Renters Rights Act Phase One: What London Landlords Must Do Before May 2026 | Landlord Insights | Rentals & Sales

Understanding the Renters Rights Act Phase One

On 24 April 2024, the UK government confirmed that the first phase of the Renters Rights Act will come into force on 1 May 2026. This marks a significant overhaul of the private rented sector (PRS), particularly impacting assured shorthold tenancies (ASTs), which make up the majority of UK residential tenancies.

Key reforms include:

Automatic conversion of existing fixed-term ASTs to periodic tenancies on 1 May 2026.
Limits on rent in advance payments and a ban on rental bidding.
Clearer rules around rent increases.
Strengthened anti-discrimination measures.
New tenant rights regarding keeping pets.
Requirement for landlords to provide tenants with a government-produced information sheet explaining these changes.

Further phases will tackle the landlord ombudsman scheme, a PRS database, and housing standards, but phase one alone demands significant operational adjustments.

Why This Matters to London Landlords

London’s rental market is complex and highly competitive. These changes affect all landlord profiles:

Single-unit landlords must update tenancy agreements and manage conversions carefully to avoid confusion or dispute.
HMO operators need to review how rent in advance limits interact with multiple occupancies.
Portfolio landlords face the challenge of synchronising compliance across numerous tenancies and managing communication at scale.
Accidental landlords should seek advice early to understand how these reforms impact their informal letting arrangements.

The NRLA has flagged the high risk and complexity these reforms introduce, urging landlords to prepare well in advance.

Practical Implications and Immediate Steps

1. Review and Update Tenancy Agreements

The government will mandate specific information be included in tenancy agreements or provided in a separate written document if none exists. Landlords should:

Audit existing AST agreements now to identify gaps.
Plan to revise templates to include the new mandatory information once official regulations and guidance are published (expected at least six months before May 2026).
Consult legal advisers or experienced letting agents to ensure compliance.

2. Prepare for Automatic Conversion to Periodic Tenancies

All fixed-term ASTs in place on 1 May 2026 will automatically become periodic tenancies. Landlords must:

Communicate these changes proactively to tenants.
Adjust rent collection and notice periods to align with periodic tenancy terms.
Update internal systems and processes to track tenancy status accurately.

3. Adjust Rent Payment and Bidding Practices

The Act limits rent in advance and bans rental bidding, so landlords should:

Review current collection methods to ensure no more than the permitted rent in advance is taken.
Stop any practice of accepting bids above the advertised rent.
Train staff and agents on these new restrictions.

4. Provide the Government Information Sheet to Tenants

Landlords must give each tenant a government-produced information sheet explaining the reforms. To comply:

Monitor government announcements for the release of this sheet.
Develop workflows to deliver this sheet to all existing and new tenants.
Keep records of distribution for compliance purposes.

5. Understand Revised Possession and Rent Increase Rules

Section 21 notices served before 1 May 2026 remain valid until expiry or tenant departure, but new rules will govern possession thereafter.

Engage legal advisers to interpret and implement the new possession and rent increase regulations.
Train lettings teams on updated notice procedures and compliance obligations.

6. Plan IT and Administrative System Updates

Managing these reforms requires robust tenancy management systems.

Assess current IT infrastructure for compatibility with new requirements.
Budget and schedule system upgrades or new software procurement.
Train administrative staff to handle revised tenancy data and compliance reporting.

7. Stay Alert to Court Capacity and Enforcement Developments

The NRLA highlights concerns about court capacity to process possession claims under the new regime.

Follow government and legal sector updates on court resource planning.
Consider alternative dispute resolution strategies to mitigate delays.

Next Steps for Landlords

Set a compliance project timeline starting immediately, with milestones aligned to government guidance releases.
Engage your legal and letting professionals to interpret forthcoming regulations.
Communicate early and clearly with tenants about upcoming changes to build trust and reduce disputes.
Review financial models to reflect changes in rent collection and tenant retention.

How Rentals & Sales Can Support You

Our expert team offers bespoke services to help London landlords navigate the Renters Rights Act phase one, including:

Portfolio compliance audits to identify tenancy agreement gaps.
Drafting and updating tenancy templates with mandatory government information.
Tenant communication strategies and provision of official information sheets.
Training sessions for lettings staff on new rent and possession rules.
IT system reviews and recommendations for tenancy management enhancements.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Landlords should consult qualified legal professionals to ensure compliance with all statutory requirements.