Renters’ Rights Act 2025: What’s Changing From May 2026
The Renters’ Rights Act was passed on 27 October 2025 and it’s going to change quite a lot about how renting works. Even though it’s now law, most of the important parts won’t actually start until 1 May 2026. That gives landlords and tenants a bit of time to get their heads around what’s coming.
The idea behind the new rules is pretty straightforward. Tenants are meant to feel more secure in their homes, and landlords are given clearer guidance about what’s expected of them. Overall, it’s about improving standards and making the rental market feel fairer for everyone involved.
The Act brings in several practical shifts to how properties are let and managed — from the abolition of Section 21 no‑fault notices to new rules on periodic tenancies and tighter tenant protections. These changes will affect everyday decisions about rent, notice periods and how tenancies are run, so now is a sensible time to review your options.
If you are a landlord weighing your next move, consider whether a different lettings model might suit your portfolio. Many landlords are exploring short‑term or professionally managed Airbnb-style lettings to diversify income, reduce exposure to long-term possession procedures and benefit from active pricing. Speak to one of our Airbnb portfolio specialists for a no-obligation chat about whether converting one or more properties could be a better fit for your goals.
What Is the Renters' Rights Act 2025?
The Renters’ Rights Act 2025 is basically a big shake-up of how renting works in England. It’s been brought in to give tenants more security, while also setting out clearer rules for landlords. Because of that, a lot of landlords and letting agents will need to rethink how they run their rentals.
In simple terms, the government wants renting to feel more stable and fair.
One of the biggest changes is that landlords won’t be able to use “no-fault” evictions anymore. This means they can’t just ask someone to leave without giving a proper reason. A lot of fixed-term tenancies will also move over to rolling agreements, so tenants aren’t constantly worrying about short contracts ending.
Rent increases are being tightened up too, with landlords usually only allowed to raise rent once a year. Tenants will also find it easier to keep pets, unless there’s a genuine reason to refuse.
The law also tackles unfair treatment, making it harder for landlords to refuse tenants just because they have children or receive benefits.
On top of that, there will be a national database for landlords and properties, as well as a mandatory ombudsman to deal with disputes. Property standards are going up too. Private rented homes will have to meet the Decent Homes Standard, which means landlords will be expected to keep properties in better condition overall. If serious problems appear, such as damp, mould or safety issues, they’ll need to be dealt with quickly rather than being left to drag on.
The main idea behind all of this is simple: tenants should feel safer and more secure in their homes, and landlords should have a much clearer idea of what’s expected of them.
For landlords, these changes mean a different balance of responsibilities and risks. For some, it will make the traditional long‑let model harder to run; for others, it will professionalise the market. One practical response many landlords are exploring is converting suitable properties to short‑term, professionally managed Airbnb-style lets — a model that can offer more frequent rent reviews, active pricing and hands‑on management to handle compliance and guest turnover.
Considering Your Options as a Landlord?
With these renters’ rights and regulatory changes approaching, it’s a good moment to review whether long-term letting still meets your objectives. Book a free portfolio review, and we’ll show, property by property, whether a short‑term or professionally managed approach could improve net income and reduce exposure to tenancy notice processes.
When Does the Renters’ Rights Act Come Into Force?
The Act will be implemented in phases, with the most significant changes scheduled for 1 May 2026. Understanding the timeline will help landlords decide whether to adapt existing tenancies, upgrade compliance, sell or explore short‑term letting.
Date Milestone:
27 October 2025: Royal Assent – The Act becomes law but is not yet in force.
27 December 2025: New local council enforcement measures and investigatory powers come into force.
January 2026: Publication of wording for tenancy agreements
March 2026: Publication of information sheets for existing tenants
30 April 2026: Last day to serve a Section 21 notice
1 May 2026 Phase 1 implementation: Section 21 abolished, fixed-term ASTs converted to periodic tenancies, new rent increase rules
31 May 2026: Deadline for providing information to existing tenants about changes
31 July 2026: Final deadline for court applications under Section 2
Late 2026: The Private Rented Sector database goes live (phased regional rollout).
2027: Reforms introduced to the social rented sector
2028: Mandatory sign-up to PRS Landlord Ombudsman
Watch the government's official overview of the Renters' Rights Act changes coming in 2026.
hat this timeline means for a landlord thinking about Airbnb-style letting: you have time to act. Before May 2026, run a quick checklist for each property: compliance paperwork and safety certificates up to date, an assessment of local short‑let demand, and basic works to meet the Decent Homes Standard where necessary. If converting to short‑term, plan for cleaning, guest management and listing setup — our team can prepare a bespoke conversion plan within two weeks.
