The Renters' Rights Act: Essential changes for tenants and landlords
This article was originally published in the April 2026 issue of The Intermediary.
Speculation around the Renters’ Rights Act, which is coming into effect from 1 May 2026, has been circulating for some time. While the changes included in the bill are the largest the Private Rented Sector (PRS) will have experienced for over 30 years, we are confident this marks a positive shift in the market for tenants and landlords alike.[1]
Two of the most highly anticipated and biggest changes to the way in which rental properties can be managed in England is the abolishment of section 21 (no fault) evictions as well as changes to tenancy contracts. While, historically, tenancies have run on a fixed-term basis, the new rules mean that they will now move to a periodic model, with tenants able to give two months’ notice ahead of leaving the contract and landlords being required to give the same amount of notice should they seek to regain possession of the property for a valid reason. While this is a positive step forward to avoid tenants being held in properties that are not up to standard or following life changes which may require them to leave their current home, it is important to note that there are still protections in place for landlords too. The Renters’ Rights Act has clarified and expanded grounds for possession to support the end of no fault evictions, with more information on this and the notice periods required available for further reading on the Government website.
Changes to how rent increases in the PRS can be implemented is also a major focus of the act. Under the new law, these will be allowed annually and only to the market rate, which is defined as the price that would be achieved if the property was newly advertised to let. Two months’ notice must be given to tenants prior to the increase taking effect. Additionally, the act of rental bidding and discriminating against tenants with children, pets or who are on benefits have been made illegal. On the surface, these are changes which could cause concern to landlords who want, and are entitled to, see a positive return on their investment property. However, with rental yields across England and Wales continuing to rise to 7.15% in Q3 of 2025, those remaining within, and those entering the market, continue to benefit from strong average rental yields.[2]
For many renters, another positive introduction is the Decent Homes Standard (DHS), a set of requirements which is completely new to the PRS and will ensure that homes are safe and of a decent quality to live in. For most landlords who are already providing high quality properties, this part of the act will have no impact at all. Instead, it is simply an exercise in setting out more formal requirements and ensuring that local councils have the adequate powers required to enforce these.
As an extension of this, Awaabs Law, which came into force for social housing in October 2025, will also now cover privately rented properties. This law requires landlords to address hazards such as damp and mould within a specified time period and will once again ensure a positive and healthy living environment is available to all tenants across England.
In terms of monitoring and enforcing these changes within the sector, the Government will introduce a new Private Rented Sector Landlord Ombudsman with the aim to resolve issues and disputes in a quick and efficient manner which is, ultimately, to the benefit of tenants and landlords. The Ombudsman will offer fair and impartial support to tenants as well as provide guidance to landlords to help them work through complaints as they arise. In addition, a new Private Rented Sector Database is to be set up to allow landlords easy access to all the information they need about their responsibilities and requirements and to give local councils a central place to access data, making the process more streamlined and efficient.
While we haven’t covered all changes coming into law through the Renters’ Rights Act, these are the ones that have been most anticipated by the market and likely to have the most direct impact on tenants and landlords. It is important to remember that the overarching mission of the act is to provide renters with greater security and stability, two things which can greatly benefit landlords as well. While the act is transformative, landlords who are already taking good care of their rental properties have nothing to worry about or any reason to overhaul the way in which they manage their portfolios. Ultimately, the Renters’ Rights Act is simply ensuring that all landlords are at the same level and that all tenants are able to feel happy, healthy and at home wherever they choose to live.
Whilst the above summarises our view of the essential changes, landlords are encouraged to seek legal advice about their personal circumstances and how the changes affect them.
[1] BBC News, Renters’ Rights Act: Here’s what is means for you
[2] UK Finance, Buy-to-Let lending: Quarterly insight into Buy-to-Let lending, and trends in lending of borrowers accessing the market