The Renters’ Rights Act, passed by the U.K. government on 27 October 2025, is coming into effect on 1 May 2026. This new act gives tenants more rights and imposes stricter leasing regulations on landlords.
So, what’s changing and how does it affect you as a landlord? Here’s everything you need to know about the act and how you can minimise its impact on your rental operations.
What is the Renters’ Rights Act?
The Renters’ Rights Act is a set of incoming legislation that will transform the experience of private renting in the U.K. The act will transform every aspect of the leasing and renting process for both landlords and tenants.
Here’s what will change on May 1, 2026:
- Fixed-term tenancies will be replaced by month-to-month “rolling” tenancies called “Assured Periodic Tenancies”.
- Section 21, the “no-fault” eviction notice, will be abolished and Section 8 will become the sole legal process through which landlords may seek to end a tenancy early.
- Landlords will be legally required to publish a fixed asking rent for their property and may not accept bids above that amount.
- Landlords may not evict tenants during the first 12 months of occupancy.
- Landlords may not discriminate against tenants because they receive benefits or have children.
How Does the Renters’ Rights Act Affect Landlords?
The Renters’ Rights Act aims to more stringently regulate property letting in the U.K. These restrictions are designed to protect tenants against discrimination, unfair rental bidding and unexpected evictions. Let’s take a closer look at how the act’s legislation will affect you from 1 May 2026.
Rental Pricing
As a landlord, you and your agent will have to publish a fixed asking rental price for your property. You may not encourage bidding wars or accept an offer higher than the amount you advertised.
Tenant Selection and Management
You may not reject tenants on the grounds that they receive benefits or have children. However, you and/or your agent may still do reference and affordability checks before choosing a tenant.
Landlords also cannot “unreasonably” refuse tenants who want a pet in the property. If tenants ask to live with a pet, you’ll have to consider their request fairly. But, you may ask the tenant to take out pet insurance to cover any potential damage to your property.
Rental Payments
You can only ask for one month’s rent upfront from a tenant to secure the tenancy. Legally, you can’t ask for more than this from 1 May 2026. This can be 28 days if the tenancy is less than a month.
If you want to increase your rent, you can only increase it once a year for your tenants.
Rental Agreements
All rental agreements between you and your tenant will be on a monthly basis. The contract will continue until either your tenant serves notice or you meet one of the grounds for regaining possession of the property, according to Section 8.
If you don’t have an existing written tenancy agreement, ensure you create one that both you and your tenant sign. If you have a pre-existing written agreement, no need to create a new one. Just provide tenants with a government-produced information sheet that explains how the reforms have affected the tenancy.
Your tenants may give two months’ notice to terminate the contract, in line with rent payment dates.
Eviction/Repossession of Property
As a landlord, you’re no longer allowed to move back into or sell your property during the first 12 months of your tenant’s occupancy, unless you’re able to sell to another landlord who takes over the existing tenancy.
You also can’t serve Section 21 “no-fault” eviction notices anymore. Instead, you must use a Section 8 notice on one of the following grounds:
- You and/or your family want to move back into the property. If you decide to move back in after a one year tenancy finishes, you may serve a Section 8 notice using the moving-in ground (Ground 1). You may not remarket or relet the property for 12 months after using moving-in grounds for eviction. You will need to give tenants four months’ notice before applying for a possession order to evict your tenant.
- You want to sell your property. If your circumstances change and you want to sell your property after a one year tenancy, you may serve a Section 8 notice. Note that you may not remarket or relet the property for 12 months after using selling grounds for eviction. Shared owners are exempt from this restriction when they use the selling ground (Ground 1A) if they can demonstrate they have made a genuine attempt to sell their property.
- Rental arrears. The threshold for eviction will be increased from two months to three months’ arrears and the mandatory notice period will increase from two weeks to four weeks’ notice if your tenant pays rent monthly. If rent is paid weekly or fortnightly, the threshold is 13 weeks, and you will need to give four weeks’ notice. You can also still use discretionary rent arrears grounds (Ground 11) to serve notice, for example, if rent is repeatedly paid late. You will need to give tenants four weeks’ notice before you can go to the court for a possession order.
- Antisocial behavior from the tenant.
When Will the Act Go Live?
The first phase of the Renters’ Rights Act will roll out on 1 May 2026. Phase one focuses exclusively on tenancy reform, including:
- Transition from fixed to periodic tenancies.
- Bans on rental bidding and upfront rental payments.
- Greater restrictions on evictions and property repossession.
- Bans on tenant discrimination.
Phase two of the act will roll out in late 2026 and consists of:
- PRS Landlord Ombudsman – an independent service designed to help landlords and tenants resolve any issues or disputes.
- A new PRS database – all landlords will need to register themselves and their properties on the database.
The third and final phase does not have an expected implementation date as it’s still in the consultation phase, but it includes:
- A new Decent Homes Standard for the private rented sector (PRS). This includes a new Housing Health and Safety Rating System (HSSRS) to assess property risks and ensure they are safe and decent.
- Awaab’s Law. This will introduce new measures and strict requirements for landlords to address health and safety hazards within a designated timeframe.
Frequently Asked Questions
Can I Raise the Rent as a Landlord?
Yes, you can raise your rent as a landlord under the Renters’ Rights Act, but you may only do it once a year. To do this, you’ll need to serve the tenant a Section 13 notice. You will need to give two months’ notice, and the proposed increase must be in line with the market rate.
If the tenant believes the increase is above the market rate, they may dispute it by applying to the First Tier Tribunal. If they accept it, they will start paying the new rental rate after the current one has been paid for a year.
How Do I Regain Possession of My Property?
If you want to regain possession of your property under the Renters’ Rights Act, you’ll need to serve a Section 8 notice to your tenant. Grounds for repossession of the property include:
- wanting to sell the property. You cannot market or let your property for 12 months after serving notice based on selling grounds. If you’re in a shared ownership and can demonstrate that you genuinely attempted to sell the property, you’re exempt.
- Wanting to move back into the property. You cannot market or let your property for 12 months after serving notice based on moving-in grounds.
- Rental arrears. The eviction threshold is now three months’ arrears for monthly payments and 13 weeks for weekly or fortnightly payments. The notice period is now four weeks under the new act.
- Antisocial behaviour from the tenant.
Keep in mind that you can’t move back in or sell your property during a tenant’s first 12 months unless you sell to another landlord willing to take over the tenancy.
Is There a Way to Avoid the Renters’ Rights Act as a Landlord?
As a landlord in the U.K., there is no way to avoid the legislation of the Renters’ Rights Act. It applies to all landlords and tenants. Non-compliance will be fined, with fines reaching up to £40,000 for repeat offences.
If you offer long-term leasing in the U.K., the Renters’ Rights Act will impact your ability to rent your property on your terms and at your preferred rate.
If you’re looking for an alternative renting solution that bypasses the restrictions and regulations of the Renters’ Rights Act, consider using a mixed or “hybrid” renting solution.
The Hybrid Rental Model: The Alternative Solution for Flexible Letting
The Renters’ Rights Act applies to long-term lets. By using a hybrid renting solution that consists of a mixture of mid-term and short-term renting, you retain control over who stays at your property and for how long.
You can adjust your rental periods based on your needs and capitalise on seasonal demand to earn higher rental income. Mid-term and short-term rentals also allow you to remain flexible with your rental calendar, changing when and as you need.
Nestify’s hybrid rental management services take the hassle and complexity out of rental management. Our dynamic pricing models maximise your rental income while our dedicated property management team handles everything, from listing creation and management to guest vetting and check-in. Simplify your property management with Nestify’s expert hybrid rental management services.