Renters’ Rights Act 2026: What UK Landlords and Tenants Need to Know

The UK’s rental sector is on the cusp of a major transformation. From May 1, 2026, the long-anticipated Renters’ Rights Act (formerly known as the Renters Reform Bill) is set to take effect, introducing sweeping changes that will redefine how renting works across England. While this act is empowering for tenants, it also presents significant challenges and decisions for landlords. Here’s everything you need to know.

Key Changes Under the Renters’ Rights Act

The new legislation introduces a raft of reforms aimed at making renting fairer, more secure, and transparent:

Abolition of Section 21 “no-fault” evictions: Landlords will be unable to evict tenants without a valid reason, offering renters greater security and stability.
Switch to periodic tenancies: All tenancies will become periodic by default, streamlining agreements and removing fixed-term ASTs.
Rent increase restrictions: Landlords will only be allowed to raise rents once per year, and only in line with current market rates.
Ban on rental bidding: Landlords and agents will be prohibited from asking tenants to offer over the listed rent, ensuring fair competition.
Pet-friendly legislation: Landlords will no longer be able to unreasonably refuse pets, although insurance requirements may apply.
Limitations on upfront rent: Regulations will prevent excessive demands for rent in advance.
New processes for possession: Updated possession grounds offer clear frameworks but mean landlords must be thoroughly compliant.

Market Impact: What the Future Holds for 2026

Slower Rent Growth Ahead

Despite the legislative shake-up, rental prices are expected to rise modestly in 2026— just 2–2.5% on average across the UK, a notable slowdown from previous years. This tempered growth is driven by several key trends:

Demand softening, particularly outside London, where inquiries are down 20%.
An increase in rental supply, partially due to new builds and some landlords exiting the market pre-reform.
Falling net migration, reducing pressure on urban rental markets.
Increased first-time buyer activity, pulling some renters into ownership.
Wage growth stabilising below 3%, dampening tenants’ capacity to absorb higher rents.

That said, some landlords may still implement rent hikes before May 1, especially where current rents lag behind market averages by 17–25%.

Affordability Still a Strain

Even with slower rent growth, affordability remains a major concern. In 2025, renters spent an average of 41% of their take-home pay on rent, topping £10,000 annually. Without significant wage increases or housing stock expansions, many tenants will continue to face financial pressure.

How Landlords Are Responding

The upcoming reforms have prompted substantial reconsideration for property investors:

A survey shows 1 in 5 landlords were contemplating selling properties in 2025 in anticipation of the bill’s impact.
Some are trimming portfolios, particularly in markets with tight margins or stricter local enforcement.
Others are using the window before May 2026 to adjust rents, modernise compliance, or consider structuring new tenancy approaches aligned with the periodic model.

However, yields remain attractive, averaging 6.3% nationally, with highs of 8.1% in the North East. For landlords focused on long-term investment and professional management, opportunities still abound.

Beyond the Private Rental Sector: Broader Housing Reforms

It’s not just private rentals facing reform in 2026. The government is rolling out wider regulatory changes:

The Rent Standard 2026, affecting social housing, limits annual rent increases to CPI+1%, with added protections for tenants paying below formula rates.
Ground rent caps and the introduction of commonhold ownership models aim to improve leasehold structures.
A new national rental property database will support enforcement and tenant transparency.
Lifetime deposits and 12-month eviction protection are also in the pipeline to further safeguard tenants’ rights.

What’s Next?

With the official launch of the Renters’ Rights Act fast approaching, stakeholders across the property sector should act now:

Landlords should review tenancy agreements, update rental valuations, and prepare for compliance with possession grounds.
Tenants can look forward to increased security and predictability, while still facing affordability challenges.
Agents and property managers must stay abreast of legal changes and support both sides through the transition.

Tip: Watch for the latest data from the Office for National Statistics (ONS), including the Private Rent Inflation report and House Price Index update, due on February 18, 2026—these metrics will offer valuable insights into how the market responds to the new regulatory environment.

Final Thoughts

The Renters’ Rights Act 2026 marks a pivotal moment for UK housing. Balancing tenant protection with landlord viability isn’t easy—but informed, proactive engagement will be key to navigating the year ahead successfully.