Be legal - Stay legal

Following the government announcement on 13 November 2025 on the Renters' Rights Act 2025 you now have just months to prepare before Phase 1 of the Act is implemented from 1 May 2026. Failure to comply with the new legislation opens up landlords for fines of up to £30,000 and even imprisonment.

Don't wait until it's too late to protect yourself. Get in touch with Masons Lettings & Management team today or call 01507 350500 Option 2 to find out how we can take on the compliance for you.

If you're managing your own rental property, you're personally responsible for following over 170 pieces of property law. Get just one thing wrong and you could face massive penalties:

Gas Safety Certificate

Energy Performance Certificate

Your property must have a valid EPC from an accredited assessor. The minimum is Band E (unless you have an exemption certificate). Give a copy to the tenant.
If a local authority believes a landlord may be in breach, they may serve a compliance notice requesting information to help them decide whether a breach has occurred. This can happen up to 12 months after a suspected breach occurred so compliance is key.
The maximum penalties apply per property and per breach of the regulations as detailed here, with the maximum fine per property of £5000:

up to £2,000 and/or publication penalty for renting out a non-compliant property for less than 3 months

up to £4,000 and/or publication penalty for renting out a non-compliant property for 3 months or more

up to £1,000 and/or publication for providing false or misleading information on the PRS Exemptions Register

up to £2,000 and/or publication for failure to comply with a compliance notice

Renters’ Rights Act proposes the rating will rise to a C maybe as early as 2028 for new lets with fines up to £5,000 for landlords who fail to comply with all the regulations.
Energy Certificates (EPC) to be added to the PRS Database in Phase 2 from late 2026

• Current: Must be Band E minimum
• New: Band C required by 2028 - £5,000 fines

Licensing

If you are renting your property to three or more tenants who are not part of the same family and share facilities like kitchen or bathroom, your property is a House of Multiple Occupation (HMO) you will need a license from your local authority. Some councils also use selective licensing in some areas. Check to see if you’re affected.
Renters’ Rights Act proposes finds of up to £30,000 for failure to comply.

HMO Licensing • Up to £30,000 for non-compliance • Required for 3+ unrelated tenants sharing facilities

GDPR

If you are processing personal data you will need to register with the Information Commissioner's Office (ICO) as you are responsible for ensuring your tenants information is used and stored in line with GDPR.
If you are unsure on whether or not you need to register with the ICO, please see their self-assessment tool for guidance.

Electrical Safety

All landlords must have an Electrical Installation Condition Report (EICR) check done (at least every 5 years) on the electrical installations in their properties by a person who is qualified and competent. A copy must be given to your tenants and to their local authority if requested.
If the EICR shows that remedial work or further investigation is required then landlords must complete the work as necessary within 28 days or any shorter period if specified in the report. Landlords must then provide confirmation in writing that the remedial work has been carried out and report this to their tenant and the local authority within 28 days.
If there are reasonable grounds for the local authority to believe that the landlord is in breach of one or more of the duties in the regulations they must serve a remedial notice on the landlord requiring remedial action.
If the landlord fails to comply with the notice, the local authority may arrange for the remedial ation to be taken themselves and then recover the costs from the landlord.
A financial penalty of up to £30,000 may be imposed by the local authority on landlords in breach of their duties.
PAT testing should be carried out on any appliances.
Renters’ Rights Act proposes a financial penalty of up to £30,000 may be imposed by the local authority on landlords in breach of their duties

Electrical Safety Certificates to be added to the PRS Database in Phase 2 from late 2026

• Up to £30,000 fine per property
• Must be checked every 5 years by qualified person

Fire Safety including Alarms

You must comply with Fire Safety regulations and fit and test both smoke and carbon monoxide alarms. At a glance you are expected to:

Provide a smoke alarm on each storey

Provide a carbon monoxide alarm in any room with a solid fuel burning appliance(for example a coal fire or wood burning stove)

Check tenants have access to escape routes at all times

Make sure the furniture and furnishings supplied are fire safe

Provide fire alarms and extinguishers if the property is a large house in multiple occupation (HMO)

Further responsibilities when it comes to reducing the risks of fire include demonstrating that alarms are working at the start of a tenancy and:

Fire risk assessment

Fire doors

Electrical safety inspection

Portable appliance testing (PAT)

Gas safety check

Banning smoking indoors

Renters’ Rights Act proposes a financial penalty of up to £30,000 may be imposed by the local authority on landlords in breach of their duties

Right to Rent

Landlords must carry out Right to Rent checks on the potential tenant and any adult over 18 who will be living with them and intend to use your property as their main home.
Landlords could face 5 years in prison or get an unlimited fine for renting property in England to someone who you knew or had 'reasonable cause to believe' did not have the right to rent in the UK.
Renters’ Rights Act proposes the penalties for non-compliance increase from £80 per lodger and £1,000 per lodger for an initial breach up to £5,000 and £10,00 respectively.
Any repeat breaches will attract fines as high as £10,000 and £20,000.

