A landlord’s guide to the Renters’ Rights Act 2026

From May 1, 2026, landlords face a whole new set of compliance regulations.

In our experience, most landlords play with a straight bat. The new Renters’ Rights Act will mean a few tweaks here and there.

But, no question: there are some less-scrupulous landlords who’ll face a steep learning curve. But how steep?

Here’s what we cover in this guide:

• The death of Section 21
• Transition to periodic tenancies
• Rent increases and bidding bans
• The Decent Homes Standard
• Pets in rental properties
• How buy-to-let lenders are reacting

When we think about mortgage lending criteria, we tend to fixate on the borrower. But for UK Buy-to-Let landlords, 2026 is dominated by a different kind of risk: legislative change.

The Renters’ Rights Act 2025 represents a total overhaul of the private rented sector. With the majority of changes set to trigger on May 1, 2026, the question is: are you ready?

While these reforms aim to give tenants more security, they could represent a steep learning curve for landlords. The Bill covers everything from the abolition of “no-fault” evictions to new property standards.

We’re not saying all landlords have swept their responsibilities under the carpet. Far from it. Most incorporate the good practices the Act legalises, and don’t need a Parliament Bill to uphold them.

But, no doubt, it will represent a real sea change for less scrupulous landlords. On that note, here’s everything you need to know to stay compliant and profitable in 2026.

The big shift: key changes for 2026

In recent times, it’s the landlord who’s held the aces. The new legislation aims to address this perceived imbalance of power over the last 30 years.

Here are the pillars of the new Act, which some may say are long overdue:

1. The death of Section 21

From May 1, 2026, “no-fault” evictions will be consigned to history. Landlords will no longer be able to terminate a tenancy without citing a specific reason.

And why would they? If they have a tenant who respects the property and pays on time, why uproot them without cause? Many experienced landlords have learnt that the grass isn’t always greener. So, most wouldn’t.

But, to protect tenants moving forward, landlords must use Section 8 grounds to repossess their property:

• The risk: Repossession of a rented property will now require proving valid grounds in court. These could include factors like antisocial behaviour or persistent rent arrears.
• The silver lining: The government has promised reformed grounds to make it easier for landlords to reclaim property if they genuinely need to sell or move back in.

2. Conversion to periodic tenancies

All existing Assured Shorthold Tenancies (ASTs) will automatically convert to periodic (rolling) tenancies.

Fixed-term contracts are being scrapped to give tenants more security. But there’s a secondary point worth making, here.

Up to now, the accepted notice period has been one month or four weeks, depending on your agreement. Moving forward, the notice period will be two months, as per the Renters’ Rights Bill.

This could be detrimental to tenants who need to move quickly, for a job or to buy a home. If that’s the case, tenants should put their reasons for moving quickly in writing to the landlord. Both parties can then work together for an outcome that suits both.

3. Rent increases and bidding bans

The days of “rental bidding wars” are over. As recently as 2023/24, figures suggested that 20% of properties were subject to such tactics. This is what outlawing the practice means:

• Bidding ban: Landlords and agents are now banned from inviting or accepting offers above the advertised rental price.
• Rent caps: Landlords can only increase rent once a year. Even then, they must provide at least two months’ notice and they can also only ask for a maximum of one month’s upfront payment before a tenancy agreement commences.

4. The Decent Homes Standard

For the first time, the “Decent Homes Standard” will apply to the private sector. Properties must be safe, free from serious hazards, and maintained to a “good quality” standard.

Most landlords uphold these tenets already. But it does seem that the media has demonised all landlords by emphasising those who don’t.

• The impact: Properties that don’t meet these standards may be unrentable until upgrades are made, potentially impacting rental yield.
• The downside: This could lead to many displaced tenants or properties disappearing from the market indefinitely.

Either way, we can foresee a rise in competition for rental properties in good standing.

5. Pets in let properties

Landlords can no longer “unreasonably” refuse a tenant’s request to keep a pet. Here’s an overview of this clause; the Act:

• Doesn’t explicitly list specific pet types, but covers “furry, feathery, or scaly” companions
• Tenants must request, in writing, permission to keep a pet and provide a description of the pet
• Gives landlords 28 days to respond; they can’t unreasonably withhold consent
• Allows landlords to cite reasonable rejection, e.g.:
  If the property is too small (e.g., a large dog in a small flat),
  If there are leasehold restrictions, or
  Due to health & safety concerns.
• Prevents landlords from increasing rent under a rental agreement due to a pet. But they may ask the tenant to take out insurance to cover against potential damage and/or cover the landlord’s insurance for pet-related damage.

Key dates for your diary

To avoid legal pitfalls, mark these deadlines in your 2026 calendar:

• April 30, 2026: The absolute final day you can serve a valid Section 21 notice under the old rules.
• May 1, 2026: Section 21 is abolished. All new and existing tenancies move to the new periodic rules. The ban on rental bidding and new rent increase caps begin.
• May 31, 2026: The deadline by which you must provide all existing tenants with a new “tenancy summary” explaining their rights under the Act.
• Late 2026: Expect the launch of the National Landlord Database, a mandatory registry for all landlords and their properties.
  All landlords in England will have to register themselves and their properties. The goal is to improve transparency and identity verification, and to help tenants find credible landlords and report non-compliant ones.

Market sentiment: is it time to exit or expand?

Alongside tax relief restrictions and higher interest rates, many landlords are reconsidering the viability of BTL. It’s understandable, as successive governments have hit sector profitability hard in the last decade.

The cumulative pressure of these changes has led commentators to predict a “landlord exodus.” Indeed, many smaller, “accidental” landlords are choosing to sell up rather than navigate the new compliance landscape.

However, where there is an exit, there is an opportunity.

Discounted portfolios:

Unquestionably, some landlords are leaving the market. In their stead, professional investors are finding opportunities to acquire properties at competitive prices. If you’re considering expanding, have this guide up-front and centre to highlight potential pitfalls.

Lender competition:

Despite the regulation, the BTL mortgage market remains robust. Lenders are increasingly competing for “compliant” landlords with high-quality properties that meet the Decent Homes Standard. To these landlords with a clear business plan, lenders are offering sharper rates.

Tenant demand:

The fundamental undersupply of UK housing hasn’t changed. For landlords who can provide high-quality, compliant homes, the demand remains strong. As a bonus, the potential for long-term capital growth also remains robust.

The bottom line

• Buy-to-let mortgage loan amount calculator
• Buy-to-let Stamp Duty Land Tax (SDLT) calculator
• Buy-to-let rental income calculator

You must ensure your properties meet the new standards. Your paperwork must be ready for the May 1st transition. Do those, and you can turn a year of regulation into a year of portfolio consolidation.

If you are looking to restructure your BTL finance or expand your portfolio in light of these changes, talk to us. We’ll help you find the most competitive specialist rates that maximise your return on investment.

For more information, please visit our dedicated guide to Buy-to-Let mortgages.