The RRA is now law with most of the major changes taking effect from the 01 May 2026. Here’s how were preparing for the biggest overhaul of the private rented sector in a generation.
Documentation Overhaul
One of the most significant changes under the Act is the move away from fixed-term Assured Shorthold Tenancies and the removal of Section 21. Almost all tenancies will become periodic, and possession will rely solely on the revised ‘Section 8’ grounds.
We are well progressed with a full review of our tenancy agreements, notice templates, and internal workflows to ensure they comply with the new framework. Clear processes around rent reviews, tenancy termination, and variations will be key to ensure a smooth transition to the new rules and reduce the risk of any disputes.
Strengthening referencing and tenant selection
As regaining possession may take a little longer under the new system, comprehensive tenant referencing will be more important than ever. We have total confidence in our tenancy referencing and affordability checks and are working harder than ever to ensure they are thorough and consistently applied. Careful consideration to income sustainability and rental history is now required more than ever.
Clear audit trails and well-documented decision-making will be essential to demonstrate fair treatment while reducing exposure to any disputes.
Prepare for changes to rent arrears and possession
The Act introduces revised possession grounds, including higher thresholds for mandatory action in cases of rent arrears. This will potential lead to longer periods of unpaid rent before they can pursue possession of the property.
Our robust systems alert us quickly to any rent issues as we believe early intervention is so important. Clear communication, a detailed understanding of the eviction process under the new legislation and accurate record keeping when arrears occur are essential. Proactive management will be key to protecting income and maintaining tenancies wherever possible.
We are also talking to various insurance providers regarding rent guarantee products to protect our landlords’ rental income. As court delays may happen rent guarantee insurance can be a valuable policy that ensures the landlord continues to receive the rental payment when a tenant can’t pay.
The introduction of civil penalties and criminal sanctions
Various additional duties will apply to landlords and letting agents and local authorities will be able to issue civil penalties of up to £7,000 for each breach. It also becomes a criminal offence (with unlimited fines as well as local authority penalties of up to £40,000) for landlords, or anyone acting for them, to knowingly use a possession ground that a court would not approve, or if they act recklessly in doing so. This applies where their actions cause the tenant to leave the property within four months, without a court order for possession being granted.
Complaints handling and dispute resolution
With enhanced tenant rights and increased scrutiny, we have already carried out a review of our complaint-handling procedures and ensure staff are trained to manage disputes fairly and consistently. Clear governance and escalation routes, along with comprehensive records, will support compliance and professional standards. As a member of Propertymarks company advantage scheme we are right up to date with the latest industry news and legal developments.
Looking ahead
The Renters’ Rights Act 2025 will be a significant shift for the private rented sector. By reviewing our processes we are fully supporting our landlords with compliance, strengthening protections, so they will be well equipped to navigate the transition and continue delivering compliant safe properties in the PRS.
If anyone has any questions regarding the RRA 2025 then please do not hesitate to contact Lee Bilbrough – lee@purepropertylettings.co.uk