The Renters' Rights Act 2025 came into force on 1 May 2026 and has fundamentally reshaped how a residential tenancy agreement works in England. Assured shorthold tenancies have been abolished, fixed terms can no longer be created, section 21 "no-fault" evictions have ended, and tenants have a new statutory right to request a pet.
This article explains what a written residential tenancy agreement should contain under the new system, which clauses remain essential, and which older terms are no longer effective.
The new tenancy framework
From 1 May 2026, all assured and assured shorthold tenancies in England automatically became assured periodic tenancies (APTs). The key consequences for what a residential tenancy agreement can and cannot say are:
- No fixed terms. It is not possible to grant an assured tenancy with a fixed term or a set end date. Any such clause in a new agreement has no effect; the tenancy runs as a rolling periodic tenancy, usually month to month (or weekly/fortnightly if rent is paid on that cycle).
- No section 21. Landlords cannot serve a section 21 notice on or after 1 May 2026. Possession must be sought on a statutory ground under section 8 of the Housing Act 1988 (as amended).
- Rent review clauses are inoperative. Contractual rent review provisions can no longer be used to increase rent. The only route is the section 13 statutory procedure (see below).
- Right to request a pet. Tenants have a new statutory right to request to keep a pet, which a landlord cannot unreasonably refuse.
These rules are imposed by statute. A clause in a residential tenancy agreement that tries to disapply or contract out of them will be ineffective.
Every tenant still has a legal right to certain written information about the tenancy, and a landlord commits a criminal offence by not providing it. It does not matter whether the agreement is written or oral — the information must be given in writing. Given that this is required anyway, a written residential tenancy agreement remains the sensible way to record the whole contract. There are other good reasons to use a written tenancy agreement as well.
The landlord should provide the tenant with a copy of the signed agreement (preferably one of several originals signed by the landlord and all the tenants) on the first day of the tenancy. The landlord should keep a copy of every residential tenancy agreement safe.
Key terms for every residential tenancy agreement
The tenancy's start date
A residential tenancy agreement should clearly state the date on which the tenancy starts. Many of the most important rules — including the 12-month restrictions on certain possession grounds and the timing of any rent increase — depend on knowing when the tenancy began.
The rent due date
Usually, rent is payable in advance on the same day of the month (or the week) that the tenancy started. Landlords who let several properties often prefer a single rent day across the portfolio for ease of administration; if so, the agreement should state that day.
If the tenancy starts on a different day to the rent due date, it is usual for the tenant to pay an irregular first amount (the regular amount prorated by the number of days until the first regular payment falls due).
Rent
Most landlords ask for rent monthly, which suits tenants who are paid monthly. For some tenants a weekly or fortnightly cycle is more workable. If rent is collected weekly, the landlord must keep a rent book recording payments.
By default, the law implies that rent is paid in arrears. The agreement can specify payment in advance, which helps cash flow if a tenant ever falls behind. The residential tenancy agreement should also state how the rent is to be paid (e.g. by standing order or direct debit into a nominated bank account).
Note that the period for which rent is paid effectively sets the period of the tenancy under the new rules. A tenancy where rent is paid monthly is a monthly periodic tenancy; the agreement cannot impose a 12-month minimum on the tenant.
Terms relating to the property
A residential tenancy agreement should define clearly what is being let, a tenancy of a typical house or flat, the property should be described as fully as possible using house numbers as well as names (and relative location for flats, e.g. "ground floor flat number 4").
If there are outbuildings, separate land or any part of the property not being let (perhaps the landlord wishes to let it separately or retain use himself), the agreement should make clear that they are excluded. If the property has a designated parking space in a communal area, the space should be clearly marked and referenced.
Responsibility for maintenance of the property
Landlords are responsible for structural repairs and maintenance by law and cannot contract out of this. The Renters' Rights Act has also extended the Decent Homes Standard and Awaab's Law to the private rented sector, so landlords face stricter obligations to deal with hazards such as damp and mould within set timeframes.
The agreement should state whether the landlord or the tenant is responsible for non-structural repairs (such as fixing a broken curtain rail) and for redecoration. In practice the landlord often has more incentive to fix problems properly and for the long term, so it can be sensible to take on those minor repairs even where the contract puts them on the tenant.
