Renters' Rights Act 2025: What UK Landlords Need to Know from 1 May 2026

Row of Victorian terraced houses with bay windows and stone detailing on a residential street in London

On 1 May 2026, every assured shorthold tenancy in England stops being one. 

No opt-out, no application, no paperwork. Your fixed-term AST becomes a rolling monthly tenancy under a regime that didn’t exist six months ago.

The headline everyone’s heard is that Section 21 is gone. 

That’s true. 

But the second-order changes are the ones that’ll cost landlords money: rent review clauses voided overnight, a tribunal that can now only cut your proposed rent (never raise it), and a 12-month re-let ban on sale and family-occupation grounds carrying a £25,000 civil penalty starting point.

If you own rental property in England, the next eleven days matter.

Quick Takeaways

  • Every AST converts to a rolling monthly assured periodic tenancy on 1 May 2026, with no action required
  • All contractual rent review clauses (CPI, RPI, fixed-percentage) are void from 1 May
  • The First-tier Tribunal can only confirm or reduce your proposed rent, never raise it
  • Possession notice for sale (Ground 1A) and family occupation (Ground 1) rises to four months, with a 12-month re-let ban
  • You must serve the prescribed Information Sheet 2026 on every written-agreement tenant by 31 May

What is the Renters' Rights Act 2025?

The most significant overhaul of English private renting since the Housing Act 1988. It abolishes Section 21, ends fixed-term ASTs, voids every contractual rent review clause, and rebuilds the possession grounds. England only.

The Act received Royal Assent on 27 October 2025. It isn’t landing all at once. The government’s Implementation Roadmap sets out three phases.

The three phases at a glance

Phase

Date

What happens

Phase 1a

27 Dec 2025

Local authority investigatory powers; “AST trap” fix for long leaseholders (s.31)

Phase 1 “Big Bang”

1 May 2026

Section 21 abolished, ASTs end, new rent procedure (Form 4A), rental bidding ban, anti-discrimination rules, one-month rent-in-advance cap

Phase 2

Late 2026–2028

PRS Database rollout; mandatory Landlord Ombudsman

Phase 3

April 2035

Decent Homes Standard extended to private rented sector

Wales already operates its own regime under the Renting Homes (Wales) Act 2016. Scotland abolished no-fault eviction in 2017. 

The tenancy reforms are England only, though the discrimination provisions extend narrowly to Wales (1 June 2026) and Scotland.

What changes for tenancy agreements on 1 May 2026?

Every existing AST converts automatically to a rolling monthly assured periodic tenancy. No new paperwork for written agreements, but you must serve the government’s Information Sheet on every tenant by 31 May, and the penalty starts at £4,000.

Tenant signing a rental agreement while a landlord hands over house keys at a desk with a model home and calculator

Section 1 inserts a new section 4A into the Housing Act 1988. The rent period can’t exceed one calendar month. If your tenancy currently runs quarterly or annually, it converts to monthly automatically.

You don’t need to re-protect deposits, re-sign agreements, or issue new contracts.

The Information Sheet: Don’t skip this

You do need to serve the Renters’ Rights Act Information Sheet 2026 on every tenant who has a written tenancy agreement, by 31 May 2026. For wholly oral tenancies, you’ll need a Written Statement of Terms instead.

Two things the Law Society has flagged: a URL or hyperlink alone doesn’t count (it must be a hard copy or PDF attachment), and you should get a read receipt or signed acknowledgement. 

The penalty for missing it is £4,000 starting, £7,000 maximum.

Still in breach after 28 days? It becomes a criminal offence.

Other key changes from day one

Tenants can leave on two months’ notice from day one — no minimum residency. And you can’t demand more than one month’s rent in advance after the agreement is signed. Asking for rent before the agreement is signed is now a Tenant Fees Act 2019 breach.

Who’s excluded?

PBSA under the ANUK/Unipol code, company lets, agricultural holdings, high-rent tenancies over £100,000/year, resident landlord lodgings, holiday lets, and long leases over 21 years. Private student HMOs stay inside the regime but benefit from a new Ground 4A.

How do rent increases work under the new rules?

One increase per 12 months. Two months’ written notice. On the new Form 4A only. Every contractual rent review clause (CPI, RPI, fixed-percentage, formulaic) is void from 1 May on both existing and new tenancies.

This is the change that’ll affect the most landlords on a practical level. Section 6 removes the provision that previously allowed contractual reviews to override the statutory procedure. From 1 May, the statutory route is the only route.