The Abolition of Section 21 – Ending No-Fault Evictions
The cornerstone of the Renters’ Rights Act is the abolition of Section 21 evictions, commonly called ‘no‑fault’ evictions. From 1 May 2026 landlords will no longer be able to rely on Section 21 notices to regain possession without establishing a legal ground. That change alters how landlords plan exits and manage tenancies.
Key points about the Section 21 ban:
No Section 21 notices can be served after 30 April 2026.
Any Section 21 notices served before this date remain valid but should be progressed promptly—the window for court action is limited.
After 31 July 2026, Section 21 notices will no longer be a route to possession regardless of when they were served.
Landlords must instead rely on Section 8 and its specified legal grounds for possession.
This is a material shift in the balance between landlords and tenants. It increases security for tenants but requires landlords to be meticulous about record-keeping and evidence if they need to recover a property.
If the removal of Section 21 makes you uneasy about holding properties as long‑lets, consider that professionally managed short‑term or Airbnb‑style lets are an alternative business model. Short‑term management reduces reliance on long‑term possession routes because occupancy is negotiated per booking, and property managers handle guest vetting, rapid turnarounds and compliance on your behalf.
New and Modified Mandatory Grounds:
- Ground 1: Landlord requires the property as a principal home (4 months’ notice)
- Ground 1A: Landlord wishes to sell the property (4 months’ notice)
- Ground 1B: Mortgage lender repossessing (2 months’ notice)
- Ground 4A: Student lettings (usable only between June and September)
- Ground 8: Serious rent arrears (now requiring 3 months’ arrears, up from 2 months)
Key Discretionary Grounds:
- Ground 12: Breach of tenancy obligations
- Ground 13: Property deterioration due to tenant actions
- Ground 14: Anti‑social behaviour
- Ground 14ZA: Domestic abuse
- Ground 17: Tenant provided false information
Important considerations for landlords using Section 8:
- Certain grounds (for example, 1, 1A and 4A) require landlords to have provided advance notice to tenants that they may rely on those grounds — check the precise procedural steps before acting.
- Notice periods under the new framework are typically longer than under the former system.
- Courts will examine evidence closely, so keep thorough documentation (rent accounts, dated communications, photographs and contractor invoices).
- Some grounds carry restrictions on re‑letting the property for a period after possession is granted.
Using Section 8 is likely to be more time‑consuming and potentially costlier than the previous Section 21 route. A practical checklist for readiness if you anticipate needing Section 8:
- Maintain an up‑to‑date rent ledger showing arrears by date
- Keep dated records of breaches and any remedial steps taken
- Photograph property condition and save contractor or inspection reports
- Retain written correspondence (emails, letters, messages) to show attempts to resolve issues
Example: a landlord who sought possession for serious arrears supplied three months of rent statements, a dated rent demand, photos of piled rubbish causing health hazards and two contractor reports; that package of evidence made the Section 8 case materially stronger. If you prefer to avoid possession processes altogether, ask us about an Airbnb feasibility review — converting a suitable property to short‑term lets can remove the need to rely on long‑term eviction routes and transfer day‑to‑day tenant interactions to a professional manager.
All Tenancies Become Periodic – What This Means
One of the most practical consequences of the Renters’ Rights Act is the effective end of fixed-term assured shorthold tenancies (ASTs) as the dominant default. From 1 May 2026, many existing fixed-term agreements will convert to periodic assured tenancies, and new lets will often be granted on a periodic basis. That change affects how landlords plan occupancy, rents and exits.
What periodic tenancies mean for landlords:
- Existing fixed-term ASTs are set to convert into periodic assured tenancies in many cases.
- New tenancies will commonly be granted as periodic assured tenancies rather than fixed‑term agreements.
- Tenants can normally end a periodic tenancy by giving two months’ notice.
- Landlords will generally need to rely on specific Section 8 grounds to end tenancies.
- Rent is most frequently charged monthly, with payments due on a recurring date each month.
Periodic tenancies give tenants greater flexibility, but for landlords they reduce certainty over tenancy length and can increase void risk and re‑letting costs. Where previously a landlord might have planned around a fixed term ending, that option is less reliable under this new approach.
For landlords who value predictability, converting certain properties to short‑term or professionally managed assured shorthold-style Airbnb lets can be an effective alternative. Short‑term management allows dynamic pricing and frequent reviews of rent, and professional operators take on guest screening, turnover logistics and much of the compliance burden — effectively swapping tenancy administration for operational management.
Concerned About Managing Periodic Tenancies?
If you’re worried about the impact of periodic tenancies on your rental business, our property specialists can help you evaluate whether keeping the property as a long‑let, converting to short‑term/Airbnb, or selling makes the most sense financially and operationally.
