ACT 2025
With the Renters’ Rights Act coming into effect on 1 May 2026, landlords across the private rented sector will need to adapt how they manage and let their properties. This guide aims to highlight some of the key changes and the steps you need to take as a landlord to remain compliant and manage your tenancies effectively.
Key Changes | From 1st May 2026
You will no longer be able to use Section 21 notices. However, this change affects very few tenancies in practice. In 2024, only 32,285 no-fault possession claims were issued across the UK, representing just 0.65% of the 5.4 million privately rented households*. This confirms that Section 21 has already been used relatively infrequently.
You will still be able to regain possession of your property using the expanded Section 8 grounds. The average timeframe for a Section 8 order is typically 3-6 months, and in some cases can be resolved within a few weeks where tenants are cooperative.
All fixed‑term AST tenancies, whether new or existing, will automatically become periodic. While this removes a set end date, it doesn’t mean tenants will move unpredictably or that you lose certainty. In fact, the latest government housing data shows that private renters spend an average of approximately 4.7 years in their current home*. This confirms that periodic tenancies are unlikely to result in frequent, unexpected moves, particularly when tenants are satisfied with their accommodation.
Tenants must provide a minimum of two months’ notice if they choose to leave, and you retain the ability to regain possession using the expanded Section 8 grounds, ensuring continued control and predictability.
Rent increases will be in line with market rents, must follow the updated Section 13 process, and require you to provide at least two months’ notice.
In 2025, London rents grew by 2%, with further growth expected in 2026*, confirming that, even with the annual limit, your rental income remains supported by the market while tenants benefit from predictable and stable arrangements.
You cannot ask tenants to offer or accept more than the advertised rent, and you may only request up to one month’s rent upfront after entering a tenancy agreement.
In markets with similar reforms, such as New South Wales, compliance with fixed-price rules exceeded 99%*, while overall rents continued to grow, demonstrating that landlords can still achieve normal market returns while tenants benefit from transparent and predictable rental terms.
The changes under the Act do not affect security deposits. All existing deposits should remain protected in current government-approved schemes, while all new tenancies should continue to follow the usual caps and must be placed in government-approved schemes within 30 days of receipt (up to £50,000 annual rent: max 5 weeks; above £50,000: max 6 weeks).
You cannot exclude applicants because they have children or receive benefits at any stage of the lettings process.
However, you can still assess affordability, check references, and select tenants based on suitability, so rental income and property standards remain protected.
You have 28 days to consider the request and respond, and you must have a valid reason to refuse, meaning you retain control over whether pets are allowed.
Evidence from UK research shows that 76% of landlords who let to pet‑owning tenants reported no pet‑related damage at all, and 73% did not observe any increased wear and tear due to pets*. These findings indicate that responsible pet‑friendly lettings can be compatible with protecting your income and property condition.
By 31 May 2026, you must provide your tenant with a soon-to-be-published, government-issued information sheet explaining the changes in detail.
What’s Coming Later
PRS Database:
You will need to register yourself and your property on a national database with key safety and property information.
Landlord Ombudsman:
A mandatory service to help you resolve tenant complaints and disputes quickly and fairly.
Decent Homes Standard:
Your property will need to meet minimum quality and safety standards.
Awaab’s Law:
You must fix serious hazards, such as damp and mould, within strict timeframes.
What You Need to Do Now
Start preparing for:
New assured tenancies (from 1 May 2026): Ensure your tenancy
agreement complies with the updated prescribed information – this will
be the official guidance from the government covering tenant rights, rent
rules, and eviction procedures which must be included in all agreements.
Existing assured shorthold tenancies: When published, serve all current
tenants with the government-issued information sheet by 31 May 2026.
Ensure rent reviews follow the newly published Section 13 process, which
can be used every 12 months and is limited to market rents.
Update your property advertising to comply with new fairness rules.
Keep existing deposits in approved schemes and ensure all new deposits
comply with statutory caps.
Check all safety certificates (Gas, EICR, EPC) are up to date.
Start preparing for PRS Database registration requirements.
Be aware that local authorities now have enhanced investigatory
powers to check for suspected non-compliance, so be prepared to
provide any information or documentation relevant to an investigation.
Non-compliance may result in enforcement action.
WHERE LANDLORDS HAVE INSTRUCTED CHESTERTONS UNDER A FULLY MANAGED SERVICE, COMPLIANCE OBLIGATIONS WILL BE ADMINISTERED ON THEIR BEHALF IN ACCORDANCE WITH CURRENT LEGISLATIVE REQUIREMENTS, PROVIDING PEACE OF MIND.
For all media enquiries, contact [email protected] The contents of this document are intended for the purpose of general information and should not be relied upon as the basis for decision taking on the part of the reader. Although every effort has been made to ensure the accuracy of the information contained within this report at the time of writing, no liability is accepted by Chesterton UK Services Ltd for any loss or damage resulting from its use. Reproduction of this report in whole or in part is not permitted without the prior written approval of Chesterton UK Services Ltd. January 2025. If you wish to discuss how the Renters’ Rights Act might affect you and how you can prepare for it, please contact [email protected]
