Renters' Rights Act 2026: 5 Things to Do Before 31 May

The Renters' Rights Act 2026 is the most significant overhaul of the private rented sector in a generation. With the 31 May implementation date fast approaching, landlords must act now to ensure their business models remain viable and compliant.

1. Prepare for the Abolition of Section 21

The headline change is the total abolition of "no-fault" evictions under Section 21. All tenancies will transition to periodic tenancies with no fixed end date. Landlords will only be able to regain possession of their property using strengthened Section 8 grounds, such as if they wish to sell the property or move back in themselves.

Action: Review your current tenant selection process and ensure your property management is proactive. Robust evidence of rent arrears or anti-social behavior will be essential for future possession claims.

2. Master the New Section 13 Rent Increase Process

Rent review clauses in tenancy agreements will be abolished. Instead, landlords must use the statutory Section 13 process to increase rent. This can only be done once per year, and the new rent must reflect the market rate. Tenants will have the right to challenge increases they believe are above market value at a First-tier Tribunal.

Action: Plan your rent reviews carefully. Ensure you have comparable market data to justify any increases and serve the correct notice period (typically one month).

3. Eliminate Prohibited Practices

The Act introduces strict new rules to protect tenants from unfair practices. "Bidding wars," where landlords or agents encourage tenants to offer more than the advertised rent, are now illegal. Furthermore, landlords cannot discriminate against tenants who receive benefits or have children.

Action: Audit your marketing materials and instructions to letting agents. Ensure all properties are advertised at a fixed price and that your screening criteria are non-discriminatory.

4. Update Your Tenancy Agreements

Because all tenancies will become periodic, your existing fixed-term ASTs (Assured Shorthold Tenancies) will need to be updated or replaced. The new agreements must reflect the removal of Section 21 and the new rent review mechanisms.

Action: Consult with a legal professional or use a reputable compliance kit to draft new, periodic tenancy agreements that comply with the 2026 Act.

5. Review Your Portfolio Financials

With increased regulation comes increased cost. From potential tribunal challenges to more frequent safety inspections, your net profit may be impacted. It's vital to re-run your numbers to ensure your portfolio remains sustainable under the new regime.

Action: Use professional-grade tools to analyze your deals. Factor in higher maintenance reserves and potential voids during possession transitions.