Renters’ Rights Act explained: What landlords need to know - Savills

When do the reforms come into effect?

The new rules outlined below come into effect on 1 May 2026. Other changes, including the introduction of landlord and property registration, minimum housing standards, and Awaab’s Law, will follow in late 2026.

How are Assured Shorthold Tenancies being replaced?

The new legislation impacts all Assured Shorthold Tenancies (ASTs), including both new and existing tenancies, but excludes company lets and rents over £100k/year. This will mean that landlords and tenants will no longer agree fixed tenancy periods.

Instead, tenancies will run from month to month until either the tenant serves notice, or the landlord meets one of the grounds for regaining possession of the property. These tenancies will be known as Assured Periodic Tenancies.

What security will a tenant have?

During the first 12 months of any new tenancy, landlords will not be allowed to move back into their property or attempt to sell it unless they sell to another landlord who will take over the tenancy. This means tenants will have a 12-month protected period; however, a tenant can serve notice to terminate during this period. Tenants will be required to give two months’ notice to leave and this must be in line with the rent payment date.

Will the new legislation come into force for new and existing tenancies at the same time?

The implementation of the new legislation for new and existing tenancies is set to take place on the same day and currently does not allow for any phasing in or out.

Any pre-agreed ‘option to renew’ or ‘break clause’ within an existing tenancy agreement will no longer apply once the law is implemented. For new tenancies, as Assured Shorthold Tenancies will become Assured Periodic Tenancies rolling from month to month it means it will no longer be possible to include either an option to renew or a break clause.

Under the new legislation, how will I regain possession of my property?

The new legislation will abolish section 21 notices (known as no-fault evictions) with the aim of providing more security for tenants.

Landlords must instead use a section 8 notice, citing one of the specific grounds for possession. These include if the landlord (or their family) wants to move into the property, or they want to sell it, among other reasons such as rental arrears and antisocial behaviour. It is important to note that all of these grounds have different notice periods.

As a landlord, will I be able to increase rents?

Yes, an annual rent increase can be proposed by landlords. They must do this by serving the tenant a section 13 notice. Any proposed increase must be in line with local market rents and evidence provided if required.

If the tenant accepts the proposed increase they will start paying from the next rent due date after the anniversary.

If a tenant believes the rent increase is above the market rate they can dispute it by applying to the First Tier Tribunal. However, they must do this before the start date of the proposed new rent.

Tenants will no longer be allowed to make advance rent payments and this includes any shortfall payments. If rent is currently paid more than one month in advance, i.e. quarterly, six-monthly, or annually, tenants will be able to continue with that advance payment schedule for the duration of their tenancy. It’s only when a new tenancy is agreed that advance payments will not be allowed.

If the tenant is unable to prove affordability to pay monthly they will still have the option of a private guarantor.

Landlords and agents will be required to publish an asking rent for the property. This means they will not be allowed to encourage or accept bids above the stated price.

Any agreed existing ‘no pets’ clauses will become invalid once the law is implemented. Landlords will still be able to advertise the property as ‘no pets’; however, once a tenancy has started, they will only be able to refuse a tenant’s pet request under certain conditions. These include head lease restrictions.

What happens if landlords or their agents breach the new legislation?

Non-compliance will be met with fines. These fines are being increased and local authority enforcement powers will be strengthened. Fines can be up to £7,000 for minor or initial non-compliance and up to £40,000 for repeat offences.

To read more about the Act and all the changes it brings please visit our client Renters’ Rights Act hub.

*If you are unsure how the upcoming changes will affect you, seek professional advice.

*This is our understanding of the Act as it’s currently written.