The Renters’ Rights Act 2025 changed the law for England’s 4.7 million private renting households on 1 May 2026. Section 21 no-fault eviction is abolished, every private assured tenancy is now periodic with no end date, and rent can rise only once every 12 months on at least two months’ written notice. Landlords picked up new duties and new penalties the same day — and from 6 April 2027 their rental profits are taxed at 22, 42 and 47 per cent.
This guide is for both sides. It covers what commenced in May, how rent rises now work and how to challenge one, the grounds that replaced Section 21, the rules on bidding, advance rent, pets and discrimination, and what is still to come.
What actually changed on 1 May 2026
The statute is the Renters’ Rights Act 2025 (2025 c. 26), which received Royal Assent on 27 October 2025. Its main tenancy provisions were switched on in one stage by the Renters’ Rights Act 2025 (Commencement No. 2 and Transitional and Saving Provisions) Regulations 2026, SI 2026/421, on 1 May 2026. Council investigatory and enforcement powers came earlier, on 27 December 2025.
Assured shorthold tenancies no longer exist. Every assured shorthold tenancy, including those part-way through a fixed term, converted automatically to an assured periodic tenancy with no end date, and a tenant can now leave on two months’ notice ending at the end of a rent period.
Landlords did not have to reissue existing agreements, but they did have to give every named tenant a government information sheet explaining the changes. The implementation roadmap set that deadline at 31 May 2026, with a penalty of up to £7,000 for missing it.
The end of Section 21, and what replaced it
The headline change is that a tenancy no longer ends simply because a fixed term has run out. Possession requires one of the grounds in Schedule 2 to the Housing Act 1988, a valid notice and, if the tenant stays, a court order.
Two grounds do most of the work. Ground 1 covers a landlord or close family member moving in; the new Ground 1A covers selling. The government’s guide to the Act confirms both need four months’ notice, neither can be used in the first 12 months, and a landlord who uses either cannot market or re-let for 12 months afterwards. That last rule is the anti-abuse teeth: a bogus sale notice costs a year of rent.
The arrears ground moved the tenant’s way. The mandatory ground now bites at three months’ arrears (13 weeks where rent is paid weekly or fortnightly) rather than two, and its notice period rose from two weeks to four. Antisocial behaviour grounds run the other way: on Ground 14 a landlord can start possession proceedings on the same day the notice is served.
Section 21 notices served before commencement
There was a short transitional window. Under GOV.UK guidance for tenants, a Section 21 notice served before 1 May 2026 could still be used, but only if the landlord applied to court by 31 July 2026 or within six months of service, whichever came first. That window has closed, so an old notice is now dead paper.
Regulation 5 of the commencement regulations also saves “legacy assured tenancies” — those entered into before 1 May 2026 that were not assured shortholds — from Ground 1A altogether.
Rent increases: the section 13 notice and how to challenge one
There is now one lawful route to a higher rent. Contractual review clauses and escalators have no effect: rent changes only by statutory notice, by tribunal determination, or by written agreement following one.
The GOV.UK guidance for landlords sets out the mechanics: complete form 4A, the landlord’s notice proposing a new rent, and serve it at least two months before the increase starts. It can be used once a year, and not at all in the first year. Wrong form or wrong timing means an invalid increase.
A tenant who thinks the figure is above the open market rate can refer the notice to the First-tier Tribunal, but must do so before the date the new rent is due to begin. There is a separate right to challenge the rent you agreed at the outset, exercisable in the first six months of a tenancy.
The tribunal can no longer raise your rent
This is what makes challenging worthwhile. Under section 14ZB of the Housing Act 1988, the new rent is the open market rent if that is lower than the rent proposed, and otherwise it is simply the proposed rent. The tribunal cannot return a bigger number than the notice asked for, and the determined rent takes effect from a date it directs, no earlier than your application — so asking cannot leave you with backdated arrears.
Be realistic about the downside. The tribunal decides on comparable local rents, not affordability, and can uphold the increase in full. Collect advertised rents for similar nearby properties first, and expect weeks rather than days.
Bidding, rent in advance and deposits
Rental bidding is banned in England. A landlord or agent must publish an asking rent and cannot ask for, encourage or accept any offer above it, on pain of a penalty of up to £7,000.