New Rules for Rent Increases
The Renters’ Rights Act introduces clearer limits on how and when landlords can increase rent. These measures aim to give tenants predictability while preserving landlords’ ability to keep rents in line with the market — but they also add administrative steps that owners must follow.
Key changes to rent increases:
- Landlords may only increase rent once per year.
- All increases must be notified using a Section 13-style notice process.
- Tenants must be given at least two months’ notice of any proposed rise.
- Contractual rent review clauses in older tenancy agreements may become unenforceable.
- Tenants can challenge increases they believe exceed local market rent at the First‑Tier Tribunal.
How much can a landlord increase rent in 2025/2026?
There is no fixed statutory cap on percentage increases; the increase should reflect the market rent for comparable properties. If a tenant disputes the proposed rise, the Tribunal will consider evidence from both sides and can set a lower rent if appropriate. Importantly, the Tribunal cannot increase the landlord’s proposed figure — and proposed increases generally only take effect after any dispute is resolved.
Challenging rent increases — practical steps
Tenants have a 28‑day window (from receipt of the notice) to apply to the First‑Tier Tribunal to contest a Section 13 notice. The Tribunal looks at comparable market rents, so landlords should be ready to present contemporaneous evidence.
How to document market rent (practical checklist): collect 3–5 recent comparables from your area with dates, record advertised rents and letting terms, save screenshots or printouts, and retain evidence of any recent improvements that justify higher rent.
For landlords who value dynamic pricing and more frequent opportunities to respond to market moves, professionally managed short‑term or Airbnb-style letting is an alternative. Short‑term management uses daily pricing algorithms and seasonal adjustments rather than annual rent increases, while a management team handles pricing, bookings and the paperwork — reducing the administrative burden and the need to use formal rent increase notices.
Example timeline for a Section 13-style increase (illustrative): prepare comparables and a rent calculation (day 0), serve two months’ notice (day 1), tenant has 28 days to challenge once notice received, Tribunal decision follows if challenged — increases typically don’t take effect until the notice period has elapsed and any tribunal process concluded.
Free Rent Strategy Review
Want to compare net returns from a regulated annual rent increase versus converting to short‑term/Airbnb? Book a free rent strategy review — we’ll show the likely net income, typical void risk and the admin time saved by professional management.
What Are the New Rules for Landlords in 2025/2026?
Alongside changes to tenancies and possession routes, the Renters’ Rights Act places a heavier compliance and reporting burden on landlords. Several measures are being introduced in phases from May 2026 onwards. For many owners this will mean additional admin, higher upfront costs and closer scrutiny from local authorities – but there are also pragmatic responses that can reduce operational risk.
Private Rented Sector Database
A new mandatory registration system is planned from late 2026. Expected features include:
- All landlords registering themselves and each property
- Recording compliance information such as gas and electrical safety certificates
- Restrictions on marketing or letting properties without an active entry
- Limited access to possession orders where registration is incomplete, except in serious criminal or anti‑social cases
- Regional, phased rollout
- Mandatory Ombudsman Scheme
From 2028 landlords will be required to join a landlord ombudsman scheme to give tenants an accessible route for disputes. The scheme is intended to:
- Resolve complaints outside the courts
- Provide independent adjudication and the power to require remedial action or compensation
- Be mandatory for private landlords
- Decent Homes Standard & Awaab’s Law
The Decent Homes Standard is set to extend into the private rented sector, and Awaab’s Law-style requirements will enforce prompt remediation of hazards such as damp and mould. Landlords should expect minimum standards for repair, thermal comfort and safety to become more prescriptive, with statutory timeframes for addressing serious hazards.
Enhanced Enforcement and Penalties
Enforcement powers and penalties increase significantly under the new regime. While exact figures and thresholds should be checked against current guidance, landlords can expect higher financial penalties for non‑compliance and more active investigation by local authorities.
Compliance vs Conversion — a practical way forward
Faced with new registration, ombudsman membership and potential upgrade costs, many landlords run a simple comparison: invest to bring a property fully compliant as a long‑let, or convert it to a professionally managed short‑term/Airbnb letting where active management can handle safety, guest vetting and rapid remediation. Our Compliance Audit + Conversion Plan bundles both options so you can see costs and likely net returns side by side.
Explore Your Options
Illustrative example: bringing an older two‑bed up to expected Decent Homes compliance might cost in the low thousands, while a short‑term conversion could increase gross revenue through seasonal pricing and higher nightly rates — professional management then covers guest checks, cleaning and rapid response to issues. Contact us for a tailored compliance audit and short‑let conversion estimate for your property.
