The UK’s Ministry for Housing, Communities and Local Government has published guidance and an implementation roadmap setting out three phases:
Phase 1 – From 1 May 2026
- Section 21 ends and all new tenancies become open-ended, periodic tenancies
- Rent increase rules tighten with an increase once per year only
- Ban on rental bidding and limits on rent taken in advance
- Additional discriminatory protections for tenants with children or in receipt of benefits
- Tenant’s will have the right to request a pet.
Phase 2 – Expected late 2026
- National Private Rental Sector database launches
- New Landlord & Tenant Ombudsman introduced (mandatory once fully operational).
Phase 3 – Longer Term
- Decent Homes Standard and Awaab’s Law to be extended to the Private Rental Sector.
Introduction
On 27th October 2025, the Renters’ Rights Act became an act of law in the United Kingdom.
The new legislation brings with it major reforms to the Private Rental Sector with important changes such as clearer grounds for terminating a tenancy and limits on no-fault evictions.
From 1 May 2026, all tenancies will become open-ended periodic tenancies and new restrictions on rent rises, pets and property standards will come into force.
Implementation Roadmap
Although the Act is now law, changes take effect in phases:
- 27 December 2025: Strengthened local authority enforcement powers
- 1 May 2026: Main tenancy reforms begin (Phase 1)
- Late 2026: PRS Database begins rolling out (Phase 2)
- 2027–2028: PRS Ombudsman becomes mandatory (Phase 2 completion)
- 2030s: Property standards reforms (Decent Homes Standard; Awaab’s Law) roll out (Phase 3).
End of Fixed-Term Tenancies and Abolishment of Section 21 “No-Fault” Evictions
Until 30 April 2026 (current rules)
- Assured Shorthold Tenancies (ASTs) may still be fixed-term or periodic
- Landlords may still serve Section 21 notices
The above on limitation; although a valid Section 21 Notice can still be served before 1st May 2026, possession proceedings must be commenced by no later than 31st July 2026, this is much shorter than the typical 6-month timeframe.
From 1 May 2026
These changes apply to all existing and new Private Rental Sector (PRS) tenancies:
- Section 21 abolished
- All ASTs convert to Assured Periodic Tenancies (open-ended)
- Tenants may end a tenancy with 2 months’ notice at any time
- Landlords may only regain possession using Section 8 grounds.
Action: Benham and Reeves will provide existing tenants with Government advice regarding tenancies that pre-date 1 May 2026 and continue to manage all the updates for our clients.
New and Updated Grounds for Re-gaining Possession (Section 8)
From 1 May 2026, all Private Rental Sector landlords must use the updated Section 8 grounds.
Mandatory Grounds
(If proven, the court must grant possession unless exceptional circumstances apply.)
Intention to sell the property
- Cannot be used in the first 12 months of the tenancy
- 4 months’ notice required
- Re-letting restrictions apply if sale does not proceed. To stop landlords from misusing the ‘moving in’ or ‘selling’ reasons for ending a tenancy, they won’t be allowed to market or re-let the property for 12 months after using these grounds. The only exception is for shared owners using the selling ground (Ground 1A) as long as they can show they genuinely tried to sell the property.
Landlord or close family member moving in
The re-letting restrictions for a landlord moving in to the property are the same as for selling.
- Same notice period and 12-month restriction as above
- Re-letting restrictions apply.
Redevelopment of the property
- Only for qualifying landlords
- 4 months’ notice required.
Serious criminal offences / serious anti-social behaviour
- No notice period required; immediate proceedings permitted.
No Right to Rent (immigration requirement)
Rent Arrears – Tenant owes 3 months or more
- 4 weeks’ notice
- Arrears must still be 3 or more months at the court hearing.
Discretionary Grounds
(The judge decides whether to grant possession.)
- Rent arrears or persistent late payment (4 weeks’ notice)
- Breach of tenancy terms (2 weeks’ notice)
- Damage to property or furnishings (2 weeks’ notice)
- Anti-social behaviour (no notice period if severe)
- Providing false information during application (2 weeks’ notice).
Action: Benham and Reeves will support our landlords with regards to the legal process to regain possession of their property.
Student Lets
The UK Government confirms that student provisions remain but will be supplemented by secondary legislation in Spring 2026, particularly for private PBSA schemes.
1. Educational Institutions
- 2 weeks’ notice if property was let to students within the last 12 months.
2. Houses in Multiple Occupation (HMOs)
- 4 months’ notice where returning full-time students require the property for the next academic year
- Ground cannot be used if tenancy was agreed more than 6 months before it started.
Private Purpose-Built Student Accommodation (PBSA)
- Expected exemptions via Spring 2026 regulations.
Rent Bidding Ban
From 1 May 2026
- Landlords and Letting Agents cannot advertise or accept rents above the advertised rent
- Rent must appear clearly in written offers
- If the agreed rent is significantly above market value, tenants may request a rent reduction within the first 6 months (mechanism detailed in secondary legislation)
- Tenants may have new challenge rights under forthcoming regulation (details awaited).
