Renters’ Rights Act from 1 May: What it means for landlords, tenants, and buy-to-let decisions
The Renters’ Rights Act changes that started on 1 May 2026 are now live in England, and they represent one of the biggest shifts in the private rented sector for years. For tenants, the reforms are mainly about security and clearer rights. For landlords, they are about operating in a more formal system around possession, rent increases, and tenancy administration. For buy to let investors, they are a reminder that property decisions are no longer just about yield and mortgage rates. https://assets.publishing.service.gov.uk/media/69bc04b8f7b1c24d8e23ce60/The_Renters__Rights_Act_Information_Sheet_2026.pdf
In simple terms, assured shorthold tenancies have fallen away and most existing private tenancies that were ASTs have become assured periodic tenancies. New private rented tenancies also start on that rolling basis. The same government material explains that landlords can no longer give a new section 21 notice on or after 1 May 2026, and that rent increases after that date move onto the section 13 route, generally limiting increases to once a year with at least two months’ notice.
The biggest changes in plain English
For tenants, the most obvious shift is that the tenancy no longer revolves around a fixed end date in the same way. Periodic tenancies now continue on a rolling basis until the tenant leaves, the landlord has a valid legal ground for possession, or both sides agree to end the tenancy. The same information sheet also says tenants can challenge rent increases at the First tier Tribunal if they believe the proposed increase is above market rent, and that they have a right to request permission for a pet, which a landlord cannot refuse unreasonably.
For landlords, the practical message is that paperwork and process now matter even more. A GOV.UK overview for landlords says existing written tenancy agreements do not need to be rewritten, but landlords must give tenants the government produced information sheet by 31 May 2026. If the tenancy was based entirely on a verbal agreement, landlords must provide written information about the key terms by the same deadline. https://www.gov.uk/guidance/renters-rights-act-an-overview-for-landlords
There are also restrictions around possession grounds. The government’s tenant sheet says landlords cannot use the sell or move in grounds during the first 12 months of a tenancy, and those grounds require four months’ notice. It also notes an important student housing nuance, namely that ground 4A can still work on a transitional basis for some student tenancies from the 2025 to 2026 academic year, provided the correct prior warning is given.
The transition is not perfectly clean
One of the most important details is that 1 May was not a total reset for every live eviction case. GOV.UK has separate guidance for notices served before 1 May 2026, and it says landlords who served a section 8 or section 21 notice before that date may still be able to continue under the old route for a limited period if the notice remained valid immediately before the reforms began. https://www.gov.uk/guidance/giving-notice-of-possession-to-tenants-before-1-may-2026
That same guidance is quite specific on section 21 timing. If a landlord served a valid section 21 notice before 1 May 2026, court proceedings must usually start by whichever comes first, the time left on the notice or 31 July 2026. So while section 21 has effectively ended for new use, some older notices still sit within a short transition window.
What this could mean for rental supply and strategy
The legal changes do not automatically tell us what landlords will do next, but they do change the operating environment. If a landlord was already feeling squeezed by mortgage costs, admin burden, or weaker margins, the need for clearer documentation and more formal possession routes may encourage a review of whether the property still fits their plans. That does not mean a mass exit is inevitable, but it does mean the decision to hold, refinance, expand, or sell may now feel more strategic.
The market backdrop is also worth noting. The ONS said average UK private rents were up 3.5% in the year to February 2026, unchanged from January and the joint lowest annual growth since March 2022. https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/march2026
That softer rental growth does not mean rents are low, and it does not tell us what every region will do next. But it does suggest landlords may have less room than before to absorb change simply by pushing up rent. For tenants, more security may be welcome, but it should not be confused with a guarantee of lower costs. For investors, this is where buy to let conversations become more nuanced. A property can still be viable, but the case for it may now depend more heavily on process, contingency, and realistic assumptions about rent growth and tenant turnover.
Practical takeaways
If you are a landlord, review your tenancy paperwork, your possession processes, and whether all required information has been given to tenants. If you are a tenant, make sure you understand the new rent increase process, your notice rights, and what counts as a valid possession ground. If you are thinking about a buy to let purchase or remortgage, it now makes even more sense to test the numbers against the new rules rather than relying on how the sector used to work.
The Renters’ Rights Act is not just a legal update. It is a structural change to how the private rented sector operates. If you are reviewing a buy to let purchase, refinance, or wider property strategy, Altura Mortgage Finance can help you assess how those legal changes sit alongside the financial side of the decision.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Altura Mortgage Finance Limited is authorised and regulated by the Financial Conduct Authority. Firm Registration No: 827849 www.fsa.gov.uk/register/home.
