What the Renters’ Rights Act Means for Landlords in 2026

The Renters’ Rights act has been well publicised within the press and can be a daunting topic for landlords with the amendments that came into force in May 2026. Our Mortgage Adviser Toby Roper has written a plain-English overview of the main changes and how they affect you as a landlord.

What is the Renters’ Rights Act and why does it matter?

The main objective of the act is to create additional structure for tenants in the UK with more clearly defined boundaries that landlords will need to follow going forward. The general feeling within the industry is that it will be the smaller landlords that will be looking to move out of this space and that experienced landlords will be keen to work with the amendments and build in the extra compliance elements into their business to continue their successes into the future. This presents opportunities for landlords willing to double down on their business.

Earning money from investment properties is still very much alive even if the goalposts are moving. Here at NM Finance, we have been helping landlords weather changes in regulation that have occurred in the buy to let market since 1998, and the Renters Right Act is no different. All it takes is understanding of what is changing and making sure the people you are entrusting to help manage your property portfolio are well versed in the changes that will apply and can offer you reliable, practical advice to see your successes continue well beyond 2026.

What has changed for landlords under the new Act?

The end of Section 21 ‘no fault’ evictions

Landlords will no longer be able to issue Section 21, or more commonly known as ‘no fault evictions’ to tenants. Evictions will need to be based upon specific statutory grounds (please see examples below). These form part of the Section 8 notice which cover off the grounds a landlord can use to regain possession.

Statutory Grounds

*This is not an exhaustive list, and you should seek legal advice to understand your legal position

• Serious rent arrears
• Wanting to sell the property
• Moving into the property yourself
• Anti-social behaviour or illegal acts

A new approach to tenancy types

The type of tenancies that will be allowed from the start of May will be changing. From the start of the act, all tenancies will need to be open-ended (Assured Periodic Tenancies – APT) which effectively puts an end to ‘fixed term’ tenancies i.e. a 1 year AST.

Current, Assured Shorthold Tenancies will automatically revert to the new variation and any end date stipulated on the original agreement will now be subject to a rolling tenancy period. Anything put in place since the rollout of these new regulations in May 2026 will need to be in the new format.

Rent reviews and how they work now

Landlords will now be required to provide 2 months’ notice for any increases to rent they are wanting to make and this will be limited to once per year. Should the rent be increased beyond the market rate, tenants will have to ability to appeal it at a tribunal.

Advertising rental properties transparently

Properties will need to be advertised with a clear rental figure from the outset of the property being advertised on any sites or through any management companies. This is to stop ‘bidding wars’ and mean landlords cannot encourage or invite offers above the marketed monthly figure.

Upfront payments and deposit rules

This change in legislation puts limits on how much money can be requested upfront before a tenant moves in. This is sometimes referred to as a holding deposit to secure a property. This will be capped at 1 month’s rent moving forward.

Once a tenancy starts landlords will not be able to request that the rent be paid before the agreed date of the payment.

Refusing applicants, including those on benefits or with pets

Landlords will no longer be able to refuse an applicant based on them receiving benefits (DSS) or having children. When it comes to pets, landlords cannot unreasonably withhold consent when a tenant requests to have a pet in their home. However, if there is a reasonable belief that the property will be damaged or will not be suitable for the property the landlord will still have grounds to refuse the request i.e. Small house, big dog. 

The new Private Rented Sector Database (PRS)

As part of the Renters Rights Act a new private rented database (Private Rented Sector Database, referred to as PRS) is being formed and will be a legal requirement for you to register your property and yourself on the database and landlords will be subject to penalties if failing to do so.

This database will have relevant guidance and information on staying compliant as a landlord but will also give councils direct access to information which can identify breaches on their side. Tenants will be able to access the database to do their own checks before committing to a tenancy. It has been published that there will be a fee for registration, but they haven’t been clear on what that is at point of writing.

Information Required 

This may not be an exhaustive list once the database is rolled out:

For you the landlord:

• Verification of identity.
• Contact details.
• Checks will be carried out to make sure you’re eligible to operate legally.

For each individual rental property:

• Address.
• Proof of any licensing requirements (relevant for HMO’s and other investment models subject to selective licensing).
• EPC rating.
• Gas safety certificate and electrical installation condition report (EICR).
• Evidence of compliance with relevant safety regulations.

Fines and enforcement: what are the penalties?

There will be stronger capabilities and powers from local authorities to investigate and enforce these changes and subsequently higher financial penalties for landlords who breach them.

Initial or minor non-compliance can incur a civil penalty of up to £7,000 and repeat non-compliance up to £40,000.

What should landlords do now? 

Change has come for the investment property market but as daunting as the changes may seem and certainly coupled with penalties that can be issued for not complying with them, we firmly believe this presents a powerful opportunity for people wanting to enter into the rental market as a new landlord or an established landlord who wishes to double down on their business model and embrace the changes that are required moving forward.

We will likely see buy to let properties enter the market for sale as some landlords will not be willing to take on the additional responsibilities required of them moving forward which will make way for the landlords who wish to embrace it with opportunities to grow their portfolio.

Rental properties in the private sector will always be an essential part of our society, and we need good landlords to keep this sector alive and kicking. From our dealings with landlords, the vast majority will sail through these changes even if there is an increase in the administration needed to remain compliant.

The main thing a landlord should consider moving forward is having people they can call on who are up to date with what is needed and can advise on how they can operate and position their business to continue their successes long into the future. 

A good letting agent will be able to help you through the additional compliancy steps and help with the administration required for the database. 

How NM Finance can help

At NM Finance, we pride ourselves on understanding the wider picture when it comes to our clients, not only do we strive to find you the most suitable product in the market, we also help understand future considerations from your wider portfolio and business to help see your growth and success continue long into the future.

Resources

Guide to the Renters’ Rights Act – GOV.UK

Guide for landlords – Private landlords