Part 1
1.1
The end of Section 21 and ASTs and understanding the new periodic tenancy
This topic explains the fundamental shift in tenancy law for private landlords in England, moving from the familiar Assured Shorthold Tenancy (AST) model to the new system of Assured Periodic Tenancies (APTs) under the Renters' Rights Act 2025.
1.1.1
The abolition of fixed-term tenancies and ASTs
The Renters' Rights Act abolishes Assured Shorthold Tenancies (ASTs) and the concept of a fixed-term contract (e.g. 6 or 12 months) for most private residential tenancies.
Abolition of ASTs - The existing AST regime is being replaced by a single, simplified framework of Assured Periodic Tenancies (APTs).
End of fixed terms - Landlords will no longer be able to require tenants to commit to a fixed duration. Any new tenancy granted after the Act comes into force will take effect as a periodic tenancy, regardless of what the contract is labelled.
The new standard - All tenancies will be periodic from the start, operating on a rolling basis until either the landlord or the tenant legally ends the agreement. This is usually month to month, aligned with rent payments
1.1.2
Key differences for landlords - AST versus APT
The differences are fundamental, moving from a tenancy with a guaranteed initial period to one that offers tenants much greater flexibility and security from day one.
Feature
Assured Shorthold Tenancy (AST)
Assured Periodic Tenancy (APT)
Contract type
Fixed-term (e.g. 12 months), then often rolls into a statutory/ contractual periodic tenancy.
Periodic from day one. Rolling with no fixed end date.
Tenant notice
Tenant cannot end the tenancy during the fixed term unless a break clause exists.
Tenant can end the tenancy at any time by giving a minimum of two months' notice.
Landlord possession
Possible at the end of the fixed term or during a periodic phase via the Section 21 'no-fault' process.
Landlord can only gain possession by using a statutory Ground for Possession (revised Section 8) and must provide evidence in court. Section 21 is abolished.
Tenancy stability
Certainty for the landlord for the initial fixed term.
Less certainty for the landlord, as the tenant can serve notice to leave at any time with 2 months' notice.
1.1.3
Transitioning existing tenancies
The differences are fundamental, moving from a tenancy with a guaranteed initial period to one that offers tenants much greater flexibility and security from day one.
New tenancies - The new APT regime applies to all new tenancies granted after the Act's "commencement date."
Existing ASTs - Fixed-term ASTs that are already in place will continue until the fixed term ends. Once that term expires, or on a specific "implementation date" (to be confirmed by the government), the tenancy will automatically convert to an Assured Periodic Tenancy.
Phased implementation - The transition will be phased, likely with a significant gap between the commencement date for new tenancies and the implementation date for existing ones. Landlords must monitor official guidance for these dates.
1.1.4
Impact on landlord portfolios
The shift has two major implications for how landlords manage their property portfolio:
Reduced income certainty - Without a fixed term, a tenant can give two months' notice from the start of the tenancy. This increases the risk of void periods and makes long-term income forecasting more challenging.
Increased focus on tenant vetting - Given the loss of the Section 21 'no-fault' route and the importance of only being able to evict on statutory grounds, thorough tenant referencing and vetting becomes even more crucial to mitigate the risk of tenant default or anti-social behaviour.
1.2
New grounds for possession under Section 8
The most impactful change of the Renters' Rights Act for landlords is the abolition of the Section 21 'no-fault' eviction process. This means a landlord will no longer be able to end a tenancy simply by giving two months' notice without stating a legal reason. All future evictions must be based on a legally valid reason. These are called a ‘Ground for Possession’ under a revised Section 8 procedure.
1.2.1
The end of 'no-fault' evictions
The Renters' Rights Act abolishes Assured Shorthold Tenancies (ASTs) and the concept of a fixed-term contract (e.g. 6 or 12 months) for most private residential tenancies.
Abolition of Section 21 - The ability to use a Section 21 notice to regain possession at the end of a fixed term or during a periodic tenancy without providing a statutory reason is removed.
The new standard - Landlords must now always rely on a Section 8 Ground for Possession to begin court proceedings to evict a tenant.
Court process - This means every eviction that is challenged will require a court hearing where the landlord must present evidence to prove the statutory ‘Ground’ has been met. This is expected to increase the time and cost associated with obtaining possession.
1.2.2
New mandatory grounds for landlord circumstances
The government has strengthened and introduced new mandatory grounds under Section 8 to ensure landlords can still regain their property when they have legitimate reasons that are not the tenant's fault. A mandatory ground means that if the landlord proves the ground is met, the court must grant possession.
New or revised mandatory ground
Purpose
Key landlord restrictions
Ground 1A - Selling the property (new)
The landlord intends to sell the property.
The property cannot be re-let for a specified period after the tenant leaves. This is likely to be 12 months.
Ground 1 - Moving in (revised)
The landlord or a close family member intends to move into the property as their principal home.
