Renters' Rights Act 2025 and Manchester Landlords: What Changed

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and its major provisions took effect on 1 May 2026. For Manchester landlords, the changes are not abstract policy — they directly affect how licensing non-compliance plays out in practice.

Section 21 Is Gone

The vast majority of Assured Shorthold Tenancies have been converted into periodic assured tenancies. Section 21 "no-fault" eviction notices no longer exist. For these tenancies, landlords need an applicable Section 8 ground to recover possession.

For Manchester landlords in selective licensing areas, this changes the calculus completely. Before May 2026, a landlord whose property required a licence generally could not serve a valid Section 21 notice while it remained unlicensed, unless a full application was outstanding or a Temporary Exemption Notice was in place. Ground 6B allows possession in specified enforcement situations, including when a required licence application has been refused or a licence has been revoked; being unlicensed does not automatically block every Section 8 ground.

Higher Civil Penalties

The maximum civil penalty that Manchester City Council can issue under Section 249A of the Housing Act 2004 increased from £30,000 to £40,000 for relevant housing offences. A £7,000 maximum applies to separate specified breaches for which there is no option to prosecute; it is not a first-offence cap for operating an unlicensed property.

These penalties apply per offence. Operating an unlicensed property is one offence; breaching a licence condition (failure to produce a gas safety certificate, overcrowding, failure to manage ASB) is a separate offence. Multiple breaches on a single property can stack.

Longer Rent Repayment Orders

The maximum Rent Repayment Order period doubled from 12 months to 24 months for offences committed on or after 1 May 2026. At Manchester's average rent of £1,200 to £1,350 per month, the exposure from a single tenant's claim is now up to £32,400.

Tenants can apply to the First-tier Tribunal for an RRO without the council's involvement. The landlord's licensing status is a matter of public record — tenants (or their advisors) can check the council's Arcus register and, if no licence appears, pursue the claim directly.

PRS Database Registration

The Act provides for a mandatory nationwide Private Rented Sector (PRS) Database, with landlord registration being phased in from late 2026. Manchester landlords must register when the rollout opens for their area. This database is separate from local Manchester City Council licensing: registration does not replace a selective or HMO licence, and holding a local licence does not satisfy the national registration obligation.

Ground 4A for Student HMOs

The Act introduced Ground 4A, which allows landlords of student HMOs to seek possession for re-letting to students under specific conditions, including prior written notice and a relevant date between 1 June and 30 September. Ground 4A itself does not make a property licence a precondition; licensing duties and enforcement consequences apply separately.

What This Means for Manchester Licensing

The combined effect is that licensing compliance in Manchester is no longer just about avoiding a fine. For offences committed on or after 1 May 2026, an unlicensed landlord may face a civil penalty of up to £40,000 and an RRO of up to 24 months of rent. Ground 6B provides a possession route in specified enforcement situations, but the Act does not make every unlicensed tenancy unrecoverable.

For landlords in selective licensing areas who have been operating without a licence (whether deliberately or through ignorance of the boundary), the financial and operational exposure is large enough to make the property unviable. The licence application fee (£798 to £964 for selective) is a small fraction of what enforcement costs.

Our Manchester Landlord Licensing Guide is dated to the post-May 2026 rules, covering the updated penalty structure, RRO exposure, and possession ground requirements alongside the application process.

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