The new mechanics

Rule

Before 1 May 2026

From 1 May 2026

How to increase rent

Section 13 notice (Form 4) or contractual review clause

Section 13 notice (Form 4A) only

Notice period

1 month

2 months

Frequency

Once per 52 weeks

Once per 52 weeks (unchanged)

Tribunal outcome

Could confirm, reduce, or increase

Can only confirm or reduce

Rent during challenge

Could be backdated

Frozen at old figure until decision

Tenant fee to challenge

£114 + £227 hearing fee

~£47, no hearing fee

⚠️ Transitional trap: A rent review clause triggered before 1 May but taking effect after 1 May is void. If you want to use a contractual review one last time, the increase needs to have taken effect before commencement day.

Why the tribunal change matters

This is the one most landlords haven’t fully processed.

Section 7 inserts new sections 14ZA and 14ZB into the Housing Act 1988. The critical provision is 14ZB: the tribunal can only confirm your proposed rent or reduce it. It can’t set it higher than the figure on your Form 4A.

Before this change, the tribunal could (and occasionally did) set a higher figure than proposed. That created a strong disincentive for tenants to challenge. That disincentive is now gone.

While the challenge is heard, rent stays frozen. No backdating. And if paying from the decision date would cause “undue hardship,” the tribunal can defer by another two months.

The tenant’s fee? Around £47, no hearing fee

Challenge, pay nothing extra while you wait, and the worst case is you end up paying what the landlord asked for anyway.

What this means for your Form 4A figure

The number you put on Form 4A is a ceiling, not an opening position. It needs to be defensible on comparable evidence: property-type match, tight geographic radius, date currency within six months, adjusted for the statutory disregards (tenant improvements and disrepair).

A Rightmove listing shows what landlords are asking. A RICS Registered Valuer’s market rent letter shows what tenants are paying, with a duty of care behind it. 

The tribunal weighs one far more heavily than the other.

Notice of eviction letter with a court case number partially visible inside an open white envelope

Is Section 21 really being abolished?

Fully abolished from 1 May 2026. Section 2 repeals the entire AST regime. Pre-served notices survive only if the claim form is issued by 31 July 2026 at the latest.

This isn’t a suspension or phase-out. From 1 May, there’s no such thing as an assured shorthold tenancy in England.

If you served a valid Section 21 before 1 May, the claim must be issued by the earlier of six months from service or 31 July 2026 (the hard long-stop in Schedule 6, paragraph 4). Miss that deadline and the notice lapses.

Serving a purported Section 21 on or after 1 May is itself a breach, carrying a civil penalty of up to £7,000.

What are the new possession grounds?

Every tenancy ending now goes through Section 8. The grounds have been rebuilt: Ground 1A (sale) is new, Ground 1 (family) gets a four-month notice and re-let ban, Ground 8 (arrears) rises to three months, and Ground 4A covers student HMOs.

The full list is long (the GOV.UK grounds guidance runs to several thousand words). Five changes matter most for private landlords.

Key possession grounds compared

Ground

Notice

Protected period

Re-let ban

Penalty for breach

Ground 1 (family occupation)

4 months

First 12 months

12 months

£25,000 starting / £40,000 max

Ground 1A (sale) — NEW

4 months

First 12 months

12 months

£25,000 starting / £40,000 max

Ground 2 (mortgage)

4 months

None

None

Ground 4A (student HMO) — NEW

4 months

None

None

Ground 8 (rent arrears)

4 weeks

None

None

Grounds 7A/14 (ASB)

Immediate

None

None

Ground 1A: the sale ground you need to understand

Ground 1A is new. Four months’ notice, 12-month protected period (can’t use it within the first year of the tenancy), and a 12-month re-let and re-marketing ban after possession.

There’s no prescribed evidence of sale intent, but you’ll want an estate agent instruction, a conveyancer on record, and ideally an independent valuation. If the sale collapses during the restricted period, you’re exposed to the £25,000 penalty plus a void property you can’t re-market.

Ground 8: arrears threshold raised

Now requires three months’ arrears (up from two) for monthly tenancies, or 13 weeks for weekly. Any unpaid rent attributable to a delayed Universal Credit housing element is disregarded. Ground 8A (persistent arrears) was dropped during the Bill’s passage.

What do landlords have to do before 1 May 2026?

Serve the Information Sheet. Audit your agreements. Prepare Form 4A templates. Build Section 8 evidence packs. Make a decision on any final Form 4 or Section 21 before 30 April.

The compliance workload is front-loaded into the next eleven days and the month that follows.

