When the Renters' Rights Act 2025 commences on 1 May 2026, it effectively rewrites certain mandatory terms of all assured periodic tenancy agreements in England. Any clause in an AST that purports to override a statutory mandatory term is void — the statutory term applies instead. This does not automatically invalidate the rest of the agreement, but it can create dangerous mismatches between what the landlord believes the tenancy says and what the law actually provides.
Landlords who continue to use pre-2026 standard AST templates without updating them risk serving invalid notices, losing possession proceedings, and facing civil penalties. A thorough audit of your tenancy agreement against the new prohibited and mandatory clause list is now an essential compliance step.
Clauses prohibited by the Renters' Rights Act 2025
The following clauses are void and unenforceable in any AST in England from 1 May 2026:
- Fixed-term tenancy clauses: The RRA 2025 abolishes fixed-term assured tenancies for new lettings from 1 May 2026. Any clause purporting to create a fixed term (e.g., '12-month fixed term') in an AST on or after commencement date is void. All new tenancies must be periodic from the outset
- Landlord break clauses: Any clause giving the landlord the right to end the tenancy by notice before the grounds specified in Schedule 2 of the Housing Act 1988 (as amended) are available is void. Landlords cannot insert break clauses giving them early exit rights outside the statutory scheme
- Rent-escalation clauses (automatic increases): Clauses providing for automatic rent increases (e.g., CPI + 1% annually, or a fixed percentage each year) are prohibited under RRA 2025. Rent can only be increased using the Section 13 process (Form 4A, 2 months' notice, once per 12 months). A clause purporting to bypass this is void
- Bidding-up or rent-above-market clauses: Any clause inviting, requiring, or accepting rent above the advertised rent, or requiring the tenant to compete in a bidding process for the property, is prohibited and carries a civil penalty
- Advance rent above one month as a condition: A clause requiring advance rent above one month as a condition of the tenancy or renewal is void and a civil penalty offence from 1 May 2026
- DSS/benefit exclusion clauses: Clauses stating 'no DSS', 'no housing benefit', 'working tenants only', or any similar exclusion of tenants receiving housing benefit or Universal Credit are both void and a civil penalty offence under RRA 2025
- Pet prohibition clauses: Absolute no-pet clauses are void under RRA 2025. Landlords must consent to a tenant keeping a pet unless there is a reasonable specific objection. A blanket prohibition on any pet, without consideration of the individual request, is unenforceable
Clauses that are unfair under the Consumer Rights Act 2015
The CRA 2015 applies to all consumer contracts, including residential tenancy agreements. Unfair terms are not binding on the tenant:
- Disproportionate exit fees: Any clause requiring a tenant to pay a large fee to terminate the tenancy early (above a genuine pre-estimate of the landlord's re-letting costs) is likely to be unfair under the CRA 2015
- Unlimited access clauses: Clauses purporting to give the landlord unlimited right of entry or access with little or no notice — beyond the statutory right of 24 hours' reasonable notice — are unfair and unenforceable
- Blanket prohibitions on alterations/decorating: Clauses preventing tenants from making any decorative alteration (including hanging pictures) without consent may be unfair if they go further than protecting the landlord's legitimate interests
- One-sided clauses: Terms that create a significant imbalance between the parties' rights and obligations to the detriment of the consumer — for example, allowing the landlord to vary terms unilaterally — are unfair under the CRA 2015
- Liability exclusion clauses: Clauses purporting to exclude the landlord's liability for personal injury, disrepair, or breach of statutory obligations (e.g., repairing obligations under Section 11 Landlord and Tenant Act 1985) are unenforceable under the CRA 2015 and, in some cases, criminal under the Unfair Contract Terms Act 1977
- The Competition and Markets Authority (CMA) has published guidance on unfair terms in residential tenancy agreements. Landlords should review their AST against this guidance
Clauses prohibited by the Tenant Fees Act 2019
The Tenant Fees Act 2019 prohibits landlords from including clauses that require tenants to make prohibited payments:
- Administration/setup fee clauses: Any clause requiring tenants to pay an administration, referencing, setup, or tenancy creation fee is a prohibited payment. The clause is void and the charge is recoverable by the tenant
- Inventory fee clauses: Charging the tenant for the cost of an inventory or check-in report is prohibited. This is a landlord cost
- Renewal fee clauses: Charging a fee for renewing or extending the tenancy is a prohibited payment
