The Renters’ Rights Act 2025 is now law and will be introduced in three phases. The first phase will happen on 1st May, and will introduce extensive reforms to the private rented sector. Letting agents play an important role in helping landlords understand and adapt to these changes, while ensuring their agency’s practices are adaptable to new legislation and remain compliant.
With the implementation of the Renters’ Rights Act 2025 approaching, we look at what agencies need to do now to be prepared.
Review tenancy structures and documentation
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.
Agents should review 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 important to ensure a smooth transition to the new rules and reduce the risk of disputes.
Strengthen referencing and tenant selection
As regaining possession may take longer under the new system, comprehensive tenant referencing will be more important than ever. Agents should ensure affordability checks are thorough and consistently applied, with careful consideration given to income sustainability and rental history.
Clear audit trails and well-documented decision-making will help demonstrate fair treatment while reducing exposure to arrears and 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 leave landlords exposed to longer periods of unpaid rent before they can pursue possession of the property.
Agents should ensure landlords understand the importance of early intervention, clear communication, the eviction process under the new legislation, and accurate record keeping when arrears occur. Proactive management will be key to protecting income and maintaining tenancies wherever possible.
Agencies may also consider using rent guarantee insurance to protect landlords’ rental income and the agency’s management fees. As court delays are predicted to extend the lead time for evicting a tenant in arrears, rent guarantee insurance can be a valuable policy that ensures you continue to receive the rental payment when a tenant can’t, or won’t, pay.
The introduction of civil penalties and criminal sanctions
The Act introduces various additional duties on landlords and letting agents and the local authority can 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 a landlord or letting agent to serve a section 8 notice if the person knows or is reckless as to whether they can obtain possession on that ground. Agents should have a rigorous process for checking and documenting the reasons and evidence for any ground relied on and seek legal advice before serving the notice.
Complaints handling and dispute resolution
With enhanced tenant rights and increased scrutiny, agents should review 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.
Managing risk through insurance
Changes in legislation may increase financial and legal risks for landlords. Rent guarantee insurance can provide protection against loss of rental income and management fees where tenants fall into arrears, particularly during extended recovery periods.
Legal expenses insurance can also support letting agents and landlords by covering the cost of legal advice and representation when pursuing possession or resolving tenancy disputes under the new rules. Policies also include access to a 24/7 legal advice helpline.
Looking ahead
The Renters’ Rights Act 2025 will be a significant shift for the private rented sector. Letting agents who act now, by reviewing processes, supporting landlords with compliance, and strengthening protections, will be well equipped to navigate the transition and continue delivering compliant, professional services.
To find out more about the insurance protection to assist you and your landlords, speak to the Alan Boswell Group team on 01603 649727.
