Renters’ Rights Act 2025: practical steps for landlords ahead of 1 May 2026

Written by Harrison Andrews, Senior Mortgage and Protection Advisor, The Mortgage Broker.

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From 1 May 2026, the relationship between landlords and tenants in England will change in a very real way. The Renters’ Rights Act 2025 brings in a new tenancy regime, stronger enforcement powers for local authorities and more rights for tenants to challenge poor practice and unfair rent levels.

For professional landlords, this is not just “another bit of red tape”.
It goes right to the heart of how you let out your property, how predictable your income is, and how robust your buy-to-let mortgage strategy needs to be.
If you prepare early, you can protect your cashflow, stay compliant and still grow a sustainable rental business so at The Mortgage Broker, we just wanted to highlight a few key things.

The Renters Reform changes mean no more fixed terms, no more Section 21s, stricter rent rules, and greater protection for tenants, placing bigger responsibilities on landlords than ever before.

1. What’s actually changing from 1 May 2026?

The official guidance describes the Act as giving tenants “greater security and stability” and empowering them to challenge bad practice without fear of retaliatory eviction. In practice, that means several big structural shifts.

a) Tenancies become open-ended

• Assured shorthold tenancies (ASTs) effectively disappear.
• On 1 May 2026, existing ASTs convert into assured periodic tenancies, legally treated as one continuous tenancy, not something you “renew” every 6 or 12 months.
• Tenants can end the tenancy at any time, provided they give two months’ written notice (including by text). A shorter notice would have to be agreed at discretion between landlord and tenant in writing.

For landlords, that means:

• Less reliance on fixed terms to plan cashflow.
• More focus on tenant selection, relationships and long-term retention.

b) The end of “no-fault” Section 21

• From 1 May, you will not be able to serve a Section 21 notice to end a tenancy, even if your current contract says you can.
• The only lawful route to regain possession will be via Section 8, using specific statutory grounds (for example, serious arrears or wanting to move back in).
• This doesn’t make eviction impossible, but it does make evidence, process and documentation much more important.

c) New rent rules and rent-increase process
From 1 May 2026, for new tenancies:

• Rent can only be charged for periods up to a calendar month.
• You cannot require rent to be paid significantly in advance or take rent before the agreement is in place, or you risk breaching the Tenant Fees rules.

For all relevant tenancies:

• You’ll only be able to increase rent using the statutory Section 13 process, via a new Form 4A, with at least two months’ notice.
• Increases are limited to once a year and not within the first 12 months of a tenancy.
• Any other method of increasing rent will be void, even if your existing agreement says otherwise.

d) Stronger rights for tenants on rent and discrimination

• Tenants will find it easier to challenge initial rent levels in the first six months and to challenge rent increases via the First-tier Tribunal (FTT), which can reduce rent to open-market levels if it judges the proposed figure too high.
• You will not be able to blanket-refuse tenants because they have children or receive benefits, unless there is a clear, objective reason linked to the property or affordability.

e) Pet requests become a formal process

• Tenants gain a structured right to request a pet.
• You must respond within 28 days and can only refuse on valid grounds, for example where the lease or building rules prohibit pets.

f) Enforcement, penalties and what’s coming later

• Local authorities will have greater powers to investigate suspected breaches and can impose civil penalties of up to £7,000 per individual breach.
• For certain offences, tenants may be able to apply for rent repayment orders of up to two years’ rent.
• On the horizon: a compulsory PRS Database and PRS Landlord Ombudsman scheme, plus minimum Decent Homes standards and tougher expectations on dealing with serious hazards.

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2. Why this matters to your mortgage and portfolio strategy

This is where we step in. You’re not just managing tenancies, you’re managing a leveraged property business. The new rules touch several areas that lenders care about:

• Rental coverage and affordability : With rent increases more structured and challengeable, you have less room to “catch up” quickly if your costs rise. That makes careful pricing at the outset, and modest, regular reviews, more important for long-term mortgage cover. Looking at your remortgage/product end dates 6-7 months in advance will allow you to be prepared for any rate rises.
• Void and arrears risk : Stronger tenant rights and formal processes may lengthen the time it takes to resolve serious issues. That means you need better contingency planning – and a realistic view of how many months’ mortgage payments you can cover without rent.
• Professionalism and record-keeping : Lenders are already more cautious about landlords who appear disorganised or non-compliant. Sloppy paperwork or poor processes could start to look like a red flag when you come to remortgage or expand your portfolio.
• Exit and restructuring decisions : Some landlords will see these reforms as a signal to scale back. Others will double down and professionalise. Either way, you will want a clear view of your borrowing, your rates and your options before you decide.

