Major Rental Industry Shake-Up: What’s Changing in May 2026

From 1 May 2026, the private rented sector in England will see its most significant reform in decades under the Renters’ Rights Act 2025.

These changes are designed to strengthen tenant protections, increase transparency, and raise standards across the industry - and they will affect every landlord operating in England.

Here’s a clear breakdown of what’s changing and what it means for you.

1. Fixed-Term Tenancies Are Ending

From May 2026:

• Assured Shorthold Tenancies (ASTs) will convert to periodic (rolling) tenancies

• Tenants can give two months’ notice at any time

• Fixed-term end dates will no longer be grounds for regaining possession

  
  

This gives tenants greater flexibility, while landlords will need to rely on statutory possession grounds where necessary.

2. Section 21 Is Being Abolished

The removal of “no-fault” evictions (Section 21) is one of the most significant reforms.

Landlords will no longer be able to regain possession without a valid legal reason. Instead, possession must rely on strengthened and clarified Section 8 grounds, such as:

• Serious rent arrears

• Anti-social behaviour

• Intention to sell

• Landlord or close family moving into the property

  
  

While this represents a structural change, legitimate landlords will still retain the right to regain possession where lawful grounds apply.

3. Rent Increase Rules & Upfront Payments

New rules will introduce:

• A limit of one rent increase per year

• A formal statutory notice process for increases

• A ban on rental bidding wars

• A restriction to one month’s rent in advance

  
  

This creates a more transparent and consistent framework for rent setting.

4. Pets & Anti-Discrimination Protections

Tenants will gain:

• Stronger protection against discrimination (including benefit recipients and families with children)

• The right to request a pet, which cannot be unreasonably refused

  
  

Landlords will still be able to impose reasonable conditions (for example, pet insurance requirements where appropriate).

5. Increased Compliance & Enforcement

The reforms also introduce:

• A national landlord database

• A mandatory private landlord ombudsman

• Stronger local authority enforcement powers

• Increased financial penalties for non-compliance

Professional management and accurate documentation will become more important than ever.

What This Means for Landlords

While media coverage often focuses on restrictions, these reforms also:

• Create clearer, standardised processes

• Remove uncertainty around tenancy structures

• Reward compliant, professional landlords

• Improve sector reputation long term

  
  

Landlords who operate transparently and proactively will remain well protected.

Our Commitment to You

As your letting agency, we want to reassure you that:

• We are fully across the legislative changes

• We are reviewing all managed tenancies ahead of the May 2026 implementation date

• We will be issuing all required statutory documentation to tenants in our managed properties

• We will ensure rent review processes, notices, and compliance requirements are handled correctly

• We will register properties with the new database and manage ombudsman obligations on your behalf (where applicable)

  
  

Our priority is to ensure that you remain compliant, protected, and confident throughout this transition.

There is no need for you to take independent action on managed properties - we are preparing the necessary documentation and processes already.

Final Thoughts

The rental sector is evolving. While change always brings adjustment, professional landlords who are well advised and properly managed will continue to operate successfully.

If you have any questions about how the May 2026 reforms affect your portfolio, our team is here to help.

We’re committed to making this transition smooth, compliant, and stress-free for you.