The Renters’ Rights Act is one of the biggest overhauls of the private rented sector in a generation.
The reforms have been several years in the making. They were first set out in the government’s June 2022 White Paper, A Fairer Private Rented Sector, published while Michael Gove was Secretary of State for Levelling Up, Housing and Communities. The original Renters (Reform) Bill was introduced under the previous government, before Labour brought forward the Renters’ Rights Bill, which has now become law following consultation, delays and revisions.
The legislation is intended to rebalance the rental market, giving tenants greater security while retaining defined legal grounds for landlords to recover possession.
In its final form, the legislation introduces open-ended tenancies, changes to possession rules and new requirements on rent setting and tenant rights.
Here is a guide to its key points.
Section 21 scrapped as eviction rules tighten
Section 21 “no-fault” evictions have been abolished. Landlords must now rely on defined legal grounds to regain possession.
The main grounds include: a landlord or close family member moving in, selling the property, carrying out major works, rent arrears, breach of tenancy, anti-social behaviour, damage to the property or false information provided by the tenant.
Each ground has its own notice period and evidence requirements. Landlords must first serve a notice setting out their reasons for possession.
If the tenant does not leave when the notice period ends, the landlord must apply to the court for a possession order.
If the court grants possession and the tenant still does not leave, the landlord must then apply for enforcement by bailiffs.
Landlords using the moving-in or selling grounds cannot use those grounds in the first 12 months of a tenancy and are subject to a 12-month restriction on marketing or reletting the property after regaining possession using those grounds.
Tenancies become periodic — with two months’ tenant notice
Assured shorthold tenancies no longer continue in their previous form. From 1 May 2026, they convert into periodic assured tenancies, meaning tenancies no longer have a fixed end date.
Tenants can end a tenancy by giving a minimum of two months’ notice.
Landlords must rely on a valid legal ground if they wish to regain possession of a property.
Student lettings and the end of fixed terms
The application of the new rules in the student sector depends on the type of accommodation.
For private rented student properties within the assured tenancy system, including shared houses and many HMOs, the new tenancy system applies. Tenancies become periodic rather than fixed-term, meaning tenants are no longer tied to an academic-year contract and can leave by giving two months’ notice.
A student-specific possession ground has been introduced to allow some landlords to recover properties in line with the academic cycle. This applies where an HMO is let to full-time students and is required for a new group of students between 1 June and 30 September.
However, this route is not available in all cases. Smaller student properties — such as one- or two-bedroom flats — may not qualify, and where they do not, landlords must rely on the same possession grounds as the wider private rented sector.
This means that, in some parts of the market, landlords may not be able to guarantee vacant possession at the end of the academic year.
University halls of residence and qualifying purpose-built student accommodation are treated differently and are generally outside the assured tenancy system, allowing them to continue using fixed-term occupancy agreements.
Existing tenancies transition to the new system
The changes apply to both new and existing tenancies. Assured shorthold tenancies no longer continue in their previous form.
From 1 May 2026, they convert into periodic assured tenancies under the new rules.
Possession proceedings already underway before 1 May 2026 can continue under the previous rules. Any new possession action after that date must follow the new process, regardless of when the tenancy began.
Existing tenancy agreements still apply where terms are consistent with the new legislation, but any clauses that conflict with the Act are no longer enforceable.
Landlords or managing agents must provide existing tenants with the prescribed government Information Sheet by 31 May 2026.
Other transitional points for existing tenancies
Rent review clauses cannot be used where they conflict with the new rules. Rent increases must follow the statutory process.
Deposit rules are unchanged. Other tenancy terms remain valid unless they conflict with the new legislation.
Existing guarantor agreements remain in force where valid.
Rent increases limited and process formalised
Rent increases are limited to once per year and cannot be made in the first year of a tenancy.
Landlords must follow the statutory process and give at least two months’ notice.
Tenants can challenge increases if they believe the proposed rent is above market level.
Upfront rent capped and bidding wars banned
Landlords cannot ask for, encourage or accept rent before a tenancy agreement has been signed.
After signing, landlords can request rent in advance, limited to a single rental period.
Properties must be advertised at a fixed rent. Landlords and agents cannot invite or accept offers above the advertised amount.
New compliance requirements introduced
Landlords must provide tenants with written information setting out their rights and the terms of the tenancy.
For existing tenancies, the prescribed government Information Sheet must be provided by 31 May 2026.
Further measures, including a private rented sector database and a new ombudsman scheme, are due to be introduced in later phases of the reforms.
Tenant rights expanded
Blanket bans on tenants with children or those receiving benefits are not permitted.
Tenants have the right to request a pet. Landlords must consider requests reasonably and provide a reason if they refuse.
Fines and enforcement
The Act introduces stronger enforcement powers for local authorities, including civil penalties for non-compliance.
Financial penalties can reach up to £7,000 for initial breaches, including failure to comply with key requirements such as providing the prescribed government Information Sheet.
For more serious or repeated breaches — including unlawful eviction or misuse of possession grounds — penalties can rise to up to £40,000, alongside the potential for prosecution or further enforcement action.
Local authorities also have wider powers to investigate and take enforcement action against landlords who do not comply with the new rules.
What it means for the rental sector
The Act is expected to speed up the professionalisation of the private rented sector.
Landlords operating on a more informal basis — often described as accidental or hobbyist landlords — are more likely to exit as compliance requirements increase.
Those who remain are more likely to rely on letting agents and professional management to meet legal obligations and manage tenancies under the new framework.
If, as seems likely, supply tightens as some landlords exit, this could place upward pressure on rents and support yields for those landlords who remain.
Further information and official guidance
UK Government – Guide to the Renters’ Rights Act
https://www.gov.uk/government/publications/guide-to-the-renters-rights-act
UK Government – Renters’ Rights Act overview
https://www.gov.uk/guidance/renters-rights-act-overview-for-tenants
UK Government – Grounds for possession (landlords and agents)
https://www.gov.uk/government/publications/grounds-for-possession-guidance-for-landlords-and-letting-agents
UK Government – Notices of possession after 1 May 2026
https://www.gov.uk/guidance/notices-of-possession-served-after-1-may-2026-a-guide-for-tenants-who-are-renting-from-a-private-landlord
UK Government – Assured tenancy forms (from 1 May 2026)
https://www.gov.uk/guidance/assured-tenancy-forms-for-privately-rented-properties-from-1-may-2026
National Residential Landlords Association – Renters’ Rights Act guidance
https://www.nrla.org.uk/resources/renters-rights
Propertymark – Renters’ Rights Act guidance
https://www.propertymark.co.uk/policy/rental-reform.html
