The Renters’ Rights Act comes into force today, marking a significant reset in how the private rented sector operates.
It changes how tenancies are structured, how rent is set and reviewed, and how possession is regained.
While the legislation has been widely debated - and prompted some landlords to exit the market over concerns about reduced control - it comes into force at a time when demand for rental property remains strong and available supply remains constrained.
Chestertons’ latest data shows that as some buyers delay purchases amid geopolitical uncertainty and higher borrowing costs, demand has shifted into the rental sector.
Viewings are up 4.1% year-on-year and offers have risen 15% month-on-month during spring, increasing competition for available properties.
The Origins of The Renters’ Rights Act
To understand the scale of change, it’s worth looking at the legislation in historical context.
The modern rental market was shaped by the introduction of Assured Shorthold Tenancies under the Housing Act 1988, which brought in fixed-term contracts and Section 21. This gave landlords greater flexibility over how and when they regain possession and helped to stimulate investment in the private rented sector after a long period of decline.
Prior to this, the sector had been shaped by decades of rent controls and heavy regulation, which limited landlords’ ability to manage their properties and contributed to a contraction in supply.
Over time, however, the balance began to shift. As the private rented sector grew - and more tenants relied on it for longer-term housing - concerns increased around security of tenure and the use of Section 21 ‘no-fault’ evictions. The ability to end a tenancy without a defined reason became a central point of political and public debate, particularly in higher-demand areas.
The Renters’ Rights Act is the government’s response to those concerns. Its aim is to create a more stable, long-term rental market, where tenants have greater security and clearer protections, while maintaining a functioning supply of rental homes.
From today, fixed-term tenancies roll into periodic tenancies, and possession must be based on defined legal grounds. For landlords, this marks a shift away from fixed timelines and towards more continuous, structured management - but within a market where demand remains strong and the long-term fundamentals are still firmly in place.
A New Framework for Tenancies
With the legislation now in force, the way landlords operate and manage their properties shifts in several important ways:
All tenancies move to a periodic basis, removing fixed end dates and requiring a more proactive, hands-on approach to management. Regular reviews, clear communication and forward planning become essential, rather than relying on renewal points to prompt decisions.
Section 21 is abolished, meaning possession must now be based on clearly defined legal grounds. This places greater emphasis on compliance, accurate record-keeping and following the correct process throughout the tenancy.
Rent increases are limited to once per year and must follow a formal statutory process. As a result, getting the initial pricing right is more critical, with less flexibility to respond to short-term market changes once a tenancy is in place.
Bidding above the advertised rent and large upfront payments are no longer permitted. Competition between tenants still exists, but it plays out through speed, quality of application and suitability, rather than price, reinforcing the importance of launching at the correct level from the outset.
Tenants have the right to request a pet, which landlords must consider reasonably. While this introduces a more flexible approach to tenancy decisions, it also requires a more considered assessment of risk, with measures such as pet insurance helping to provide reassurance.
Taken together, these changes shift the lettings process away from a transaction-based model towards a more continuous, relationship-led approach.
For landlords, success will increasingly depend on strong management fundamentals, from pricing and presentation through to communication, compliance and tenant selection.
More Competition Between Tenants
While the legislation is largely aimed at strengthening tenants’ rights, in practice it is also creating a more competitive application environment.
In some areas, applicants are effectively competing to secure a property, presenting detailed applications or ‘tenancy CVs’.
At Chestertons, our approach is different. We manage the process carefully, ensuring landlords are matched with the right tenant for their property - not just any tenant - through a clear and professional application process.
For landlords who are well-prepared, responsive and managing their properties professionally, this shift presents an opportunity rather than a risk.
Katinka Hill, Senior Regional Director of Lettings at Chestertons, explains:
“With the Renters’ Rights Act 2026 now in force, the priority for landlords is ensuring their tenancies are well managed, with the right tenant in place and clear communication throughout.
“With a large London-wide network and strong local expertise, we are able to connect landlords with a wide pool of high-quality applicants and support them through this transition period.
“From a market perspective, demand across London continues to outstrip supply, so well-positioned, well-managed properties continue to let quickly and perform strongly regardless of tenancy structure.”