Renters’ Rights Act 2025: Phase 1 Starts 1 May 2026

2 months ago by Lisa
Renters’ Rights Act 2025: Phase 1 Starts 1 May 2026

The government has confirmed that Phase 1 of the Renters’ Rights Act will start on 1 May 2026. From that date, the way you let, manage and end tenancies in England will change significantly. 

For self-managing landlords, this isn’t just a headline - it’s a hard deadline. You’ll need to adjust how you handle notices, rent, advertising, and day-to-day management.

Here we break down what actually changes on 1 May, what comes later, and the practical steps to take now.


What Changes on 1 May 2026?

From the commencement date, the first raft of reforms under the Renters’ Rights Act comes into force. These include: 

1. End of Section 21 ‘no-fault’ evictions

Section 21 will be removed. If you need possession, you’ll have to rely on updated Section 8 grounds, such as wanting to sell, move back in, or dealing with serious arrears or anti-social behaviour. 

You can still serve a Section 21 notice before 1 May 2026, but you must apply to court by 31 July 2026 or that notice becomes invalid. 

2. Fixed terms replaced by periodic tenancies

New and existing tenancies will move to periodic (open-ended) tenancies by default. Fixed terms as we know them will disappear, with tenancies rolling on month to month.

3. Limits on rent in advance and rent increases

From 1 May it will be illegal to: 

  • Increase rent more than once a year
  • Ask for more than one month’s rent in advance

Tenants will also be able to challenge rent increases at the Property Tribunal, and any challenge will delay the increase until a decision is made. 

4. Ban on rental bidding and discrimination

It will become unlawful to: 

  • Run rental bidding wars between prospective tenants
  • Discriminate against applicants because they receive benefits or have children
  • Tenants have the right to request a pet

5. New financial penalties

Local councils will be able to issue civil penalties ranging from £7,000 up to £40,000 for serious or repeat breaches of the new rules. 


What Comes Later: Phases 2 and 3

Phase 1 is just the start. Further reforms are planned in two additional stages:

  • Phase 2 (from late 2026)
    • Introduction of a Private Landlord Ombudsman
    • A new Private Rented Sector Database, where landlords and properties must be registered
  • Phase 3 (timing to be confirmed)
    • A new Decent Homes Standard for the private rented sector
    • Extension of Awaab’s Law to private rentals
    • A revised Housing Health and Safety Rating System (HHSRS) and work towards higher energy efficiency standards

For now, your priority is being ready for 1 May 2026.

What This Means in Practice for Landlords

1. Ending tenancies becomes more technical

With Section 21 gone, you’ll need to be confident using the grounds-based possession system. That means:

  • Understanding which grounds apply to your situation
  • Making sure your paperwork and evidence are in order
  • Accepting that poorly handled compliance (licensing, deposits, safety certificates) could undermine a possession claim

For any situation where you’re considering serving notice before May 2026, it’s important to seek proper legal guidance, especially around the 31 July 2026 court deadline for existing Section 21 notices. 

2. Tenancy agreements and written information

From commencement: 

  • All new tenancies will need to be set up as periodic assured tenancies using updated agreements
  • All existing tenants must receive a government-produced information leaflet explaining the new rules, within the first month after commencement
  • You won’t need to re-issue every single tenancy agreement, but your current documents must not contradict the new law

If you currently rely on a very old AST template or a verbal agreement, this is the moment to bring everything up to date.

3. Rent strategy needs a rethink

Because you can only review rent annually, and tenants can challenge increases, you’ll want to: 

  • Review current rent levels across your portfolio
  • Consider whether they still reflect risk, costs and local market conditions
  • Document how you assess “market rent” so you can justify increases if challenged

This doesn’t mean pushing rents to the limit. It means being planned, fair and evidence-based.

4. Advertising and selection processes must be compliant

Any trace of “no benefits” or “no children” policies will be unlawful. You’ll also need to avoid anything that looks like encouraging bidding wars – for example, inviting offers over a listed rent from multiple applicants. 

If you’re self-managing, this is a good time to formalise your referencing, marketing and selection criteria so they are fair, transparent and consistent.


Personal Economy Lettings Perspective

For many self-managing landlords, the biggest challenge isn’t bad tenants, it’s the pace and complexity of legal change.

As Lisa Bailey, Residential Lettings Manager at Personal Economy Lettings, puts it:

“1 May 2026 is a hard date in the diary. The landlords who will feel calm when it arrives are the ones who’ve already checked their agreements, rent strategy and compliance. You don’t need to panic but you do need a plan.”

That’s the key message: don’t panic, prepare.


A Simple Pre–May 2026 Checklist

Between now and 1 May 2026, self-managing landlords should:

  • Audit each tenancy paperwork, deposit protection, licences, safety certificates
  • Decide whether any Section 21 notices are needed before the deadline (with proper legal advice)
  • Update your tenancy agreement template ready for periodic tenancies
  • Build a fair rent review process, with notes on how you assess market rents
  • Review all advertising and selection wording to remove anything discriminatory or unclear
  • Put a simple system in place to issue the government information leaflet to all tenants once released

How We Can Help: Lettings PA for Self-Managing Landlords

Our Lettings PA service is designed for landlords who want to stay hands-on but don’t want to be caught out by legislation this complex.

We can help you:

  • Review your current tenancy documents
  • Prepare for the switch to periodic tenancies
  • Sense-check rent strategies and notice processes
  • Keep on top of compliance, paperwork and timelines

You remain the landlord in control. We act as your behind-the-scenes compliance and tenancy partner.

If you’d like a straight, jargon-free conversation about what the Renters’ Rights Act means for your property, book a Clarity Call with Personal Economy Lettings. We’ll walk through where you are now, what needs to change, and how to get ready for 1 May 2026 with confidence.

https://personaleconomypartners.com/landing/book-a-clarity-call

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