Tenancy agreements usually oblige the tenant to maintain any garden or external area, although it can be difficult to argue that "wild" flowers in a lawn meaningfully devalued the garden.
A clause allowing the tenant to redecorate should require the landlord's permission, not to be unreasonably refused, or be limited to the existing style and colours, so that decoration does not become unattractive for later occupants.
Agreements normally also forbid damage to the property; it is common to extend this to furniture and contents. Alterations without the landlord's consent — including the changing of locks — are usually prohibited.
Use (including prohibited uses)
Unless restricted in the residential tenancy agreement, a tenant can enjoy quiet occupation and use the property for any lawful purpose. It is sensible to limit use to occupation as a single private residential dwelling and to include clauses forbidding antisocial behaviour, which under the new Act is itself a ground for possession.
If the property was bought subject to conditions of use (many new build flats restrict things such as drying washing on balconies), those restrictions should be passed through to the tenant. Tenants should not be permitted to run a business from the property, as this can take the letting outside residential tenancy law.
Landlords can restrict what the tenant does provided the restrictions are reasonable. "Reasonable" is hard to define, but as a rule of thumb, if the use is likely to damage or devalue the property a restriction will usually be reasonable. The cleanest way to control use is not to ban activities outright but to qualify the restriction with "without the landlord's permission, not to be unreasonably withheld", allowing case-by-case judgment.
A landlord cannot dictate how a tenant lives in the property. The tenant cannot be required to clean to a schedule, prevented from having overnight guests, or told what they can cook. So long as the tenant does not harm the property, the landlord's reasonable expectation is simply that it is returned in the same condition as at the start, allowing for fair wear and tear.
Other money items
The deposit
If a deposit is taken, the amount and the scheme holding it must be recorded in the agreement. All deposits for assured periodic tenancies must be protected in a government authorised tenancy deposit scheme within 30 days, and the prescribed information given to the tenant.
The Tenant Fees Act continues to apply, capping deposits at five weeks' rent (or six weeks' where the annual rent is £50,000 or more).
Payments included in the rent or other than rent
Some landlords prefer to keep utilities in their own name to avoid the administrative burden of transferring them. This is generally not advised: consumption-based bills (electricity, gas, water) give the tenant no incentive to be careful, and the tenant may also need a utility bill in their name as proof of address.
If the landlord does pay the bills, the cost can either be included in the rent (as a fixed amount) or charged as a separate payment that covers no more than the actual bills. Which bills are paid by whom should be set out in the agreement. As a general rule it is simpler to let the tenant pay for all service costs, including council tax.
The Tenant Fees Act also continues to prohibit charging tenants any fees other than those expressly permitted (rent, deposit, holding deposit, default fees in limited circumstances, etc.).
Pets
The Renters' Rights Act 2025 gives every tenant of an assured periodic tenancy the right to request to keep a pet. A landlord cannot unreasonably refuse such a request and must respond in writing, with reasons, within the statutory timeframe. The tenant can challenge an unreasonable refusal in court.
Practical points for the residential tenancy agreement:
- A blanket "no pets" clause is no longer enforceable. Any clause attempting to disapply the right will be ineffective.
- The landlord may require the tenant to take out reasonable pet damage insurance (or to cover the cost of the landlord's own policy where one is available) as a condition of consent. This is an exception to the Tenant Fees Act cap.
- The agreement can sensibly include a clause requiring the tenant to make a written request, and confirming the tenant's obligation to keep the pet under proper control and to make good any damage at the end of the tenancy.
"Reasonable" refusal depends on the property and the animal — examples might include a head lease prohibiting pets in a leasehold flat, or a request to keep livestock in a small flat. Refusal simply because the landlord dislikes pets is unlikely to be reasonable.
Penalty clauses
Many penalty clauses are liable to be found void under the Unfair Terms rules (see our article on unfair terms in letting agreements). They need to be used with care.
A penalty cannot be excessive or unjustly charged. It should compensate the landlord for costs actually incurred, not punish the tenant. It is wise to draw the tenant's attention to any penalty clause before the agreement is signed, often by covering letter.
