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Renters' Rights Act: Update for landlords

Clear guidance on what’s changing and what to do next

The Government has published a roadmap setting out the timeline for the implementation of the measures in the Act which is helpful for allowing preparation for the changes. Key dates are listed below but you can access the full Government roadmap here.

The key implementation date: 1 May 2026

The Government has now confirmed the main provisions of the Renters’ Rights Act will take effect from 1 May 2026: This is the Phase I roll out.   While this may appear some distance away, the reality is that choices made over the coming months – particularly around tenancy structure and possession – will materially affect landlord flexibility going forward.

Fixed-term tenancies will end

From 1 May 2026, fixed-term tenancies will be abolished. All assured tenancies will become periodic (rolling) by default.

What this means for landlords:

  • You will no longer be able to grant new fixed-term tenancies.
  • Existing fixed-term tenancies will automatically convert to periodic tenancies once the Act comes into force.
  • Tenancies will continue indefinitely until the tenant gives notice or the landlord regains possession using a valid legal ground.  See Grounds for Possession section below.

As fixed terms will be abolished before most renewed agreements would naturally end, we are no longer offering tenancy renewals. Renewing a fixed term at this stage provides no long-term protection and risks unnecessary administration, confusion for tenants, and false expectations for landlords.

This proactive approach ensures you are not tied into agreements that will shortly be overridden by statute.

Rent increases – your rights remain intact

The Renters’ Rights Act does not remove a landlord’s ability to increase rent.

Rent reviews will continue to be carried out using the established Section 13 (S13) process, which:

  • Allows rent increases once per year
  • Requires the rent to reflect market value
  • Requires the correct statutory notice and notice period

Rent review clauses within tenancy agreements will no longer apply and informal rent increases will not be valid meaning the Section 13 process will be the sole lawful route.  We will contact landlords about rent reviews at the appropriate time to ensure increases are structured correctly and defensibly.
If you wish to explore a rent review sooner, please can contact Jo Wilson directly at [email protected] and she will be happy to discuss this with you.

Grounds for Possession

Full Government Guidance on Grounds for Possession can be found here:   https://www.gov.uk/government/publications/grounds-for-possession-guidance-for-landlords-and-letting-agents/grounds-for-possession-guidance-for-landlords-and-letting-agents

However, some key points to note are as follows:

Section 21 – still available, but only until May 2026

Section 21 notices will be abolished from 1 May 2026. However, they can still be served and relied upon up to that date, provided all compliance requirements are met. For landlords who have any doubts about a tenancy, this is a critical window. Once Section 21 is removed, possession will generally require reliance on Section 8 grounds, which:

  • Are more prescriptive
  • Require specific evidence
  • Often involve longer timescales and higher legal risk

Section 21 notices are highly technical. If a notice is rejected due to an error, it may be invalid and cannot simply be corrected.  For this reason, we strongly recommend using a solicitor. We can help landlords access the Landlord Group’s legal services, but your first step should be to speak with your Property Manager so we can guide you on whether action is appropriate and how best to proceed.

Key Mandatory Grounds for Possession

Ground 7B – No right to rent

If your tenant has no right to rent under immigration law, the Secretary of State will give notice to you. For more information refer to the Right to Rent guidance.   You will however, need to give 2 weeks’ notice before you will be able to apply to the court for a possession order to evict your tenant.

Ground 8 – Rent arrears

You will be able to use this ground to evict your tenant if they owe you at least 3 months’ rent, if they pay rent monthly or at least 13 weeks’ rent, if the rent is paid weekly or fortnightly.  A tenant will need to owe 3-months or 13-weeks rent on the day notice is given and at the date of the hearing.

A tenant cannot be evicted under this ground if they pay off what they owe or owe less than the amounts above by the time the court hearing begins.

If a tenant owes 3 months or 13 weeks rent because they have not received their Universal Credit, they cannot be evicted. Benefits are not counted when a tenant owes rent.   In the case of rent arrears, 4 weeks’ notice will need to be given before an application to the court can be made for a possession order to evict a tenant.

Discretionary grounds

If a landlord seeks possession through the courts on a discretionary ground, it will be up to the court to decide whether it reasonable to evict a tenant, even when there is evidence against your tenant.  This may be hard to prove and as yet, we are unclear how this will be put into practice.

Rental bidding – clear limits on how properties are marketed

Under the Renters’ Rights Act, rental bidding will be prohibited. This means landlords and agents must publish a clear asking rent when marketing a property and cannot invite, encourage, or accept offers above that figure.

