RegulationJanuary 23, 20268 min read

The Renters' Rights Act 2026: What Every Landlord Must Know Before May

RealYield Team

Property Analyst

The countdown is on: just weeks remain before the most significant rental reform in decades

On 1st May 2026, the Renters' Rights Act comes into force. This legislation fundamentally changes the relationship between landlords and tenants in England, abolishing no-fault evictions and introducing new requirements that every landlord must understand.

Whether you manage one property or a portfolio, preparation now is essential. Here's everything you need to know.

What is the Renters' Rights Act?

The Renters' Rights Act represents the biggest change to private renting since the Housing Act 1988. It delivers on the government's promise to create a fairer private rented sector while maintaining the ability of landlords to manage their properties.

The key principle: landlords can no longer evict tenants without providing a valid reason.

This ends the era of Section 21 "no-fault" evictions and creates a system where tenants have greater security while landlords retain routes to possession for legitimate purposes.

The headline changes

Abolition of Section 21

The most significant change. From 1st May 2026, landlords cannot serve Section 21 notices. Any notices served before this date must have expired before the Act takes effect to be valid.

What this means in practice:

  • No more evicting tenants at the end of a fixed term without reason
  • All evictions must now use Section 8 with specified grounds
  • Retaliatory evictions become impossible (at least on paper)

New and expanded Section 8 grounds

To balance the loss of Section 21, Section 8 possession grounds have been strengthened and expanded:

New grounds include:

  • Selling the property: Landlords can seek possession if they intend to sell. Must have owned for at least 12 months first.
  • Moving in family: Landlords can recover property for themselves or close family members to live in.
  • Redevelopment: Major works requiring vacant possession.

Enhanced grounds:

  • Rent arrears grounds have clearer thresholds
  • Anti-social behaviour grounds are strengthened
  • Repeated rent arrears (three occasions in three years) create mandatory grounds

Important: Notice periods have changed

Most Section 8 grounds now require two or four months' notice depending on the ground. Check the specific requirements for each ground before serving notice.

Periodic tenancies become the norm

Fixed-term tenancies will still exist but convert to rolling periodic tenancies after the initial term ends. More significantly:

  • Tenants can leave with two months' notice at any time during a periodic tenancy
  • No break clause is needed
  • Landlords cannot prevent this

This changes the dynamic significantly. Tenants who previously felt locked in can now leave more easily, potentially increasing turnover for some landlords.

Rent increase restrictions

Rent reviews are now more tightly controlled:

  • Maximum one increase per year
  • Must use the formal Section 13 process
  • At least two months' notice required
  • Tenants can challenge at the First-tier Tribunal
  • Tribunal can set rent at market rate (no higher than requested, no lower than current)

In practice, this means landlords should:

  • Time rent reviews carefully
  • Research comparable rents before proposing increases
  • Be prepared to evidence market rates if challenged

What landlords must do before May 2026

1. Review all tenancy documentation

Ensure your tenancy agreements are up to date and compliant. Key points to check:

  • Remove any clauses that conflict with new legislation
  • Ensure the agreement doesn't rely on Section 21 for routine matters
  • Check that prescribed information requirements are met
  • Verify deposit protection is correctly registered

Consider having a solicitor review your standard tenancy agreement.

2. Ensure compliance essentials are in order

Non-compliance can block eviction and attract fines. Verify:

  • Gas Safety Certificate: Valid and provided to tenant within 28 days
  • EPC rating: Minimum E grade, certificate provided to tenant
  • Deposit protection: Protected within 30 days, prescribed information served
  • How to Rent guide: Current version provided at tenancy start
  • Electrical Installation Condition Report (EICR): Valid report in place

3. Document everything

In a world where every eviction requires evidence:

  • Keep detailed records of all tenant communication
  • Document property condition at check-in and check-out
  • Record any breaches or issues promptly
  • Maintain evidence of rent payment history

4. Understand your options

If you're considering changes to your portfolio, now is the time:

  • Properties you've been meaning to sell—start the process
  • Tenants you have concerns about—address issues now
  • Properties requiring major works—plan the timing

After May, your options become more limited.

