Renters’ Rights Bill: What landlords need to know
Here’s a Renters’ Reform Bill update, including the specific changes, what they mean for landlords, and how to prepare.
Written by Ebony-Storm Halladay — Freelance accounting copywriter, 10 years. Read Ebony's full bio
Published 17 March 2026
Table of contents
Key takeaways
- Following royal assent of the new Renters’ Rights Bill, impact on landlords is significant. There are changes to tenancy agreements, an end to no-fault evictions, and new grounds for reclaiming possession of a property.
- UK landlords may need to make changes to properties, rental contracts, and business processes.
- There’s no firm deadline for the introduction of the proposed changes, but given the broad scope of the new Renters’ Rights Act, it’s worth preparing your landlord business now. Follow the government’s guidance and ask your lawyer for help with contracts if you need to.
- Accounting software can help you get a clearer picture of your finances so you can make smart decisions about your property portfolio.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill was a proposed law introducing changes to rights and protections for private tenants in England. After receiving Royal Assent, it became the Renters’ Rights Act, one of the biggest housing law changes in recent times.
The Act strengthens tenant protections and creates a fairer system for landlords. Key changes include:
- an end to no-fault evictions
- the introduction of a new Private Rented Sector Landlord Ombudsman, which allows tenants to submit complaints about landlords and have them independently investigated and resolved
- fairer possession grounds, giving tenants time to find a new home and setting clear conditions under which landlords can reclaim their property
Many landlords will already be meeting the new standards set out in this Act. Make sure you’re clear on the legislation and changes, so you can protect yourself and your tenants.
Renters’ Rights Act impact on landlords
The full set of changes under the Renters’ Rights Act is available at GOV.UK. Along with the changes brought in by the Act, investigation and enforcement powers for local councils are increasing, and fines for non-compliance with the Act range from £7,000 to £40,000.
Here’s an overview of the changes that will likely affect landlords.
Tenancy reforms
Section 21 evictions – commonly known as no-fault evictions – are abolished. Landlords will only be able to end the tenancy for specific reasons: if a tenant is at fault, or the landlord needs to sell up. Alongside this, fixed-term tenancies are to be replaced by periodic tenancies for more flexibility, and so that tenants can remain in their homes until they decide to end the tenancy by giving 2 months’ notice.
Grounds for possession
Grounds for possession are to become fairer.
- Landlords must now give tenants 4 weeks’ notice for eviction due to serious rent arrears (previously 2 weeks), and the arrears threshold has increased to 3 months (previously 2 months).
- Landlords also can’t evict tenants in the first 12 months of tenancy in order to sell the property or move into it themselves. After this period, they must give at least 4 months’ notice before applying to court for possession on these grounds.
You can start repossession proceedings immediately in some cases – for instance, if the tenant is involved in serious criminal or anti-social behaviour. The government has more guidance on grounds for possession and the notice periods for each eviction type.
Rent
The new Renters’ Rights Act makes four major changes to the way landlords and tenants deal with rent:
- Landlords can now only increase rents once per year using the formal rent increase process. This is fewer than under previous arrangements, where rent review clauses or new fixed-term tenancies sometimes allowed multiple increases. Tenants also have the right to challenge increases at a tribunal if they believe the proposed rent is above market value. In addition, contractual rent review clauses are no longer permitted, meaning all rent increases must go through the formal annual process.
- Rent repayment orders – which allow tenants to reclaim rent from landlords who commit certain housing offences – now cover more offences, and the maximum repayment period has doubled.
- The Act also tackles rental discrimination and excessive advance rent payments. Landlords cannot refuse tenants solely because they have children or receive benefits, and requests for large amounts of rent in advance are restricted.
- Rental bidding is banned. Landlords and letting agencies can no longer encourage or accept prospective tenants’ bids above the asking price.
Private Rented Sector Landlord Ombudsman
Landlords will be required to join the new Private Rented Sector Landlord Ombudsman, likely for a small fee. This scheme allows tenants to submit complaints about their landlord’s conduct or service and have them independently investigated and resolved.