Requires the landlord or family member to occupy the property for a minimum of 12 months.
Redevelopment (Ground 6)
The landlord intends to substantially redevelop the property.
Must prove the work cannot be reasonably carried out without vacant possession.
1.2.3
Key changes to 'tenant fault' mandatory grounds
Existing mandatory grounds relating to tenant conduct have been updated to make them more reliable, though the process still requires court action.
Serious rent arrears (Ground 8 revised) - The mandatory ground is met if the tenant is in arrears of at least two months' rent (if paid monthly) at both the time the notice is served and at the court hearing.
New mandatory ground for persistent arrears - A new ground is introduced for tenants who are repeatedly in serious rent arrears (e.g. at least two months in arrears on three separate occasions over a three-year period), even if they reduce the arrears before the hearing.
Anti-social behaviour (Ground 7A revised) - This ground remains mandatory for severe anti-social or criminal behaviour, allowing landlords to take possession action quickly.
1.2.4
Notice periods and protections
The Act introduces new requirements regarding notice periods to give tenants more time, especially for 'no-fault' grounds.
12 month protection period - Landlords cannot use the Sale (Ground 1A) or Moving In (Ground 1) mandatory grounds within the first 12 months of the new Assured Periodic Tenancy.
Longer notice periods - For the 'no-fault' mandatory grounds (Sale, Moving In, Redevelopment), the landlord must give the tenant a minimum of four months' notice. For tenant-fault grounds like serious arrears or breach of contract, the notice periods are typically shorter (e.g. two to four weeks).
1.3
Navigating the new rent increase rules and tribunal challenge
The Renters' Rights Act 2025 introduces significant restrictions on how and when a landlord can raise rent, empowering tenants to challenge increases they deem unfair through the First-tier Tribunal (FTT).
1.3.1
The mechanism for rent increases
Under the new Assured Periodic Tenancy structure, the ability to increase rent via rent review clauses in contracts is removed. Only one legal route remains:
The Section 13 Notice - Landlords must use the statutory Form 4 which covers Landlord's notice proposing a new rent under an Assured Periodic Tenancy. This is often referred to as a Section 13 Notice.
Frequency limit - Rent can only be increased once per year.
Notice Period - The landlord must give the tenant a minimum of two months' notice of the proposed increase.
The law aims to prevent rent increases from being used as a "backdoor eviction." Therefore, the proposed new rent must always be in line with the current local market rate.
1.3.2
The tenant's right to challenge (First-tier Tribunal)
The Act provides tenants with a clearer, lower-risk mechanism to challenge a proposed rent increase if they believe it is above the market rate.
Process stage
Details
Key change for tenants
The appeal
The tenant must apply to the First-tier Tribunal (FTT) before the proposed new rent date specified in the Section 13 Notice.
The property cannot be re-let for a specified period after the tenant leaves. This is likely to be 12 months.
FTT decision limit
The Tribunal's role is to determine the market rent for the property.
The FTT cannot set a rent higher than the amount the landlord initially proposed in the Section 13 notice. This removes the major risk tenants currently face when challenging a rent rise.
New rent start date
The new rent set by the FTT (whether higher, lower, or the same as the landlord's proposal) will take effect from the date of the Tribunal's determination, not the original date on the Section 13 notice.
The landlord cannot backdate the increase, which often results in a delay in receiving the new rent.
1.3.3
Landlord guidance for proving the market rate
Due to the enhanced tenant protection and the elimination of backdating, it is essential for landlords to proactively gather and retain robust evidence to support any increase, reducing the likelihood of a successful challenge.
Step
Action
Purpose
Gather comparable evidence
Collect details of 3-5 genuinely comparable properties advertised recently in the local area within the last 3-6 months.
Comparables should match the property type (flat/house), number of bedrooms, and condition/amenities as closely as possible.
Verify condition
Take into account the condition and repair of your property. If the property is in a worse state of repair than the comparables, the FTT is likely to set a lower rent.
Ensure all mandatory property standards are met before serving notice. Including the Decent Homes Standard.
Pre-empt the challenge
Where possible, include or offer to provide your comparable evidence to the tenant before they submit a challenge to the Tribunal.
Transparency can help you negotiate an agreement with the tenant, avoiding the FTT process entirely and securing the increase sooner.
1.2.4
Notice periods and protections
The Act introduces new requirements regarding notice periods to give tenants more time, especially for 'no-fault' grounds.
12 month protection period - Landlords cannot use the Sale (Ground 1A) or Moving In (Ground 1) mandatory grounds within the first 12 months of the new Assured Periodic Tenancy.
Longer notice periods - For the 'no-fault' mandatory grounds (Sale, Moving In, Redevelopment), the landlord must give the tenant a minimum of four months' notice. For tenant-fault grounds like serious arrears or breach of contract, the notice periods are typically shorter (e.g. two to four weeks).