Interest on late payment of rent
A clause allowing interest on late rent is sensible, but it must not be excessive. Under the Tenant Fees Act, interest cannot exceed 3% above the Bank of England base rate on the day the payment is outstanding, or the reasonable costs incurred by the landlord. Without such a clause, the landlord can only recover interest if court proceedings are issued. The agreement must state the amount on which interest is payable (i.e. rent lawfully due).
Fixed penalties instead of interest
Fixed amounts are simpler to calculate. A low fixed amount will usually be seen as fair, but interest is normally a better mechanism: it tracks the actual cost of late payment and is less likely to be challenged.
Expenses
Expenses (such as the administrative cost of sending a chase letter) are recoverable provided the charge reflects the true cost and is necessarily incurred. Excessive or punitive charges are unfair and unenforceable. Under the Tenant Fees Act a tenant can challenge an expense whatever its value, and the cost of defending the charge will usually exceed the charge itself. Landlords are generally better off absorbing minor costs.
Rent increases under the new statutory process
This is one of the most significant changes under the Renters' Rights Act. Rent review clauses in a residential tenancy agreement no longer take effect after 1 May 2026 — even where they were validly drafted under the old law. Any attempt to use them, or to agree rent increases informally outside the statutory process, is liable to be challenged.
The only effective route for increasing rent in an assured periodic tenancy is now the section 13 procedure under the Housing Act 1988, with the changes made by the 2025 Act:
- One increase per year. Rent can only be increased once in any 12-month period.
- Two months' written notice. The landlord must serve notice on the prescribed form (Form 4A), giving at least two months' notice before the new rent takes effect.
- No higher than the open market rent. The proposed new rent must not exceed what could reasonably be obtained on the open market for similar property.
- Right to challenge. If the tenant thinks the increase is above market rate, they can apply to the First-tier Tribunal (Property Chamber) before the new rent starts. The Tribunal can set a lower figure, but — and this is also new — cannot set a higher one than the landlord proposed.
There is no realistic role for rent review clauses in the agreement itself. At most the agreement can record that any future increase will be by the statutory process, which is informational rather than contractual.
Access
Tenants have the right to quiet occupation. The residential tenancy agreement should state that the landlord or their agent (such as a tradesman) may enter the property where reasonable written notice has been given and the tenant consents, and that this requirement does not apply in genuine emergencies.
The tenant must consent to non-emergency access. If they do not, the landlord cannot enter. However, repeated unreasonable refusal may put the tenant in breach of contract, so it is rarely in the tenant's interest to refuse all access. Landlords should keep at least one set of spare keys safe.
Transfer of the lease (assignment) and subletting
Most agreements contain clauses preventing the tenant from assigning the tenancy or subletting all or part of the property. Allowing either reduces the landlord's control over who lives there.
A blanket prohibition on assignment may be considered "unfair". A practical compromise is to permit the tenant to end the tenancy if they find a suitable replacement and cover the landlord's reasonable costs, with the landlord then granting a new residential tenancy agreement to the replacement. The landlord's approval should not be unreasonably withheld.
Insurance
The agreement will usually specify that the landlord provides buildings insurance, with contents insurance for the tenant's possessions being a matter for the tenant. A landlord cannot require the tenant to insure their own possessions, nor dictate the insurer or level of cover.
If the landlord insures the building, the agreement may list activities that would invalidate the cover, and may make the tenant liable for any consequent increase in premium — though this can be hard to prove in practice. The landlord should give the tenant a copy or summary of the policy so the tenant knows what is and is not permitted.
Tenants' property left after the tenant has vacated
The landlord cannot lawfully dispose of property left behind by the tenant (whether at the end of the tenancy or through abandonment). Doing so risks a claim for damages where the property had value.
Most agreements therefore include terms enabling the landlord to deal with items left behind — typically allowing disposal with the tenant's consent (perhaps for a fee), or sale with the proceeds returned to the tenant, or forwarding at the tenant's cost.
Landlord's address for service
The residential tenancy agreement must include an address at which the landlord (or their agent) can be served with notices. Without it, rent is not lawfully due until the address is provided. This is particularly relevant for landlords who live abroad or who own property in England but live elsewhere in the UK.