Right to Rent Checks • Current: Up to £1,000 fine per person
• New: Up to £20,000 for repeat breaches

Anti-Money Laundering Checks

Be aware that all lettings agents need to carry out due diligence (CDD) checks on any new tenant and landlords. It is your agent’s responsibility to ensure that they ‘know their customer’. CDD must be carried out on both the tenant and landlord for any agency agreement with a monthly rent of £8,800pcm (or equivalent amount) or more.

Deposit Protection

You must put any deposit into a government approved scheme to protect it and provide the tenant with the details. You are also legally obliged to provide your tenants with the Prescribed Information within 30 days of receiving the deposit.
Your tenants can apply to a county court if you do not use a tenancy deposit protection (TDP) scheme. They can do this at any time during the tenancy. If the court finds you have not protected the deposit, it can order you to either:

Repay it to your tenants

Pay it into a custodial TDP scheme’s bank account within 14 days

The court may also order you to repay your tenants up to 3 times their original deposit within 14 days of making the order.

Deposit Protection • Pay tenant up to 3x their deposit back • Plus return original deposit within 14 days

How to Rent Guide

You must give the tenant an up-to-date copy of the Government's How to Rent guide. (Last version issued by Goverment is Octoner 2023. This covers details on Assured Shorthold Tenancies, how to rent, things to check including paperwork and what to do when you’ve found somewhere. It also covers obligations for tenants and landlords, what happens at the end of a fixed period and what to do if tenant or landlord want to end the tenancy.
Failure to do so means the landlord is in breach of the rules governing Section 21 Notice, so would be unable to issue a Section 21 Notice to reclaim possession of their property.

Phase 1 of the Renters’ Rights Act from 1 May 2026 abolishes section 21 'no fault' evictions, so landlords in the PRS will no longer be able to use section 21 of the Housing Act 1988 to evict their tenants.

Meet all HHSRS Standards

The property must be free from serious hazards and meet with guidance for landlords and property related professionals to meet the Housing Health and Safety Rating System. Repair structural defects. Ensure sanitary fittings and drains are working. Check heating and hot water systems, chimneys and ventilation.
Typically, the first step taken is serving an improvement notice. This instructs the landlord or property owner to carry out any remedial work needed. The local authorities can also:

Make a prohibition order (either closing the whole or part of a building or restricting the number of permitted occupants)

Take emergency action

Serve a hazard awareness notice

Make a demolition order

Declare a clearance area

Roadmap for Renters' Right Act

In the first phase of reforms, the government will implement the new tenancy regime. This will apply to both new and existing tenancies and will come into force on 1 May 2026. At Masons Lettings, we firmly believe in including a Written Tenancy Agreement, Detailed Inventory and Rent Protection Insurance as vital aspects in your professional rental process while the government 'switches on' the measures in the Renters' Rights Act 2025 using a 3 Phase approach:

Phase 1: From 1 May 2026

Abolish section 21 ‘no fault’ evictions

Introduce Assured Periodic Tenancies in the private rented sector (PRS) )

Reform possession grounds in the PRS so they are fair for both parties

Limit rent increases to once a year in PRS

Ban rental bidding and rent in advance

Require landlords in the PRS to consider tenant requests to rent with a pet

Make it illegal to discriminate against renters with children or in receipt of benefits

Strengthen both local council enforcement and rent repayment orders

Phase 2: From late 2026

Stage 1: Regional rollout of the database for landlords and local councils

Stage 2: Further roll out of the database and introduction of the Ombudsman

Establish the PRS Landlord Ombudsman with mandatory sign up for landlords by 2028

Phase 3: Timing tbc subject to consultation

A new Decent Homes Standard in the PRS including extending Awaab's Law to the PRS

To find out how our expert team can manage over 170 pieces of complex and time-consuming compliance for you, get in touch for complete peace of mind from day one.
If Fully Managed isn’t right for you, we can also offer advice which includes a property visit, rent review, a property inspection report and health & safety related advice for a fixed fee (dependent on location).

“A Relief to Hand Over the Reins - Excellent advice and service. It's too complicated for me to manage Property anymore on my own. You need people with experience and knowledge of all the new Rules and Laws. It's a relief to hand it over to Professionals.”

Carolyn Phillips, 21 July 2025

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