Renters' Rights Act: how landmark rental reforms affect you
The rental market has undergone its biggest shakeup in 40 years due to the new Renters' Rights Act. Here is how the controversial reforms affect landlords and tenants.
Running a buy-to-let portfolio may be a nice way to boost your income but landlords have plenty of responsibilities beyond just collecting rent.
New protections were introduced for tenants in May 2026 under the Renters’ Rights Act, abolishing “Section 21” no-fault evictions and unreasonable rent rises and switching rental agreements to rolling tenancies.
Under the reforms, renters have more flexibility to end tenancies when they want to. They only have to provide two months’ notice.
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Landlords, meanwhile, must give a tenant four months’ notice if they want to evict them and must have a valid reason approved by the courts.
The rules also limit advance rental payments to one month, and tenants have the right to request permission for a pet, which landlords can’t say no to without a good reason.
There are warnings that landlords may exit the rental market as a result of the extra burdens, which could push rents up and leave some tenants in an even worse position.
What is the Renters' Rights Act?
The Renters’ Rights Act introduced a range of new requirements in the hope that they will more comprehensively protect tenants in private rented homes in England.
Landlords can no longer issue a new section 21 ‘no-fault’ eviction notice and will instead have to rely on a section 8 claim, where a valid reason will need to be provided such as anti-social behaviour or serious rental arrears.
All section 21 eviction notices issued before 1 May 2026 are still valid for six months or until the tenant leaves.
All existing and new private tenancies in England have moved to the new system of Assured Periodic Tenancies, rather than typical 12-month contracts. Tenants will be able to stay in their property for as long as they want or until a landlord serves a valid section 8 notice, with a legitimate reason for eviction. Landlords will need to give four months’ notice if they want to sell the property. Tenants will be able to end their tenancy by giving two months’ notice.
Landlords won’t have to change or re-issue existing written tenancy agreements.
Landlords can now only raise rents once a year, and only to the “market rate”. Bidding wars are also banned, stopping landlords and letting agents charging above the listed rental price.
Landlords are no longer able to ban tenants on benefits or with children and will need to consider requests for a pet.
Advance rental payments are now capped at one month’s rent upfront.
Housing law expert Natalie Peacock, from solicitors Rogers and Norton, said the changes were long overdue, with both landlords and tenants having faced ongoing challenges under the current system.
She said: “For years, there have been issues across the private rental sector, with landlords feeling restricted and tenants facing insecurity, poor housing standards and difficulty challenging unfair treatment.
“The Renters’ Rights Act is designed to create a fairer and more balanced system for everyone involved.”
Phase two will focus on creating a Landlord Ombudsman.
A new private rental sector database will also go live on 15 December 2026, starting in the West Midlands before rolling out nationwide.
All landlords actively letting property must be registered by 14 November 2027.
A third phase will introduce a decent homes standard for private rental properties between 2035 and 2037 as it is subject to consultation.
How will the Renters’ Rights Act be enforced?
Councils can ensure landlords are complying with the new rules.
Landlords who seriously or repeatedly break the law will face higher fines of up to £40,000 – which is being raised from £30,000. Rent repayment orders will also be raised if the rules aren’t being followed. These will increase from one year’s worth of rent to two years. Tenants will be able to challenge offences going back to two years, rather than one year.
Landlords could also be fined up to £7,000 if they don't take practical steps to fix a "Category 1 hazard."
What happens to tenancies agreed before May 2026?
The reforms apply to all tenants from May 2026.
That means any new tenancies signed before May 2026 are automatically converted into rolling agreements. This is despite landlords still issuing 12 month agreements in some cases.
Landlords who have already issued tenancy agreements won’t need to change or reissue them.
What do landlords need to do now?
Landlords should familiarise themselves with the rules to ensure they are compliant.
If you’re currently a landlord, you should have given renters the government’s Renter’s Rights Act information sheet 2026 by 31 May, which explains the new rules.
For all new tenancies that started on or after 1 May, you must provide written information about the key terms of the tenancy – such as your name, address, rent amount and the due date, the deposit amount, repair responsibilities, and what bills the tenants must pay.
Since 1 May 2026, any increases in the rent amount will be capped at once every 12 months. You will need to give at least two months’ notice of the proposed rise, and it will need to be made formally through a Section 13 notice.
If you’re looking to rent out properties, you will need to ensure the adverts you are listing meet the new rules. They will need to publish the asking rent in any written advert and cannot accept an offer above this price. They cannot ask for more than one month’s rent upfront, and all parties must have accepted the tenancy agreement before you can accept the rent.
How could the Renters’ Rights Act affect tenants and landlords?
The Renters’ Rights Act doesn’t mean landlords can’t evict renters at all.
Research suggests the reforms could actually block access to good-quality housing for people who don’t fit the standard referencing.
Estate agency brand LRG warns that the cap on advance payments means landlords may be unwilling to take tenants who are self-employed or on lower incomes as they would currently ask for more money upfront as a form of security.
Additionally, concerns have been raised that the new legislation will force already squeezed landlords out of the market.
Chris Barry, director at property law firm Thomas Legal, said: "Landlords now have to contend with higher borrowing costs, increased taxes and, in some cases, extreme costs for building safety remediation.
“Gone are the days of landlords making a solid return on income and capital, which begs the question for many: is there a better home for their money?
“There is now a real risk we will see fewer landlords and this could lead to increased rent unless the corporates step in to supply the market, which comes with its own risks.”
Meanwhile, others have warned there are ways the new legislation could be exploited.
“Several loopholes could still test the system from landlords exaggerating rent ‘market values’ to price tenants out, to claiming they plan to sell then quietly re-letting soon after, or shifting homes into short-term lets such as Airbnb [properties] to sidestep the new rules,” Ranald Mitchell, director at Norwich-based mortgage broker Charwin Mortgages, said.
“The intentions are right as renters need stability but unless enforcement keeps pace, these reforms could tighten supply, push up rents and test the patience of both landlords and tenants alike.”
With 4.7 million households across England in the private rented sector, Ben Beadle, chief executive of the National Residential Landlords Association, said it is vital that the changes work for landlords as well as tenants.
He said success will be determined by whether landlords stay in the sector, if the minority of bad landlords are deterred and how the courts process legitimate possession claims.
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Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.
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