Renters' Rights Act: are you ready for the landmark rental reforms?
The rental market is undergoing its biggest shakeup in 40 years due to the new Renters' Rights Act. Here is how the controversial reforms could affect you.
Jessica Sheldon
New rental rights for tenants have now gone live, adding extra responsibilities and rules to follow for landlords.
The Renters’ Rights Act, which passed through Parliament in November 2025, is enacted from today (1 May), abolishing “Section 21” no-fault evictions and unreasonable rent rises and switching rental agreements to rolling tenancies.
Under the reforms, renters will also get new rights to end tenancies with two months’ notice.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The new rules limit advance rental payments to one month, and tenants will get the right to request permission for a pet, which landlords can’t say no to without a good reason.
Landlords must also give current tenants a government information sheet on the changes by the end of May or risk a £7,000 fine.
William Reeve, chief executive of lettings platform Goodlord, said this is the “starting gun being fired in a new era”.
He said: “This is the most significant shake-up the lettings industry has seen in nearly 40 years. Despite months of preparation, uncertainty still looms over how these changes will play out in practice.”
Research by Goodlord shows more than 4 in 5 landlords are concerned about the legislation’s impact.
Reeve added: “As the regulatory rubber hits the road, letting agents have a critical role to play on the front line – guiding landlords and tenants through unfamiliar territory and helping them avoid costly missteps.
Here is what you need to know about the Renters’ Rights Act.
What is the Renters' Rights Act and when will changes be introduced?
The Renters’ Rights Act introduces a range of new requirements in the hope that they will more comprehensively protect tenants in private rented homes in England. The first phase of reforms have now taken effect as of 1 May 2026.
It goes further than the previous Tory government's Renters' Reform Bill, which had said it would delay scrapping Section 21 notices.
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 antisocial 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.
As of now, all existing and new private tenancies in England will move 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. Landlords will require a legitimate reason for eviction such as persistent rent arrears or anti-social behaviour, and 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. Instead, they must provide a copy of a government-produced information sheet, explaining the changes. There is a penalty of up to £7,000 if landlords fail to supply the sheet through email or physically.
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 will be capped at one month’s rent upfront.
Housing law expert Natalie Peacock, from solicitors Rogers and Norton, said the changes are 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 and a new private rental sector database, which is expected in late 2026.
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 have been given new powers to ensure landlords are complying with the new rules.
All 317 local authorities in England will get a share of £60 million in total (comprising £41.12 million in funding announced in April 2026 and an initial £18.2 million allocated to councils in autumn 2025) to help cover the cost of the new enforcement powers.
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" from summer 2026.
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. But they will have to give tenants a copy of the government’s new tenancy rules by 31 May 2026.
This means that from May, all tenants will be protected by new eviction and rent rules.
Transitional arrangements mean that if a private landlord had already served their tenant with a valid section 21 eviction notice before 1 May 2026, they must begin court possession proceedings on or before 31 July 2026.
What do landlords need to do now?
Landlords should familiarise themselves with the rules now to ensure they are compliant.
If you’re currently a landlord, you’ll need to share some paperwork with tenants, either via email or as a hard copy. Where there is an existing tenancy agreement in writing, you must give renters the government’s Renter’s Rights Act information sheet 2026 by 31 May. The document is available on gov.uk and explains how the new rules will affect their tenancy.
For all new tenancies starting 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. This information must be given when a new tenancy is created on or after 1 May, before the tenancy is agreed. Verbal tenancy agreements must be formalised by providing a written record by 31 May.
Since 1 May, 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.
Landlords who rent to students should also seek guidance on exemptions and transitional arrangements. Student landlords have until 31 May to formally write to tenants to end the tenancy using Ground 4A of the Renters’ Rights Act. Then, from 1 May 2026 to 30 July 2026, the student landlord can give two months’ notice to end the tenancy using Ground 4A. This is a temporary arrangement. After 30 July 2026, student landlords will need to give at least four months’ notice.
How could the Renters’ Rights Act affect tenants and landlords?
The introduction of the new Act follows warnings from Tory peers and landlords that the reforms were rushed and could drive landlords out of the market, pushing rents up further.
There are also reports that some landlords are trying to evict tenants before the changes come in, while Reform has pledged to abolish the Act if it comes into power.
Tenants also need to be aware that the Act doesn’t mean landlords can’t evict renters at all.
Peacock added: “It simply ensures there must be a valid reason, rather than leaving renters living under constant threat of eviction.”
Rental reform campaigners have, perhaps unsurprisingly, welcomed the new rules as they give tenants extra protections and more security.
However, 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 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.
Beadle added: “On all three tests, the jury is very firmly out. We will be monitoring developments closely to assess whether the Act is working as intended in practice.”
