The Renters’ Rights Act is the most significant overhaul of the Private Rented Sector (PRS) since the Housing Act 1988.
First introduced to Parliament on 11 September 2024 and receiving Royal Assent in October 2025, the Act fundamentally reshapes how renting works in England. Phase 1 comes into force on 1 May 2026, marking the beginning of a multi-year transformation that will affect landlords, tenants, and letting agents alike.
While the legislation aims to raise standards and improve tenant security, its rollout may bring unintended market consequences. Agencies that prepare early will be best positioned not only to manage risk — but to capitalise on opportunity.
Timeline: Phases 1, 2 and 3
Phase 1 – From 1 May 2026
This is the most disruptive stage.
1) End of fixed-term tenancies
All ASTs automatically convert to periodic tenancies. There will be no fixed end date.
- Landlords must give four months’ notice
- Tenants must give two months’ notice
2) Abolition of Section 21
Landlords can no longer evict without grounds. Possession must rely on Section 8 grounds only.
New and revised mandatory grounds include:
- Landlord or family member moving in (after 12 months)
- Sale of property (after 12 months)
- Serious rent arrears (three months+)
- End of leasehold
- Student landlord provisions (Ground 4A)
- Compliance with enforcement action
Errors in citing grounds will result in court rejection — raising compliance stakes significantly.
3) Rent increases via Section 13 only
- Only one increase per year
- Two months’ notice required
- Tenants can challenge at the First-tier Tribunal
1 in 5 tenants plan to appeal rent increases, regardless of fairness — suggesting tribunal pressure may spike.
4) Ban on rental bidding wars
Agents and landlords cannot accept offers above the advertised rent.
However, 20% of landlords say they may respond by listing properties at higher starting rents — potentially driving broader price inflation.
5) Limits on rent in advance
Advance rent will be capped at one month.
While this supports affordability, it may disadvantage:
- Overseas tenants
- Students
- Tenants without UK credit history
6) Pets reform
Tenants gain a statutory right to request pets.
Landlords must respond within 28 days and cannot refuse unreasonably. Valid grounds include:
- Property unsuitability
- Leasehold restrictions
- Anti-social behaviour concerns
Pet damage insurance has been removed; deposits remain the protection mechanism.
7) Stronger local authority enforcement
Councils can now:
- Impose fines up to £40,000
- Skip informal warnings
- Take immediate enforcement action
Phase 2 – Late 2026
1) PRS Database
All landlords must register and provide:
- Property details
- EPC information
- Contact details
A registration fee will apply.
2) PRS Landlord Ombudsman
A mandatory redress scheme designed to resolve disputes without overloading courts.
All landlords must join — even those using agents.
Phase 3 – 2027–2035
1) Expansion of Awaab’s Law
Following its introduction under the Social Housing (Regulation) Act 2023, strict repair timelines for hazards (e.g., damp and mould) will apply to the PRS.
2) Decent Homes Standard
By 2036, all rental homes must meet updated minimum quality benchmarks.
Market impact: What the data shows
Rent disputes likely to increase
22% of tenants plan to appeal rent increases.
This may:
-
- Slow rent adjustments
- Create tribunal backlogs
- Increase emotional strain for agents
Possession knowledge gap
- 50% of agencies regularly serve Section 8
- 43% of sole operators have never served one
Training gaps could create compliance risk.
Vulnerable tenants face unintended effects
Without rent-in-advance flexibility, some renters may struggle to secure homes.
Agents will need alternative solutions:
- Guarantors
- Deposit replacement schemes
- Insurance-backed rent protection











