Finance Matters Insights
Renter's Rights Act Is Coming
If you rent your home in England, or own one you rent out… big changes are on the way.
From 1 May, the Renters' Rights Act officially comes into force. It's the biggest overhaul of the private rental sector in over 30 years, and it doesn't just apply to new tenancies. Most existing assured and assured short-hold tenancies will automatically convert to the new regime too.
Here's everything you need to know 🏠
🚫 The end of ‘no fault’ evictions
Section 21, the clause landlords have relied on for decades to evict tenants without needing to give a reason, is being abolished. In its place, landlords will need to use a Section 8 notice, citing one or more legal grounds to end a tenancy.
For renters, this is the single biggest shift. You can no longer be asked to leave simply because the landlord wants you out. They'll need to prove a valid ground i.e. rent arrears, anti-social behaviour, the landlord selling, or the landlord/family member needing to move in. And critically, at court, the landlord must provide evidence that they have a valid reason to evict. You'll also have access to free legal advice through the Housing Loss Prevention Advice Service.
For Landlords, it's the end of quick, uncontested evictions. The mandatory rent arrears threshold is being raised from 2 months to 3 months, and the notice period doubled from 2 weeks to 4 weeks. If you need possession to sell or move in, the notice period is 4 months, and the notice cannot expire until the end of the first 12 months of the tenancy.
🗓️Fixed term tenancies are being retired:
Assured short-hold tenancies (ASTs) with fixed 6 or 12-month terms are being scrapped. Fixed-term assured short-hold tenancies are being replaced with rolling periodic contracts from the outset.
For renters, this is flexibility. Tenants will be able to end the tenancy at any time with 2 months' notice, regardless of what the original contract said. No more being locked in for 12 months or paying break fees to leave early. Break clauses in existing contracts will be redundant.
For Landlords, it's the reverse. You can no longer hold a tenant to a fixed term, and you can only end a tenancy via a valid Section 8 ground. Any clause that states how a rent increase will be calculated, for instance by reference to CPI or RPI, will be null and void. The only lawful way to increase rent is now the statutory Section 13 route.
💰Rent increases capped
Rent increases are restricted to once per year, must align with prevailing market rates, and may be challenged by tenants at the Property Tribunal without incurring fees.
For renters, this is real protection. If you think the proposed increase is above market rate, you can challenge it at the First-tier Property Tribunal for free. Historically, tenants have avoided challenging because of the risk that the tribunal could set the rent higher. That's no longer the case. The tribunal can't raise it above what the landlord proposed.
For Landlords, the new Section 13 notice must be used for all rent increases proposed on or after 1 May 2026. Any clause in a tenancy agreement that states how a rent increase will be calculated, for instance by reference to CPI or RPI, will be null and void. Any rent increase agreed before 1 May 2026 that takes effect after will not be permitted.
💸 No more upfront rent hoarding:
Landlords can no longer demand more than one month's rent at a time, and cannot take rent before a tenancy is signed.
For renters, this removes one of the most exclusionary practices in the market. Asking for 6 to 12 months upfront has historically priced out freelancers, international tenants, students, and anyone without a significant savings buffer or UK credit history. This levels the playing field.
For Landlords, you'll need to rely on other screening tools: references, affordability checks, and guarantors. If you've used upfront rent as a de facto guarantor mechanism, your process needs a rethink before 1 May.
👨🏽⚖️Rental bidding wars, banned:
Rental adverts must list a price, and landlords will be banned from accepting or encouraging offers above that listed rent.
For renters, especially in London and other high-demand markets, this is significant. The listed figure is now the ceiling, not a starting point. No more finding out that the "asking rent" was effectively a soft opener.
For landlords and letting agents, you'll need to price accurately from the start. "Offers over" strategies are out. If the market is strong, set the right number. You won't be able to accept a penny above it.
🐶A contractual right to ask for a pet:
Tenants will have a contractual right to request a pet, and landlords must properly consider the request.
For renters, given that millions of UK households own a pet, this opens up a huge proportion of the rental market that has historically been closed off. Blanket "no pets" clauses will become unenforceable.
For Landlords, you can still refuse, but only with a legitimate reason (e.g. the lease or building rules prohibit pets). You can require the tenant to hold pet damage insurance, which is a reasonable safeguard. But you can't reflexively say no, and you'll need to provide reasons where you do refuse.
⚠️ Protections against discrimination:
New rules will prevent discrimination against tenants with children or those in receipt of benefits.
For renters, particularly families, single parents, and anyone receiving Universal Credit or Housing Benefit, this removes a major, long-standing barrier to the private rental market. "No DSS" practices (already challenged in court in recent years) are now formally finished.
For landlords and agents, your advert wording, application forms, and screening criteria need reviewing now. Any discriminatory terms in leases, mortgages, or insurance policies that were previously used to justify refusal are no longer a valid shield.
Renters have been dealt a rough hand over the last few years. Rising rents, bidding wars, and very little leverage when things went wrong.
The Renters' Rights Act won't undo all of that overnight, but it does finally tilt the balance back toward tenants in a meaningful way and hopefully provides some much-needed cushion going forward.
F
Fisayo Martins
Founder at Finance Matters UK
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