The Renters’ Rights Act received Royal Assent in October 2025. The first phase of changes comes into force on 1 May 2026.
If you are a private landlord in England, these changes will affect how you manage tenancies, increase rent, regain possession, maintain your property and structure your portfolio.
This guide explains what is changing and what you should be considering now.
What Is the Renters’ Rights Act?
The Renters’ Rights Act reforms the private rented sector in England. It aims to increase tenant security and improve property standards.
The legislation introduces changes in two phases, beginning May 2026.
Key Changes from May 2026
Abolition of Section 21
Section 21 “no fault” evictions will end.
Landlords must use Section 8 grounds to regain possession. These grounds expand to nearly 40 reasons, including selling the property, moving in, rent arrears, antisocial behaviour and breach of tenancy.
Fixed-Term Tenancies Will End
All Assured Shorthold Tenancies will convert to periodic tenancies.
Tenants can give two months’ notice from the start of the tenancy.
Rent Increase Rules Change
Rent increases will:
• Be limited to once per year
• Require two months’ notice
• Be served using Section 13
• Be open to challenge at Tribunal
Rent review clauses will no longer be allowed.
Rent Bidding Is Banned
Landlords cannot accept offers above the advertised rent or more than one month’s rent in advance.
Restrictions on Discrimination
Landlords cannot refuse tenants solely due to having children or receiving benefits. Affordability checks remain permitted.
Pets in Rental Properties
Landlords must reasonably consider requests for pets and cannot unreasonably refuse them once a tenancy has started.
Future Changes Under Phase Two
Further reforms expected include:
• National Landlord Database
• Private Rented Sector Ombudsman
• Decent Homes Standard
• Awaab’s Law repair timeframes
Penalties for Non-Compliance
Landlords who fail to comply may face:
• Civil penalties up to £7,000
• Fines up to £40,000 for serious breaches
• Unlimited fines in extreme cases
• Rent repayment orders of up to two years
What Should Landlords Do Now?
Consider:
• Reviewing tenancy agreements
• Auditing compliance
• Assessing rental strategy
• Stress-testing cash flow
• Reviewing mortgage and finance arrangements
Speak to FundingRound
The Renters’ Rights Act may affect funding decisions, refinancing plans and long-term property strategy.
If you would like to discuss how these changes impact your property portfolio or finance structure, contact FundingRound for a confidential conversation.
Early planning reduces risk and protects long-term returns.