This applies across all advertising channels, including online portals. Even unsolicited offers above the asking rent must be declined. While landlords may still accept a lower offer if they choose to do so, any attempt to secure rent above the advertised figure could result in enforcement action and financial penalties.

Pace will manage all marketing in line with these requirements to ensure compliance and protect landlords from inadvertent breaches.

Renting with pets – refusal must be reasonable

Landlords will no longer be able to automatically refuse tenant requests to keep a pet. Under the new legislation, tenants have a statutory right to request permission and landlords must consider those requests reasonably.

There are still valid grounds for refusal – for example, where allowing a pet would breach superior lease terms or building regulations – but decisions must be justified and provided in writing within the required timeframe.

Where appropriate, landlords may also require suitable pet insurance. Pace will guide landlords through requests on a case-by-case basis to ensure decisions are lawful, proportionate and properly documented.

Decent Homes Standard – a legal duty, not guidance

The Renters’ Rights Act introduces a Decent Homes Standard for the private rented sector for the first time. This places a legal duty on landlords to ensure their properties are:

  • Free from serious hazards
  • In a reasonable state of repair
  • Equipped with reasonably modern facilities
  • Free from damp and mould
  • Able to provide a reasonable level of thermal comfort

Local authorities will have enhanced enforcement powers, including the ability to issue improvement notices and financial penalties where properties fall below the required standard.

While we know the vast majority of professionally managed properties already meet these expectations, landlords should expect greater scrutiny going forward. Pace will continue to flag maintenance and compliance issues early, helping you to address problems before they escalate.

Awaab’s Law – strict timescales for hazards

Awaab’s Law, originally introduced in the social housing sector, will be extended to the private rented sector under the Renters’ Rights Act. It places a clear obligation on landlords to investigate and remedy serious hazards, particularly damp and mould, within defined timeframes.

Failure to act promptly may allow tenants to escalate complaints through enforcement channels or the courts. This represents a shift from general obligations to time-bound legal duties.  Early reporting and swift action are essential. Pace’s inspection processes and repair reporting systems are designed to identify issues quickly and ensure landlords remain compliant.

Rent in advance – new restrictions

The Act will also restrict how rent can be requested at the start of a tenancy. Landlords and agents will only be able to ask for rent in advance after the landlord and tenant have signed the tenancy agreement and before the date the tenancy starts. The maximum amount you can ask for is:

  • 1 month’s rent if the tenant will be paying rent monthly
  • 28 days’ rent if they will not be paying rent monthly

This measure is designed to prevent tenants from being asked to pay large sums of rent upfront to secure a property. It does not affect the regular collection of rent once the tenancy has started.

Any clauses requiring ongoing rent to be paid in advance of the agreed due date will be unenforceable once the tenancy has started. Existing agreements entered into before the start date will remain valid.

Without the ability to pay extra months of rent in advance to secure a property, many tenants, such as international applicants, students and those without a UK guarantor, may struggle to meet affordability criteria.  We understand there may be options to work with professional guarantor to help avoid void periods and we will share this information in due course.

Rest assured, Pace will ensure all tenancy documentation and payment processes are fully aligned with the new rules.

What’s next?

The above-mentioned points all come under Phase I of the Renters Rights Act.

We understand Phase II of the Act is expected from late 2026 and will introduce a mandatory Private Rented Sector Landlord Ombudsman and a national PRS database, which all landlords will be required to join, even where an agent is instructed.

These measures are designed to increase transparency and accountability and will be backed by new enforcement powers and financial penalties for non-compliance.

Phase III, which has no fixed introduction date and remains subject to consultation, is expected to extend the Decent Homes Standard and Awaab’s Law fully across the private rented sector. While these later phases are not imminent, they signal a clear direction of travel and we believe landlords should expect progressively tighter standards in the years ahead.

Our commitment to you as your Managing Agent

While this legislation introduces change, our commitment remains the same: to protect your interests, ensure compliance and provide clear, practical advice at every stage.  If you have questions or would like tailored guidance on your specific property or tenancy, please contact your Property Manager or call us on 01702 445600.

lettings agent southend on sea - crystal horwood

Crystal joined Pace in 2007 and was appointed to her current role of Managing Director in 2010, heading up the company founded by her father in 1994.

She is responsible for the daily operations of the business, whilst also ensuring the company is financially sound, has strategic direction and is planning for future growth.

Crystal takes a thoughtful and considered approach to all that she does, transferring her determination to deliver implicit care, attention and professionalism to every member of her team.

Pace employ 20 full time staff. Meet the key team members here.

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2026-01-28T10:15:16+00:00
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