Dec 25
The Renters’ Rights Act 2025 seeks to introduce significant enhanced protections for tenants across England. Whilst the Act has now been passed it is not expected to come into force until 1 May 2026.
Whilst the impact on English landlords will of course be significant, the Act also seeks to introduce stringent new regulations which will have a significant impact on letting agents, with the introduction of new duties and responsibilities, and hefty financial penalties or even criminal charges if those duties are not complied with.
The Act has already made headlines regarding its abolishment of fixed term tenancies and no fault eviction notices, however when reading through the fine print it is clear that the potential burden on landlords and letting agents extends far further than this.
Several sections of the Act seek to impose additional duties and restrictions on landlords, but also on any authorised agents acting on their behalf. The most significant of these being a duty to give a written statement of the terms of the tenancy as well as any other information prescribed by the secretary of state (which in future could include for example the How-to-Rent Guide, EPC, or gas safety certificate).
There are also additional restrictions on what landlords and their agents must not do, for example they must not
Any failure to abide by the new duties, or failure to adhere to the new restrictions can carry potentially hefty penalties as discussed further below.
In addition to the duties and restrictions which have been introduced whilst a tenant is in situ, there are now also additional restrictions being introduced even after a tenant has vacated a property.
The majority of these restrictions come into place where a notice is served and the landlord seeks to rely on either Ground 1 (where the landlord or their close family member wishes to move in to the property) or Ground 1A (where the landlord wishes to sell the property).
If these grounds are relied upon and possession is obtained, either through the tenant voluntarily leaving or through obtaining a possession order, there are additional restrictions placed on landlords and their agents for a period of 12 months. These restrictions include but are not limited to
The aim of these restrictions is to prevent landlords and their agents from circumventing the removal of section 21 notices by using these grounds simply to remove tenants only to re-let the property immediately thereafter.
The practical impact of this however their agents need to be highly cautious of their conduct following a tenant leaving to ensure that they remain fully compliant with the new restrictions.
Whilst the new duties and restrictions are set to be extensive and will likely be quite complex and difficult to get to grips with, failing to adhere to them will bring very significant penalties.
If a letting agent were to be found in breach of the new duties and restrictions, the company, and potentially its individual directors, could be found guilty of a criminal offence which carries an unlimited fine depending on the breach. This represents a significant shift in the balancing between a letting agent’s and a landlord’s liabilities.
As an alternative to criminal prosecution the Local Authority will also have the power to impose civil penalties of up to £40,000 on the letting agent and potentially its individual directors.
Whilst not all of the duties carry a potential criminal conviction, several of them do and the ones that do not still carry civil penalties of up to £7,000 per breach.
The above is only a snapshot of the new duties the Act proposes to introduce, there are also significant further restrictions and duties which are set to be introduced regarding marketing a property, accepting rent in advance of a tenancy starting, handling requests for a pet at the property, and discrimination against tenants who are in receipt of housing benefit and those who have children.
It is clear that there will be significant changes for letting agents with potentially disastrous consequences if the changes are not adhered to. The impact on letting agents will be incredibly significant and they should be highly conscious of the Act coming into force and what this will mean for their business as well as them personally.
The Dispute Resolution team at Raworths is ranked in Chambers UK and Legal 500, the leading independent guides to the legal profession.
Contact Sophia Bavin at Raworths, based in Harrogate, North Yorkshire to discuss her article at sophia.bavin@raworths.co.uk or call 01423 566 666
Published on 2 December 2025
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
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