The Renters’ Rights Act in England – What You Need To Know if you Let Property to Fund your Travels

The Renters’Rights Act 2025 for properties let in England, introduces the most significant reforms to the private rented sector in a generation. The reforms increase landlord responsibilities and introduce significantly stronger enforcement – with hefty fines for non-compliance.

The government has announced a phased approach to implementation, with the first major changes to be implemented from 1st May 2026.

For us, the key to funding our travels without having to work is renting out our property, so this new legislation will have a huge impact.

We have always tried to be good landlords: if we have good tenants, we don’t raise the rent, and if there are issues, we deal with them immediately.

The new bill targets rogue landlords. Unfortunately, it makes renting property more onerous and costly. We can get almost the same return by putting our money in the bank without all the hassle! If the days of high capital growth are gone, (and Capital Gains Tax on property has increased considerably in recent years), it begs the question whether letting property is worth it.

However, that aside, here is what you need to know about the Renters’ Rights Act.

I am not an expert and this blog certainly does not constitute financial advice; I strongly recommend seeking professional counsel.

This is merely a summary of the factors you might have to take into account. Please see my Disclaimer.

The legalities are specific to our home country of England. The rules differ in other parts of the UK.

Phase 1 – Effective 1st May 2026 

From 1st May 2026, the following changes will apply to both new and existing private rented sector (PRS) tenancies:

• Abolition of Section 21 ‘no-fault’ evictions – Landlords will no longer be able to end a tenancy on a whim using Section 21. All possession claims must use the updated Section 8 grounds.

• Move to Assured Periodic Tenancies – All PRS tenancies will become rolling, periodic agreements rather than the Assured Short Hold Tenaqncy agreement, which was a fixed-term controct (e.g. for 6, 12, or 24 months.) Tenants will be able to remain in the property indefinitely unless a valid possession ground applies. Tenants may end the tenancy with two months’ notice.

• Reformed Possession Grounds – New and strengthened Section 8 Grounds For Possession will apply, with longer notice periods required:

• A Landlord wishing to sell or move into the property.
• Tenants with persistent rent arrears.
• Tenants’ anti-social behaviour.

• Rent Increases Limited to Once Per Year – plus landlords must provide at least two months’ notice using the revised Section 13 procedure.

• Ban on Rental Bidding & Rent in Advance

• Landlords and agents may not solicit or accept offers above the advertised rent.
• Landlords cannot request more than one month’s rent in advance.

• Ban on Discrimination – It will be illegal to refuse tenancies or viewings on the basis of:

• Tenants with children.
• Tenants in receipt of benefits.
• Pets – Landlords must consider requests to keep pets and if refusing, respond within 28 days with a valid reason.

• Strengthened Enforcement – Local authorities will be granted enhanced investigatory powers from 27 December 2025 and will be legally responsible for overseeing the new rights from 1 May 2026, with significantly tougher penalties.

• Fines may reach £7,000 for breaches, rising to £40,000 for repeated or serious offences.
• Tenants and councils will also be able to seek rent repayment orders, requiring landlords to repay rent if offences are proven.

• Documentation Requirements

• For tenancies beginning on/after 1st May 2026: landlords must provide specific tenancy information in writing (details to be published by the overnment January 2026).
• For existing tenancies: landlords must provide the Government’s ‘Information Sheet’ to tenants by 31st May 2026.
• Verbal tenancy agreements: will require a written summary of key terms by 31st May 2026.

Phase 2 – From Late 2026

The second stage of the Renters’ Rights Act will introduce:

• Mandatory PRS Database – All landlords will be required to register their properties, provide specified information (including safety documentation), and pay an annual fee.

• PRS Landlord Ombudsman (mandatory membership) – A new body will handle disputes without court involvement. This is expected to become compulsory in 2028 once the scheme is fully operational.

Phase 3 – Decent Homes Standard & Safety Requirements

Timelines will be confirmed following consultation, but expected measures include:

• A new Decent Homes Standard for the PRS (proposed for 2035 or 2037).
• Extension of Awaab’s Law to the PRS, requiring landlords to address serious hazards (such as mould) within strict timeframes.
• Potential requirement for all rented homes to achieve EPC C by 2030.

If You’re A Landlord, What You Need To Do Now

The government will publish Phase 1 landlord guidance 1 shortly. In the meantime, ensure you or your managing agent are prepared to:

• Update tenancy agreements, processes, and compliance checks in line with the new rules.

• Ensure you comply with new possession grounds, rent reviews, compliance documentation, and adapting your property and tenancy management to the new regime.

Links

1. Guide to The Renters’ Rights Act – on the UK government website.
2. Renting Out Your Property: Guidance for Landlords & Letting Agents – on the UK government website
3. The National Residential Landlords’ Association – free guides, information and advice for landlords.
4. Propertymark – the property sectors professional body.
5. HMRC – the residential letting section of Her Majesty’s Revenue and Customs.
6. It Worked for Us – 10 Tips on Letting Out Your House to Fund your Travels

Cover photo generated by WordPress AI