Private Rented Sector Database
Landlords will also need to join the Private Rented Sector Database and list their properties there (again, for a small fee). This database will contain information and guidance on landlord compliance and responsibilities.
Pets
If a tenant asks the landlord for permission to have a pet, landlords must consider the request and cannot unreasonably withhold consent. Landlords must usually respond within 28 days. The law doesn’t specify a fixed list of acceptable reasons for refusal, so decision will be judged on a case-by-case basis
The law doesn’t set out a fixed list of reasons for rejecting pet requests, but tenants will be able to challenge decisions they believe are unfair.
Decent Homes Standard and Awaab’s law
Private rented properties will also need to meet the Decent Homes Standard. To be ‘decent’, a home must be:
- free from the most dangerous hazards
- in a reasonable state of repair
- have reasonably modern facilities and services
- provide a reasonable degree of thermal comfort
Further to this, under Awaab’s law, landlords need to investigate and resolve significant health and safety hazards, including damp and mould, in properties. They need to resolve emergency hazards within 24 hours, while damp and mould issues must be investigated within 10 working days of the complaint.
When do the changes start?
Although the Act received Royal Assent on 27 October 2025, most of the new rules will come into force on 1 May 2026, with some measures introduced in later phases.
Government guidance indicates that the new tenancy system will come into place on one date to avoid a two-tier system where landlords and tenants follow different rules.
For now, the best thing you can do is start aligning with the new rules laid out in government guidance on the Renters’ Rights Act. That way, you’ll already be compliant when the changes kick in.
What should landlords do now?
The main changes under the Renters’ Rights Act take effect on 1 May 2026, so now is a good time to start preparing your landlord business.
- Review your properties and address any issues, such as damp proofing or improving energy efficiency.
- Read government guidance to understand the changes and the standards you’ll need to meet, and compare them with your portfolio and management practices.
- Check your tenancy agreements and align them with the new rules – for example, switching from fixed-term to periodic tenancy terms. Ask a lawyer to help with this to make sure you’re meeting your landlord legal obligations.
Get landlord finances sorted with Xero
Xero accounting software gives you full oversight of your landlord financial obligations. Pull up cash flow reports, track expenses, and project your finances into the future. WIth better financial info, you can spot inefficiencies and invest in your property portfolio at the right time. Not only that: Xero stores your financial records securely in the cloud, gives you clever tools to track your business finances, and automates your invoicing, reconciliation, and tax returns. It’s your rental business taken care of in a single piece of software.
FAQs on the Renters’ Rights Act
Here are some common questions about the Renters’ Rights Act to consider:
Do the rules apply to existing tenancies?
Yes. Once the new tenancy system is in place, where Section 21 evictions are abolished and periodic tenancies come into place, the rules will apply to all tenancies – new and existing.
What evidence do I need to regain possession?
This depends on the grounds for repossession. The government suggests you should show communications between an estate agent or solicitor to prove you intend to sell a property.
Here’s the government’s guidance.
Can I still take multiple months of rent in advance?
No. Once the Renters’ Rights Act is in force, you can only request 1 months’ rent upfront. This way, tenants don’t need to overstretch their finances to secure a property.
How are student lets treated?
Under the Renters’ Rights Act, landlords with houses in multiple occupation (HMOs) can use the Ground 4A possession ground to reclaim their properties. But to do so, landlords must rent the property to full-time students, and it’s needed for a new group of students ahead of the next academic year.
Can I refuse pets?
Yes, but you need good grounds to do so. The new rules state that landlords need to fully consider requests for pets, and tenants can appeal a refusal they believe to be unfair.
Here’s the government’s guidance on pets within tenanted properties under the Act
What notices and timeframes apply to rent increases?
Under the new rules, all rent increases must use the formal process via the prescribed GOV.UK form. Landlords may increase rent once per year, and tenants can challenge any increase they believe is above market value at the First-tier Tribunal. Contractual rent review clauses are no longer permitted, and landlords must give at least 1 month’s notice for a proposed increase for periodic tenancies.
What happens if I do not join the ombudsman or PRS database?
Under the Act, you’re required to sign up. If you don’t, you could be fined between £7,000 and £40,000.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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