The Renters’ Rights Act is here. After receiving Royal Assent on 27th October 2025, Phase 1 comes into force on 1st May 2026.
From that point on, fixed-term tenancies disappear, Section 21 is gone, and the way agents handle rent, possession and compliance changes overnight.
This is the biggest structural change to the private rented sector in decades, and agents are understandably anxious.
To provide much-needed legal clarity, we hosted a live webinar with Mishcon de Reya, one of the UK’s leading law firms and specialists in real estate litigation. Partner Laura Odland and knowledge lawyer Lauren King walked through all the details and offered clear practical guidance for agents in easy to understand terms.
This guide brings together the most important takeaways from that session. We cover the abolition of fixed-term ASTs, the new rent rules, updated possession grounds, anti-discrimination measures, the PRS database, and what all of this means for how your agency runs day to day.
What does the Renters’ Rights Act abolish?
The Renters’ Rights Act abolishes fixed-term tenancies and Section 21 evictions from 1st May 2026. Both are removed simultaneously, with no transitional period for new tenancies.
From this date, all existing Assured Shorthold Tenancies (ASTs) will automatically convert into Assured Periodic Tenancies (APTs). These are rolling tenancies with no fixed end date, typically running month to month based on when rent is paid.
Laura clarified during the webinar that no new ASTs can be granted after 1st May. Every new tenancy will need to be set up as an APT from the start.
Under an APT, tenants can leave at any point by giving two months’ notice, or less if agreed with the landlord.
The other major change is the end of Section 21. Landlords will no longer be able to rely on ‘no-fault’ evictions to regain possession of a property.
What you need to do now
All existing tenants must be given a government-issued information sheet explaining the move from ASTs to APTs. This must be served by 31st May 2026.
Check your management agreements to see whether this task sits with you or the landlord. If it’s your responsibility, you need to make sure your systems are set up to issue the document and keep a clear record of what’s been sent and when.
What must agents provide for new tenancies from 1st May?
For every new tenancy from 1st May 2026, agents must provide a Written Statement of Terms before the tenant signs. This is a new legal requirement under the Renters’ Rights Act.
This must set out the key details of the tenancy. It should include:
- Who the landlord and tenant are, and an address for service
- Rent, deposit, start date and bills
- How rent increases will work
- Information on grounds for termination and possession
- The tenant’s notice period
- Safety and repair responsibilities
- Tenant rights around pets and disability adaptations
Lauren highlighted during the webinar that the Written Statement can sit within the tenancy agreement and does not need to be a separate document.
What you need to do now
Make sure your tenancy agreements include a Written Statement of Terms from 1st May. If anything is missing, it can cause problems later, especially if possession is needed.
If you’re using Alto, there’s nothing to worry about. Updated APT templates will be available in the Latin Centre ahead of the deadline, so you can issue compliant agreements from day one.
What are the new rent rules under the Renters’ Rights Act?
The new rent rules are some of the most commercially significant parts of the Act.
During the webinar, Laura described them as ‘a soft form of rent control’.
She said: “Rent has been rising faster than inflation, which is a real concern. We think one of the aims of this reform is to encourage landlords and tenants to negotiate slightly below market rent, leading to a lower rate of rent increases overall.”
There are four key changes agents need to know about:
- Rent bidding is effectively banned. You must advertise a fixed rent and cannot accept offers above it. As Lauren pointed out, offers below the advertised rent are not prohibited, which could potentially lead to properties being deliberately priced higher to allow room for negotiation, even if that isn’t in the spirit of the Act.
- You can’t take rent before a tenancy is signed. A holding deposit and tenancy deposit are allowed, but rent can only be collected once the agreement is in place. The first rent payment can be taken after signing but before the tenancy start date.
- Rent periods are capped at one month for new tenancies. You cannot collect rent in advance of the due date. If rent is due on the 1st, you cannot take it earlier. Existing tenancies with longer payment periods can continue.
- Rent increases are tightly controlled. Under the Act, increases can only happen once a year using the Section 13 process. All existing rent review clauses are no longer valid. Landlords must give two months’ notice, and the proposed rent must reflect market value.
Tenants can challenge increases through the First-tier Tribunal (FTT) at no cost, and the new rent will not apply while that challenge is ongoing. In practice, this is likely to slow rent increases down and extend review cycles beyond a year, especially if the FTT process becomes overwhelmed with cases.
How does possession work under the Renters’ Rights Act?
From 1st May 2026, all possession cases must go through Section 8. The Act sets out 37 grounds for possession, split between mandatory and discretionary, and between fault-based and no-fault.
As Laura explained: “Landlords are no longer going to have that Section 21 route to possession. They will need to rely on one of the grounds set out in Schedule 2 to the Housing Act.”
Fault-based grounds cover issues like rent arrears and anti-social behaviour. No-fault grounds include selling the property or moving in.
One key addition is the new ground for sale. Landlords can seek possession if they intend to sell, but only after the tenancy has been in place for at least 12 months, and they must give four months’ notice.
What happens to existing Section 21 cases?
Section 21 notices must be served by 30th April 2026 to remain valid. Landlords then have until 31st July 2026 to begin possession proceedings.
After that, all possession cases must rely on Section 8.
What will catch agents out
It will all come down to evidence.
As Laura highlighted in response to a question about handling nuisance tenants, you need to be able to prove your case. That means keeping clear records of incidents, communication and complaints over time.
Crucially, under the Act, landlords also won’t be able to obtain possession if their PRS database entry is not up to date or if the tenancy deposit has not been properly protected, which means letting agents must ensure these are taken care of.
