Renters' Rights Act 2025 for letting agents, the operator brief

The Renters' Rights Act 2025 (c. 26) received Royal Assent on 27 October 2025. The first phase of reforms is in force from 1 May 2026 across England. Letting agents have until 31 May 2026 to serve the prescribed Information Sheet on every tenant and guarantor whose existing assured shorthold tenancy converts to the new periodic regime. The Information Sheet itself is published by the Ministry of Housing, Communities and Local Government (assets.publishing.service.gov.uk). Civil penalties for non-service start at GBP 7,000 and rise to GBP 40,000 for serious or repeated breaches. Enforcement sits with local authority trading standards. The Act also abolishes Section 21 no-fault evictions, removes fixed-term assured tenancies from the new tenancy regime, and introduces new rules on rent bidding, benefit claimants, and pets. This brief sets out what changes, what letting agents must action now, and what penalties apply.

What changes for the operator

For a letting agency or property management firm operating in England with a team of 80 to 250 staff, the 1 May 2026 commencement is not a soft deadline. Every tenancy file in the portfolio needs an audit. Every customer-facing staff member needs to know the new rules well enough to apply them under pressure. The Information Sheet is the most immediate obligation, but the wider reforms (periodic-only tenancies, advertised-rent discipline, the bidding ban, the children and benefit-claimant rules, the pets regime, the ombudsman and the database) all need internal process, documentation, and staff training inside the same 30-day window. The cost of getting this wrong is not just the GBP 7,000 to GBP 40,000 fine. It is the operational and reputational drag of a trading-standards investigation in your first quarter under the new Act.

Seven obligations every letting agent must action

1. Serve the Information Sheet by 31 May 2026

The Information Sheet must reach every tenant and guarantor on every existing assured shorthold tenancy that converts to the new periodic regime from 1 May 2026. The duty sits under the Renters' Rights Act Information Sheet 2026 published by MHCLG (assets.publishing.service.gov.uk). Service must be evidenced. Without evidence of service, both the landlord and the agent face civil penalties.

2. Apply the periodic-tenancy regime from day one

All assured tenancies under the new regime are periodic. Fixed-term assured shorthold tenancies cannot be issued for new tenancies from 1 May 2026. Existing fixed-term tenancies convert to the new periodic regime on the commencement date. Tenancy templates, fee schedules, and renewal processes need rebuilding.

3. Stop above-advertised-rent acceptance

Agents must advertise rent at a defined figure and cannot accept offers above that figure. Bidding wars on lettings are out. This changes how viewings are managed, how multiple-offer scenarios are handled, and how staff are coached to respond to tenant queries.

4. Remove blanket bans on benefit claimants and families with children

The Act prohibits blanket refusals to rent to tenants who receive benefits or who have children. Marketing copy, application screening criteria, and landlord briefings all need a sweep. Phrases such as 'no DSS', 'no benefits', 'no children', and equivalents must be removed from every active listing.

5. Apply the new pet rules

Tenants have a right to request to keep a pet. Landlords cannot unreasonably refuse. Landlords may require pet insurance as a condition of permission. Tenancy agreements, request-handling procedures, and decision documentation all need updating. Document the reasons for any refusal in writing. Unwritten refusals are difficult to defend.

6. Prepare for the Private Rented Sector Landlord Ombudsman and the PRS Database

Both are statutory requirements under the Act and apply to all private landlords. Membership and registration timelines will be set by secondary legislation. Agents need to brief landlord clients now and build the registration step into onboarding and renewals.

7. Train every customer-facing staff member

The Act creates new offences and new powers of enforcement. Customer-facing staff (lettings negotiators, property managers, tenancy administrators, viewings staff) all need formal training in the new regime. Documented training is a compliance defence in trading-standards investigations.

Manager checklist: nine actions to sequence before 1 May 2026

1.       Audit the portfolio by 15 May 2026. Identify every assured shorthold tenancy in management and confirm conversion status. Retain a written audit log per managed property.

2.       Serve the Information Sheet by 31 May 2026. Send the prescribed Information Sheet to every tenant and every guarantor on each converting tenancy. Use a method that creates evidence of service: signed acknowledgement, email read receipt, recorded delivery, or in-person service witnessed and logged.

3.       Update tenancy templates by 1 May 2026. Replace fixed-term assured shorthold templates with periodic-only templates. Remove rent-bidding clauses. Insert the new pet-request clause. Confirm all references to Section 21 are removed.

4.       Update marketing and application copy by 1 May 2026. Strip 'no DSS', 'no benefits', 'no children' language and equivalents. Audit landlord-supplied marketing copy on every active listing.

