More change on the way: What landlords need to know as Phase 2 of the Renters’ Rights Act approaches 

Landlords in the private rented sector have already absorbed a significant amount of change this year. Since 1^st May 2026, section 21 “no fault” evictions have been abolished, and the vast majority of tenancies have converted to assured periodic tenancies with no fixed term. Rent increases are now limited to once a year, rental bidding has been banned, and local authorities have been handed stronger enforcement powers, with the maximum civil penalty for non-compliance doubling to £40,000. 

These changes were only the beginning. The Renters’ Rights Act 2025 is being introduced in three phases, and what came into force in May was only the first. Phase 2 is expected to begin later this year, and it will change how landlords operate just as significantly as the tenancy reforms already have. 

The PRS Database is coming 

The centrepiece of Phase 2 of the Renters’ Rights Act is the new Private Rented Sector Database. Government guidance indicates the database will begin a regional rollout later in 2026, although much of the operational detail still depends on secondary legislation yet to be published. Once it applies, registration will be mandatory for every landlord and every rental property, and there will be a fee to pay per property. Landlords will likely be required to provide their own contact details, full property information including type, size and occupancy, and safety documentation covering gas, electrical and energy performance certification. A good deal of that information will then be visible to the public and to local councils, giving both far greater visibility of who owns what and who is compliant. 

Although registering may sound like little more than an administrative exercise, the consequences of failing to do so are much more significant. Once the database applies to a property, landlords who have not registered will be prevented from relying on most grounds for possession. The legislation creates only two narrow exceptions, relating to anti-social behaviour and closely related circumstances. In practical terms, that means a landlord could otherwise have a watertight case for possession, arrears, a genuine wish to sell, a family member needing to move in, and still find the court unable to help simply because the property was not properly registered on the database or where the information on the database is non-compliant.  

Landlords will also face fines of up to £40,000 for failure to register on the database, including when the property is not tenanted but is advertised for rental, and may risk Rent Repayment Orders for up to 2 years’ of rent.   

For landlords already involved in disputes with tenants, or who anticipate needing possession in the near future, the PRS database is likely to become an important strategic consideration. 

The Landlord Ombudsman follows behind 

Sitting alongside the database is the new PRS Landlord Ombudsman, which will give tenants a formal redress route when things go wrong, without the need to go to court. The government has indicated that landlords will be expected to join once the scheme has been set up and is ready to accept members, with mandatory sign up currently expected in 2028.  

Unlike court proceedings, the Ombudsman is a free service for tenants to use and it is intended to offer tenants a quicker and less formal route for resolving complaints, so landlords may increasingly find tenant complaints being pursued through this process. The Ombudsman’s decisions will be legally binding on landlords, and ignoring the Ombudsman’s determination carries the risk of being expelled from the scheme and the landlord being unable to legally rent out their property. 

The Ombudsman will have the power to order landlords to issue an apology, take remedial action (such as completing repairs) and pay financial compensation.  

As with the database, landlords will fund the service themselves, through a charging model that has not yet been confirmed 

Phase 3, further ahead 

Although Phase 3 remains some years away, it gives a clear indication of the Government’s longer-term direction for the private rented sector. It is expected to introduce a Decent Homes Standard into the sector for the first time, alongside the extension of Awaab’s Law and higher minimum energy efficiency standards. Much of the detail remains subject to consultation. 

Why landlords should start preparing now 

While some of the finer detail is still awaited, landlords can already see where these reforms are heading. 

Although landlords cannot yet register, they can begin preparing by making sure property information is accurate, safety certificates are current and ownership records are readily available. Landlords who are already managing difficult tenancies or anticipating possession proceedings may benefit from taking advice before Phase 2 comes into force, rather than waiting until a dispute reaches court. Landlords who are likely to experience the fewest problems will be those who use the time before Phase 2 begins to prepare, rather than waiting until registration becomes mandatory. 

If you are a landlord who would like advice on tenant issues or support with a possession matter, our team would be glad to help. 

About the author: Emily Stark is a Solicitor in the Dispute Resolution team at Coodes Solicitors. She works across a range of litigation matters, with a particular focus on property disputes, including landlord and tenant issues. Emily also has experience advising on professional negligence claims. 

Get in touch: emily.stark@coodes.co.uk or 01872 246 219