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Sweeping reforms will reshape the private rented sector in less than six months, so landlords should prepare now
In our December Get More with Aldermore webinar, we were joined by James Wood, head of policy at the National Residential Landlords Association (NRLA).
He discussed the implications of the Renters’ Rights Act, describing it as “the biggest shake-up to the private rented sector in nearly 40 years”.
James looked at what this change means in practice for landlords and the brokers supporting them.
The headline tenancy reforms don’t come into force until 1st May 2026, but some of the most impactful changes arrive before then.
James warned that landlords who wait until next spring may find themselves on the back foot.
Much of the debate around the Renters’ Rights Act has focused on the abolition of Section 21, and it’s a huge change for landlords who relied on it to regain possession, even in cases where tenants were at fault.
Landlords will now need to rely on Section 8 grounds instead, where a specific reason must be given, such as rent arrears or selling the property, and many of these come with longer notice periods before a case can even reach court.
But James suggested the end of Section 21 might not be the biggest shift, stating that only around 1% of tenancies actually end because a landlord goes to court.
By contrast, almost all landlords rely on fixed terms. From May 2026, fixed-term assured shorthold tenancies disappear, replaced by assured periodic tenancies from day one. Tenants will be able to give two months’ notice at any time, in any written form, including text or WhatsApp.
In theory, a tenant could move in, give notice and leave again within two to three months. While James noted that the average tenancy length is still over four years, the perception of risk for landlords has increased significantly.
“Almost all of the changes increase the risk to landlords,” he said.
Fixed terms have long provided a degree of certainty, allowing time to assess new tenants and plan rent reviews. Removing that certainty is likely to change landlord behaviour and will be felt most sharply in student HMOs. Under a periodic tenancy, any one tenant can end the tenancy for everyone. If that happens mid-academic year, landlords may struggle to re-let, while remaining tenants face tough choices about covering the rent or moving out.
Taken together, the changes in the Act make day-to-day tenancy management more complicated and less predictable.
Tighter controls from 1st May mean that rents can only be increased once per year, must start with a Section 13 notice and require two months’ notice.
Tenants can also challenge increases (even fair ones) at tribunal at no cost and with no downside, delaying any uplift until a decision is made.
James described this point as “flying under the radar”, but potentially hugely disruptive. He predicted a ‘massive increase’ in rent challenges from about 800 a year, to tens of thousands.
Alongside the headline changes is a stronger focus on property standards and enforcement. From 2026, local authorities will be able to issue on-the-spot fines of up to £7,000 for Category 1 hazards, and it’s estimated that 10% of privately rented homes have them. James said: “It is definitely quite a risk to the landlord’s finances, and by extension potentially the mortgage.”
The new PRS database and Ombudsman will later add further compliance requirements, fees and scrutiny down the line.
Encourage landlords to review their portfolios now. They should check that tenancy agreements are in place, properties meet existing standards, rents are at market levels, and there are no early warning signs around arrears or anti-social behaviour. Mistakes that might currently be manageable will become harder and more expensive to fix after May.
While the Act bans discrimination against tenants in receipt of benefits or with children, James stressed that landlords can, and should, continue to make decisions based on income, affordability and behaviour. That makes robust referencing one of the most important defensive tools that landlords have.
“This Act is relatively easy to deal with if you’ve got a good tenant,” he explained, “ but really problematic if you don’t.”
From May 2026, landlords will need to be more careful about how their tenancies are set up and managed. Templates, processes and advertising will have to be up to date, and rent will no longer be allowed to change hands before a tenancy is signed. Existing landlords will also need to issue new government guidance to tenants and act on any outstanding possession notices before the summer deadlines.
This is where brokers come into their own.
Talk to your clients, not just about rates, but about planning and long-term strategy.
Helping them think ahead and understand how the rules are changing could make a big difference next year, as the Renters’ Rights Act moves from theory into practice.
There are more tools and resources available for support on the NRLA website, here.