The new Renters’ Rights Act – What it means for landlords in 2026.
2026 is going to be an important year for landlords as the first phase of the Renter’s Rights Act – the first major change in landlord and tenant legislation in thirty years – comes into effect on 1st May. There are effectively three phases to the Act, with the third – a decent homes standard – not expected to come into force until 2035-7! General tenancy reform is the first and the most important phase, so this article will set out a brief summary of those changes.
Tenancy agreements under the new Renter’s Rights Act
- From 1st May 2026, all Assured Shorthold Tenancies (AST) will automatically become an Assured Periodic Tenancy (APT), with AST being abolished going forward.
- There will no longer be any fixed term tenancies (ie. no end date) with the APT continuing from (rental) period to (rental) period until it is terminated, either by the landlord, the tenant, or the court.
- The (rental) periods under an APT can be weekly, fortnightly, four-weekly or monthly; the period cannot be longer than a month so quarterly or annual rental periods will no longer be allowed.
- Prior to entering into an APT, a landlord will be obliged to provide a Tenancy Statement. At the time of writing this article (January 2026), specific details of what is required in a statement have not been released, but it is hoped that the regulations confirming what is to be included will be published shortly along with a standard form.
- For AST transitioning into an APT, a Tenancy Statement will not be required but “written information” will need to be provided. It is expected that this will be similar to the How To Rent Guide that is currently used and will be released closer to May.
- It will be an offence if the relevant statement is not served and at the moment, the onus is on landlords to serve the statement, as opposed to a Letting Agent.
Discrimination & Rent
- A landlord will not be able to refuse to rent property to a tenant on the basis that they are in receipt of benefits, or have children.
- A landlord can still refuse pets being allowed in the premises but a tenant can make a written request to the landlord for a pet. Consent cannot be unreasonably refused.
- “Rent bidding” is effectively limited in that you can no longer encourage potential tenants to offer a higher rent than that advertised. This carries a £7,000 maximum penalty if breached.
- Only one month’s rent can be requested in advance.
- Rent can be increased but only once every 12 months and on giving two months notice of such an increase. The notice must be in writing (reserving the right in the APT will not be sufficient) albeit the form has yet to be drafted.
- You will not be able to charge an admin fee for setting up the tenancy.
Possession
- If a s21 Notice is served before 1st May 2026, there will be transitional provisions to allow the landlord to continue to rely on that Notice, although court proceedings will need to be issued before 31st July 2026. The transitional provisions have not been released as yet.
- After 1st May 2026, the only way for a landlord to obtain possession is to prove “grounds” and serve a s8 Notice.
- There are now 37 potential grounds for possession. These are still split between mandatory and discretionary grounds. Given how many there are, landlords are urged to review them.
Grounds for possession under the new Renter’s Rights Act
The main grounds for possession include:
- Ground 1 – landlord (or a relative) wants to move in, or Ground 1A – landlord wishes to sell the property: Under the previous legislation the landlord had to advise the tenant in advance that they wanted to use this ground. That is abolished. The landlord can provide four months written notice, albeit the notice cannot expire in the first 12 months of the APT. However, landlords be warned – this is not a backdoor entrance to obtaining repossession if no other grounds fit the situation. If the property is re-let within 12 months of any order, the landlord can be prosecuted and faces a £40,000 fine.
- Ground 7 – possession after a tenant dies: This is more limited than previously where somebody was living with the tenant as their main home prior to the tenant’s death. The APT will now devolve to that person and the landlord will not be able to seek possession of the property from that individual on the grounds they were not a named tenant.
- Ground 7A – anti social behaviour: If the tenant is convicted of or breaches an ASBO, then this is a mandatory ground for repossession; no notice period required.
- Ground 8 – rent arrears: There now needs to be three months (or 13 weeks) of rent arrears before a Ground 8 Notice can be served, with the notice period increasing from two weeks to four weeks. Further, any rent arrears arising from non-payment of Universal Credit will be ignored for determining the rent arrears level
- Ground 10 & 11 – rent arrears: The notice period will increase from 2 weeks to 4 weeks.
Overview of the new Renter’s Rights Act
Although we know the general principles of how the new Renter’s Rights Act will work with regards private rented accommodation, there is still much regulation that needs to be drafted, as well as preparation of all the various forms that will be needed. As this information is released, we will get a better idea of how the system will work in practice.
The main concern is that with s21 being abolished, all repossession will need to be dealt with via a court hearing. This is going to put additional pressure on the already struggling court system. This provision is expected to be reviewed however.
What has also become apparent is that there are many more offences that can be committed by a landlord, with the prospect of fines ranging from £7,000 (eg. serving incorrect notices, failing to serve a Tenancy Statement) to £40,000 (eg. reletting or advertising property within 12 months of Ground 1 or 1A repossession), so great care will need to be taken.
Whilst the expression “may you live in interesting times” may or may not be a Chinese curse, it certainly looks like the next few months is going to be one of those moments.
Contact us for a free consultation
We offer a free consultation service for landlords. Contact us by phone or email and one of our experienced team will be happy to guide you on your best options.