Pets in Rentals UK – Tenants’ New Right to Request a Pet
The Renters’ Rights Act gives tenants a clearer right to request permission to keep a pet from 1 May 2026, and landlords will no longer be able to rely on blanket “no pets” policies. That change affects advertising, tenancies and day‑to‑day management of properties.
What the new pet rules mean in practice
If a tenant wants to keep a pet, they’ll need to ask in writing and explain what kind of animal they want to keep. Once that request comes in, the landlord is expected to reply within 28 days, unless there’s a genuine reason the response needs a bit more time.
Landlords won’t be able to refuse in a blanket way. Permission can only be turned down for reasonable reasons. They’ll also be allowed to ask for pet insurance, so any potential damage caused by the animal is covered.
Blanket “no pets” clauses in adverts or standard tenancy agreements will no longer be enforceable.
When can landlords reasonably refuse?
Guidance indicates refusals may be reasonable where:
- The property is unsuitable in size or layout for the animal.
- There are existing leasehold or freehold restrictions the landlord cannot change.
- The tenant already keeps multiple animals, and welfare would be a concern.
- The specific animal presents a clear health or safety risk
Refusing because of a speculative impact on future lettings, or because the tenant requires an assistance animal such as a guide dog, will generally not be reasonable.
Practical note for landlords: short‑term or professionally managed Airbnb-style lets can be configured to accept pets more flexibly. Management teams apply house rules, require deposits or small additional cleaning fees, and handle rapid remediation of any damage—a model that can increase occupancy without taking on longer-term tenancy liabilities.
Pet-friendly short-let options
If you’re considering accepting pets in some properties or converting to short‑term/Airbnb lets, ask us for a pet policy pack: suggested house rules, sample cleaning fee levels and an occupancy checklist that helps protect your asset while making the listing attractive to pet owners.
The new law gives tenants stronger protection and closes a lot of the grey areas that used to exist. For landlords and agents, that means adverts, tenancy paperwork and internal processes will need updating to avoid slipping up.
From May 2026, you won’t be able to treat applicants differently just because they have children or receive benefits. “No DSS” style wording will no longer be allowed, and anything in your adverts or tenancy templates that excludes these groups will need to be removed. This is something landlords should really check now rather than later.
The changes also crack down on rental bidding wars. You’ll be expected to advertise a clear, fixed rent and stick to it. You won’t be allowed to encourage people to offer more than the advertised price, and you won’t be able to accept higher offers either. The idea is to stop tenants feeling pressured into paying more than they can realistically afford just to secure a home.
In everyday terms, this means cleaner, more transparent pricing and a fairer process for tenants, but fewer “flexible” pricing tactics for landlords.
Restrictions on Advance Rent Payments
There are new limits on how much rent can be taken upfront. These include:
- No asking for rent before the tenancy officially starts
- No taking more than one month’s rent in advance once the tenancy is underway
- Tenants having the right to get refunds for rent that covers time after the tenancy has ended
Deposit rules aren’t changing and still follow current law, which means a cap of five weeks’ rent, or six weeks where the annual rent is over £50,000. Landlords will still need to stick to the Tenant Fees Act rules.
Written Information Requirements
Landlords will need to provide clear written terms and information to tenants, including:
- A written statement of terms before a new tenancy
- Information about the changes introduced by the Act to existing tenants (by the specified date)
- Clear communication about any grounds for possession the landlord may use in the future
These measures, along with the forthcoming ombudsman scheme and stronger local authority enforcement, create a more robust rights framework for tenants. For landlords, the practical response is to review tenancy agreements, adverts and processes now — or consider moving some properties to a short‑term/Airbnb model where bookings, guest terms and deposits are managed per stay.
How the Renters’ Rights Act Affects Landlords and the Buy-to-Let Market
The Renters’ Rights Act marks a step change for landlords. While the stated aim is to protect tenants and support responsible landlords, the practical effect will be a more regulated, administratively demanding market. That reality affects rent-setting, notice procedures, possession routes and the time and cost involved in managing tenancies.
Potential challenges for landlords
While the new rules are designed to make renting fairer, they do bring a few practical challenges for landlords.
One of the main issues is the extra complexity. The new system introduces more detailed rules around notices, rent increases and tenancy types, which means more paperwork and a need for tighter processes to stay compliant.
There’s also a loss of flexibility. With Section 21 being removed and more limits placed on fixed-term agreements, landlords can no longer rely on simple “no-fault” routes to regain possession when they need to.
Costs are likely to go up. Between registration rules, possible ombudsman fees and the work needed to bring properties up to the Decent Homes Standard, many landlords will face higher expenses both at the start and over the long term.