3. Practical steps to take now

Drawing on the official guidance and the practical tips from experienced landlords in the material you’ve seen, there are some clear actions you can take over the next 12–18 months.

Step 1: Treat your portfolio like a regulated business, not a sideline

Even if you use a letting agent, legal responsibility sits with you as the landlord. You need a working knowledge of your obligations under the Renters’ Rights Act and related rules, especially where breaches could lead to penalties or rent repayment orders.

• Use trusted sources (gov.uk, landlord associations, reputable sector sites) for up-to-date guidance.
• Don’t rely solely on social media snippets or hearsay.

Step 2: Get your paperwork and processes audit-ready

With Section 8 becoming the main route to end a tenancy, evidence will matter more than ever.

• Create a digital folder for each property with: tenancy agreements, safety certificates, inventories, inspection notes, insurance documents and rent schedules.
• After important conversations with tenants or agents, send a short follow-up email summarising what was agreed. Those emails could be crucial if there’s a dispute later.
• Make sure your tenancy agreements are updated in good time for 1 May 2026 and are suitable for assured periodic tenancies, not old-style fixed-term ASTs.

Step 3: Re-work your rent strategy

You will be limited to one formal increase per year and only via the statutory process, so planning matters.

• Consider modest, regular reviews that broadly track inflation, rather than big jumps every few years. This tends to be fairer and less disruptive for tenants and makes your own cashflow more predictable.
• Sense-check your rents against local market levels so you are neither under-charging in real terms nor risking a successful challenge at the FTT.
• Build rent review dates and Section 13 notice periods into your calendar well in advance.

From a mortgage point of view, this is also the moment to check that your rental income still meets current lender stress tests, particularly if you are remortgaging or buying in a company structure.

Step 4: Build real financial resilience

The guidance for landlords stresses the importance of sound finances, and we strongly agree.

• Use a separate bank account for your landlord business.
• Keep clear records of income and expenses, ideally using simple accounting software.
• Aim to hold a contingency fund to cover repairs, voids, arrears and rate rises – many experienced landlords work on a rule of thumb where a chunk of rent is earmarked for maintenance and another portion for major works and tax.

This isn’t just good practice; it also puts you in a stronger position when lenders ask for evidence of affordability and resilience.

Step 5: Tighten tenant selection and communication

With open-ended tenancies, your choice of tenant becomes even more important.

• Use proper referencing including credit checks, employment references and, where possible, references from previous landlords.
• Meet prospective tenants yourself if you can, you’re effectively selecting a long-term business partner for your property.
• Document an objective, fair process that avoids blanket bans on applicants with children or on benefits, focusing instead on affordability and suitability.

Once tenants move in, keep communication open. Regular, respectful contact often prevents problems from escalating into arrears or formal disputes.

Step 6: Make “maintenance visits” part of your culture

Regular inspections, framed as maintenance checks, help you spot issues early, keep the property in good condition and prove you’re taking your obligations seriously.

• Schedule visits at sensible intervals (and check your insurance, as some policies require specific frequencies).
• Use each visit to review safety items, damp, mould, and any hazards that could become future compliance issues as standards tighten.

Step 7: Manage arrears early and empathetically

The new regime doesn’t remove grounds for possession due to serious arrears, but getting to that stage is stressful and costly for everyone.

• Track rent payments closely and follow up immediately on missed payments.
• Take a calm, problem-solving approach first, many arrears situations can be stabilised if you intervene early and agree a clear plan.

From a mortgage perspective, the ability to show lenders how you handle arrears and keep losses under control can help when you’re refinancing or expanding.

Step 8: Sense-check your mortgage portfolio against the new reality

Finally, use this period to look at your borrowing in the round:

• Are any properties marginal on rental coverage once you assume slower rent growth and potentially longer resolution times for issues?
• Do you have a mix of rates and terms that balances certainty with flexibility
• Should you consider restructuring borrowing, moving to a different product type or consolidating debt where appropriate?

That’s where our team can add real value.

4. How The Mortgage Broker can support you

You don’t have to navigate all of this alone.
At The Mortgage Broker, you can:

• Get a practical review of your existing buy-to-let mortgages and borrowing structure.
• Stress-test your portfolio against different rent and rate scenarios.
• Explore options if you’re planning to sell, de-gear or expand.
• Look to use capital to renovate your properties to a high standard or for maintenance to avoid issues in the future.
• Discuss specialist lenders who understand professional landlords and the new regulatory environment.

We can’t tell you how to draft your tenancy agreements, but we can help make sure your finance strategy is robust enough for the new world that starts on 1 May 2026.

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Author: Harrison Andrews, Senior Mortgage Broker