The Renters’ Rights Act: What landlords need to know now it’s in force

The Renters’ Rights Act (RRA), which came into force on 1 May 2026, marks the most significant change to the private rental sector in nearly 40 years. It fundamentally reshapes tenancy structures, landlord possession rights and the way rent is managed. At its heart, it abolishes Assured Shorthold Tenancies (ASTs), replacing them with periodic tenancies from day one.

Four headline changes underpin this new system:

• Abolition of Section 21
• A revised Section 8 process as the primary route to possession
• The removal of fixed terms in favour of periodic tenancies
• Monthly rent payments as standard

The RRA also introduces a range of practical reforms affecting tenant rights and landlord responsibilities:

• Rent increases limited to once a year and must be proposed using a Section 13 notice
• Tenants can challenge increases through the First‑tier Tribunal if they believe the rent exceeds market levels
• A ban on rental bidding preventing landlords and tenants from agreeing to more than the advertised rent
• Ban on discriminating against those on benefits or with children
• Tenants can give two months’ notice at any time
• Tenants have the right to request a pet, which landlords must not unreasonably refuse

For a full breakdown, read our guide to the Renters’ Rights Act.

In our webinar, Knight Frank experts Gary Hall (Head of Lettings), Beverley Kennard (Head of Lettings Operations) and Tom Bill (Head of UK Residential Research) discuss the market impact since the legislation came into force and share guidance for landlords. We share some key takeaways below.

Gary: Landlords had some concerns about what would happen on the 1st of May. What are we seeing on the ground?

Beverley: Unsurprisingly, 1 May passed relatively smoothly. We didn’t see many tenants serve notice, submit pet requests, or challenge how they pay their rent.

Of the notices we did receive from tenants, this occurred in less than 1% of our active Assured Periodic Tenancies. In week one we saw the highest number of notices served by tenants, but since then it has been reducing week on week.

It’s worth remembering that our average tenancy length is over 22 months, and that’s unlikely to change, especially as supply continues to be restricted across our markets. We’ve moved away from trying to understand the Act to having to operate within it.

Gary: What has the RRA done to rental values pre- and post- the 1st of May?

Tom: We fundamentally have a situation where supply is down and demand is as resilient as it has ever been - if not more so. For example, in the first four months of this year demand has been more or less in line with what we normally expect in terms of the five-year average, while instructions and supply levels have been down by around 13%. Given the fact that demand has been so much stronger than supply over recent years, we're seeing stronger rental growth than we might otherwise expect to see.

For example, in prime outer London annual rental value growth was 3% in the year to April and that's the strongest that it's been in two to three years. So it's a clear message that supply is not keeping up with demand and that's having an effect on rents.

Gary: With rents going up, how are our landlords managing that with the Section 13 process?

Beverley: We have been working with landlords on rent reviews and some landlords, almost 20% of those where rent could be increased under the RRA, have opted not to. Instead, they have asked us to delay the service of a Section 13 notice, some for as long as 12 months.

In cases where a rent increase is possible and landlords are instructing us to proceed, rent increases are being proposed to tenants with the formal notice.

It’s too soon to know how many tenants will potentially challenge a rent increase through the First-tier Tribunal, but many have entered negotiations with their landlords to agree an amount below what is listed on the notice.

If an agreement is reached that both parties agree with, this can be formalised by way of an addendum, and the tenant’s ability to challenge the rent increase goes away.

Gary: We also just launched a partnership with Guarantor Plus last month. Can you tell us how this works in practice?

Beverley: Guarantor Plus is a regulated guarantor product that helps tenants secure a home faster and gives landlords trusted protection. It allows tenants who are unable to provide a UK guarantor, or negotiate a rent period of more than one month, an alternative form of cover they can use that still provides landlords with a defined level of protection.

It’s an insurer‑backed solution designed to offer landlords protection in the event of rent default, subject to the terms of the policy. The product sits alongside existing options and does not replace standard referencing or decision-making. Landlords remain fully in control of whether they choose to accept a tenant using Guarantor Plus.

Without this option, some tenants, including students or those without UK credit history, may find it more difficult to meet standard referencing criteria and secure a property.

Gary: What does the future look like for landlords and rental property, and what advice do you have for them?

Tom: We recently revised up our rental value forecast on the back of the supply and demand imbalance, which we think will continue over the next few years. So we're anticipating low- to mid-single-digit rental value growth over the next few years.

Yields have also been pushed higher by what's happening in the sales market, which is a bit softer at the moment. So gross rental yields in prime central London, for example, are closer to 4.5% at the moment - if you go back 10 years, they're probably close to 2.5%. So your actual income is higher compared to where it was.

There are lots of good reasons why you'd want to hold property. It's a much less volatile asset class than stocks and certainly bonds at the moment. Residential property is typically an inflation hedge, and we have a big inflation hump coming down the line. So all those evergreen reasons for holding property are still there - it depends on your horizon.