The Renters' Rights Act 2025 — What Letting Agents Need to Know About Property Inventories

The biggest reform to the private rented sector in a generation is now law. Section 21 is gone. For letting agents, a professional inventory report is now essential — not optional.
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What the Renters' Rights Act 2025 Means for Letting Agents

The Renters' Rights Act came into full effect on 1 May 2026 — affecting every letting agent, landlord and property manager in England. Here is a clear breakdown of the key changes and what they mean in practice.

  • Section 21 abolished — possession now requires solid evidence
  • Deposit disputes harder to win without watertight inventory reports
  • Deposit disputes harder to win without watertight inventory reports
  • Deposit disputes harder to win without watertight inventory reports
1. Section 21 'No-Fault' Evictions Abolished

Landlords and letting agents can no longer use Section 21 to regain possession. All evictions must now be based on specific, legally valid grounds.

What this means for inventories: Possession claims under Ground 13 (property damage), Ground 15 (furniture deterioration) or Ground 12 (breach of tenancy) all require a professional AIIC-accredited inventory report as evidence. Without one, claims are significantly harder to sustain.
2. All Tenancies Become Periodic

From 1 May 2026, Assured Shorthold Tenancies no longer exist. All tenancies are now periodic — rolling monthly with no fixed end date.

What this means for inventories: With no fixed end date, a check-out can be triggered at any point. Letting agents need a complete inventory on file at all times.

3. Rent Increases Limited to Once Per Year

Rent can only be increased once every 12 months through a formal process. Landlords and agents must follow the correct procedure or the increase is invalid.

What this means for inventories: Mid-term inspections become more important — giving agents documented evidence of property condition during longer tenancy periods where rent review may become contentious.
4. Strengthened Possession Grounds

Section 8 possession grounds have been reformed and expanded. Key grounds now include: Ground 8 (serious rent arrears, threshold increased to three months), Ground 12 (breach of tenancy), Ground 13 (damage or neglect), Ground 14 (anti-social behaviour), Ground 15 (deterioration of furniture), and a new ground for landlords wishing to sell or move in.

What this means for inventories: Possession claims under Ground 13 (property damage), Ground 15 (furniture deterioration) or Ground 12 (breach of tenancy) all require a professional AIIC-accredited inventory report as evidence. Without one, claims are significantly harder to sustain.
5. New Private Rented Sector Landlord Ombudsman

All private landlords in England must join a new PRS Landlord Ombudsman scheme. Letting agents acting on behalf of landlords must ensure their clients are registered.

What this means for inventories: The Ombudsman will handle tenant complaints including deposit disputes. Agents with professional AIIC-standard inventories on file are far better protected against complaints.

6. PRS Property Database

A new national database of private rented properties is being established. Landlords must register their properties — and letting agents acting on their behalf share responsibility for compliance.

What this means for inventories: Possession claims under Ground 13 (property damage), Ground 15 (furniture deterioration) or Ground 12 (breach of tenancy) all require a professional AIIC-accredited inventory report as evidence. Without one, claims are significantly harder to sustain.
7. Ban on Rental Discrimination

Landlords and agents are prohibited from blanket bans on renting to tenants with children or those claiming benefits. All prospective tenants must be assessed on individual merit.

What this means for inventories: A more diverse tenant pool increases the importance of consistent, objective property condition records at the start of every tenancy.
8. Awaab's Law Extended to Private Rentals

Awaab's Law — originally applied to social housing — now extends to private rentals. Landlords must investigate and fix hazards such as damp and mould within fixed timeframes.

What this means for inventories: Mid-term inspections become a proactive tool for identifying and documenting property condition issues before they escalate into legal or regulatory problems.

Why the Renters' Rights Act Makes Professional Inventories Essential

The abolition of Section 21 fundamentally changes the risk landscape for every letting agent in London. Previously, a landlord could regain possession without proving fault. Now, every possession claim must be evidenced — and the quality of your documentation determines the outcome.

  • Protects the letting agent — independent reports produced by an AIIC-accredited inventory company carry significantly more weight than agent-produced or landlord-produced records.
  • Provides timestamped photographic evidence — admissible in possession proceedings and accepted by TDS, DPS and MyDeposits deposit dispute resolution.
  • Documents the property's condition at the start of tenancy — creating the baseline against which all future claims are measured. Every letting agent inventory service in London should meet this standard as a minimum.

Letting agents who rely on informal check-in notes are now exposed. The best inventory company in London for your agency is one that is AIIC-accredited, delivers within 24 hours, and produces reports that hold up under scrutiny.

How InventoryFlex Supports Letting Agents Under the New Legislation

InventoryFlex is London's only AIIC award-winning inventory company — trusted by Foxtons, Winkworth, Romans & Partners and 100+ letting agencies across London. We provide the documentation letting agents need to operate confidently under the Renters' Rights Act.

Inventory Reports

A detailed room-by-room property inventory report with hundreds of timestamped photographs. The starting point for every tenancy — and the evidence base for any future deposit dispute or possession claim. From £110, delivered within 24 hours.

Learn more about Inventory Reports →

Inventory & Check-in

A complete room-by-room record of the property's condition at the start of tenancy — with hundreds of timestamped photographs and a signed tenant handover. The foundation of any possession claim or deposit dispute under the new Act. From £120, delivered within 24 hours.

Learn more about Inventory & Check-in →

Mid-term Inspection

With all tenancies now periodic and Awaab's Law extended to private rentals, mid-term inspections are no longer optional for a responsible letting agent inventory service in London. Our inspections identify and document property condition issues before they escalate. From £65.

Learn more about Mid-term Inspections →

Check-out

At the end of tenancy, our clerk compares the property's current condition directly against the original inventory. Every change, area of damage or cleaning issue is documented — giving agents the evidence needed for fair, defensible deposit deductions under TDS, DPS and MyDeposits. From £100.

Learn more about Check-out Reports →

Why Choose Inventory Flex

AIIC Newcomer Award 2025

London's only award-winning inventory company, recognised for the highest standards of independent inventory reporting

15,000+ inspections completed

Consistent quality across every property type and borough in London since 2018

24-hour guaranteed report delivery

Emailed simultaneously to your agency, the landlord and the tenant

Accepted by all major deposit schemes

very report meets the evidence standards of TDS, DPS and MyDeposits

Independent, unbiased reports

produced by AIIC-accredited clerks with no financial interest in the outcome, carrying full weight in deposit disputes and possession proceedings

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Frequently Asked Questions

Does the Renters' Rights Act make property inventories legally mandatory?
How does the abolition of Section 21 affect deposit disputes?
What possession grounds require inventory evidence under the new Act?
How do mid-term inspections help under the Renters' Rights Act?
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