What the Renters’ Rights Act Means for Landlords & Renters in England

On 1 May 2026, one of the most significant overhauls of the private rented sector in decades takes effect. The Renters’ Rights Act 2025 is designed to rebalance the relationship between landlords and tenants — giving renters greater security and transparency, while setting clearer rules for landlords to follow. It’s a landmark shift with wide-ranging implications for how tenancies operate in England.

Rethinking Tenancies — Goodbye to Section 21 and Fixed Terms

For many renters, the idea that you could be asked to leave without a reason has felt unsettling. Under the Act, Section 21 “no-fault” evictions are abolished. Landlords will no longer be able to simply serve a notice to regain possession — they must now rely on specific, statutory grounds under Section 8.

Example:
If a landlord previously wanted to sell a property and issue a Section 21 notice to empty it, they will now need to demonstrate a genuine intention to sell and cannot use this ground within the first 12 months of a tenancy.

All fixed-term ASTs (Assured Shorthold Tenancy) become rolling periodic tenancies, giving tenants more flexibility and security.

Example:
A tenant with a one-year fixed-term tenancy starting in June 2026 will automatically move onto a rolling monthly tenancy at the end of the fixed term. They can give two months’ notice to leave, and the landlord can only regain possession if a valid Section 8 ground applies.

New Possession Grounds — But With Constraints

Landlords can regain possession for reasons like:

• Selling the property
• Landlord or close family occupation
• Persistent, serious rent arrears
• Anti-social behaviour

Example:
A landlord wants to move their elderly mother into a property. They must provide evidence of a genuine need for occupation, give proper notice, and cannot evict a tenant during the first 12 months.

These rules protect tenants from abrupt evictions but require landlords to plan carefully.

Rent, Bidding and Affordability – More Predictable & Fair Rent Rules

The Act introduces clearer rules for rent increases and payment expectations:

• Rent can only increase once per year via a formal Section 13 notice.
• Bidding above the advertised rent is banned.
• Rent in advance is capped at one month for new tenancies.

Example:
Previously, a Birmingham flat could be let at £1,200 pcm advertised, and landlords could accept “offers over £1,300 pcm.” From May 2026, they must offer £1,200 pcm as the maximum.

Tenants can challenge excessive increases at the tribunal. Landlords will need market benchmarking to stay compliant.

Stronger Fairness Rules — Discrimination & Pets

• Discrimination based on benefits or having children is illegal.
• Tenants can request a pet, and landlords must respond reasonably.

Example:
A family on Universal Credit cannot be refused a property simply because of benefits. A tenant requesting a cat must be considered; a blanket “no pets” policy is no longer enforceable.

What Happens After May 2026? Enforcement & Standards

From late 2026, the Act introduces:

• A national Private Rented Sector Database with compliance info (EPCs, gas safety, electrical checks).
• A Landlord Ombudsman to resolve disputes without court action.

Example:
A landlord failing to register a property’s gas safety certificate could be investigated via the ombudsman and face fines or restrictions.

These changes increase accountability but also raise the bar for professional landlord management.

Practical Implications

For tenants, the Act delivers security and fairness. For landlords, it requires careful planning:

• Longer exit timelines and evidence-based repossession processes
• Moving from fixed-term certainty to periodic stability
• More requests regarding pets and discrimination claims
• Greater administrative and compliance duties

Example:
An accidental landlord (someone who became a landlord unexpectedly, e.g., after inheriting a property) with a Buy-to-Let in Manchester may face slower tenant turnover and longer sale timelines.

Planning Your Next Move in Property?

Whether you’re a landlord seeking advice, planning to remortgage or expand your portfolio, or a renter ready to get on the property ladder, Impact Specialist Finance can provide expert guidance tailored to you. Contact Impact today.