December 18, 2025

What Landlords Need to Know Ahead of the Renters Rights Act

The Renters Rights Act is now officially law and it’s set to reshape the private rented sector in one of the biggest shake-ups we’ve seen in years. With changes taking effect from 1 May 2026, both landlords and renters will experience a very different framework for renting, managing property and handling disputes.

If you’re a broker, landlord or property professional, here’s a clear look at what’s changing, when it’s happening, and how landlords are feeling about the reforms. You can also download our fact sheet guide here for the full details.

The move away from ASTs

One of the biggest headlines is the end of Assured Shorthold Tenancies (ASTs). From 1 May 2026, landlords in England won’t be able to create new Assured Shorthold Tenancies.

Instead, the vast majority of new and existing tenancies will become rolling Assured Periodic Tenancies, giving tenants more long-term flexibility and effectively removing fixed terms from the system in most cases.

For landlords, this marks a major shift in how tenancy cycles and renewals will work.

Goodbye Section 21

Section 21 “no-fault” evictions will no longer be available for notices served after 1 May 2026. Any notices served before this date will remain valid as long as court proceedings begin by 31 July 2026.

After this transition period, landlords will need to rely on strengthened possession grounds such as intending to sell, moving in, serious rent arrears or anti-social behaviour.

In our landlord survey earlier this year, many landlords highlighted concerns about losing Section 21 and questioned whether the court system is ready for the increased pressure:

“Ability to easily expel bad tenants is vital to maintaining a healthy rental market.”

What tenants gain under the new framework

Several new tenant protections also arrive in May 2026, including:

    • Rent can only be increased once per year
    • Only one month’s rent can be taken upfront
    • No rental bidding wars
    • No discrimination against tenants with children or receiving benefits
    • Landlords cannot unreasonably refuse pets

Tenants will also have the right to challenge rent increases they believe are being used to force them out.

This comes at a time when 84.9% of landlords, according to our survey, said they planned to raise rents within the next 12 months.

Enforcement: more powers and bigger penalties

Local authorities will take responsibility for enforcing the new rules and will receive £18 million in additional funding. They’ll also have enhanced investigatory powers, including the ability to enter properties, demand information and seize documents.

Fines will range from:

    • Up to £7,000 for standard breaches
    • Up to £40,000 for serious or repeated offences

Rent repayment orders will also be expanded to cover more scenarios.

What’s coming next? A phased rollout

The Renters Rights Act will be introduced in several stages, with further reforms coming throughout 2026 and beyond.

Later in 2026

    • A new Private Landlord Ombudsman to settle disputes outside court
    • A PRS Database, requiring landlords to register themselves and their properties

From 2027 onwards

    • A new Decent Homes Standard for private rentals
    • Possible extension of Awaab’s Law
    • Updates to the housing health and safety rating system
    • A proposed EPC C requirement for all PRS properties by 2030 (unless exempt)

These stages reflect the Government’s broader ambition to professionalise and standardise the PRS over the coming years.

What landlords are saying

The reforms land at a time when landlords are already adjusting to rising costs, evolving tenant demand and economic pressure. But our landlord survey earlier this year shows a surprisingly resilient market.

According to the findings:

    • 69.7% of landlords plan to hold onto their properties rather than sell
    • 43.7% intend to buy more properties in the next 12 months — a significant jump from the end of 2023

However, concerns around possession rights and the balance of the reforms remain top of mind:

“All the changes sound great, but most will not work in practice for landlords trying to manage their businesses fairly.”

Final thoughts

The Renters Rights Act marks a substantial shift in how the PRS will operate, and the transition will require landlords to adapt how they manage properties, plan ahead and engage with tenants. For brokers, the reforms may prompt more conversations around cashflow, remortgaging, portfolio structuring and long-term strategy.

We’ll continue to follow the rollout closely and support brokers. In the meantime, please reach out to your local BDM if you have any questions.

About Landbay

 

Landbay is a specialist buy-to-let lender providing technology-led mortgage solutions for professional landlords. Working closely with commercial finance brokers, Landbay offers efficient underwriting, clear criteria and a streamlined digital journey to support complex and portfolio cases across the private rented sector.

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