The Renters' Rights Act 2024 received Royal Assent in January 2025 and is expected to come into force in May 2026. For letting agents across England, this represents the most significant legislative change in a generation — and the compliance implications are substantial.
What the Renters' Rights Act Means for Letting Agents
The Act fundamentally changes the private rented sector in several key ways. Understanding each change is not optional — it is a legal requirement.
The Abolition of Section 21
The most significant change is the abolition of Section 21 of the Housing Act 1988. From the date the Act comes into force, letting agents will no longer be able to serve Section 21 notices. All existing Section 21 notices that have not been acted upon will become void.
This means that every eviction must now be based on specific grounds under Section 8. Letting agents must familiarise themselves with the new and revised Section 8 grounds, including the new mandatory grounds for landlords who wish to sell or move into their property.
New Tenancy Structure
Fixed-term assured shorthold tenancies are abolished. All tenancies — including existing ones — will convert to periodic tenancies from day one of the Act coming into force. This has significant implications for how letting agents manage tenancy renewals, rent reviews, and end-of-tenancy procedures.
Pet Policy Requirements
Tenants will have the right to request permission to keep a pet. Letting agents must have a clear, documented procedure for handling these requests. Landlords must respond within 28 days and can only refuse on reasonable grounds. Blanket 'no pets' clauses in tenancy agreements will no longer be enforceable.
Rent Increase Procedures
The Act introduces a new, more restrictive procedure for rent increases. Landlords can only increase rent once per year and must use a Section 13 notice. Tenants have the right to challenge any increase at a First-tier Tribunal. Letting agents must update their rent review procedures accordingly.
Compliance Deadlines
The critical date is the day the Act comes into force — expected to be 1 May 2026. From that date, all existing tenancies are immediately affected. There is no grace period for existing tenancies.
Letting agents should begin their compliance review now. The 47-point compliance checklist from RentersComply covers every requirement under the Act and is available free to download.
Penalties for Non-Compliance
The financial penalties for non-compliance are severe. Fines of up to £40,000 per breach are possible for the most serious violations. Rent repayment orders, banning orders, and criminal prosecution are also possible outcomes.
For letting agents managing large portfolios, the cumulative risk of non-compliance is enormous. A single missed compliance requirement across 100 properties could result in fines totalling millions of pounds.
How RentersComply Helps
RentersComply automates compliance monitoring for all 47 requirements under the Renters' Rights Act. The platform scans your entire portfolio 24/7, generates compliant documents instantly, and maintains a court-ready audit trail for every property.
Start your free 14-day trial today and get compliant before the deadline.