The Renters’ Rights Act and the future or residential asset strategy

On 1 May 2026, the way in which people rent and let homes in England changed significantly. The Renters’ Rights Act 2025 introduced a new regime for the private rented sector, intended to provide greater security for tenants while also establishing clearer rules for landlords.

This article examines the key reforms introduced by the Act, considers their implications for “accidental landlords”, and highlights practical takeaways when assessing the role of residential property within a wider asset strategy. 

A shift towards greater stability

For many years, private renting in England had a bad reputation of short term contracts, rising rents, and, for most tenants, the risk of eviction with little notice. The new Act aims to fundamentally reshape the balance between landlords and tenants by creating a system that supports longer term renting and removes uncertainty for tenants, while still, it’s claimed, offering a fair regime for landlords to manage their properties. 

Key changes under the Renters’ Rights Act

Removal of fixed term tenancies

In the private rental sector, fixed term tenancies are no longer permitted. They are now replaced with periodic tenancies, meaning that tenants will be able to stay in their homes on an indefinite rolling basis unless the landlord is able to terminate via a valid ground, or the tenant gives the landlord two months’ notice (which they can now do at any time rather than tying in with fixed break dates). Existing private sector tenancies converted to this new framework on 1 May, even if they were granted before that date for a fixed term.  

Abolishment of Section 21 (“no fault”) evictions

One of the most significant changes post the May 2026 implementation is the abolition of Section 21 evictions, meaning landlords are no longer able to end a tenancy without providing a lawful reason (or ”ground”).

Introduction of strict possession grounds and longer time frames

The Act provides landlords with a number of “robust grounds” to take back possession of a property, but they’re linked to specific events, not just the landlord’s preference for a change. The grounds include persistent or serious rent arrears, breach of tenant’s obligations or damage to the property, the landlord (or a close family member) needing to move into the property, and the landlord intending to sell the property or redevelop it. This isn’t a complete list, and there are further grounds a landlord could rely on, but there are serious repercussions if any ground is falsely claimed. Even if a valid ground can be demonstrated, some of the time limits for recovery of the property are now significantly longer. For example, if a landlord desires to sell their property, a minimum of four months’ notice must be given to the tenant and that notice cannot expire in the first 12 months of the tenancy.

Limitations of rent increases and an end to bidding wars

To ensure that rent increases are fair (and aren’t being used as a means of backdoor eviction), the Act now only allows for rents to be increased once per year and only to the market rate. If tenants believe that a proposed rent is in fact not market comparable, they can bring a legal challenge to the increase. Also, to avoid prospective tenants entering into “bidding wars” with each other, landlords and agents will be prohibited from asking, encouraging or accepting any bids from a prospective tenant which exceed the advertised asking price.

Renting with pets and prohibiting rental discrimination

Under the new regime, landlords cannot unreasonably withhold consent if a tenant requests the right to have a pet, and landlords and agents are prevented from discriminating against prospective tenants simply because they’re in receipt of benefits or because they have children. 

Application of the Decent Homes Standard to the private rented sector and landlord registration requirements

Later down the line, the Act will introduce a Decent Homes Standard to ensure that tenants are provided with safe and decent housing, and registration will be required on a new landlord and property database.

I didn’t mean to become a landlord; will this apply to me?

It isn’t unusual in the private wealth sector for someone to become an “accidental landlord”, for example when:  

• A homeowner keeps their original property when upsizing
• A property is inherited
• A home is rented out temporarily while working elsewhere

The simple answer is yes. Whether you only let one spare property, or it would suit you to let your home out on a short term or informal basis, the new rules apply to you in the same way as to larger scale or professional landlords. 

The new regime will be a big adjustment in such circumstances, because it removes a lot of the flexibility and simplicity that previously allowed the management of a tenancy without deep knowledge of housing law or the tenancy arrangement potentially being a long-term commitment. The abolition of Section 21 “no fault” evictions is particularly important for accidental landlords, as you can now only recover possession by proving one of the statutory grounds and complying with the corresponding time limits. 

Key takeaways

1. The house rules have changed: The private rental sector is now governed by a more prescriptive and closely defined framework. Even for incidental or inherited holdings, regulatory awareness is no longer a background consideration, it’s integral to preserving value and avoiding unintended constraints.
2. Flexibility comes with foundations: Owning a rental property is still viable, but it’ll require more forethought and fewer quick exits. Decisions around selling, regaining possession or changing strategy now need to be laid down early and supported by proper process.
3. Professionalise the let or rethink the asset: The era of low touch, informal letting has ended. For many high-net-worth owners, the choice will be between putting the right professional structure around a rental property or questioning whether letting remains the right use of capital in the context of their broader objectives.

Our content explained