As the Renters’ Rights Act comes into force across England on 1 May 2026, the private rented sector is preparing for one of the most significant shake‑ups in decades. With less than a month to go, many landlords appear to be waiting to see the “real‑world” impact before making big decisions, a trend already observed in recent landlord behaviour data. [propertyre…rter.co.uk]
At the same time, mortgage brokers are reporting a growing preference among landlords for shorter term fixed mortgage deals, avoiding long tie ins in case the reforms push them toward selling in the near future.
Below is a clear, concise breakdown of what the Act means for landlords, along with market insights and lessons from Scotland’s earlier reforms.
✅ Key Changes Landlords Must Prepare For
1. End of Section 21 (No-Fault Evictions)
From 1 May 2026, Section 21 notices are abolished, meaning landlords can no longer evict tenants without a legally valid reason.
Possession going forward must rely on updated Section 8 grounds, including selling the property, moving in family, serious arrears, or anti‑social behaviour. [propertyre…rter.co.uk]
2. All Tenancies Become Rolling, Periodic Tenancies
Fixed‑term ASTs will no longer exist. Instead, every tenancy automatically converts to a rolling periodic agreement with no end date.
This applies to all existing and new tenancies, regardless of the contract originally signed. [assets.pub…ice.gov.uk]
3. Rent Increases Limited to Once Per Year
Landlords may increase rent only once every 12 months, and only using a valid Section 13 notice, with two months’ notice required. [assets.pub…ice.gov.uk]
4. Rental Bidding Is Banned
Landlords and agents cannot invite or encourage tenants to bid above the advertised rent. [mhclgmedia…log.gov.uk]
5. Pets Allowed (With Reasonable Refusal Only)
Tenants now have the right to request pets. Landlords must consider requests fairly and cannot unreasonably refuse them. [mhclgmedia…log.gov.uk]
6. Only One Month’s Rent Allowed Upfront
Landlords can no longer ask for more than one month’s rent in advance. [finns.co.uk]
7. Stronger Property Standards & Mandatory Compliance Documents
A new Decent Homes Standard applies to private renting, and landlords must issue tenants with the government’s official Renters’ Rights Information Sheet by 31 May 2026, or face fines of up to £7,000. [gov.uk]
✅ The Current Market Mood: Landlords in a “Holding Pattern”
Research shows 72% of landlords are neither selling nor buying, choosing instead to wait and observe how the Act affects the sector when it goes live. This pause reflects uncertainty during what experts describe as a period of “unprecedented regulatory upheaval.” [mortgageso…ions.co.uk]
A significant 24% are actively considering selling, yet only 4% are buying — meaning supply constraints could worsen. Many landlords are unsure if they will remain in the sector long term, with only 44% expecting still to be landlords by 2031. [mortgageso…ions.co.uk]
✅ Mortgage Market Insight: Why Landlords Are Choosing Shorter Deals
Many landlords are opting for shorter term fixed rates so they’re not locked into long early repayment charges.
If the Act leads to increased compliance costs or reduced flexibility, they may decide to sell, and as such shorter mortgages give them strategic freedom.
Lessons From Scotland: Will England See the Same Rental Spikes?
When similar tenancy reforms took place in Scotland years ago, ending “no‑fault” evictions and introducing indefinite tenancies, the rental market saw:
✅ Large surges in tenant demand per property
✅ Significant increases in advertised rents, as landlords priced to manage risk and demand
✅ Competitive viewing queues and bidding climates
While England’s ban on rental bidding will somewhat limit spiralling offers, the imbalance between landlords exiting and few entering the sector could still push rents upward, especially in high‑demand areas.
Early signs already show regional rent pressures returning, particularly in northern areas. [propertyre…rter.co.uk]
✅ What Landlords Should Do Now
- Review possession strategies under Section 8
- Ensure rent processes comply with annual limits
- Prepare for rolling tenancies
- Consider mortgage flexibility for future decisions
- Work proactively with tenants to maintain positive relationships through the transition
The next few months will set the tone for England’s newly rebalanced private rental sector.
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This article is for information only and does not constitute financial or mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage. Munro Mortgages is a trading style of The Lending Channel, authorised and regulated by the Financial Conduct Authority (FCA), FCA number 626787.
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