On 1 May 2026, the Renters’ Rights Act 2025 (“the Act”) came into effect, bringing the most significant reforms to the private rental space in nearly 40 years by ending “no‑fault” evictions and introducing open‑ended tenancies, amongst other changes. Whilst the Act does not encroach on the law governing divorce in England and Wales, it does impact divorcing couples who are renting or intend to rent as part of the financial agreement.

Abolishment of no-fault evictions

Before the Act came into force, a landlord could recover possession of a property without alleging fault by the tenant by serving a “section 21 notice”. For example, there was no need to prove rent arrears had accrued or there had been a breach of tenancy. The Act, however, has introduced a new policy requiring landlords to serve a “section 8 notice”stating one or more valid grounds. For a tenant spouse going through a turbulent time in their life, this offers stability and a sense of security. Fora landlord spouse, this may pose some difficulties if they are looking to moveout of the family home following the breakdown of the marriage. In this scenario, the landlord spouse cannot ask the tenant to leave within the first12 months of a new tenancy, and the minimum notice period is four months.

Introduction of open-ended tenancies

Under the Act, a tenancy agreement can no longer have a set end date, such as a six or 12-month fixed period known as an“Assured Shorthold Tenancy” (AST). Instead, it must be an open-ended"rolling" agreement known as an “Assured Periodic Tenancy” (APT) that continues indefinitely until either the tenant or landlord gives notice or the landlord legally ends it. Tenants need to give two months' notice to end their assured tenancy, unless the landlord agrees to a shorter notice in writing. For landlord spouses, this may cause an issue if they rely on a steady rental income stream to meet their needs and/or legal fees.

‍Fairer rent rules‍

Landlords can now only raise rent once a year and renters can challenge an unfair rent increase at a tribunal without fear of eviction. Not only does this offer stability and a sense of security for a tenant spouse, it also provides a greater sense of confidence in an interim schedule of expenditure or maintenance pending suit application, allowing the tenant spouse to budget accordingly.

Advanced rent

A landlord can now only take up to one month's rent before a tenant moves in. Before the Act, there were no limits on the amount of rent that a landlord could accept upfront. The new provision is therefore ideal for a tenant spouse who needs to move to a new rental with limited cash reserves, but it does create a problem for a tenant spouse who requires a third party (sometimes their spouse whom they are divorcing) to act as a guarantor. Most UK letting agents require a tenant to have a gross annual income of at least 30 times the monthly rent to show that they can meet the rental payments. Before the Act came into force, a workaround could be to offer a lumpsum in advance instead, such as 12 months’ rent upfront (this could be paid for by the other spouse), but the new Act now forbids this. For a divorcing party who cannot live in the family home and must rent elsewhere, this can cause a major issue especially if they are not entitled to state benefits/housing for any reason – such as if they are foreign nationals.  

Summary

The Renters’ Rights Act 2025 is aptly named –it is an Act which has the tenant’s best interests at its heart. Whilst it makes the private rental sector a more realistic post-separation option in most (but not all) cases, it can be particularly restricting for landlord spouses,however. Time will tell whether greater confidence in rent figures and rental income projections makes a difference to the lived experience of divorcing couples negotiating a financial settlement or going through the family court process. High-level knowledge of the key areas of the Act by family law practitioners can be useful when considering financial disclosure and advising clients on interim or long-term housing options.  

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