What this means in practice
Possession now depends on what you can evidence, not just which ground you rely on.
If you’re using Alto, this is straightforward. You can track key compliance in one place and your records, communication and documents are all time-stamped and linked, so you have a clear audit trail if you ever need it.
What are the new rules on discrimination and pets?
The Renters’ Rights Act bans blanket discrimination against benefit claimants and families with children. Landlords and agents will no longer be able to exclude tenants on either of these grounds.
There are some limited exceptions. A landlord may still refuse if they can show it is a ‘proportionate way to achieve a legitimate aim’, such as avoiding overcrowding. There are also cases where existing insurance policies may restrict who a property can be let to.
Blanket bans on pets are also no longer acceptable.
As Lauren explained: “There’s good news for pet lovers. Tenants of all assured tenancies can now request permission to keep a pet.”
Landlords can only refuse if it is ‘reasonable’ to do so. For example, if a superior landlord does not allow pets.
What are the 3 phases of the Renters’ Rights Act?
The Renters’ Rights Act rolls out in three phases, covering tenancy reform, a new landlord register, and housing standards.
Phase 1: from 1st May 2026
This is the immediate change agents need to be ready for.
It includes the end of fixed-term tenancies, the removal of Section 21, new rent rules, expanded Section 8 possession grounds and stronger enforcement powers for local authorities.
Under the Act, fines can reach up to £40,000 for serious or repeated breaches, and there are new criminal offences for things like misusing possession grounds or providing false information.
Phase 2: expected late 2026
The next phase introduces two major structural changes.
A new PRS database will require all landlords to register themselves and their properties. Each property will have a unique identifier that must be included on listings. If a property is not registered, it cannot be marketed, and possession can be blocked. Fines for non-registration can reach up to £7,000.
Alongside this, a new PRS Landlord Ombudsman will become mandatory. This is designed to provide a faster way to resolve disputes without going through the courts.
Phase 3: to follow
The final phase focuses on housing standards, though there isn’t a date for rollout yet.
When it happens, the Decent Homes Standard will be extended to the private rented sector, and Awaab’s Law will apply. This means landlords will need to investigate and fix health hazards such as damp and mould within set timeframes.
What the Renters’ Rights Act means for how you run your agency
Evidence is now everything.
It’s no longer enough to just ‘know’ something’s been handled. You need a clear record of what happened, when it happened and who was responsible, in a reliable, easy to access format that stands up to scrutiny.
This applies to everything from serving documents to managing rent changes and building a case for possession. Without proper evidence, even routine situations could become difficult to defend.
With Alto, this structure is already in place. Activity, messages and documents are recorded as you go, giving you a clear timeline without a load of manual admin.
You can send documents, request information and manage conversations directly through the platform, so everything stays linked to the right tenancy and easy to follow.
Intelligent workflows help ensure deadlines are always met and the right rules are followed. It’s the key to staying compliant without adding more to your day-to-day workload.
FAQs
What is an Assured Periodic Tenancy and how is it different from an AST?
An Assured Periodic Tenancy (APT) is a rolling tenancy with no fixed end date. From 1st May 2026, all tenancies will be APTs under the Renters’ Rights Act. Unlike an AST, tenants can leave at any time by giving two months’ notice, and landlords must use Section 8 grounds to regain possession.
When does Section 21 end for existing tenancies?
Section 21 ends on 1st May 2026. Notices served by 30th April 2026 remain valid, and landlords have until 31st July 2026 to begin possession proceedings. After that date, all possession must go through Section 8, regardless of when the tenancy started.
Do landlords need to reissue tenancy agreements to existing tenants?
No. Existing ASTs convert to APTs automatically on 1st May 2026. However, landlords and agents must serve a government information sheet to all existing tenants by 31st May 2026. Agents should ensure this is issued and properly recorded.
Can landlords still accept six months’ rent in advance?
For existing tenancies, yes — current payment terms continue. For new tenancies from 1st May 2026, rent in advance beyond one rent period cannot be a condition of the tenancy. If a tenant offers more voluntarily, it can be accepted, but it must be clearly documented.
How does the rent increase process work under the Renters’ Rights Act?
Rent can only be increased once a year using the Section 13 statutory process. Landlords must give two months’ notice, and the proposed rent must reflect market value. Existing rent review clauses are no longer valid. Tenants can challenge increases at the First-tier Tribunal at no cost.
What are the new financial penalties for agents and landlords under the Act?
Local authorities can issue fines of up to £7,000 for minor or first breaches, rising to £40,000 for serious or repeated breaches. New criminal offences include relying on invalid possession grounds or providing false information to the PRS database. Rent repayment orders can cover up to two years’ rent.
What is the PRS database and when must agents and landlords register?
The PRS database is a central register for landlords and rental properties, expected in Phase 2 in late 2026. Landlords must be registered to market a property or obtain possession. Fines for non-registration reach up to £7,000. Agents should start gathering landlord and property information now.
Are student lettings affected by the Renters’ Rights Act?
Yes, depending on property type. University halls and some purpose-built student accommodation are exempt. Private student HMOs remain in scope, but landlords can use Ground 4A to align possession with the academic year. A temporary version of this rule applies for the 2025 to 2026 academic year.
What does the Renters’ Rights Act mean for how letting agents manage compliance?
Agents now need to evidence what was done, when, and by whom — with records that hold up if challenged. The Act shifts the burden of proof significantly. Without reliable systems, it’s easy to fall out of compliance and face fines or blocked possession proceedings.
