From 1 May 2026, the Renters’ Rights Act introduced the most significant changes to private renting in England for many years.
The reforms fundamentally affect how landlords let property, manage tenants and bring tenancies to an end.
For landlords and property investors, understanding these changes is essential.
Taking early, informed action will help ensure properties remain compliant, commercially viable and aligned with a more regulated rental environment.
At The MGroup, we support clients in understanding their tax and financial position and work closely with local professionals to provide well rounded support.
Fixed term tenancies replaced by rolling agreements
One of the most substantial changes is the removal of fixed term tenancies.
Most existing and new tenancies will become assured periodic tenancies, meaning they run on a rolling basis with no fixed end date.
This shift reduces certainty around occupancy and requires landlords to plan for greater flexibility in tenant turnover and long‑term asset strategy.
“This change requires a mindset shift for many landlords,” says Darren Green, partner at The MGroup. “Long term planning becomes more important when certainty around tenancy length is reduced.”
End of no fault evictions
The Act abolishes Section 21 no fault evictions. Landlords will no longer be able to regain possession without providing a valid legal reason.
Instead, possession will only be possible under specified grounds, including
• Rent arrears
• Selling the property
• Moving into the property
This represents a significant shift in the balance of rights towards tenants and places greater emphasis on procedural compliance and accurate record keeping.
Further government guidance is available via GOV.UK here
New rules on rent increases
Rent increases will become more structured and limited.
In most cases, landlords will only be able to increase rent periodically, typically once per year.
Tenants will also have the right to challenge increases they believe are excessive.
As a result, pricing strategies will need to be more carefully planned, particularly where mortgage costs and maintenance expenses continue to rise.
This is an area where regular financial review can provide valuable insight read more here
Stronger protections for tenants
The Act introduces several additional safeguards for tenants, including
• A ban on rental bidding wars
• Restrictions on discrimination, for example against tenants with children or those receiving benefits
• Limits on advance rent payments, generally capped at one month
These measures are designed to increase fairness and transparency across the sector, but they also increase administrative responsibility for landlords.
New compliance requirements for landlords
Landlords will be required to meet enhanced administrative obligations. For example, tenants must receive a government information sheet explaining the new rules by 31 May 2026, or landlords may face financial penalties.
Planned measures such as a national landlord database and a mandatory ombudsman scheme are also expected to increase oversight and accountability across the sector.
“The direction of travel is clear,” explains Wendy Tatham, partner at The MGroup. “Compliance is no longer optional or secondary. Landlords who stay organised and informed will be far better placed to adapt.”
Landlords may also have to report quarterly on their income if above the thresholds, read more about this here here
What landlords should do now
With the new framework now in place, landlords should consider
• Reviewing tenancy agreements and internal processes
• Ensuring eviction procedures align with the new rules
• Updating rent review strategies
• Checking tenant communication procedures
• Assessing the long term viability of their property portfolio
A more regulated rental environment
The private rented sector is entering a more regulated phase, with greater emphasis on tenant rights, transparency and procedural correctness.
For landlords, the focus now shifts from flexibility to compliance and long‑term planning.
A trusted, expert and supportive approach, guided by independent advice, will help ensure property portfolios remain resilient under the new rules.
This is particularly relevant in light of the recent changes to Capital Gains Tax on residential property, which we highlighted in our February newsletter.
With disposal timelines, tax exposure and overall net returns now under greater scrutiny, landlords may benefit from reviewing both their ongoing compliance obligations and longer‑term exit planning together.
You can read our February newsletter here
If you would like support reviewing your property arrangements or understanding how these changes affect your position, an early conversation can help avoid unnecessary risk.