Renters Rights Act

What Landlords Need to Know for Phase 1 from the 1st May 2026

 

1. Can I still gain possession?
   2. What happens to fixed terms?
   3. Can I still increase rent?
   4. What if I want to sell?
   5. Do I have to accept pets?

The Renters’ Rights Act will come into force on 1st May 2026, bringing significant changes to the private rental sector in England. The reforms are substantial — but landlords will still have rights. The key difference is that processes will now require specific legal grounds, proper documentation with clear audit trails. Here’s some of the information you may need to know.

Fixed-Term Tenancies are ending.

From 1 May 2026, Assured Shorthold Tenancies (ASTs) will be abolished. All tenancies will instead become Assured Periodic Tenancies, meaning they will operate as rolling agreements rather than fixed-term contracts.

 

• New Tenancies: For any new tenancies created after this date, tenants will be able to serve two months’ notice at any time. There will no longer be fixed contractual terms such as 6 or 12 months, and notice periods will be standardised under the new framework.

 

While some landlords are concerned about higher turnover, in practice most tenants seek stability and are unlikely to move frequently due to cost and inconvenience.

 

• Existing Tenancies: From 1st May 2026, all existing fixed-term Assured Shorthold Tenancies (ASTs) will automatically convert into periodic tenancies. There will be no need to sign a new agreement, as tenancies will continue under the new statutory framework.

 

Tenants will be required to give two months’ notice should they wish to leave. Landlords and agents will also need to provide tenants with the new government information sheet, which is expected to be released this month.

 

• Is There a 12-Month Commitment? : A common point of confusion relates to a supposed 12-month commitment. Landlords cannot use certain possession grounds, such as moving back into the property or selling it, within the first 12 months of a tenancy. However, tenants are not locked into a 12-month agreement. They can still provide two months’ notice at any stage. The 12-month restriction only applies to specific landlord grounds for possession and does not affect a tenant’s ability to give notice.

 

Section 21 is Ending

Section 21 “no-fault” evictions will end. The final date a Section 21 notice can be served is 30 April 2026. Any notices served before this date will remain valid if served correctly. From 1 May 2026 onwards, landlords will only be able to seek possession using legal grounds. 

 

This means landlords will need to show a specific legal reason, such as rent arrears, antisocial behaviour, selling the property, or moving into it themselves.

 

Key Possession Grounds

• If a landlord intends to move back into the property (Ground 1), a minimum of four months’ notice must be given. This ground cannot be used within the first 12 months of a tenancy. If relied upon, the property cannot be re-let for 12 months if the landlord or their family member does not move in.

 

• If the landlord intends to sell the property (Ground 1A), a minimum of four months’ notice is also required and it cannot be used within the first 12 months of the tenancy. If the property is not genuinely marketed for sale after possession is obtained, it cannot be re-let for 12 months. Landlords must retain evidence to demonstrate genuine intention if this ground is challenged.

 

Rent Arrears

If a tenant reaches three months of rent arrears, landlords may serve notice with four weeks’ notice and apply to the court for possession under Grounds 8, 10, or 11.

 

At Merriebank we offer Rent and Legal Protection to protect your income and safeguard your property investment. Contact us today to find out the terms and conditions today.

 

Rent Increases

Landlords will still be able to increase rent, but only once every 12 months. Two months’ notice must be provided and the increase must be issued using a Section 13 Notice.

 

Tenants will have the right to challenge a proposed rent increase at the First-tier Tribunal if they believe it exceeds the market rate. If a challenge is made, the rent increase cannot take effect until the tribunal determines the correct market rent. We will continue to advise on evidence-based, market-aligned increases to minimise the risk of challenge.

Rent in Advance

The Act also limits how rent can be requested at the start of a tenancy. Upfront rent demands, such as requesting six months’ rent in advance, will no longer be permissible in the way they have sometimes been used historically. The intention behind this change is to prevent discrimination and financial barriers.

 

We will continue to fully reference tenants and can offer Rent and Legal Protection Insurance (subject to terms), as well as rent guarantor options for additional security.

 

Rental Bidding Wars Banned

Rental bidding wars will be banned. Landlords and agents must advertise a fixed rent and cannot accept higher offers. This means the advertised price, is the rental amount for the first 12 months. 

 

Pets

Tenants will have the right to request permission to keep a pet. Landlords cannot unreasonably refuse such requests and must respond within four weeks. This can be extended by one additional week if further information is required.

 

Landlords may refuse a request where there is a legitimate reason, such as restrictions within a superior lease or the Landlord has an allergy. Blanket “no pets” clauses within tenancies will no longer automatically apply.

 

Phase Two (Likely Late 2026)

• Private Rented Sector Landlord Database
• Private Landlord Ombudsman (mandatory membership)

 

Later Reforms:

• A Decent Homes Standard for Private Rentals 

 

Should Landlords be Concerned?

While the reforms introduce greater regulation and more formalised processes, they do not remove landlord rights. Landlords can still regain possession using valid grounds, increase rent annually, protect themselves against arrears, and decline pets where there is genuine justification.

 

The key difference is that justification and proper documentation now matter more than ever. As professional managing agents, this is where we add value by ensuring compliance, protection, and strategic advice.

 

If you have any questions about how these changes may affect your property, or about additional precautions we can put in place, such as Rent Protection, please do not hesitate to get in touch. We are here to help.

 

For further information about the grounds for issuing notice, you can visit the UK Government guidance: