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BRANAGANS

Accountancy Services Ltd

01709 327 215 | info@branagans.co.uk

May 2026 | Renters' Rights Act comes into force from May 1

New obligations for landlords and new rights for tenants are coming into force from May 1 as the Renters' Rights Act is implemented. The changes are designed to give tenants more rights than they have previously enjoyed, and to ensure landlords are not operating in ways that disadvantage their tenants. But these rules create the biggest shake up of the sector, and there is a lot for both sides to absorb to make sure they don't fall foul of the new rules.  

One of the main changes is that there is no longer a traditional fixed-term tenancy. Typically, tenants were offered a tenancy for maybe six or 12 months by the landlord or the agent operating on the landlord's behalf. But from May 1, shorthold tenancies of this type, and all new tenancies, will be rolling, without a fixed end date.

This means that to end a tenancy, either the tenant or the landlord must give notice, which creates a more formal process, and makes it much harder for informal tenancies to exist.

WHAT RULES HAVE CHANGED?

A Section 21 eviction - known as a 'no fault' eviction, was the main way that landlords would evict tenants, as they didn't need a specific reason to issue one. Now that this has been removed, if a landlord wants to evict a tenant, the eviction must be justified under Section 8.

You might action a Section 8 eviction if there are rent arrears, antisocial behaviour, because the landlord wants to sell the property, or because the landlord wants to move into the property. These changes create a legal process that must be carefully navigated.

There are also changes to how and when rent can be increased. From May 1, you are limited to just one rent increase per year, and tenants must be given at least two months' notice of any increase.

Landlords also can't ask for large rental payments upfront under the new rules, with advance rent effectively capped at one month in most cases. Rental bidding wars are also banned, so landlords or agents won't be able to encourage offers above the advertised rent to secure a property. Tenants also have stronger rights to challenge rent increases they consider excessive, so they don't have to just accept what the landlord is proposing in terms of a rent increase without having a say.

WHAT ELSE HAS CHANGED?

Tenants will automatically have the right to ask to have pets in rented accommodation, and the landlord must have a reasonable reason to refuse the request. It isn't enough for the landlord to say he or she doesn't want them. Stronger anti-discrimination rules are also being implemented, so landlords can't refuse tenants because, for example, they have children or receive benefits.

All the changes must be communicated to existing tenants by the end of May this year via a Government leaflet which can be downloaded from Gov.uk. Failing to do this could lead to potential fines.

However, if a landlord has given a tenant notice before May 1, 2026, then these rules may not apply. But if they do apply, then tenants can effectively stay indefinitely, and you need valid legal grounds to remove them.

NEW RULES IF YOU WANT TO SELL YOUR PROPERTY

If you genuinely intend to sell your property, you can serve a Section 8 notice under the updated rules to ask your tenants to leave. But you can't just use this as a ruse to get tenants out, you must follow through with the sale or face consequences if you don't.

For example, you would need to instruct an agent, list the property, or show other credible steps towards selling. If you don't sell, then in most cases you can't put your property up for rent until 12 months after you served the notice.

You must also give four months' notice to the tenants if you want to sell, and you can't give this notice within the first 12 months of the beginning of a contract. So, in effect, if you wanted to sell your property, you would need to wait up to 16 months before you can begin to put it on the market.

One important aspect of the new rules to be aware of is that local councils will be given more powers in relation to rental properties, which includes being able to impose civil penalties of up to £7,000 for a first or minor non-compliance with the rules, and up to £40,000 for serious or repeat non-compliance. Councils will also be able to pursue action through the courts if there is serious or persistent non-compliance, which could lead to an unlimited fine. You can find more information about the new rules at Gov.uk.

CONTACT US

If you would like to find out how these rules may affect you, whether you're a tenant or a landlord, and how to deal with them effectively, then please get in touch with us on 01709 327 215 or email info@branagans.co.uk and we will explain what you need to know.  

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