The balance between the rights of tenants and the rights of landlords has been a focus of both the current Labour government and the former Conservative government. Solicitor Rachel Macwilliam discusses the forthcoming Renters’ Rights Act and what the changes mean for you as a landlord.

Renters’ Reform v Renters’ Rights Bill

Before their loss in the last general election, the Conservative Party had proposed new legislation, the Renters’ Reform Bill, which set out to redress the balance in favour of tenants. This bill was replaced by Labour with the Renters’ Rights Bill, and which largely does the same thing. The Renters’ Rights Act 2025 was passed on 27^th October 2025, and comes into force on 1^st May 2026.

Current law regarding assured shorthold tenancies (AST)

Private residential tenancies are most commonly entered into as assured shorthold tenancies (AST). This creates a tenancy with a minimum term (usually six months) which can then continue on a rolling monthly basis if it is not renewed.

Landlords are able to gain possession of a property that they are renting out, usually under two sections of the Housing Act (1988). The first is Section 8, which applies when a tenant has breached the terms of the AST. This is most commonly used as a result of rent arrears. A claim for possession can be issued if the tenant is in arrears of rent amounting to at least two months. When a section 8 notice is served on a tenant, they usually have two weeks in which to vacate the property – although if the notice relates to rent arrears and the tenant is able to clear or reduce the arrears to less than two months’ rent, the notice is unenforceable.

The second route for possession is Section 21, which enables a landlord to serve two months’ notice on the tenant (provided that the notice expires after the end of the minimum term of the AST) without the tenant having done anything to breach the AST. This is commonly known as ‘no-fault eviction’.

If the tenant has not left the property by the time that the notice expires, the landlord is able to apply to the Court for an order for possession, and more often than not, the Court will make the order, as well as an order for costs against the tenant.

Changes on the way

The rules surrounding private residential letting will be changing significantly on 1st May 2026, once the Renters’ Rights Act comes into force.  The key changes are:

• The replacement of fixed term tenancies with periodic tenancies, which would allow a tenant to end a tenancy at any time with two months’ notice;
• The abolition of no-fault evictions, save for in circumstances where the landlord is selling the property or needs the property for them or a family member to live in;
• The extension of the time period for eviction for rent arrears under Section 8 from two months arrears to three months;
• The introduction of a 12 month ‘protected period’ before a landlord is able to issue a notice for possession due to sale or a need to occupy, and the extension of the notice period from two months to four months;
• The creation of a new Private Rented Sector Database, where all landlords will have to register themselves and their properties before they are marketed;
• The creation of a new ombudsman service which landlords will need to register with, to help resolve disputes between landlords and tenants without the need to go to court;
• Landlords will no longer be able to refuse to accept a tenants on benefits or because they have children;
• Tenants will have a legal right to have pets in their rented property. Landlords must consider the request and can’t unreasonably refuse, although they can require pet insurance to cover any damage;
• Rent increases will be limited to one per year, will need to be in line with market rent, and can only be increased by a capped percentage. Tenants will be able to challenge unfair increases through a tribunal process;
• A new Decent Homes Standard will be introduced to require landlords to ensure that properties are habitable and to address hazardous issues, such as mould, within a specific timeframe;
• There will be a new prohibition on landlords taking large amounts of rent in advance.

Impact of new Renters’ Rights Act on Landlords and the Rental Property Market

Whilst these new changes will be welcomed by tenants, who will appreciate the added security they will gain, it will become much harder for landlords to regain possession of their property, leading many to wonder whether the private residential rental market will shrink substantially and rents will increase, potentially leaving many without a home.

Get in touch

If you are a landlord and would like to find out more about how the new Renters’ Rights Act will affect your property, or need advice on evictions, our friendly and experienced team would be glad to hear from you. You can reach us by calling 01872 241408 or by emailing info@penderlaw.co.uk