- Checkout fee clauses: Charging the tenant for a check-out inspection is prohibited
- Excessive late payment charges: Clauses charging interest or fees for late rent above 3% over the Bank of England base rate are prohibited. A clause charging, for example, 5% monthly interest on late rent is void
- Pet deposit above the cap: A clause requiring a separate pet deposit in addition to the tenancy deposit may push the total above the 5-week cap, making the excess a prohibited payment
Specific clauses landlords commonly get wrong
The following clauses frequently appear in older ASTs and should be removed or updated for 2026:
- 'No pets without consent' plus automatic refusal: Pre-RRA 2025 clauses that technically said consent was required but then set out grounds for automatic refusal (e.g., 'in a flat or building with communal areas') may now be insufficient — landlords must consider each pet request on its merits
- '12-month fixed term' with 2-month break clause for the landlord: Both the fixed term and the landlord's break clause are void for post-1 May 2026 tenancies
- RPI/CPI annual increase clause: Common in older institutional ASTs, this type of clause is now prohibited for residential tenancies in England
- 'Tenant to keep the property carpeted throughout': This may be enforceable as a condition of the tenancy but must be considered alongside the tenant's right to request permission to decorate — courts have found such clauses disproportionate
- Clause requiring tenant to pay the landlord's legal costs in all circumstances: A one-sided legal costs clause is typically unfair under the CRA 2015 unless the tenant has behaved unreasonably or there is a specific statutory basis for the costs award
How to audit your tenancy agreement for compliance
A structured audit of your AST against the 2026 prohibited clause list:
- Check whether the tenancy is described as fixed-term — remove and replace with periodic only for all new lettings from 1 May 2026
- Remove any landlord break clause provisions
- Remove automatic rent-escalation clauses and replace with a reference to the Section 13 process
- Add a compliant pet clause: the landlord will not unreasonably withhold consent to keep a pet; reasonable objections may include property type, lease restrictions, or demonstrated previous damage
- Remove any DSS/housing benefit exclusion language
- Check that advance rent is not required above one month as a condition of the tenancy
- Remove all references to prohibited payments under the Tenant Fees Act (admin fees, referencing fees, checkout fees, renewal fees)
- Check interest-on-late-rent clauses: ensure the rate does not exceed 3% above BoE base rate
- Review liability and access clauses against the CRA 2015 unfair terms guidance
- Consider having the updated AST reviewed by a specialist landlord solicitor or using a vetted template from the National Residential Landlords Association (NRLA)
Frequently asked questions
If my tenancy agreement contains a prohibited clause, does the whole agreement become void?+
No. A prohibited or unfair clause is severable — the offending clause is void and unenforceable, but the rest of the tenancy agreement remains in force. However, removing the clause may alter the balance of rights significantly — for example, removing a rent-escalation clause means rent can only be increased via Section 13. Landlords should update their standard AST rather than rely on severance to correct multiple problematic clauses.
Can I still include a no-pets clause after the Renters' Rights Act 2025?+
An absolute no-pets prohibition is void under the RRA 2025. You may include a clause requiring written consent before a pet is kept, but you must genuinely consider each request and may only refuse on reasonable grounds (e.g., building lease restriction, severe allergy in another household member, property type). A blanket refusal without considering the individual request is unenforceable and may attract a civil penalty.
What is the Consumer Rights Act 2015 and how does it apply to tenancy agreements?+
The Consumer Rights Act 2015 applies to contracts between a business (including a private landlord acting in the course of a business) and a consumer (the tenant). It provides that unfair terms — those causing a significant imbalance to the detriment of the consumer — are not binding. Courts and the Competition and Markets Authority can strike out unfair clauses. This applies to virtually all residential landlord-tenant relationships in England.
Do prohibited clause rules apply to existing tenancies?+
The RRA 2025 mandatory term provisions apply to all assured tenancies from 1 May 2026, including those started before that date. This means some clauses in existing tenancy agreements — particularly rent-escalation clauses and absolute no-pet bans — may become void on commencement date even without any action by the landlord or tenant. Landlords should review existing agreements and communicate any changes to their tenants proactively.