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Renters’ Rights Act ushers in biggest rental overhaul in 40 years

Renters’ Rights Act ushers in biggest rental overhaul in 40 years
Shekina Tuahene
Written By:
Posted:
May 1, 2026
Updated:
May 1, 2026

The Renters’ Rights Act comes into effect today in what the government describes as the biggest changes to the private rental market in over 40 years.

Some 11 million tenants have been afforded new rights and protections, including a ban on Section 21 ‘no-fault’ evictions. Now, landlords can only evict tenants under Section 8 notices if the tenancy contract is breached. 

Any Section 21 notices served before 1 May or already progressing through the court will be allowed to continue. 

From today, all tenancies will be rolling, bringing an end to fixed contracts, to give renters more flexibility and allow them to end tenancies with two months’ notice. 

Landlords will only be able to increase rent once per year, and this must be in line with market rates. Further, landlords can only ask for a maximum of one month’s rent upfront. 

Landlords must not allow bidding wars or allow offers above the advertised rent, and they cannot refuse tenants because they have children or receive benefits. Renters can also ask if they can live with a pet and this must be reasonably considered by landlords. 

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Landlords who break these laws will face significant penalties of up to £40,000. 

 

Fixing a broken rental system 

Prime Minister Keir Starmer said: “For too long, families have lived with the constant fear of eviction, while young people have been outbid for the homes they need to start their lives. 

“Today we are putting that right. We promised to fix a broken rental system and we’re delivering. 

“This historic action will make renting fairer, safer and more secure for millions, so people can settle, put down roots and build their lives.” 

Housing Secretary Steve Reed said: “Renters have been living at the mercy of rogue landlords and in fear of losing their home for too long. 

“We are putting a stop to this with historic changes that give renters the security they deserve – marking the beginning of a new era for private renters.” 

 

A shift in the market 

Daryl Norkett, director of real estate proposition at Shawbrook, said the debate around the Renters’ Rights Act was often framed as landlords versus tenants, but “in reality, most landlord-tenant relationships are already working well”. 

He added: “Today marks a shift in how rental property is managed and simply reinforces what is already a more professional, sustainable private rented sector. 

“While headline changes like the abolition of Section 21 have dominated attention, the implications for landlords are more nuanced. For landlords, the priority now is clear: get documentation in order, seek guidance where needed and stay close to further changes ahead of October.” 

Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, said the law marked a “significant moment” for the private rented sector, “with a clear ambition to improve security and standards for tenants”. 

“That’s a direction most responsible landlords already understand, adhere to and support, because stable, well-run tenancies benefit everyone in the long term,” Stinton said. 

He added: “While the act introduces meaningful change, it doesn’t alter the fundamentals of how the rental market operates. Demand for rental homes remains strong, and experienced landlords are accustomed to managing costs, compliance and tenant relationships in a way that supports sustainable rental income over time – as well as provide good-quality housing for millions of tenants. 

“Most landlords already run their properties with a long-term mindset, having adapted through years of tax changes and increasing regulation. For many, this is another step in an ongoing evolution, rather than a wholesale shift in how they approach their portfolios. 

“For brokers, the focus is on helping clients navigate the changes with confidence – presenting a clear, well-thought-through picture that demonstrates experience, sensible planning and a professional approach. Ultimately, it comes back to balance: strengthening protections for tenants while ensuring good landlords can continue to invest and keep much-needed rental supply flowing.” 

 

Most landlords cite concern with the Renters’ Rights Act 

A recent survey from Pegasus Insight suggested landlords were apprehensive about the act, as 80% said they were concerned about the changes. 

Some 70% said it would negatively impact their business and 77% believed it would have a negative impact on the market overall. 

However, Pegasus Insight’s tenant research indicated stability, as the typical renter said they had lived in the same home for at least five years and two-thirds plan to stay in their property for another 4.3 years on average. 

It also found low instances of forced evictions, with just 3% of tenants reporting that they had been served an eviction notice in the last 12 months, and just 0.6% contested this. 

Pegasus said this pointed to a mismatch between landlord and tenant sentiment. 

Mark Long, founder and managing director of Pegasus Insight, said: “Landlords are responding to a perceived shift in control, and that is already influencing decisions around rents and tenant selection ahead of implementation. 

“But the tenant data tells an important story. Most renters are settled; they stay for long periods and relatively few tenancies end in dispute or eviction.” 

He added: “For lenders and investors, that stability is critical, underpinning income predictability and reducing risk across the sector. 

“The key question now is whether confidence returns once the new framework beds in, or whether caution continues to shape landlord behaviour in the longer term.” 

 

The landlord sell-off

With some landlords expressing an intention to sell up because of the Renters’ Rights Act, Auction House said there was a 70% annual rise in tenanted properties sold through its weekly online auctions in April. 

It said this was due to landlords exiting the market ahead of the act’s enforcement. 

Auction House noted that more experienced landlords were acquiring these homes. 

Oliver Prior, managing director of Auction House UK, said: “This has presented a real opportunity for well-capitalised landlords who are prepared to adapt. Larger landlords, or those with stronger systems in place to manage their properties, have not only capitalised on continued demand, but snapped up properties being sold off as others exited the market.” 

Philippa Martinez, regional sales manager for Auction House Kent, suggested some landlords may have been too quick to act, saying: “There was a bit of a knee-jerk reaction, which led to an influx of landlords looking to sell up quickly. Some were afraid that they would end up stuck or unable to take their properties back into possession. Professional landlords who run their rentals as a business have been less affected, as they were probably already playing by these new rules. 

“Now, there is an attitude of waiting to see what happens. Some landlords may see that the new conditions were not as frightening as they first appeared. I believe this will tighten up the market, giving the landlords that remain the chance to thrive.”