There’s a lot more uncertainty for landlords now. When tenancies move over to rolling contracts, it’s not as easy to plan ahead. You don’t always know when a tenant might give notice, and that can leave you with empty properties and extra costs while you try to find someone new.
Another big worry is enforcement. Councils are getting more power, and the fines are getting tougher. That means even small mistakes could end up costing a lot more than they used to.
That said, it’s not all doom and gloom. If you already look after your properties and treat tenants fairly, these changes could actually work in your favour. As standards improve across the sector, good landlords are more likely to stand out.
Clearer rules can help too. When everyone knows where they stand, it usually means fewer disputes and better long-term tenancies.
There’s also the potential for changes in the market. If some landlords decide to sell up and leave the sector, those who remain could face less competition and more stable rental demand.
On top of that, the updated Section 8 rules give landlords more solid legal routes to regain possession when there is a genuine need, such as selling the property or moving back in themselves.
No one knows exactly how the market will react. Some people believe smaller landlords will exit in large numbers, while others think the sector will become more professional and attract bigger investors. Either way, landlords who adjust their approach and focus on staying compliant will be in a much stronger position as the changes take effect.
Adaptation might mean retraining, using specialist property management, or changing the business model for one or more properties. One practical alternative many owners are exploring is converting suitable long‑lets to professionally managed short‑term/Airbnb lets. This can preserve or increase gross rent while transferring day‑to‑day tenancy interaction, guest vetting and many compliance tasks to a manager.
“The Renters’ Rights Act represents the most significant change to the private rental sector in a generation. Landlords who professionalise their approach and consider alternative lettings models are likely to find opportunities amid the change.”
– Housing Policy Expert
Should Landlords Sell Before the Changes?
Deciding whether to sell is personal and depends on the property, local market and your tolerance for regulatory change. Rather than a blanket answer, use a short decision flow to clarify the right move for each asset.
Quick assessment questions
- Does the property need significant work to meet standards? (If yes, selling or converting may be preferable.)
- Is the local demand suitable for short‑term lets or high nightly rates? (If yes, conversion could boost rent.)
- Do you have time and appetite for extra administration and potential tribunal or possession processes? (If not, professional management or sale are options.)
- Are current tenants high quality with long tenancy histories? (If yes, keeping the let with professional management might suit.)
Options and what they typically involve
- Sell now: Realise capital and avoid future compliance costs; timing may be favourable in some markets.
- Keep as a long‑let with professional management: Let an agent handle notices, rent increases and compliance tasks while you retain the asset.
- Convert to short‑term/Airbnb: Potentially higher gross rent and dynamic pricing; management handles guest vetting, cleaning and rapid issue resolution.
Case study: a landlord with three inner‑city one‑beds converted one flat to short‑term management. Gross revenue for that flat rose by an estimated 25% in the first year after accounting for management and cleaning fees; administrative burden fell because the manager handled guest checks and property turnover. Results vary by location and seasonality, but it illustrates how conversion can be a pragmatic middle ground between selling and remaining a long‑let landlord.
Not sure which route to take?
Book a free 30‑minute Airbnb conversion planning call. We’ll evaluate two properties from your portfolio, outline likely net income if converted to short‑term, estimate compliance costs for long‑term lets and recommend the most pragmatic option for each property.
Conclusion: Preparing for the New Rental Landscape
The Renters’ Rights Act reshapes the private rental market. Landlords who start preparing now—by reviewing portfolio condition, ensuring paperwork and safety records are up to date, and considering alternative operating models—will be best placed to respond.
Practical next steps:
- Conduct a property‑by‑property review to identify those requiring investment to meet expected standards
- Keep detailed tenancy records and evidence in case possession under Section 8 is required.
- Decide if your current management approach is sustainable — consider outsourcing to professional managers
- Explore short‑term/Airbnb conversion where market conditions support higher net returns
Whether you choose to adapt, convert or sell, make the decision for each property based on clear figures — projected rent, likely upgrade costs, void assumptions and the time you can commit. If you’d like help modelling those numbers, our team can produce a side‑by‑side comparison for two properties free of charge.
Need Help Navigating the Renters’ Rights Act?
Our team at PassTheProperty specialises in practical solutions for landlords: sales, compliance audits and short‑term/Airbnb conversion planning. Contact us for tailored advice and a no‑obligation review.
Disclaimer
The information in this guide is meant to give an overview, not formal legal advice. Because the Renters’ Rights Act—and the way it’s put into practice—may change, you should speak to a legal or tax professional for guidance tailored to your own circumstances.
