Renters’ Rights Act Shake-up to Take Effect in May 2026

At the start of this month King Charles III rubber stamped the Renters’ Rights Act, a controversial and hotly-contested piece of legislation aimed at reforming the private rented sector.

The act brings significant changes which landlords need to understand before they start to be introduced in May 2026. But they also come at a time when the income stream derived from rental properties looks promising.

According to new research from estate agent Savills, while rental growth is stabilising following its Covid-era boom, an ongoing imbalance between supply and demand will keep rents moving in an upward trajectory as the market returns to more normal and predictable conditions. 

Between 2026 and 2029, Savills expects rent in London to grow by 11.5 per cent.

Simultaneously, estate agent Knight Frank expects to see capital growth in Prime Central London of just over ten per cent by 2029, and of just over 12 per cent in prime outer London.

Key takeaways from the Renters’ Rights Act:

Phase 1: From 1 May 2026:

1. In the past landlords could give tenants notice as they pleased, and without giving a reason, under what were known as “Section 21” evictions. This is no longer the case. There are now only two reasons to give a tenant notice – fault, or because you wish to sell or move into the property yourself. If a tenant defaults on rent, causes unacceptable damage, or otherwise breaches their contract they can still be removed, although this will likely require legal action. And if you wish to sell a property or move in you can also give (four months) notice, but with caveats. If you decide to move out, change your mind about selling, or fail to find a buyer you cannot relet the property for a year.
2. Fixed term tenancies, usually contracted to last for a year or two, are out. Instead tenancies will roll on from month to month or week to week.
3. Tenants can leave whenever they like with two months’ notice. 
4. When selecting a new tenant landlords cannot take more than one month’s rent in advance.
5. When letting a property, landlords will have to be clear about the asking rent, and will no longer be allowed to accept offers above that price.
6. Landlords cannot decide against a prospective tenant because they have children or pets. If they have a proven ability to pay the rent, which will be established during the referencing process, they cannot be excluded.
7. Rents can only go up once a year, and landlords must give their tenants at least two months’ notice of an increase. If your tenant feels the increase is too high, based on local rent levels, they can take the landlord to a tribunal to challenge the amount.
8. Rent must be paid monthly, not annually or quarterly. 

Phase 2: Late 2026:

Landlords must register on a new national database, and join an official redress scheme which will be overseen by a Government-appointed ombudsman. 

Phase 3: Date TBC.

A new set of minimum standards for rented properties will be introduced – landlords in breach of these standards face fines and/or legal action. Repairs, particularly those affecting health and safety, like damp or mould, will have to be made within a designated timeframe.

Black Brick’s property management team offers its London landlords a way to benefit from rental property without the usual red tape, administration, and everyday headaches. As your trusted property management partner Black Brick is closely monitoring developments and will guide you through each stage of this transition – ensuring your properties remain compliant and your interests fully protected.

Do not hesitate to contact us if you have any questions.