A landlords' guide to the Renters’ Rights Act

Why the Renters' Rights Act matters

For landlords, understanding these changes early on is vital to protect their investment, maintain compliance, and reduce the risk of financial penalties.

Important note: A property will fall outside the scope of the Renters’ Rights Act where specific exemptions apply. This includes situations where the tenancy is granted to a company, the annual rent exceeds £100,000, the property is not used as the tenant’s main or principal home, or the landlord also resides in the property. Where any of these conditions are met, the new rules introduced by the Act will not apply to that tenancy.

What’s included in the Renters’ Rights Act?

The Act introduces a wide range of reforms to ASTs, many of which will take effect from 1 May 2026. These include:

The end of Section 21

Section 21 notices will be abolished. Landlords will instead rely on Section 8 notices using the updated prescribed grounds to regain possession.

Tenant notice

Tenants will be able to give two months’ notice to end their tenancy at any time.

Periodic tenancies

Fixed term tenancies will end, with all tenancies becoming Assured Periodic Tenancies (APTs) from the outset and ASTs which start before the 1 May 2026, will automatically become APTs on the 1 May 2026.

Rent

Rent periods will be limited to monthly and rent can only be increased once a year using the formal Section 13 notice.

Ban on rental bidding

Rental bidding above the advertised rent will not be permitted.

Pet requests

Tenants will have the right to request a pet, and landlords must not unreasonably refuse.

Anti-discrimination measures

Landlords will not be permitted to refuse tenants based on receiving benefits or having children living with of visiting them.

Improved standards

The Decent Homes Standard will apply to the private rented sector. Awaab’s Law will introduce defined timeframes for investigating and resolving issues such as damp and mould.

Landlord Redress Scheme

A new redress scheme will be introduced to resolve disputes outside the court system.

Private Rented Sector (PRS) Database

Landlords will need to sign up to a PRS database, registering themselves and their property before the property is marketed.

Strengthened enforcement

Penalties for non-compliance will increase.

What landlords need to know

Here’s a rundown of some of the key points landlords need to understand before the reforms come into effect on 1 May 2026.

1. The end of Section 21

• Landlords will no longer be able to regain possession using a Section 21 notice. Instead, possession must be sought by a Section 8 notice using the updated prescribed grounds
• Mandatory grounds will include circumstances such as selling the property or the landlord or a family member moving into the property. In these cases:

1. A minimum of four months’ notice will be required
2. Notice cannot expire within the first 12 months of the tenancy start date
3. The property cannot be marketed or re-let from the point the notice is served, and for 12 months from the date the notice expires

• The threshold for rent arrears under the mandatory ground is increasing from two to three months
• A new discretionary ground for rent arrears is also being added

2. Periodic tenancies

• All new tenancies will be assured periodic, and existing ASTs will transition to assured periodic tenancies
• Tenants can serve two months’ notice to end the tenancy at the end of a rent period, or sooner if agreed
• Notice from one tenant will apply to all tenants jointly

3. Rent reviews

Rent reviews will be more structured and transparent:

• Rent can only be increased once per year
• Landlords must use the formal Section 13 notice process
• Tenants can challenge increases at the First-tier Tribunal
• Restrictions will also apply to requesting rent in advance

4. Advertising and Anti-Discrimination

• Rental bidding above the advertised rent will not be permitted
• The agreed rent must not exceed the advertised rent
• Landlords will not be permitted to discriminate against tenants who receive benefits or have children

5. New compliance obligations

Additional compliance requirements will be introduced at a later stage, including:

• Mandatory registration with a Landlord Redress Scheme before marketing a property
• Registration on a Private Rented Sector (PRS) Database for both landlord and property before marketing a property
• Compliance with property standards under Awaab’s Law and the Decent Homes Standard

What is the phased implementation schedule for the Renters’ Rights Act?

Phase One – From 1 May 2026

• The end of Section 21
• Transition to assured periodic tenancies
• Rent review changes
• Ban on rental bidding
• Anti-discrimination measures
• Tenants right to request a pet

Phase Two – 2027–2028

• Launch of the Private Rented Sector Database
• Launch of the Landlord Redress Scheme

Phase Three – 2035–2037

• Awaab’s Law implementation
• Decent Homes Standard extension

Renters' Rights Act enforcement: What it looks like

Local authorities will have strengthened enforcement powers, significantly increasing financial exposure for non-compliance.

These include:

• Civil penalties up to £7,000 for initial breaches
• Up to £40,000 for repeat offences
• Rent Repayment Orders extended to 24 months’ rent
• Liability extending to superior landlords and company directors

Advice for landlords

• Don’t rush decisions before full secondary legislation is released
• Keep detailed documentation to support possession proceedings
• Prepare early for rent review evidence
• Invest in proactive property management
• Seek legal advice before serving notice under new grounds