The Private Rented Sector Database and Ombudsman

Two additional requirements are coming:

Property Portal Registration

All rental properties must be registered on a new government database. This will:

  • Create a public register of landlords and properties
  • Enable local authorities to monitor compliance
  • Likely require annual updates and fees

The portal is expected to launch in 2026, with mandatory registration phased in.

Mandatory Ombudsman Membership

Landlords must join a government-approved ombudsman scheme. This provides:

  • Free dispute resolution for tenants
  • Binding decisions on complaints
  • Potential compensation awards

Membership fees are expected, though amounts are not yet confirmed.

Penalties for non-compliance

The new regime comes with significant enforcement powers:

Offence Maximum Fine
First breach £7,000
Repeat offence £40,000
Serious breach £40,000
Banning order violation Criminal offence

Local authorities have new powers to investigate and impose civil penalties without court proceedings.

Impact on investment strategy

The Renters' Rights Act doesn't make property investment unviable, but it changes the calculation:

Tenant selection becomes more important. With eviction harder, thorough referencing is essential. Consider:

  • Professional referencing services
  • Employer and previous landlord checks
  • Credit checks and affordability assessment

Void costs may increase. If eviction takes longer when needed, extended voids become more likely. Build larger contingency budgets.

Professional management may make more sense. Managing compliance, documentation, and legal procedures is more complex. The value of professional lettings agents increases.

Focus on desirable properties. Properties that attract good tenants and encourage long stays become more valuable. Investment in property condition and tenant experience pays dividends.

The positive perspective

Not all changes are negative for landlords:

  • Longer tenancies may reduce turnover costs
  • Better tenants may stay longer when they feel secure
  • Reduced competition as some amateur landlords exit
  • Clearer rules provide certainty once understood

Professional landlords who run their portfolios properly have less to fear. The legislation primarily affects those who relied on easy eviction as a management tool.

Action checklist before May 2026

Your pre-May 2026 to-do list:

  • ☐ Review and update all tenancy agreements
  • ☐ Verify all compliance documents are valid and served
  • ☐ Register for Property Portal when available
  • ☐ Join approved Ombudsman scheme when required
  • ☐ Set up robust documentation systems
  • ☐ Review tenant referencing procedures
  • ☐ Consider any portfolio changes before the deadline
  • ☐ Brief any co-landlords or family members
  • ☐ Consult a solicitor if you have complex situations

Final thoughts

The Renters' Rights Act represents a genuine shift in power between landlords and tenants. Adapting requires effort, but the fundamentals of property investment remain sound.

Landlords who:

  • Maintain compliant, well-documented tenancies
  • Select tenants carefully
  • Communicate professionally
  • Keep properties in good condition

...will continue to operate successfully under the new regime.

Those who relied on the threat of easy eviction may find the transition harder. The solution is not to exit the market, but to raise standards and operate more professionally.

The deadline is approaching. Preparation now prevents problems later.

Stress test your portfolio against changing market conditions and ensure your investments remain profitable.

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Frequently Asked Questions

When does the Renters' Rights Act come into force?

The Renters' Rights Act takes effect on 1st May 2026. From this date, all new and existing tenancies will be subject to the new rules, including the abolition of Section 21 evictions.

Can I still evict tenants after Section 21 is abolished?

Yes, but only using Section 8 grounds with a valid reason. New grounds include selling the property, moving family in, or tenant breach. You cannot evict without providing a legally valid reason.

What happens to my existing fixed-term tenancy?

Fixed-term tenancies will convert to rolling periodic tenancies after the initial term. Tenants can give two months' notice at any time to leave.

How much can I increase rent under the new rules?

Rent increases are limited to once per year using the Section 13 process. Tenants can challenge excessive increases at the First-tier Tribunal. Market rate increases are still permitted but must follow the formal procedure.

What are the penalties for non-compliance?

Local authorities can impose fines of up to £7,000 for initial breaches and up to £40,000 for repeat or serious offences. Banning orders can prevent landlords from letting properties entirely.

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