Renters Rights Act 2025 – Phase 2
The next stage of the changes introduced by the Renters Rights Act 2025 have been announced with a Government press release issued at the start of September confirming the next phase of the Act.
National Landlords Registration Service
After the initial changes to the way that possession claims are dealt with and the way properties are rented back in May 2026, the next phase of the Renters Rights Act 2026 is to introduce a national registration service for all residential landlords. This will require landlords to register on the scheme and then tenants will be able to see whether their landlord, or prospective landlord, has signed up. The aim of the scheme is also to allow Councils to have greater oversight of landlords in their area so that they can spot rogue ones and take quicker action against them.
• What will landlords need to do for the registration requirements?
The scheme will be gradually rolled out across the UK and landlords will be required to sign up to the registration scheme.
The rollout will begin on 15 December 2026, starting in the West Midlands and onto other areas over the proceeding 12 months.
When an area is called up to register, landlords in that area will have a three month period to register. All landlords who are actively letting property will be required to sign up by 14 November 2027 at the latest.
• What are the consequences of not signing up?
If you do not sign up by the time you are required to do so, you may be liable to a fine of up to £7,000 for a single breach and more for multiple breaches or where there is significant harm caused to tenants. Local Authorities will have the ability to set their own fines.
• How will I know if my landlord is registered?
Prospective tenants will be able to check the national register. Letting agents will also be required to include registration numbers on adverts.
Rental Increase Challenges
The press release also announced that HM Revenue and Customs’ Valuation Office will become responsible for decisions on challenges to rent increases in England, with the aim to allow disputes to be resolved more effectively. In the interim, while this is being set up, tenants must still apply to the First Tier Property Tribunal if they wish to challenge their rent. No increase is effective until the FTT has made their final decision.
There are no further details about how the HMRC Valuation office will deal with these challenges or how it is hoped that the scheme will be more efficient, but we will have to see how this works in practice when further details are announced.
What next?
Landlords should keep an eye out for when their area is called up for registration to avoid falling foul of the fines which can be imposed.
Should you need any help or advice on the Renters Rights Act 2025 or renting your property in general please contact Claire Darby, Head of Dispute Resolution on 0208 949 9500 or via email cdarby@pearsonhards.co.uk.