Large up-front payments are restricted too. No rent can be required or accepted before the tenancy agreement is entered into, and once it is signed a landlord can require no more than one month’s rent in advance (28 days’ rent for shorter rental periods) before the tenancy begins. The penalty is up to £5,000. The English Housing Survey for 2024–25 found 626,000 private rented households paid rent in advance on top of the deposit.
Deposits were not changed by the Act. The Tenant Fees Act 2019 rules still cap a tenancy deposit at five weeks’ rent where annual rent is below £50,000, or six weeks between £50,000 and £100,000, with a holding deposit of one week. Deposits must be protected within 30 days, and there is no separate pet deposit.
Pets, children and benefits
Tenants now have a statutory right to request a pet, and a landlord must not unreasonably refuse. The request must be in writing and describe the animal. Per GOV.UK’s guidance for landlords, the landlord then has 28 days to reply in writing, extended by up to seven days if they ask for more information.
- Usually reasonable to refuse — a freeholder bans pets, another tenant has an allergy, the property is too small, or the pet is illegal to own.
- Usually unreasonable — disliking pets, a bad experience with a previous tenant, or a general worry about damage.
- If refused unreasonably — put it in writing, then go to the council or, once it exists, the landlord ombudsman.
Blanket “no DSS” and “no children” policies are unlawful. Landlords and agents cannot discriminate because a prospective tenant receives benefits or has children, and terms in mortgages, superior leases and new insurance policies imposing such restrictions have no effect. The penalty is up to £7,000. In 2024–25 just under 2 per cent of private renters said they had been told they could not rent a property because they received housing support (80,000 households), and just under 2 per cent because they had children in the home (91,000 households).
Enforcement was strengthened generally. Rent repayment orders now carry a maximum of 24 months’ rent rather than 12, and the window to apply doubled to 24 months after the offence.
Renting now, weighing up buying later?
Longer, more secure tenancies change the maths. Run the numbers before you decide.
Explore GetSmartSaver →What is still to come
May 2026 was Phase 1, not the finish line. Three of the Act’s structural pieces are still being built.
The Private Rented Sector Database rolls out from late 2026, area by area, and registration will be compulsory. The sanction is severe: an unregistered landlord cannot obtain a possession order at all, except on the antisocial behaviour grounds — Ground 7A or Ground 14. Penalties run to £7,000 for a first breach and £40,000, or prosecution, for repeats.
A landlord ombudsman with binding powers — apologies, remedial work, compensation — is expected to become mandatory in 2028, funded by a small annual fee per property. The Decent Homes Standard and Awaab’s Law are Phase 3 and still subject to consultation; the government floated a Decent Homes deadline of 2035 or 2037 but has confirmed nothing. The Commons Library briefing on renters’ reform in England tracks the sequencing.
| Date | What happens | Status |
|---|---|---|
| 27 December 2025 | New council investigatory and enforcement powers | In force |
| 1 May 2026 | Section 21 abolished; all private assured tenancies periodic; rent, bidding, advance-rent, pet and discrimination rules start | In force |
| 31 May 2026 | Deadline for landlords to give existing tenants the government information sheet | Passed |
| 31 July 2026 | Last date to start court action on a Section 21 notice served before 1 May 2026 | Passed |
| Late 2026 | Private Rented Sector Database rolled out area by area | Planned |
| 2027 | Tenancy reforms extended to the social rented sector | Planned |
| 2028 | Landlord ombudsman membership becomes mandatory | Planned |
| To be confirmed | Decent Homes Standard and Awaab’s Law applied to private rentals | Subject to consultation |
The money angle: rents, costs and the 2027 tax rise
The obvious worry is that new duties push rents up; the published data does not yet show a spike. The ONS private rent and house prices bulletin released on 22 July 2026 put average UK private rent at £1,388 a month in June 2026, up 3.3 per cent over 12 months, with England at £1,446 and growth of 3.4 per cent.
The government’s own impact assessment for the Bill put the average cost at around £22 per rented property a year, roughly 0.2 per cent of mean annual rents in England, and argued that abolishing no-fault eviction in Scotland had not visibly dented supply. Landlord bodies dispute the modelling. Both can be true: the direct compliance cost is small, while four-month notices, a 12-month re-letting ban and the risk of a £7,000 penalty change how a small landlord prices risk.
