Banned Tenancy Clauses: What Landlords Can No Longer Include in Agreements

Prohibited Tenancy Clauses Every Landlord in England Must Know

If you are a private landlord in England, the tenancy agreement you used last year almost certainly contains clauses that will be unlawful from 1 May 2026. The Renters' Rights Act 2025 does not just change possession rules and notice periods — it explicitly bans a range of tenancy clauses that have been standard practice in the private rented sector for decades.

Using a banned tenancy clause after the Act takes effect is not simply unenforceable — it can result in penalties, complaints to the new Private Rented Sector Ombudsman, and serious damage to any future possession claim. This guide sets out exactly which prohibited tenancy terms in England you need to remove, why they have been banned, and how to update your agreements before the deadline.

A single prohibited clause in your tenancy agreement could undermine an entire possession claim. The cost of not updating your documents far exceeds the cost of getting them right.

The Full List of Banned Tenancy Clauses

The Renters' Rights Act 2025 targets several categories of tenancy clause that the government considers unfair, discriminatory, or incompatible with the new periodic tenancy framework. Here is what you can no longer include in a tenancy agreement for a residential property in England.

Fixed-Term Tenancy Clauses

The most fundamental change is that fixed-term tenancies are banned for all new assured tenancies created after 1 May 2026. Any clause that commits a tenant to a fixed period — whether 6 months, 12 months, or any other duration — is prohibited.

This means you cannot include:

• A clause specifying a minimum term of 6 or 12 months
• A break clause (these are redundant when the tenancy is periodic)
• An early termination fee or penalty for leaving before a set date
• Any clause that restricts the tenant's statutory right to give two months' notice

Our guide on periodic tenancies under the new rules covers the practical implications in detail. The short version: every tenancy rolls month to month from day one, and tenants can leave with two months' notice at any point.

Blanket Pet Bans

Under the Renters' Rights Act, landlords in England can no longer include a clause that imposes a blanket ban on keeping pets. Tenants have the right to request permission to keep a pet, and landlords must not unreasonably refuse.

This does not mean you must accept every pet in every property. You can still refuse permission where there is a genuine reason — for example, a small flat with no outdoor space may not be suitable for a large dog, or a lease on the building may prohibit animals. But a standard clause stating "no pets permitted" without qualification is now a banned tenancy clause.

If you consent to a pet, you are entitled to require the tenant to take out pet damage insurance to cover any potential damage beyond fair wear and tear. This gives you a practical safeguard without imposing a blanket restriction. Read our full guide on handling tenant pet requests under the new rules for a step-by-step approach.

No-DSS and Benefit Discrimination Clauses

The no-DSS clause is now illegal in England. Any tenancy clause — or advertising practice — that discriminates against prospective tenants because they receive housing benefit, Universal Credit, or any other form of welfare payment is prohibited under the Renters' Rights Act 2025.

This provision formalises what courts had already been moving towards. In 2020, a county court ruled that blanket no-DSS policies constituted indirect discrimination. The Renters' Rights Act removes any remaining ambiguity: you cannot refuse a tenant, or include a tenancy clause, on the basis that they receive benefits.

This also extends to families with children. A clause stating "no children" or "professionals only" where the intent is to exclude families is discriminatory and prohibited. Assess every application on its own merits — affordability, references, and rental history — not on the source of a tenant's income.

Rent Review Clauses That Bypass the Statutory Process

Under the new periodic tenancy framework, all rent increases must follow the Section 13 statutory process. This means any contractual rent review clause that attempts to override or circumvent that process is a prohibited tenancy term in England.

Specifically, you cannot include:

• An automatic annual rent escalation clause (for example, "rent increases by 5% each year")
• A clause linking rent to an index such as RPI or CPI without using the Section 13 process
• A clause that waives the tenant's right to challenge a rent increase at the First-tier Tribunal
• Any provision that allows rent to be increased more than once in a 12-month period

Our guide on how much landlords can increase rent explains the Section 13 process and what constitutes a market rent assessment.

Excessive Deposit or Fee Clauses

The Tenant Fees Act 2019 already capped tenancy deposits in England at five weeks' rent (or six weeks for properties with annual rent above £50,000). The Renters' Rights Act reinforces this and makes any clause requiring payment beyond the permitted amounts a prohibited term.

You cannot include a clause that requires:

• A deposit exceeding the statutory cap
• A "holding deposit" above one week's rent
• Payment for referencing, credit checks, or inventory fees from the tenant
• Any other payment not expressly permitted under the Tenant Fees Act

Our guide on deposit protection rules covers the full requirements, including the schemes you must use and the deadlines you must meet.

Clauses Restricting the Tenant's Right to End the Tenancy

Since all tenancies are now periodic, the tenant has a statutory right to end the tenancy by giving two months' notice. Any clause that attempts to restrict, delay, or penalise the exercise of this right is banned.