Your 1 May 2026 checklist

  1. Information Sheet. Download from GOV.UK, serve on every named tenant of every written tenancy by 31 May. Hard copy or PDF attachment (not a link). Keep proof of service.
  2. Tenancy agreement audit. Mark void: fixed-term clauses, rent review clauses, blanket “no pets” clauses, “No DSS / No children” language in adverts or application forms (£6,000 penalty starting point).
  3. Form 4A templates. Bookmark the GOV.UK forms page. Document the last increase date per property. Set 52-week reminders.
  4. Section 8 evidence packs. Grounds 1/1A: agent instruction, family documentation, valuation evidence. Ground 8: granular rent ledger with UC carve-out analysis. Grounds 7A/14: incident logs, police references, warning letters.
  5. Safety certificates. Gas, EICR, EPC all current and digitised. You’ll need them for PRS Database registration from late 2026.
  6. Final Form 4 / Section 21. Last safe serving date: 30 April. For Section 21, the claim must follow by 31 July 2026. For rent reviews, any increase must take effect before 1 May.
  7. Pets workflow. 28-day written response window for pet requests. You can’t require pet damage insurance (that provision was removed in July 2025). The five-week deposit cap is your only security.
  8. Advertising audit. State a specific rent in every listing (rental bidding ban from 1 May). Remove discriminatory language.

What's coming after 1 May 2026?

The PRS Database from late 2026. The Landlord Ombudsman in 2028. The Decent Homes Standard in April 2035.

Phase 2 and 3 timeline

What

When

Key detail

PRS Database

Regional rollout late 2026; nationwide 2027

Must register yourself + each property. Can’t get a possession order without current registration (except Grounds 7A/14). Penalties up to £40,000

PRS Landlord Ombudsman

Mandatory 2028

Compulsory membership for every private landlord. Decisions enforceable like court orders

Decent Homes Standard

1 April 2035

Five criteria including new damp/mould requirement. Enforced by LAs with civil penalties

Awaab’s Law (PRS)

TBC — subject to consultation

Already in force for social housing since Oct 2025. PRS timeline not confirmed

What are the penalties for getting the new Renter's Rights Act wrong?

Breaches carry up to £7,000. Offences carry up to £40,000 (or prosecution with an unlimited fine). Rent Repayment Orders now run to 24 months of rent.

Penalty starting points (MHCLG guidance)

Offence

Starting point

Maximum

Re-letting during restricted period

£25,000

£40,000

Knowingly misusing a possession ground

£30,000

£40,000

Unlawful eviction or harassment

£35,000

£40,000

Purporting to let on a fixed term

£4,000

£7,000

Failing to serve Information Sheet

£4,000

£7,000

Discrimination in letting

£6,000

£7,000

Rent Repayment Orders have been strengthened across the board: 24 months maximum (up from 12), available against superior landlords and company directors, and for repeat offenders the tribunal must order the full maximum.

Local authorities now have a statutory duty to enforce (Section 107) and keep the penalty income. The financial incentive to investigate is baked into the legislation.

How does the Act affect property valuations and rental evidence?

Model house and magnifying glass on architectural floor plans with a piggy bank in the background

It converts rent-setting from a contractual exercise into an evidentiary one. The figure on your Form 4A is the ceiling the tribunal works within, and the landlord who serves without a RICS-backed comparable evidence pack is giving their tenant a free option to have the rent cut.

Most coverage of this Act focuses on compliance. The valuation exposure is the part almost nobody’s writing about, and it bites in three places.

1. Every Form 4A is a valuation case file

Your proposed rent is the maximum the tribunal will consider. A challenge costs the tenant £47 and freezes rent at the old figure. 

Tribunal-grade comparables need property-type match (not “a two-bed flat” but “a purpose-built two-bed flat in the same EPC band with similar parking”), a tight geographic radius, and date currency within six months. 

A Registered Valuer’s letter meets that standard. A Rightmove screenshot doesn’t survive the first question.

2. Ground 1A makes pre-notice valuation evidence essential

The 12-month re-let ban means a collapsed sale leaves you with an empty property, a potential £25,000 penalty, and RRO exposure of up to 24 months’ rent. Independent valuation evidence created before the notice proves the sale intent was genuine.

3. The death of rent review clauses creates recurring surveyor work

Portfolio landlords who relied on CPI or RPI escalators now need open-market rent re-evidenced at every 52-week interval. That’s not a one-off instruction; it’s a recurring need.

The law firms have covered what the Act says. The lettings blogs have covered the day-to-day management changes. The gap is in the evidential burden on the landlord side of a tribunal hearing. That’s where getting it wrong costs the most.

If you need a market rent appraisal ahead of a Form 4A notice, or independent valuation evidence for a Ground 1A sale, contact our valuation team.