Action: Benham and Reeves have been delivering accurate rental valuations for more than sixty years, supported by local market research and intel. We will continue to ensure that your property is priced to reflect a competitive local market rental which is compliant with the Renters’ Rights Act requirements.
Rent in Advance
From 1 May 2026
Before a tenancy begins (Phase 1):
- No rent can be accepted in advance
- Between signature and start of tenancy up to 1 month’s rent in advance (or 28 days)
- You will only be able to ask for rent in advance after the landlord and tenant have signed the tenancy agreement and before the date the tenancy starts. This measure is designed to prevent tenants from being asked to pay large sums of rent upfront to secure a property.
- Tenants may voluntarily pay more, but it cannot be a condition of continued occupation in the property.
Transition period
- Existing rent agreements remain valid but will shift to the new tenancy process during a transition period
- Rent already paid in advance is not expected to be refunded.
Action: This measure is designed to prevent tenants from being asked to pay large sums of rent upfront to secure a property. Our solution for this is to work with “Professional Guarantors” that tenants can sign up with instead of paying in advance. Benham and Reeves will follow compliance and manage rent collection within the new legal framework.
Rent Increases & Tribunal Challenges
From 1 May 2026
- Rent increases are limited to once per year
- Must be done by Section 13 notice with minimum of 2 months’ notice
- Tenants may challenge at the First-tier Tribunal
- Tribunal may not increase rent above the landlord’s proposal
- No backdating allowed.
Action: Benham and Reeves will conduct yearly rent reviews, issue compliant Section 13 notices and provide valuations to support market-based increases. With rent limited to one rise per year, we help landlords maximise each opportunity while minimising the likelihood of disputes.
Right to Keep Pets
From 1 May 2026
Landlords will have to consider tenants’ pet requests and not unreasonably refuse them. Exact timeframes (such as response deadlines) and detailed rules (like advertising) will be set via secondary legislation/guidance.
- Landlords must reasonably consider all pet requests
- Must respond within 28 days
- Reasonable refusal includes:
- Head lease restrictions predating the Act
- Unsuitable property type
- Service animals must be permitted (according to the Equality Act)
- “No pets” advertising is permitted but cannot override reasonable requests after tenancy starts.
Action: Benham and Reeves have observed a significant increase in landlords permitting pets in their properties since the Covid-19 pandemic. We will continue to support these needs within the upcoming legal framework.
Rental Discrimination & Exceptions
From 1 May 2026
Landlords must treat applicants fairly.
Unlawful discrimination includes:
- Refusing tenants because of children
- Refusing tenants because they receive benefits
- Preventing viewings or withholding details on those grounds.
Invalid restrictions
- Insurance, mortgage or superior lease clauses prohibiting children or benefit-recipients have no legal effect if renewed or created after the Act came into force.
Lawful refusals include:
- Statutory overcrowding concerns
- Documented affordability concerns.
Action: Benham and Reeves will continue to provide rigorous tenant vetting to assess affordability and to avoid overcrowding concerns.
Private Rented Sector Ombudsman
This is Phase 2, not part of the May 2026 changes.
From Late 2026–2028
- The Government will establish a national Private Rental Sector Ombudsman
- Once fully operational, all landlords must join
- Mandatory membership is anticipated around 2028
- Ombudsman will:
- Resolve tenant complaints
- Issue binding decisions
- Provide guidance to landlords
Penalties
- Up to £7,000 for initial failure to join
- Up to £40,000 for repeat/continuing breaches.
Private Rented Sector Database
From Late 2026 (Phase 2 – regional rollout)
- All landlords must register on the PRS Database
- Annual fee required (amount TBC)
- Required details include:
- Landlord contact details
- Property information
- Safety certificates (gas, electrical, EPC).
Public access to the PRS Database
- Will be introduced later in Phase 2, with controlled visibility
- PRS Ombudsman will be integrated with the Database.
Decent Homes Standard & Awaab’s Law
This is Phase 3 and does not begin in 2026.
Decent Homes Standard (DHS)
- Will extend to the Private Rental Sector and will be subject to public consultation
- Due in Phase 3 but no date set for implementation.
Awaab’s Law
- Will impose strict time limits for addressing hazards such as damp/mould
- Will apply to the Private Rental Sector during Phase 3
- Exact timeframes subject to consultation, no date set for implementation.
Penalties
From 27 December 2025
- Strengthened local authority investigatory powers begin
- Councils can demand documents, inspect properties, and use third-party data.
From 1 May 2026
- Expanded civil penalties
- Rent Repayment Orders (RROs) increased to up to 24 months’ rent in serious/repeat cases
- RROs can apply to superior landlords.
About this guide
This summary is prepared by Benham and Reeves and is accurate as of 13th November 2025 and is based primarily on official guidance from the Ministry of Housing, Communities & Local Government.
If you are unsure how the upcoming changes will affect you, please
get in touch.