The Renters’ Rights Act: Are you ready? – Niziol

Compliance is not the mortgage adviser’s job. But what happens next very much is.

The Renters’ Rights Act is one of the biggest shake-ups to the private rental sector in decades. It comes into force on 1 May 2026 – and around one in four landlords still don’t know it’s coming. For mortgage advisers with buy-to-let (BTL) clients, that is both a risk and an opportunity.

 

Who does what

Compliance with the Renters’ Rights Act is the landlord’s legal responsibility. Where professional management is in place, letting agents carry much of the operational burden, including issuing the government Information Sheet and managing the new rent increase process.

For mortgage advisers, the key question is whether landlord clients have that professional support in place, or whether they are self-managing and potentially exposed.

 

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The awareness gap

Paragon’s Q4 2025 data puts the proportion of landlords still unaware of the act at around 25%, with the figure higher among smaller portfolio and self-managing landlords.

For mortgage advisers, that is a reason to go through the BTL client list now and make contact with them before May. It creates an opportunity to have earlier conversations about remortgaging, portfolio changes or exit plans.

 

What advisers need to be aware of

Lenders are already reviewing mortgage conditions that rely on assured shorthold tenancies (ASTs) or fixed terms, as the legal structure changes from 1 May. Rules around tenants on housing benefit may also need updating. Advisers should be raising this with clients now, as lender requirements continue to evolve.

 

Stress testing has changed

Rent increases now follow a formal Section 13 process, using Form 4A, with at least two months’ notice, limited to once per year and open to challenge at tribunal.

For advisers, that changes how rental income should be viewed. Yields need to be stress tested against slower, more uncertain increases, and decisions should be based on what the rent supports today, not what it might do in a best-case scenario.

 

An emerging dynamic worth watching

There are early signs that some lenders are starting to differentiate on portfolio quality, with better terms for well-managed, compliant portfolios. It’s not yet the norm, but the direction of travel is clear. Landlords investing in proper management may not just reduce risk, but also improve access to better products. Advisers who recognise this shift will be ahead of the conversation.

 

Practical help

For brokers, this is an opportunity to step in early and guide landlord clients through what’s changing.

We’ve pulled together a simple checklist to help spot where action may be needed and structure the right conversations.

1. Know your clients

• Identify clients with BTL properties in England, where the act applies
• Check whether they self-manage or use an agent, as self-managing landlords carry the compliance burden
• Ask about upcoming tenancy renewals or voids in the next 12-24 months
• Sense-check hold versus exit plans given reduced flexibility around possession

2. Revisit affordability

• Rent increases are now limited to once per year via a Section 13 process
• Two months’ notice is required, with the right to challenge at tribunal
• Affordability should be based on current rent, not projected growth
• Revisit yield assumptions on any remortgage or portfolio expansion

3. Flag compliance gaps

• Existing tenants must receive the Renters’ Rights Act Information Sheet by 31 May 2026, or landlordsface fines of up to £7,000
• New tenancies from 1 May require written key terms before signing
• Section 21 ends on 30 April, so any possession plans need reviewing
• Mortgage conditions referencing ASTs or housing benefit restrictions may need review with the lender

4. Have the conversation before May

• Go through the BTL client list and make contact – don’t wait for them to call
• Direct clients to Gov.uk for the official guidance
• Where clients are self-managing, raise whether professional management now makes sense
• Position yourself as a proactive agent to build retention

 

Finally

Advisers don’t need to know every detail, but they do need to understand what’s changing and what it means for their clients. It comes down to knowing where each client stands, stress testing the numbers properly and having the right conversations early.