Tenant relations, screening and financial management
From 1 May 2026 the Renters' Rights Act 2025 changed how landlords in England select tenants, set and raise rent, and respond to pets. Landlords can no longer refuse tenants because they claim benefits or have children, must advertise a fixed rent and cannot accept higher bids, can ask for no more than one month's rent in advance, can raise rent only once a year through a statutory process, and cannot unreasonably refuse a tenant's request to keep a pet. This page explains each of these tenant-relations and financial rules and how to apply them in practice.
Refusing tenants on benefits or with children is now unlawful
A landlord or letting agent cannot impose a blanket ban on tenants because they receive benefits, such as Universal Credit or Housing Benefit, or because they have children. Advertising language such as "No DSS", "No benefit claimants", "No children" or "Professionals only" is unlawful. Importantly, any clause in a landlord's mortgage, superior lease or insurance policy that tries to prohibit letting to benefit claimants or families is ineffective and cannot be used as a reason to refuse.
Screening must focus on affordability, not assumptions
A landlord still chooses the most suitable tenant, but the decision must rest on objective criteria rather than assumptions about a protected group. Lawful screening looks at affordability, treating verifiable benefit income as valid income, at genuine references, at credit checks applied fairly to every applicant, and at the mandatory Right to Rent check. A guarantor can be requested where a tenant's finances warrant it, but not as a blanket requirement applied only to benefit claimants. The only lawful reason to refuse a family on size grounds is statutory overcrowding for that specific property.
Rent can be increased only once a year, through Section 13
Rent review clauses in tenancy agreements no longer take effect. The only route to a rent increase is the statutory Section 13 procedure, and it can be used only once a year, with at least two months' notice, and not within the first twelve months of the tenancy. The proposed rent must be in line with the local market, because the rules are designed to stop rent increases being used as a "backdoor eviction". Keeping recent evidence of comparable local rents is the practical way to support any proposed increase.
A tenant can challenge an increase at the First-tier Tribunal
A tenant who believes a proposed rent is above market rate can apply to the First-tier Tribunal before the new rent is due to start. Two features of the new process matter for landlords. The tribunal cannot set the rent higher than the landlord proposed, which removes the risk that once deterred tenants from challenging. And the new rent takes effect from the date of the tribunal's decision, not the date on the notice, so an increase cannot be backdated and a challenge can delay when the higher rent begins.
Tracking what is due, what has arrived and when the last increase took effect keeps a landlord on the right side of the once-a-year rule. August's rent tracking records it automatically.
Rental bidding is banned
A property must be advertised at a single, fixed rent, and a landlord or agent cannot invite, encourage or accept an offer above that figure, a practice known as rental bidding, even if the tenant offers it unprompted. Ambiguous wording such as "offers over" or "rent negotiable" is not allowed, and the advertised rent cannot be changed mid-marketing to accept a higher bid already received. Setting the advertised rent at the right market level from the outset is now the way to reflect demand.
Rent in advance is capped at one month
A landlord can require a maximum of one month's rent in advance for the first rent period, in addition to the tenancy deposit. The deposit cap is unchanged: five weeks' rent where the annual rent is under £50,000, or six weeks' where it is £50,000 or more. A holding deposit is capped at one week. All new tenancies must have rent periods of no more than one calendar month, so clauses requiring quarterly or six-monthly payment are unenforceable. A tenant can volunteer to pay more in advance once the agreement is signed, but a landlord cannot require it.
A landlord cannot unreasonably refuse a pet
Every tenant has a statutory right to request to keep a pet, and a landlord must respond to a written request within 28 days. Refusal is allowed only for a reasonable, evidenced reason, such as a superior lease that prohibits pets, a property that is genuinely unsuitable for the specific animal, or a documented health and safety conflict in shared accommodation. A blanket "no pets" clause is unenforceable, and general concerns about possible damage are not a reasonable ground. If a landlord does not respond within the time limit, consent is treated as given.
A landlord cannot require pet insurance or a pet deposit
The provision that would have let landlords require tenants to hold pet damage insurance was removed before the Act became law and is not part of it. A landlord cannot require a tenant to take out pet insurance, cannot reclaim the cost of the landlord's own insurance from the tenant, and cannot charge a pet fee, a higher rent for the pet, or an additional pet deposit. The deposit stays capped at five weeks. The practical protection against pet damage is a thorough, dated inventory at check-in and check-out, which supports a claim on the standard deposit, with a court claim available if the damage exceeds it. A landlord can take out pet damage cover at their own expense. The government has said it may revisit additional pet deposits through regulation, so this is an area to keep under review.
Managing arrears is now about early, documented action
Because the eviction timeline is longer under the new rules, the value of acting early has risen. The mandatory possession ground for serious arrears now requires three months' arrears and a four-week notice, which is covered in Part 1; the day-to-day management sits here. The effective workflow is to make contact the moment rent is late, to distinguish a missed payment from genuine hardship, to signpost support such as Universal Credit and debt advice, and to agree a written repayment plan, recording every step. Where arrears stay below the mandatory threshold, the discretionary grounds for some arrears and for persistent late payment remain available. Robust referencing at the outset and, where appropriate, a guarantor or rent guarantee cover are the main ways to limit the financial exposure.
Pet requests, references and served notices all need to be captured in writing and kept. August's document management keeps the paper trail in one place.
For the penalties that apply when these rules are broken, see Part 4 on implementation and enforcement. This page is part of August's full guide to the Renters' Rights Act.
Managing tenants and rent under the new rules is simpler in one place. Start for free and track rent, store documents and stay compliant across your portfolio.
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01
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