Rental reform under the Renters’ Rights Act came into force on 1 May 2026. For landlords, it represents a significant change, so if you already have a property portfolio or are considering purchasing buy-to-let properties, it’s important to be aware of the reforms.
The policy reforms are lengthy and cover a lot of areas, with further additions expected in the next few years. Here are five key changes to be aware of when managing your properties.
Please note that the Renters’ Rights Act does not fully apply to properties in Scotland, Wales, or Northern Ireland, as property and tenancy laws are devolved powers.
1. Fixed-term tenancies are abolished
Under the Renters’ Rights Act, most fixed-term tenancies have been abolished. Instead, all agreements will automatically default to rolling tenancies, and tenants will need to provide two months’ notice.
This change aims to provide renters with greater flexibility as they won’t be locked into longer agreements. It also removes the need to renew tenancy agreements and the associated fees and paperwork.
For landlords, the move away from fixed-term tenancies could be both positive and negative.
On the one hand, it will reduce administrative tasks as agreements won’t need to be renewed, and it might lead to longer-term tenancies. However, you’ll also lose the certainty that a tenant will pay rent for a defined period that was set out in a renewed agreement.
2. End of “no-fault” evictions
Section 21 evictions, also known as “no-fault evictions”, have also been abolished. As a landlord, this means you cannot evict a tenant without providing a valid, legal reason for doing so.
To evict a tenant, you must use a Section 8 notice and provide specific reasons for possession. Valid reasons might include selling the property, antisocial behaviour, or rent arrears. A key challenge with this reform is that disputed possession will require court proceedings, which could lead to lengthy delays. As you might need evidence to support your decisions, it’s a good idea to keep accurate records.
3. You must use a Section 13 notice to increase rent
The reforms mean a Section 13 notice is now the only legal way to increase rent.
The notice must be given to the tenant at least two months before the new rent is applied. You can also only increase rent once every 12 months, and any rent review clauses in your agreement are no longer valid.
In addition, there is a process that allows tenants to challenge the increase through a tribunal if they believe it is unfair. This change could have a direct effect on your profits and how you manage cashflow.
4. Renters who have pets benefit from more robust rights
In the past, you may have refused to rent to somebody because they had pets, but you can no longer do this. You’ll need reasonable grounds to refuse a tenancy involving a pet, such as the property not having the outdoor space required for the pet or it potentially impacting other residents in nearby homes.
5. You must publish the asking rent price
To end bidding wars, the reform has made it a legal requirement to publish the asking rent price, and you cannot accept offers made over this rate. This might change how you’ve previously approached adding a property to the market and managing rent payments.
Talk to us about your mortgage
The reforms might place pressure on your margins. If you have a buy-to-let mortgage, we may be able to help you secure a more competitive deal to reduce your outgoings and provide greater flexibility. Please get in touch to talk to us about your needs.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Most buy-to-let mortgages and commercial mortgages are not regulated by the Financial Conduct Authority.
| YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE. |
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