5.       Update advertised-rent practice by 1 May 2026. Define the advertised figure on every listing. Brief staff that offers above the advertised figure cannot be accepted. Document the decision rule.

6.       Brief landlord clients by 15 May 2026. Issue a one-page brief to every landlord client covering the seven obligations and what the agent will do versus what the landlord must action.

7.       Train every customer-facing staff member by 1 May 2026. Use a structured training programme that issues a certificate per staff member. Retain training records as a compliance defence.

8.       Set up ombudsman and database tracking from 1 May 2026. Add fields to the CRM or portfolio-management system for ombudsman membership and database registration status per managed property. Update monthly.

9.       Schedule a 90-day post-go-live review for 1 August 2026. Audit Information Sheet service, listing-copy compliance, tenancy-template usage, and rent-bidding incidents. Log findings, fix gaps, repeat quarterly.

Penalties and enforcement

Civil penalties under the Renters' Rights Act 2025 sit in a range from GBP 7,000 to GBP 40,000 depending on the nature and severity of the breach. Enforcement powers sit with local authority trading standards officers. Fines apply to landlords and to agents, and in some cases both parties can be penalised for the same breach.

The Act also creates new offences for the most serious failures, including illegal eviction in defiance of the abolished Section 21 process, falsification of evidence of service, and failure to register on the PRS Database once that requirement commences.

No reported enforcement actions yet at the date of this review. Local authority trading standards have signalled, through their consultation responses, that the first wave of enforcement will focus on Information Sheet service, marketing-copy compliance, and rent-bidding incidents.

Frequently asked questions

Do I need to serve the Information Sheet on guarantors as well as tenants?

Yes. The Information Sheet 2026 issued by MHCLG applies to both tenants and guarantors on any existing assured shorthold tenancy converting to the new periodic regime. Serve both, evidence both.

What counts as evidence of service?

The Act does not prescribe a single method, but the practical standard expected of an agent is one of: a signed acknowledgement from the recipient, a recorded delivery receipt, a tracked email with delivery and read confirmation, or in-person service witnessed and logged. Retain the evidence for the duration of the tenancy plus six years.

Can I still take a deposit and reference fees?

Tenancy deposits are unchanged. Reference fees remain capped under the Tenant Fees Act 2019. The new Act adds restrictions on rent in advance and tightens the rules on what a landlord or agent can charge before a tenancy is signed. Review charging schedules against both Acts.

What happens if a tenant wants to keep a pet and the landlord refuses?

The landlord can only refuse if the refusal is reasonable. The tenant can challenge an unreasonable refusal. Landlords can require pet insurance as a condition of permission. Document the decision and the reasons in writing. Unwritten refusals are difficult to defend.

How does the rent-bidding ban work in practice?

The advertised rent is the maximum that can be accepted. If multiple applicants are willing to pay the advertised rent, the agent selects on other lawful criteria (referencing, affordability, fit) but cannot ask, accept, or encourage offers above the advertised figure. Document the selection logic.

When does Section 21 stop being available?

From 1 May 2026 on the new tenancy regime. Any Section 21 notice served correctly before that date and within its validity window can still be relied on, subject to the transitional provisions in the Act. After 1 May 2026, possession routes are the reformed Schedule 2 grounds set out in the Act.

How Auren Institute can help

Auren Institute trains letting agents and property managers on the Renters' Rights Act 2025. Foundation, Intermediate, and Advanced ladder. UK variants for England (and where applicable, Wales differences). Every customer-facing staff member can be trained in two hours at Foundation level, with deeper modules for branch managers and compliance leads. Training certificates are issued per learner as a compliance defence. The training is updated within 30 days of any phase commencement, regulator action, or statutory instrument change under the Act.

Internal link to the Tier 2 flagship: /courses/renters-rights-act-2025-training

Take the free course: https://www.aureninstitute.com/course/pay-transparency-in-the-eu-a-practical-guide-for-hr-leaders

Author and version

Stefan Gauci Scicluna. Founder of Auren Institute. DBA candidate at Signum Magnum College. Lecturer at IDEA Academy and Signum Magnum College.

Published: 2026-05-28

Last reviewed: 2026-05-28

Updated within 30 days of legislative change.

Compliance, Done Right.

Appendix A. Primary sources cited

·         legislation.gov.uk/ukpga/2025/26/contents (Renters' Rights Act 2025 full text)

·         assets.publishing.service.gov.uk (MHCLG Renters' Rights Act Information Sheet 2026)

·         gov.uk (MHCLG housing portal, secondary commencement orders, statutory instruments)

·         propertymark.co.uk (Propertymark Renters' Rights Act 2025 Toolkit, cross-reference only)

·         nrla.org.uk (National Residential Landlords Association guidance, cross-reference only)