Brickflow Thinks

Renters’ Rights Act: What’s Changing & What It Means for Investors

Written by Jenna Young | Apr 20, 2026 3:42:30 PM

From 1 May 2026, the Renters’ Rights Act will introduce significant changes to the private rented sector in England, in what's considered the biggest shake up of the sector for decades.

Many of the headline measures are already confirmed, although some operational details will follow through secondary legislation.

In this article, we’re looking at the key changes, and how they are likely to affect landlords and property investors in practice.

For full details, refer to the official government guidance and read the government information sheet for tenants.

Key changes at a glance

Assured Short-hold Tenancies (ASTs) will be abolished

All tenancies will move to Assured Periodic Tenancies (APTs). These will be open-ended, with no fixed term. Tenants will be able to leave at any point with a minimum of two months’ notice. Existing ASTs will convert automatically.

Section 21 (‘no-fault’) possession will end

Landlords will no longer be able to rely on Section 21 to regain possession. Instead, possession must be sought using specific legal grounds under Section 8, supported by evidence and legal process.

Rent increases will be standardised

Rent can only be increased once per year, with at least two months’ notice, using a prescribed process. Increases must reflect market levels, and tenants can challenge them through a tribunal.

New requirements around tenant rights

Restrictions are placed on blanket bans (for example, relating to pets or families). Referencing and tenant selection must comply with data protection and anti-discrimination rules.

Mandatory Ombudsman scheme

All landlords must join a Private Rented Sector Ombudsman. The scheme will handle disputes and can issue binding decisions.

Landlord database

A national register will be introduced. Registration will be required to market a property and, in most cases, to regain possession.

Student accommodation provisions

New rules apply to student lets, including a proposed possession ground (Ground 4A) for re-letting to incoming cohorts. Further detail is expected.

What these changes mean in practice

Tenancies become ongoing rather than fixed

The removal of fixed terms changes how long tenancies are expected to run.

There is no defined end date, and tenants can leave with relatively short notice (just 2 months). For landlords, this reduces the ability to plan around a fixed tenancy cycle and places more weight on:

  • local demand
  • tenant retention
  • realistic assumptions around void periods

Regaining possession becomes conditional

With Section 21 removed, possession relies on defined legal grounds. Key examples of circumstances that would have grounds for ending the tenancy (and eviction) include:

  • Selling the property - provided the correct notice is given and requirements are met.
  • Moving into the property - if the landlord (or a close family member) intends to live in the property.
  • Rent arrears - a tenant falling into sufficient arrears can form a mandatory ground for possession, subject to thresholds being met.
  • Breach of tenancy - including persistent late payment, anti-social behaviour, or other breaches of the agreement.

This shifts the emphasis towards selecting tenants carefully at the outset, maintaining clear records and properly understanding which grounds apply and when.

Rent increases require evidence

The framework for rent increases is more structured than before. The new Act now means that:

  • increases need to be supported by comparable market data
  • tenants have a clear route to challenge
  • the tribunal sets the rent if a challenge is made
  • rent review clauses in current tenancy agreements will no longer apply after the 1st of May

For investors, rental assumptions now need to be fully aligned with local market conditions rather than being landlord-led.

Compliance becomes part of day-to-day operation

The Ombudsman and landlord database introduce baseline requirements that apply across the sector.

These are not optional. In particular, failure to comply may limit a landlord’s ability to market a property and regain possession.

The aim of the Ombudsman is to provide tenants with a free, independent route to resolve disputes without going to court. Meaning record keeping, documentation, and response processes become far more important for legitimate landlords.

More defined rules around student property

The Act introduces specific provisions for student accommodation, but how they apply depends on the type of property and tenancy.

Houses in Multiple Occupation (HMOs) let to students are expected to fall within the new assured tenancy regime.

A new possession ground (Ground 4A) is being introduced, intended to allow landlords to re-let the property according to the academic letting cycle. However, this only applies where certain conditions are met:

  • The HMO must be let entirely to full-time students
  • The landlord must use the correct notice and legal process

Secondary legislation is due to be published with final criteria and notice requirements, but even where Ground 4A applies, tenants will still have the right to give two months’ notice at any time, meaning tenancy end dates may not always align neatly with the academic cycle.

For purpose-built student accommodation (PBSA), the position is less clear at this stage.

Some PBSA may fall outside the new regime, particularly where the property is managed by a provider within a government-approved student housing management code of practice. However, until the final legislation is published, exemptions should not be assumed.

How Investors Are Likely to Respond

Certainly the less scrupulous landlords in the market might find these new legislations problematic, but moving towards more professionalism in the sector is largely positive for the industry, improving standards and consistency.

Smaller scale (or accidental landlords), who hold a significant share of the market, might feel an element of bureaucratic fatigue, and a portion of them might decide the new regulatory environment isn’t worth the effort. That risks reducing supply, which is not good from a tenant perspective, and counterproductive to the aims of the Act.

In practical terms though, amongst professional landlords and investors, the changes are likely to shift behaviour rather than spur a mass exodus.

Common responses are likely to be around:

  • more emphasis on tenant selection at the outset
  • greater reliance on documented processes and evidence
  • closer attention to local rental comparables
  • more conservative assumptions around timing when regaining possession
  • preference for assets with consistent, repeatable demand

Similar rules already apply in Scotland

These changes are not entirely new in a UK context. Scotland introduced Private Residential Tenancies (PRTs) in 2016, which have applied to most new tenancies since December 2017.

Key features include:

  • open-ended tenancies with no fixed term and short tenant notice periods (typically 28 days)
  • no equivalent to Section 21
  • possession based on defined legal grounds
  • caps on rent increases and the ability to challenge them

While there are differences in court processes, rent controls, and local policy, in effect, the English reforms bring the system closer to what already operates in Scotland. When these changes were introduced in Scotland, there was concern about loss of control among landlords, but the market has continued stably under this structure, and still attracts landlord investment.

Navigating the Changes

Councils overseeing the Act have been allocated additional government funding, much of which will go towards modernising civil courts and supporting the housing legal aid sector, enabling renters to more easily access legal options when facing eviction.

Due process from the outset of a tenancy is key, and landlords should focus on:

  • reviewing tenancy documentation and information requirements
  • understanding the relevant possession grounds under Section 8
  • building a clear evidence base for rental levels
  • preparing for Ombudsman registration and database compliance
  • monitoring further detail as secondary legislation is published
  • maintaining diligent records

For new investments post-1st of May 2026, dig further into whether or not the numbers stack up. With capped rental increases, market dictations, uncertainty around vacant periods and timings, knowing your income and yield vs outgoings is inherently more important.

Therefore checking the cost of your finance before committing to any deal, is, as ever, crucial. Running your numbers through tools such as Brickflow’s commercial mortgage calculator can help quickly assess whether a deal remains viable under these assumptions.

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