a landlord wishes to use the property for personal use or sell the property and where a tenant commits anti-social behaviour or another breach of tenancy conditions. For rent arrears, the mandatory threshold for eviction will be increased from two to three months’ rent arrears and the notice period will increase from two weeks to four weeks.
With the abolition of Section 21, landlords can no longer evict tenants where a rent increase cannot be agreed, in order to find a tenant willing and able to pay the increased rental figure. The Act will limit rent increases to one per year and will require notice in accordance with Section 13 of the Housing Act. This will allow tenants to challenge rent increases in the First-tier Tribunal (Property Chamber) and the Tribunal will either uphold the increase as being in line with market rent, or will reduce it if they consider it is too high.
Enforcement will be strengthened under the act by the creation of a Private Sector Ombudsman, bringing private landlord and tenant complaint resolution in line with the practices in social housing. In addition, local authorities will have their powers to impose civil penalties expanded.
The Decent Homes Standard will be brought in for the private sector for the first time, alongside Awaab’s Law which will bring in statutory timescales for investigating and remedying hazards within the property. The timescales for implementation of this aspect of the act remain uncertain and they are likely to be introduced some time after the main implementation date of 1 May 2026.
Student housing
While the Renters’ Rights Act is set to overhaul protections across the private rental market, its impact on student housing will be far from uniform. For those studying at the same university, the level of legal protection could vary dramatically depending solely on their choice of accommodation provider.
The new legislation creates distinct categories of student tenants, each with different rights and responsibilities. In doing so, it reshapes the Housing Act 1988 framework and introduces new exemptions that divide the student market more sharply than before.
The three categories of student tenancies
1. University halls and registered purpose-built student accommodation (PBSA)
PBSA providers registered under government-approved codes are largely exempt from the main tenancy reforms. Their agreements will be treated as common law tenancies, similar to those offered directly by universities, meaning landlords can continue to offer fixed-term contracts aligned with academic years. These tenancies fall outside the new requirement for rolling tenancies, and deposit protection rules will not apply.
2. Unregistered PBSA and private rental properties
Where the provider has not signed up to an approved code, or where students rent in the general private sector, tenancies will become “assured” under the amended Housing Act 1988. Fixed terms will no longer be allowed, with all agreements moving to periodic tenancies. Students will be free to leave at any time with two months’ notice, raising the risk of mid-year voids, while landlords will find it harder to regain possession outside statutory grounds. Private landlords who may wish to sell or move back in can still do so under specific grounds, even mid-term.
3. Shared student houses (HMOs)
Shared student houses will also be assured tenancies but with a specific carve-out under new Ground 4A. Where landlords give notice before the tenancy begins and let only to full-time students, they can regain possession between 1 June and 30 September by giving four months’ notice. Students, however, can still choose to leave mid-year.
For anyone involved in student housing, whether tenant, landlord or manager, understanding which legal regime applies will be key to navigating the new system
All existing ASTs will automatically convert to full assured tenancies when the act takes effect. A one-off application of Ground 4A will apply to transitional PBSA and HMO tenancies if landlords act quickly and serve notice within one month of commencement.