This includes:

• Requiring more than two months' notice from the tenant
• Imposing a financial penalty for early departure
• Requiring the tenant to find a replacement tenant before leaving
• Any clause that makes the notice period conditional on landlord approval

Why These Clauses Have Been Banned

The government's rationale for banning these tenancy clauses rests on three pillars.

Fairness. Fixed-term tenancies and restrictive clauses disproportionately benefited landlords at the expense of tenant flexibility. The new framework in England aims to rebalance the relationship without removing the landlord's ability to manage their property.

Consistency. By making all tenancies periodic and routing all rent increases through Section 13, the Act creates a single, predictable framework that applies equally to every private tenancy in England. This reduces disputes and makes compliance simpler.

Anti-discrimination. The prohibition on no-DSS clauses and blanket pet bans addresses longstanding concerns about indirect discrimination in the private rented sector. Tenants should be assessed on their individual circumstances, not excluded by blanket policies.

The Act does not prevent you from protecting your property or selecting good tenants. It prevents you from using tenancy clauses as blunt instruments that exclude whole categories of people.

Penalties for Including Banned Tenancy Clauses

If you include a prohibited tenancy term in an agreement after 1 May 2026, you face several potential consequences.

The clause is unenforceable. A banned clause has no legal effect. If you try to rely on it — for example, to retain a deposit above the statutory cap — a court will disregard it.

Ombudsman complaints. Tenants can complain to the Private Rented Sector Ombudsman about prohibited terms. The ombudsman can order you to amend the agreement, pay compensation, or take other remedial action.

Financial penalties. Local authorities can impose civil penalties for breaches of the Act, including the use of prohibited terms. Penalties can be substantial, particularly for repeat offenders.

Weakened possession claims. A tenancy agreement containing prohibited clauses may undermine your credibility in possession proceedings. Courts may take a dim view of a landlord who has not bothered to comply with basic legal requirements.

How to Update Your Existing Tenancy Agreements

If you have tenancies that were granted before 1 May 2026, those agreements do not automatically rewrite themselves. You need to take active steps to ensure compliance.

For New Tenancies After 1 May 2026

Any new tenancy agreement you issue must be fully compliant from the outset. This means:

• No fixed-term provisions
• No blanket pet restrictions
• No benefit discrimination clauses
• Rent review provisions that reference the Section 13 process only
• Deposit clauses that comply with the statutory cap
• No restrictions on the tenant's right to give two months' notice

For Existing Tenancies

Existing tenancies that convert to periodic tenancies will need their agreements reviewed. While the banned clauses become unenforceable by operation of law, it is best practice to issue an updated agreement or a formal addendum that removes the prohibited terms and confirms the tenancy is now operating under the new framework.

This is not just about compliance — it is about clarity. A tenancy agreement full of clauses that no longer apply is a recipe for confusion and disputes.

Template Guidance

Do not attempt to draft a compliant tenancy agreement from scratch unless you are a qualified solicitor. Use a professionally drafted template that has been updated specifically for the Renters' Rights Act 2025. Several reputable providers offer templates designed for private landlords in England, and it is a modest investment that protects you from far more costly mistakes.

At minimum, your template should:

• Be drafted for periodic tenancies with no fixed-term option
• Include a pet request procedure rather than a blanket ban
• Reference the Section 13 rent increase process
• Comply with deposit protection requirements
• Reflect all notice periods under the reformed Schedule 2

A Practical Checklist for Landlords in England

Before 1 May 2026, every private landlord in England should complete the following:

1. Read your current tenancy agreement line by line. Identify every clause that falls into the banned categories listed above.
2. Remove or replace prohibited terms. Fixed-term provisions, blanket pet bans, no-DSS clauses, and non-statutory rent review mechanisms must all go.
3. Obtain an updated tenancy agreement template. Invest in a professionally drafted template that is compliant with the Renters' Rights Act 2025.
4. Issue addendums to existing tenants. Where a tenancy is converting from fixed-term to periodic, provide a written addendum confirming the changes.
5. Brief your letting agent. If you use an agent, confirm they have updated their standard agreements and advertising practices. A no-DSS clause in a listing is your liability, even if the agent placed the advert.
6. Document everything. Keep copies of all updated agreements, addendums, and correspondence. If a dispute arises, your records are your defence.

The Bottom Line

The Renters' Rights Act 2025 has drawn clear lines around what landlords in England can and cannot include in tenancy agreements. Fixed-term tenancies are gone. Blanket pet bans are gone. No-DSS clauses are gone. Automatic rent escalation clauses are gone.

These are not optional changes. They are legal requirements with real penalties for non-compliance. The good news is that updating your agreements is straightforward if you act before the deadline. Review your documents, invest in a compliant template, and move forward with confidence.

Further Reading

• Renters' Rights Act 2025: What Landlords Need to Know
• Periodic Tenancies Explained for Landlords
• How Much Can a Landlord Increase Rent?
• Tenant Deposit Protection Rules for Landlords