Tenancy Agreements and Deposits

What Changed Under The Renters' Rights Act 2025?

The main provisions of the Renters' Rights Act 2025 came into force in England on 1st May 2026. Many older agreements now contain clauses that no longer have legal effect, the key changes are:

• Assured shorthold tenancies were replaced with assured periodic tenancies, and fixed terms no longer apply to new tenancies
• Section 21 "no fault" notices have been abolished, so landlords must rely on the statutory grounds for possession
• Tenants can end a periodic tenancy by giving two months' notice
• Rent can only increase once a year, using a Section 13 notice
• Rental bidding is banned, and rent in advance is capped at one month's rent
• Tenants can ask to keep a pet, and landlords cannot unreasonably refuse
• Landlords must give tenants a written statement of the key terms

Existing tenancies converted automatically on 1st May 2026, so tenants did not need to sign a new agreement. Any terms that conflict with the new law, such as fixed term end dates, break clauses and rent review clauses, no longer apply. Landlords with existing written tenancies also had to give tenants the government's information sheet by 31st May 2026.

What Does This Mean For Tenancies In Wales and Scotland?

The Renters' Rights Act applies to England only. In Wales, residential tenancies have been called occupation contracts since 1st December 2022, under the Renting Homes (Wales) Act 2016, and the rules on ending a contract differ from those in England. Scotland has its own separate rules. If your property is in Wales or Scotland, it is worth taking advice on the rules that apply to you.

Types Of Tenancy

• Assured Periodic Tenancy - the standard type of private residential tenancy in England since 1 May 2026, replacing the assured shorthold tenancy. It rolls on with no fixed end date until the tenant gives notice or the landlord gains possession on a legal ground, subject to the correct legal process. Fixed terms no longer apply to new private tenancies, and tenancies that began with a fixed term before 1st May 2026 are now periodic
• Joint Tenancy - where two or more tenants share equal responsibility for the whole tenancy, including the rent, rather than each being responsible only for their own share

What Is A Tenancy Agreement?

A tenancy agreement is a legally binding contract between a landlord and a tenant. It gives the tenant the right to live in a property in return for rent, and sets out what each side must do for as long as the tenancy lasts.

Most agreements are in writing, though a tenancy can exist without one. A written agreement is strongly recommended, as it gives both sides a clear record if a disagreement arises. It cannot, however, take away rights that the law gives you.

What Should A Tenancy Agreement Include?

For a private rented home in England, a tenancy agreement should now cover:

• The Parties - the full legal names of the landlord and every tenant, an address where notices can be served, and contact details for the landlord or managing agent
• The Property - the full address, what is included (such as parking or a garden), and whether it is furnished
• The Type Of Tenancy - the start date and confirmation that it is an assured periodic tenancy, with no end date or fixed term
• Rent and Deposit - the rent (which must not exceed the advertised rent), how often and how it is paid, any rent in advance, and the deposit and the scheme protecting it
• Ending The Tenancy - tenants can give two months' written notice, while landlords can only end a tenancy using a Section 8 notice and a statutory ground, such as rent arrears or the landlord wishing to sell or move in. The agreement cannot set its own rules on this
• Responsibilities - landlords must keep the property in repair, carry out gas and electrical safety checks, fit smoke and carbon monoxide alarms, and give 24 hours' notice before visiting. Tenants should pay rent on time and take reasonable care of the property

If you think a tenancy has been ended without the correct process being followed, see our guidance on unlawful eviction.

Deposits

Landlords can ask for a deposit as security against damage or unpaid rent, but it must be protected in a government-backed tenancy deposit scheme, and returned to the tenant at the end of the tenancy provided the terms of the agreement have been met. Disputes over deposit deductions are common, and both landlords and tenants have formal routes to resolve them through the relevant deposit scheme, without necessarily needing to go to court.

Tenancy Deposit Rules At A Glance

• A deposit is usually capped at five weeks' rent (six weeks if the annual rent is £50,000 or more)
• It must be protected in a government-approved scheme within 30 days, and the tenant given the prescribed information
• If it isn't protected, a court can order the landlord to pay the tenant one to three times the deposit

Need a tenancy agreement drafted, reviewed, or a deposit dispute resolved? Call 08082747557 today.

How We Help Landlords and Tenants

For landlords, we can draft or review a tenancy agreement to make sure it protects your position and complies with current legislation. For tenants, we can check an agreement before you sign, or advise if a dispute arises during or at the end of your tenancy. If a landlord is seeking to end a tenancy, see our guidance on possession and repossession proceedings, and if you believe you've been forced out without the correct process being followed, see unlawful eviction.

Frequently Asked Questions On Tenancy Agreements

What is a tenancy agreement in simple terms?

It is the contract that sets out the terms on which a tenant rents a property from a landlord, including the rent, the deposit and what each side is responsible for.

 

Do assured shorthold tenancies still exist?

Not in England. They were abolished on 1st May 2026 and replaced with assured periodic tenancies.

 

Can a landlord still use a Section 21 notice?

No. Section 21 has been abolished, and landlords must use one of the statutory grounds for possession.

 

How much notice does a tenant need to give?

At least two months, in writing.

 

Does the Renters' Rights Act apply in Wales?

No. It applies to England only. Wales has its own rules under the Renting Homes (Wales) Act 2016.

 

Can I get advice on a tenancy agreement before I sign it?

Yes, and we would encourage it. We can check an agreement for landlords and tenants alike, and explain any terms you are unsure about.

 

Related Services

• Respond to a possession or repossession claim Possession and Repossession Proceedings
• Get help if you’ve been unlawfully evicted Unlawful Eviction
• Buy a property to let or invest in Investment and Buy to Let Properties
• Get general advice on a housing dispute Housing Disputes

Not sure what your tenancy agreement means for you? Call 08082747557 today.