New Tenancy Agreements

The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025, and the bulk of its reforms came into force on 1 May 2026. It is the most significant reform of the private rented sector in England since the Housing Act 1988. For new agreements, the key changes are:

• Fixed terms are gone. Assured shorthold tenancies with a fixed term have been abolished. New tenancies are assured periodic (rolling) tenancies from the outset, with no end date.
• No more Section 21 “no-fault” evictions. To regain possession, a landlord must now use a Section 8 notice and rely on a valid legal ground.
• A written statement of key terms is mandatory. Before a new tenancy is entered into, the landlord (or their agent) must give the tenant a written statement setting out prescribed information. Failure to comply can attract a civil penalty of up to £7,000.
• Rent can rise only once a year. Increases must follow the Section 13 process, with at least two months’ written notice, and can be challenged at a tribunal.
• No rent bidding. Landlords cannot invite or accept offers above the advertised rent.
• Limited rent in advance. A landlord cannot demand rent before the agreement is signed, or require more than one month’s rent up front.
• Pet requests must be considered. Tenants can request to keep a pet, and consent cannot be unreasonably refused.
• No discrimination. Blanket refusals of tenants who receive benefits or who have children are unlawful.

Further measures – including a national landlord database, a Private Rented Sector Ombudsman and the Decent Homes Standard – are being introduced on a phased basis, so the rules will continue to develop through 2026 and beyond.

A note on Wales: the Renters’ Rights Act 2025 applies to England. Lettings in Wales are governed by the separate Renting Homes (Wales) Act 2016 framework. Setfords advises landlords across England and Wales, contact us to discuss your property’s jurisdiction.

Under the 2026 regulations, a new tenancy agreement (or an accompanying written statement of terms) must set out prescribed information before the tenant commits. In plain terms, that includes:

• The names of the landlord and tenant (and any managing agent)
• An address in England and Wales where notices can be served on the landlord
• The address of the property being let
• The start date of the tenancy and when the tenant is entitled to move in
• The rent, when and how it is payable, and any bills the tenant is responsible for
• How and when rent can be increased (the once-a-year Section 13 process)
• Deposit protection information, where a deposit is taken
• The notice the landlord must give to end the tenancy, and the tenant’s security of tenure
• The landlord’s obligation to keep the property fit for human habitation
• The tenant’s right to request a pet
• Confirmation of compliance with electrical safety standards
• Statements about the tenant’s rights and routes to redress under the new rules

Getting the wording right matters: terms that conflict with the Act are unenforceable, and missing information can expose a landlord to penalties. This is where tailored legal drafting, rather than a generic online template, protects you.

An out-of-date or non-compliant agreement can leave a landlord exposed to:

• Civil penalties of up to £7,000 for failing to provide the required written statement
• Unenforceable clauses, including old fixed-term and rent-review wording that no longer has legal effect
• Possession problems – relying on an abolished Section 21 route can derail an eviction
• Disputes and tribunal claims over rent increases, deposits or repairs

A correctly drafted agreement reduces these risks from the start.

New tenancies in England must now be assured periodic (rolling) tenancies rather than fixed-term ASTs. Landlords must provide a written statement of key terms before the tenancy begins, rent rises are limited to once a year via Section 13, and Section 21 “no-fault” evictions have been abolished. 

The rules apply to new lets a beginning on, or after, 1st May 2026. 

If you are starting a new tenancy on or after 1 May 2026, yes – it must comply with the new rules, and a pre-2026 AST template will not. For most existing written tenancies you do not need to reissue the agreement, but you must give the tenant the Government’s official Information Sheet.

No. Fixed-term assured shorthold tenancies have been abolished for most private lets. New tenancies are periodic and continue on a rolling basis until properly ended.

It must set out prescribed information, including the parties, the property, the rent and how it can be increased, deposit protection, the notice required to end the tenancy, the landlord’s repairing obligations, and the tenant’s right to request a pet. This can sit within the agreement or in a separate written statement.

No. Section 21 “no-fault” evictions have been abolished. A landlord must now use a Section 8 notice and rely on a valid legal ground for possession.

A landlord cannot require rent before the agreement is signed, and cannot demand more than one month’s rent up front.

Most existing written tenancies do not need to be re-papered, but the new rules apply to them automatically and landlords had to provide tenants with the Government’s Information Sheet. Wholly verbal tenancies have different requirements. We can review your position.

Deposits must be protected in an approved scheme, and prescribed information served in line with deposit protection requirements 2026. Breach can affect your ability to recover possession and lead to penalties.

No. The Renters’ Rights Act 2025 applies to England. Welsh lettings are governed by the Renting Homes (Wales) Act 2016. We advise landlords in both jurisdictions.