Renters’ Rights Act: Countdown to 1 May 2026

We now have the long-awaited confirmation that Phase 1 of the provisions of the Renters’ Rights Act 2025 (RRA) will come into force on 1 May 2026.

The provisions of the RRA will apply retrospectively and will govern both existing assured shorthold tenancies and new tenancies. Those in the sector will want to make the most of the current pre-implementation window to prepare for the new regime.

Periodic tenancies

Assured Shorthold Tenancies (ASTs) have, to date, been the default form of tenancy for residential lettings. Under the new RRA regime, all existing ASTs will automatically convert to periodic tenancies, and all new residential tenancies will take effect as periodic tenancies, which will continue until terminated. After 1 May 2026, it will no longer be possible to grant a tenancy for a fixed term, and any fixed term previously agreed between the parties will not be enforceable.

Tenants will have the ability to terminate the periodic tenancy at any time by providing the landlord with a minimum of two months’ notice. This change is designed to give tenants both the security to establish a home and the flexibility to leave if their circumstances change. However, it also reduces certainty for landlords, who will no longer be able to rely on a guaranteed rental income for a fixed period. In practice, a tenant could move in and serve notice immediately, leaving the landlord with only two months’ rent and the need to quickly find a replacement tenant.

Abolition of Section 21 evictions

Landlords will no longer be able to terminate a tenancy using the “no-fault based” Section 21 procedure. Instead, landlords will have to satisfy one of the mandatory or discretionary Section 8 statutory grounds for possession. The Section 8 grounds have been expanded to allow landlords to recover possession where they intend to sell or move into the property (subject to provisions to avoid abuse). If the relevant Section 8 grounds are disputed, court proceedings will be required, inevitably making it harder for landlords to obtain possession and leading to additional costs and delays.

Mandatory Section 8 grounds

Landlords will maintain the mandatory right to retain possession and bring a tenancy to an end in a limited number of circumstances. The most relevant mandatory grounds are noted below:

• Sale by landlord: The landlord may end a tenancy on giving the tenant at least 4 months’ notice if it intends to sell the property. This ground cannot be exercised in the first year of the tenancy.
• Occupation by landlord: The landlord may end a tenancy on giving at least 4 months’ notice if it, or a close family member, intends to move into the property. This ground cannot be exercised in the first year of the tenancy.
• Significant arrears: The landlord may end a tenancy on giving the tenant at least 4 weeks’ notice where the tenant has at least 3 months’ rent arrears at both the time of the notice and the possession hearing. This is an increase from the previous threshold of 2 months’ arrears.
• Conviction: Where the tenant has been convicted of severe anti-social behaviour, the landlord can begin possession proceedings immediately.

Discretionary Section 8 grounds

Landlords will maintain the right to retain possession and bring a tenancy to an end in a limited number of circumstances, subject to the discretion of the court. The most relevant discretionary grounds are noted below:

• Alternative accommodation: Where suitable alternative accommodation is made available, a tenant may be given 2 months’ notice to vacate.
• Arrears: Where a tenant is in arrears and / or has persistently delayed rent payments, the tenant may be given 4 weeks’ notice to vacate.
• Breach: Where a tenant is in breach of the tenancy agreement (except for payment of rent) and / or has caused the deterioration of the property, a tenant may be given 2 weeks’ notice to vacate.

Rent review

Rent review provisions (if any) in new and existing tenancies will be of no further effect under the new regime. Instead, landlords will be permitted to increase the rent once per year to the market rent. Landlords will be required to use a revised Section 13 procedure, giving the tenant two months’ notice of the increase date, during which period the tenant may challenge the increase at the First-tier Tribunal (FTT).

The FTT may decrease the rent but cannot increase it from the sum proposed in the Section 13 notice. The revised rent will be payable from the date of determination by the FTT and will not be backdated. The FTT determination date will also be the date used to calculate the 12-month period before the next section 13 notice can be served. This combination of factors is likely to lead to an increase in tenants challenging rent increases, even when broadly in line with market rates.

Advance rent payments

Landlords will not be able to require tenants to pay more than one month’s rent in advance and will only be able to require advance rent to be paid during the “permitted pre-tenancy period” (i.e. after the agreement is signed but before the start of the tenancy). Rent periods must not be longer than one month. Any payments requested or made outside of these requirements will be deemed “prohibited payments”. Where a tenant wishes to make an advance payment for a greater period, this is permitted but must not be required as a condition of the tenancy. Standard rent deposits and provisions for a guarantor remain unaffected. Note: the advance rent payment provisions will not apply to existing tenancies and landlords can continue to collect the rent in advance until the tenancy ends.

Rental discrimination

Landlords and their agents will continue to have the final say as to who a property is let to, and referencing checks may still be undertaken, but decisions must be made by reference to ability to pay the rent, rather than, for example, whether an applicant has children or is in receipt of benefits. Landlords must not discriminate against those on benefits or with children when listing properties.

Rental bidding

Landlords will not be permitted to ask prospective tenants for “best offers” when renting a property. An asking rent must be published, and landlords will not be permitted to encourage bids above this sum.

Regulation

Landlords will be required to register on a newly created private rented sector database and will be regulated by a private rented sector landlord ombudsman. Note: These provisions will be part of Phase 2 and will not come into force until later in 2026.

Decent Homes Standard

Landlords will be required to comply with the Decent Homes Standard and hazards such as damp and mould must be dealt with within a suitable timescale. Note: These provisions will be part of Phase 3 and will not come into force until 2035 or 2037.

Points to consider ahead of implementation

The combined result of the changes outlined above, is that it will be significantly harder for landlords to obtain possession of a property should a tenant wish to stay in occupation. Contractual terms in existing tenancies such as rent review, agreed fixed terms and provisions prohibiting pets will be unenforceable and will instead be replaced with the statutory provisions outlined above.

Landlords with existing ASTs in place have a final opportunity, before 1 May 2026, to review current tenancy agreements. Where a tenant is frequently in rent arrears or is undesirable (for any other reason), landlords may elect to make use of the Section 21 no fault eviction process now (where possible) rather than find themselves stuck with an undesirable tenant under the new regime.

Landlords entering into new tenancy agreements should be mindful of the forthcoming changes. As we move closer to 1 May 2026, we are likely to see changes in template documents to reflect the end of the new regime, including prescribed information to tenants. It remains more important than ever to ensure that appropriate references and tenant checks are undertaken before entering what may be a long-term landlord and tenant relationship.