What changed on 1 May

Phase one of the Renters' Rights Act is now in force. This is the biggest change to the private rented sector in more than thirty years, and unlike previous reforms it applies to existing tenancies, not just new ones.

Three changes matter most from day one:

  • Section 21 is abolished. No-fault evictions have ended. The only Section 21 notices still valid are those served on or before 30 April 2026. To regain possession now you use the expanded Section 8 grounds, and you need to evidence them.
  • Fixed terms are gone. Every assured shorthold tenancy has converted to an open-ended periodic tenancy. Tenants can leave with two months' notice at any point. There is no more twelve-month lock-in.
  • Rent increases run on one mechanism. Increases now happen once a year through a Section 13 notice, and tenants can challenge them at tribunal. Rent review clauses in old contracts no longer apply.

What has not changed yet

It is worth being precise, because the headlines have caused some panic. The PRS Database and the new Ombudsman scheme are phase two, expected later in 2026. The Decent Homes Standard and Awaab's Law for the private sector come in a later phase. The compliance infrastructure is arriving in stages, not all at once.

What this means for returns

For a well-run portfolio in a strong rental market, the financial impact is smaller than the noise suggests. The end of fixed terms increases turnover risk on paper, but in the cities we buy in, tenant demand is deep enough that re-letting voids stay short. The bigger operational shift is that possession now takes planning and paperwork rather than a single notice.

The investors who will feel this most are accidental landlords with one older property, weak records and thin margins. The investors who will barely notice are those with professionally managed stock, clean compliance and properties people want to stay in.

Five things to do now

  1. Audit every tenancy file. Deposit protection, gas and electrical certificates, EPC and the How to Rent guide all need to be current. Section 8 possession depends on your paperwork being clean.
  2. Stop relying on fixed terms for security. Price and select tenants for the long stay rather than the lock-in.
  3. Diarise rent reviews annually. One Section 13 notice a year, served correctly, benchmarked to local evidence so it holds up if challenged.
  4. Tighten your possession-grounds knowledge. Know which Section 8 grounds you can actually evidence for your situation.
  5. Review where your stock sits. Concentration in weak rental markets is now a bigger risk than it was, because turnover is easier for tenants.

The bottom line

The Renters' Rights Act rewards operators and punishes amateurs. Good property, in cities with real tenant demand, managed properly, remains a strong asset. We have not changed a single acquisition decision because of this Act. We have changed how carefully we tell clients to keep their records.