Key Changes within The UK Renters Rights Act (and why our clients will see little change!)

Key Changes within The UK Renters Rights Act (and why our clients will see little change!)

 From 1 May 2026, significant reforms to the private rented sector will come into effect under the Renters Rights Act.

The new legislation is intended to give tenants greater stability while still allowing landlords to recover their property when there is a legitimate reason.

While it may seem a long and fairly daunting list of new rules and regulations, it’s important to underline that, many of the principles behind the reforms are already embedded in good professional lettings practice.  Morgan Associates already operates in-line with the key measures as part of our our existing lettings service and management processes, meaning most of our landlords are unlikely to experience significant changes to how their properties are managed.

Periodic Tenancies Replace Fixed-Term Contracts

One of the most fundamental changes the new legislation will bring in is the end of fixed-term assured shorthold tenancies. All tenancies will instead become periodic, meaning they run month-to-month rather than for any fixed period.

Under the new system tenants can leave a property at any time by giving two months’ notice.  The intention is to provide renters with greater flexibility and reduce sudden housing instability.

Section 21 “No-Fault” Evictions Abolished

As you may already be aware, the reforms also remove Section 21 “no-fault” evictions.

Landlords will now have to issue a Section 8 Notice and use defined legal grounds if they wish to end a tenancy.  These grounds would include serious antisocial behaviour, damage to the property, or rent arrears of three months or more.

The Section 8 Notice requires landlords to prove these grounds, which may take time, so it is widely recommended (including by the National Residential Landlords Association (NRLA) that landlords take out a Rent and Legal protection policy to mitigate any risks.

Morgan Associates offers a highly regarded policy for our landlords. Contact Lisa Iles for further information email: Lisa@morgan-associates.co.uk or call 01242 547649.

Landlords Retain Control Over Tenant Selection

Landlords will still be able to decide who rents their property.

Standard processes including reference checks, credit checks and affordability assessments will remain in place, but the legislation introduces important protections against discrimination.

Landlords will no longer be allowed to refuse tenants purely because they receive Universal Credit or housing benefit.

Similarly, tenants cannot be excluded simply because they have children unless this would mean a property would become overcrowded.  For example, a one-bedroom flat might reasonably accommodate a parent and baby, but not a family with several older children.

Landlords may still require a guarantor where appropriate, for example when a tenant has limited credit history. However, the legislation makes clear that a guarantor cannot be demanded purely because a tenant receives benefits and the guarantor’s financial liability will be capped at six months’ rent.

For many landlords working with professional managing agents, these principles are already common practice. Responsible tenant referencing and fair application processes have long been standard for Morgan Associates as part of our well-managed lettings service.

Tenants’ Rights to Keep Pets

The reforms also strengthen tenants’ ability to keep pets in rented accommodation.

Landlords will not be able to unreasonably refuse a tenant’s request to keep a pet, unless restrictions exist in the building’s head lease.  Any requests must be considered on a case-by-case basis, and landlords have 28 days to respond.

Refusal may still be justified in certain circumstances, notably where a pet is unsuitable for the property (for example, a very large dog is likely to be inappropriate in a small flat with no outdoor space, although a hamster may be fine!), or where there are nuisance concerns such as persistent barking.  A landlord may also cite medical reasons for refusing a pet, such as documented allergies.

Landlords cannot increase the deposit specifically because of a pet, although a tenancy agreement may require professional cleaning at the end of the tenancy.

Rental Bidding Wars Banned

The practice of rental bidding, where prospective tenants are encouraged to offer more than the advertised rent, will be prohibited.  Properties must instead be let at the advertised price, helping create a more transparent and fair rental process.

Morgan Associates has never entertained rental bidding practices when marketing a property.

Rent Increases

Landlords will be able to increase rent once per year but any increase must follow the formal Section 13 notice procedure, giving tenants at least two months’ notice.

The rent must reflect the market rate, defined as the amount the property would reasonably achieve if newly advertised.  Tenants retain the right to challenge increases through a tribunal if they believe the proposed rent exceeds market value.

Morgan Associates has always issued rent increases under a Section 13, so there is little change for our landlord clients around the rent increase procedure other than increasing the notice period of a rent increase for tenants.  This is going up to two months/eight weeks (we currently give six weeks’ notice, although the legal requirement is just one month).

When Landlords Can Regain Possession

Landlords will still be able to reclaim their property under certain circumstances.

For example, where the landlord intends to sell the property or plans to move into the property themselves.   But, after 1 May, these grounds can only be used after the first 12 months of a tenancy, creating an initial protected period for tenants.  Landlords must also give four months’ notice when using these grounds.

If possession is granted for these reasons, the property cannot be re-let or used as short-term accommodation (such as Airbnb) for 12 months.

Any intention to sell needs to be a committed intention rather than a test of the market/sales interest.

New Landlord Database and Ombudsman

Further changes that are expected in late 2026 include a national landlord database, requiring all landlords to register their properties and a Private Rented Sector Landlord Ombudsman to handle tenant complaints

These measures are intended to improve transparency and ensure consistent standards across the sector.

In Summary:  Preparing for the New Rental Landscape

The Renters Rights Act is one of the most significant changes to rental legislation in England for many years.

Broadly, we view it as a positive step, and one which creates a more professional rental sector, not least around improving housing standards.

As the May 2026 implementation date approaches, both landlords and tenants should familiarise themselves with the new rules to ensure they are fully prepared.  We will be sharing these details with all tenants in our managed properties before 29th May 2026 (again, this is a requirement under the legislation).

For landlords already working with Morgan Associates, much of this approach is already embedded in our management processes, meaning that most of our clients are unlikely to see major changes in how their property is managed day to day.

For more information on the Renters Rights Act, go to: Guide to the Renters’ Rights Act – GOV.UK

If you have any questions about the legislation or landlord insurance, please contact our Accounts Manager, Lisa Iles: email: Lisa@morgan-associates.co.uk or dd: 01242 547649.

(Note: company lets and converted properties where the landlord lives on-site fall outside this legislation.)

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