The Renters' Rights Act also introduces a new Private Rented Sector Database, which most landlords will need to register on. The agreement can usefully cross-refer to the landlord's database entry.
Guarantor
A guarantee from a third party remains a sensible safeguard where there is any doubt about the tenant's means. Parental guarantees are common. Where the tenant or guarantor is not a homeowner, ask for evidence of financial standing.
A guarantor can either sign the residential tenancy agreement or sign a separate guarantee that is brought into the contract. A guarantor is bound only by the terms in force when they sign, so if those terms later change (most obviously a rent increase under the section 13 process) new documentation will usually be needed.
It is also worth recording a parental address for the tenant even where no guarantee is given — the address provided when the tenancy was signed is, by definition, an old address by the time it might be needed.
Ending the tenancy and possession
How the tenant ends the tenancy
Under the new rules a tenant can end an assured periodic tenancy at any time by giving the landlord written notice. The notice must:
- give at least two months, unless the landlord agrees a shorter period in writing (and all other named tenants also agree)
- be given in writing (letter or email)
- end on a day when rent is due or the day before rent is due
The residential tenancy agreement should reflect these statutory requirements and avoid any clause that purports to impose a longer notice period on the tenant, which would be unenforceable.
How the landlord ends the tenancy
The old section 21 "no-fault" route has been abolished. The landlord must rely on one or more statutory grounds for possession under Schedule 2 to the Housing Act 1988 (as amended by the Renters' Rights Act 2025), serving a section 8 notice and, if the tenant does not leave, applying to court for a possession order.
The grounds fall broadly into:
- Tenant-fault grounds — rent arrears, antisocial behaviour, damage to the property, breach of other terms.
- Landlord-circumstance grounds — the landlord wishes to sell, or the landlord or a close family member wishes to move in. These two grounds cannot be used in the first 12 months of the tenancy, and require four months' notice.
- Special grounds — including ground 4A for full-time students in HMOs (requires four months' notice ending between 1 June and 30 September, and the tenant must have been given written notice at or before the start of the tenancy that the ground may be used).
- Other grounds — including supported housing, employment-related tenancies, and redevelopment.
Some grounds require the landlord to have given the tenant prior written notice at or before the start of the tenancy that the ground may later be relied upon. Where the landlord may wish to rely on such a ground in future, the residential tenancy agreement should either include the relevant notice or attach it as a separate written notice given no later than the commencement of the tenancy.
Notice periods vary by ground. The landlord should always check the current statutory notice period before serving a section 8 notice, as the Act introduced revised periods for several grounds.
There is also a new statutory restriction: a landlord who recovers possession on the "sale" or "moving in" grounds cannot then re-let the property for a defined period (currently 12 months) after the possession date. The agreement does not need to recite this, but landlords should be aware before relying on those grounds.
Inventory (or schedule of condition)
Even in unfurnished properties an inventory is usually prepared — covering carpets, fixed installations such as sinks and baths, windows, doors and the decor. For furnished lets it also covers furniture and soft furnishings such as curtains and lampshades.
The inventory records the state of the property: every item, its condition, and the general standard of cleanliness. It is common also to record gas, electricity and water meter readings and the date and result of any electrical safety tests. The inventory is what prevents disputes at the end of the tenancy about what is reasonable wear and tear and what is damage.
A landlord will usually commission an independent inventory clerk so that the tenant cannot later claim they were pressured into agreeing to the contents. The inventory is best prepared in the tenant's presence, with clear dated photographs (including a ruler for scale on any existing damage). It should be signed and dated by both parties and attached to the residential tenancy agreement.
The agreement should state that an inventory will be prepared, who will prepare it and who will bear the cost. Splitting the cost (at check-in and check-out) is generally seen as fair; a clause making the tenant pay the full cost is likely to be unfair and void.
Further information and useful documents
For the official government summary of how the new Act affects tenancies, see the Renters' Rights Act Information Sheet 2026 on GOV.UK. Landlords with tenancies in place before 1 May 2026 must provide this Information Sheet to tenants by 31 May 2026.
You may also be interested in reading about the various types of legal arrangement for letting property.
If you require a residential tenancy agreement template that reflects the new rules, you can download an assured periodic tenancy (APT) letting contract from our library.