What Residential Landlords Need to Know

The private rented sector is entering a period of significant reform. From 1 May 2026, the Renters’ Rights Act 2026 will introduce fundamental changes to how residential tenancies are granted, managed and brought to an end.

 

Key Changes To Prepare For:
  1. Section 21 Abolished (No‑Fault Evictions End)
  • From 1 May 2026, you can no longer evict using Section 21 notices.
  • All evictions must use strengthened Section 8 grounds.
  1. All New Tenancies Become Open‑Ended (Periodic)
  • No more fixed‑term ASTs.
  • All new tenancies start as periodic from day one.
  1. Rent Increases Restricted
  • Only one rent increase per year.
  • Landlords must follow a stricter notice process and Rent will now be challengeable through the Tribunal.
  1. Ban on Rental Bidding
  • Landlords cannot encourage or accept bids above the advertised rent.
  1. Limits on Rent in Advance
  • Caps on how much rent can be taken upfront.
  1. New Tenant Rights
  • Right to request a pet, with landlords required to consider the request reasonably.
  • Enhanced anti‑discrimination protections, including for tenants with children or receiving benefits.
  1. New Compliance Infrastructure

To be phased in during 2026:

  • National Private Rental Sector Database (Landlord Register). Target date late 2026.
  • New Landlord & Tenant Ombudsman to become mandatory.
  1. Higher Tax & Reporting Requirements
  • Landlord fiscal position to be changed and mandatory digital quarterly reporting to be introduced.

 

Action Steps for 2026
  1. Prepare for the end of Section 21
  • Review all current tenancies and identify any that may require action before May 2026.
  • Analyse and understand the strengthened Section 8 grounds including required notice periods.
  • Evaluate internal processes for serving notices and managing disputes.
  1. Transition to open‑ended periodic tenancies
  • Stop issuing long fixed‑term ASTs.
  • Update tenancy templates to reflect periodic‑only structures.
  • Assess how this change may affect cashflow, mortgage terms, and planning.
  1. Review your rent‑increase strategy
  • Plan for one rent increase per year only.
  • Ensure your rent‑review process is compliant and properly documented.
  • Understand and prepare for potential tribunal challenges.
  1. Update your advertising and tenant‑selection practices
  • Remove language from any literature that maybe interpreted as encouraging rent bidding.
  • Ensure no discrimination at any stage against tenants with children, pets, or benefit recipients.
  • Prepare a standard process for handling pet requests.
  1. Prepare for the new landlord register
  • Collate all documents required for registration (property details, safety certificates, identity documents, How to Rent Guide).
  • Scrutinize all compliance certificates to ensure all are up to date (EPC, EICR, gas safety, alarms).
  1. Prepare for the new Ombudsman
  • Review complaint‑handling process.
  • Warrant all communication with tenants is documented
  • Evaluate your repairs‑response system.
  1. Plan for energy‑efficiency upgrades
  • Review EPC ratings for all properties.
  • Get quotes for upgrades needed to reach EPC C.
  • Budget for improvements over the next 24–36 months.
  1. Prepare for digital tax reporting
  • Ensure bookkeeping is digital and up to date.
  • Verify any software or system used provides for quarterly reporting.
  • Review allowable expenses and tax‑planning approach.

These reforms mark a decisive shift towards a more regulated, transparent and tenant-focused rental market. Ellisons can support you through these changes – from reviewing tenancy structures and compliance obligations to advising on risk, disputes, and long-term portfolio strategy.

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