Renters’ Rights Act: incoming changes from 1 May

The Renters’ Rights Act (“the Act”) received Royal Assent on 27 October 2025. The Act transforms the landscape of residential lettings in the private rented sector (PRS) in England.

The Government has released a Roadmap outlining implementation dates for the Act, which is being introduced in three key phases. The first of those phases begins on 1 May and introduces the bulk of the proposed reforms.

We set out a high-level overview of some of the key changes below and how landlords can prepare.

Renters’ Rights Act phase one: May 2026

1. Abolition of fixed-term Assured Shorthold Tenancies (ASTs)

The Act abolishes fixed-term ASTs, which will automatically convert to assured periodic tenancies (APTs) from 1 May 2026. This means landlords will no longer be able to tie tenants into a fixed letting period. Instead, tenants will be able to serve two months’ notice to terminate their APT at any point.

2. Abolition of Section 21 notices

The Act removes the ability for landlords to regain possession using Section 21 ‘no-fault’ eviction notices. From 1 May 2026, no new Section 21 notices can be served. Landlords have until 31 July 2026 to issue possession proceedings based on Section 8 or Section 21 notices which were served prior to 1 May (unless the period during which proceedings must be issued in respect of the relevant notice expires sooner).

3. Section 8 notices – grounds for eviction

Landlords will only be able to use Section 8 notices to terminate APTs from 1 May and the notice must cite a ground of possession. This procedure already exists, but the Act expands and modifies the existing grounds for possession and introduces a new ground allowing landlords to regain possession where they intend to sell the property.

Some grounds of possession remain discretionary, meaning the court may refuse possession even if the ground is made out. Notice periods under Section 8 have generally increased, from between two weeks and two months to between four weeks and four months, and additional restrictions apply in certain circumstances.

The threshold for rent arrears accrued in order to obtain possession for the mandatory ground has also increased under the Act.

4. Deposits

In order to obtain possession via the Section 8 notice procedure, landlords must have complied with the deposit protection rules. This represents a significant change, as landlords are not currently required to have complied with deposit rules in order to serve a Section 8 notice.

Landlords who have failed to protect a deposit correctly may therefore find themselves unable to recover possession until the breach is remedied.

5. Rent reviews

Any contractual rent review provisions will cease to have effect from 1 May 2026. Rent increases will henceforth only be permitted once a year and must be made using the statutory Section 13 notice procedure, with a minimum of two months’ notice.

Any proposed increase must reflect market rent, and tenants will have the right to challenge the level of the increase before the First-tier Tribunal.

6. Rental bidding

From 1 May 2026, landlords and agents will be prohibited from encouraging or accepting rental bids above the advertised rent. This brings an end to rental bidding practices in the private rented sector and places a legal obligation on landlords to let properties at no more than the advertised price.

7. Rent in advance

The Act limits the amount of rent that can be required in advance. From 1 May 2026, landlords will not be able to demand more than one month’s rent upfront. However, where an existing AST contains a provision requiring more than one month’s rent in advance and that tenancy converts into an APT, the existing provision will remain enforceable.

8. Pets

The Act introduces an implied right for tenants to request permission to keep pets from 1 May 2026. Landlords will be required to consider such requests and cannot unreasonably refuse them. Strict time limits apply to how quickly landlords must respond.

9. Information Sheet and Written Statement

New information obligations will apply to landlords and their agents. For tenancies with a written agreement that convert into an APT on 1 May 2026, tenants must be provided with the government-issued Information Sheet by 31 May 2026.

For APTs granted from 1 May 2026, landlords must provide a Written Statement containing information prescribed by the applicable regulations. The government has produced the Written Statement for distribution and confirmed how it must be served on tenants.

10. Discrimination

The Act prohibits landlords from refusing to rent to tenants on the basis that they are in receipt of benefits or have children. From 1 May 2026, any discriminatory clauses in existing ASTs or APTs will cease to have effect and landlords’ letting practices will need to be reviewed to ensure compliance with the new rules.

11. Financial penalties and sanctions

Landlords and agents who breach the Act may face substantial financial penalties, ranging from £7,000 to £40,000, with the most serious offences potentially amounting to criminal conduct. The government has published Investigatory Powers Guidance to assist local housing authorities in determining whether an offence has occurred.

This guidance came into force on 27 December 2025 and underpins the Act’s expanded enforcement regime.

Phase two – from late 2026

The Act sets out provisions for a new Private Rented Sector Database (PRSD). The PRSD will be a mandatory digital database that landlords must pay an annual fee to join. Landlords are required to be ‘active’ on the database, otherwise they may struggle to obtain possession. The requirements for entry onto the database are not yet clear.

A new Private Rented Sector Ombudsman is also being introduced. The primary function of this will be to deal with tenant complaints. As with the PRSD, it’s expected landlords will be required to join the Ombudsman and pay a fee to do so.

Neither the database nor the Ombudsman are in place yet, and further details are expected later this year.

Phase three – 2035/2037

In a much longer-term feature of the Act, a new Decent Homes Standard (DHS) will be introduced across the Private Rented Sector.

The purpose of the DHS is to ensure properties meet a minimum standard. Awaab’s Law will be extended to DHS, introducing strict requirements for landlords to deal with hazards such as damp and mould in their rental properties.

We will keep you updated as further reforms are introduced under the Act. If you have a query about the Renters’ Rights Act and your obligations as a landlord, don’t hesitate to get in touch with our Real Estate Disputes team.