Renters Reform Act: Understanding Phase 1 Changes for Landlords in May 2026
The Renters Reform Act is set to bring significant changes to the private rented sector. As a landlord, it is crucial to understand the initial phase of these reforms, scheduled for May 2026, to ensure compliance and continued success.
Please don't hesitate to contact Cantell & Co if you have any questions regarding the following information.
As you may be aware, significant legislative changes are being introduced in the rental sector this year. The first phase of these changes will come into effect on 1 May 2026. Please find below a summary of the key measures included in Phase 1:
1. Tenancy Structure Changes
All tenancies will become periodic (rolling) tenancies, known as assured periodic tenancies. Fixed-term Assured Shorthold Tenancies (ASTs) will be abolished.
· Any existing ASTs will automatically convert to assured periodic tenancies.
· No new tenancy agreements are required; however, landlords and agents must issue tenants with a Government information sheet explaining the changes.
2. Tenant Notice to Quit
Tenants may terminate their tenancy at any time by providing two months’ notice. There will be no minimum occupation period.
3. Abolition of “No-Fault” Evictions (Section 21)
Landlords will no longer be able to evict tenants without providing a legally valid reason.
4. Landlord Notice to Recover Possession
Landlords may give four months’ notice if they intend to sell the property or move back in. However, the tenancy must have been in place for a minimum of 12 months before such notice can be served.
5. Rent Increase Restrictions
· Rent increases will be limited to once per year and must reflect the market rate.
· Tenants may challenge increases via a tribunal.
· For tenancies that have been in place for at least one year as of 1 May 2026, landlords may increase rent by serving a Section 13 notice, with a minimum of two months’ notice.
6. Ban on Rent Paid in Advance
For new tenancies, landlords may not require more than one month’s rent in advance.
7. Prohibition of Rental Bidding Wars
Landlords and agents may not invite or accept rental offers above the advertised rent.
8. Right to Request a Pet
Tenants will have an implied right to request consent to keep a pet. Any refusal must be based on a reasonable and justifiable ground.
9. Non-Discrimination Rules
Landlords may not refuse prospective tenants solely because they have children or are in receipt of benefits.
Engaging with your estate agent for expert advice will be invaluable in navigating these reforms smoothly.
Cantell & Co