The bigger number for landlords is not in this Act. Under the announced changes to tax rates for property, savings and dividend income, property income gets its own rates from April 2027: a basic rate of 22 per cent, a higher rate of 42 per cent and an additional rate of 47 per cent, two points above the equivalent income tax rates. On these figures, £10,000 of taxable rental profit costs roughly £200 a year more, whichever band you sit in.
If you let property, review your cover and costs now rather than in March 2027 — start with what landlord insurance actually needs to cover. If you rent, the new security cuts both ways: staying put is safer, but so is planning an exit. Our rent vs buy calculator sets the two paths side by side, and if buying is the plan, the first-time buyer mortgage rules for 2026 come next. Renters also leave money on the table: check the council tax discounts and exemptions, since the bill is usually yours.
Wales, Scotland and Northern Ireland
Housing is devolved, so almost all of the above applies in England only — the tenancy reform, the rent mechanism, the bidding ban, the advance-rent cap and the pet right stop at the border. Rental discrimination is the exception: those protections are being extended to Wales and Scotland, where a breach will be a criminal offence.
- Wales — tenants are “contract-holders” with “occupation contracts” under the Renting Homes (Wales) Act 2016, and a landlord’s no-fault notice under section 173 still exists but needs six months’ notice.
- Scotland — the private residential tenancy is open-ended with no no-fault ground; a landlord must prove one of 18 statutory grounds at the First-tier Tribunal for Scotland. Rent can rise once in any 12 months on three months’ notice, and a tenant has 21 days to ask Rent Service Scotland to check it.
- Northern Ireland — under the Private Tenancies Act (Northern Ireland) 2022, rent has been limited to one rise in any 12 months on three months’ written notice since 1 April 2025.
Frequently asked questions
Can my landlord still evict me using a Section 21 notice?
No. Section 21 no-fault eviction was abolished in England on 1 May 2026. A notice served before that date could still be used, but only if the landlord applied to court by 31 July 2026 or within six months of serving it, whichever came first. Both deadlines have passed, so possession now needs a statutory ground.
How much notice do I get if my landlord wants to sell?
Four months. Ground 1A covers sale and Ground 1 covers the landlord or a close family member moving in, and both require four months’ notice. Neither can be used in the first 12 months of a tenancy, and the landlord cannot market or re-let for 12 months afterwards. Legacy assured tenancies predating May 2026 are exempt from Ground 1A.
How often can my rent go up now?
Once every 12 months, and never in the first year of the tenancy. The landlord must serve form 4A, the statutory notice proposing a new rent, at least two months before the increase starts. Rent review clauses in tenancy agreements have had no effect since 1 May 2026, so a contractual escalator cannot be used instead.
If I challenge a rent increase, can the tribunal set it even higher?
No. Under section 14ZB of the Housing Act 1988, the new rent is the open market rent where that is lower than the amount the landlord proposed, and otherwise the proposed amount. You can never end up paying more than the notice asked for. Apply to the First-tier Tribunal before the date the new rent is due to start.
Can a landlord still refuse a pet?
Yes, but only for a reason that is objectively reasonable, such as a freeholder ban, another tenant’s allergy, or a property far too small for the animal. The request must be in writing and the landlord has 28 days to reply in writing, extended by up to seven days if they need more information about the pet.
How much rent in advance can a landlord ask for?
Nothing at all before the tenancy agreement is signed. Once it is signed, a landlord can require up to one month’s rent in advance, or 28 days’ rent where rental periods are shorter, before the tenancy starts. Breaching this carries a civil penalty of up to £5,000. In 2024–25, 626,000 private rented households paid rent in advance on top of the deposit.
Last reviewed: August 2026. Rules and figures are current for the 2026/27 tax year, 6 April 2026 to 5 April 2027. The Renters’ Rights Act 2025 tenancy reforms apply in England only; Wales operates under the Renting Homes (Wales) Act 2016, Scotland under the private residential tenancy regime and Northern Ireland under the Private Tenancies Act (Northern Ireland) 2022. This is general information, not personal financial or legal advice — check your position on gov.uk, or get free help from Citizens Advice, Shelter or MoneyHelper.
