The Renters’ Rights Act: The Shift in the Rights of Private Tenants and the Consequences on the Rental Market
Pictured: Renters’ Rights Book | Source: Warwick Estate Agents
Introduction
Since 1st May 2026, several changes are now in effect that directly affect the majority of private tenants. Following the Renters’ Rights Bill passing into law in October 2025, the resulting Act has officially transformed the private rented sector, establishing a new framework of rights and responsibilities for landlords, tenants and letting agents. This legislation represents the most substantial housing reform since the Housing Act 1988.
The main changes
Before 1st May 2026, a landlord could evict a tenant with assured shorthold tenancies with a Section 21 notice, commonly known as a ‘no-fault’ eviction notice. From 1st May 2026, Section 21 ‘no-fault’ evictions can no longer be issued, as the Act now requires landlords to provide a strict legal reason for eviction with a Section 8 notice. Existing notices issued prior to 1st May 2026 are, however, still valid.
Rolling - ‘periodic’-tenancies are now introduced, abolishing fixed-term tenancies and providing renters with greater flexibility. Depending on the arrangement, tenancies will roll on from week to week or month to month. Tenants can leave at any time by giving two months’ notice. This gives tenants the upper hand when leaving.
A minimum of a 2-month notice is now required before a rent increase with the obligation to use a Section 13 notice, which is limited to once per year. This extends the notice period by one month compared to the previous regulation and gives renters the opportunity to challenge unfair increases in price if they are above the market value.
Landlords can now only demand up to 1 month’s rent in advance and cannot legally refuse tenants who have kids/receive benefits and must fairly consider pets. In the case of refusal, a written and valid reason is required, stating the reason why the tenant’s pet request has been denied.
What does this legislation mean for Build to Rent (BTR) landlords and Private landlords?
Build to Rent landlords are in a stronger position to be able to adapt to the new legislative changes, as they already hold themselves to extremely high standards and focus on long-term tenancies, which so far align with the new provisions. However, they face complications around the new periodic tenancy model and are advised by legal teams to audit existing Section 106 agreements, which are planning obligations that require developers to deliver affordable housing and social housing. The Act preserves existing Section 106 obligations entered into before commencement. As a result, Build to Rent landlords are advised to thoroughly examine triggers for affordable housing delivery to ensure compliance with the new tenancy requirements.
Private landlords are more significantly disrupted by these changes in the law, as the loss of Section 21 deprives them of their safety net. A rising concern is the requirement of court hearings for disputes, which could add to the existing hearing delays. According to the Ministry of Justice, private landlords currently wait 26 weeks between bringing a claim and being able to repossess a property. This figure has increased by 1.6% in comparison to 10 years ago. These changes could drive private landlords to leave the market in favour of short-term leases. As a result, this could potentially reduce the overall supply of rental properties, leading to potential increases in rent prices for tenants.
The unintended consequences of the Act
The Renters’ Rights Act 2025 (which came in force on May 1, 2026) is the most significant reform of the private sector in England in over 30 years, aiming to create more stability and accessibility for private tenants. At its core, the Act aims to rebalance the relationship between landlords and tenants.
However, the reality of these changes could have unintended consequences on the rental market. Landlords could become more selective, favouring tenants with stable incomes, no social benefits, and no kids or pets due to the abolition of the Section 21 notice. As a result, finding a home to rent may take longer and be a more vigorous process, potentially increasing homelessness figures in the future.
The Act risks creating a two-tier rental market, one benefiting existing tenants due to the increased protections, and one where renters struggle to access their dream homes. The real result now lies with how well the system will function.