top of page
Search

Reformed Renters' Rights Act coming into effect

  • Writer: Michael Hill
    Michael Hill
  • Jan 14
  • 2 min read

Landlords need to prepare for the changes coming next year from the Renters Rights Act, which recently received Royal Assent. While detailed guidance is yet to be published, the first phase of reforms will be introduced from 1 May 2026.(1)


There are several provisions which those engaged in property letting will need to take into account in their dealings with tenants.


Tenancies

All existing assured shorthold tenancies will automatically convert to the new tenancy system. All new tenancies signed on or after 1 May 2026 will follow the new rules. To summarise:

  • Landlords will not need to change or re-issue existing written tenancy agreements but will instead only have to provide tenants with a copy of the government’s information sheet.(1)

  • Landlords will no longer be able to remove tenants on a no-fault basis, although an eviction notice served before 1 May 2026 will remain valid.(2)


Under a periodic tenancy, tenants can stay in the rented property for as long as they want and will be able to end the tenancy by giving two months’ notice.(2)


In future, landlords may wish to take out rent guarantee insurance to cover the risk of a tenant defaulting. The average rent lost when a tenant is evicted is estimated at more than £12,000 outside of London, rising to over £19,000 for a London property. (3)


Rent

Only one rent increase will be permitted a year, with tenants notified at least two months in advance:

  • Tenants will be able to challenge rent increases where they consider the rent to be higher than the open market rate.

  • A term in a tenancy agreement that automatically raises the rent will no longer be effective from 1 May 2026.4


Given the changes, landlords may prefer to increase rent annually, rather than trying to catch up after several years with no increase.


Discrimination

Landlords and letting agents will not be allowed to discourage a potential tenant who has children or receives benefits from renting a property.

For example, landlords will have to consider requests to keep a pet:

  • A valid reason must be provided if the tenant’s request is refused, such as the property is too small for a large pet or several pets.

  • Landlords will not be allowed to ask for pet insurance to cover property damage, so landlords might want to pay for this themselves and uplift rent accordingly.(5)


The government’s roadmap for reforming the private rented sector can be found here.


Redstone Financial Planning is not responsible for the accuracy or content of third-party sources.


Sources

(1) https://www.landlordtoday.co.uk/breaking-news/2025/11/landlords-angry-at-renters-rights-act-implementation-decision/

(2) https://www.gov.uk/government/publications/guide-to-the-renters-rights-act/guide-to-the-renters-rights-act

(3) https://www.landlordtoday.co.uk/breaking-news/2025/10/court-crisis-costs-landlords-up-to-19000-each-time-as-delays-worsen/

(4) https://www.gov.uk/guidance/renting-out-your-property-guidance-for-landlords-and-letting-agents/rent-increases



 
 
 

Comments

© 2022 by Redstone Financial Planning. Redstone Financial Planning Ltd is an Appointed Representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority, the registration number is 223112. Registered office: Broadlands Business Campus, Langhurst Wood Road, Horsham, West Sussex, RH12 4QP. Registered in England and Wales No 04490633.. Redstone Financial Planning Ltd is a company registered in England (number 14078505) and is entered on the FCA register (https://register.fca.org.uk) under reference 978870. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. You can visit the Financial Services Compensation Scheme website at the following link www.fscs.org.uk (Redstone Financial Planning is not responsible for the accuracy of the information contained within any linked sites)

bottom of page