Agents and Landlords: Act Now to Prepare for the Renters Rights Act from May 2026

What the Renters Rights Act Means for Landlords and Agents

From 1 May 2026, the Renters Rights Act phase one will bring significant changes to private rented sector tenancy arrangements across England. The Act mandates that all existing assured shorthold tenancies (ASTs) convert automatically to a new periodic tenancy system, with new rules governing rent payments, tenancy agreements, and tenant protections.

For private landlords, especially those operating assured shorthold tenancies—whether single-unit landlords, HMO owners, or portfolio holders—this represents a fundamental shift in how tenancies are structured and managed. Accidental landlords should also take note, as even small-scale landlords will be affected.

Key Changes to Understand and Implement

1. Automatic Conversion of Existing ASTs: All ASTs active on 1 May 2026 will automatically convert to the new periodic tenancy model. This means landlords can no longer rely on fixed-term ASTs as currently structured. Existing agreements without written contracts must be formalised in writing, incorporating the new statutory terms.

2. Rent in Advance and Bidding Restrictions: The Act introduces a cap on rent paid in advance, limiting how much landlords can require upfront. Additionally, rental bidding—where prospective tenants offer more than the advertised rent—is banned, aiming to curb unfair market practices.

3. Updated Rent Increase Procedures: Rent increases must follow new prescribed processes, reducing landlords' ability to raise rents arbitrarily during tenancies. This brings more predictability for tenants but requires landlords to adjust their rent review workflows.

4. Strengthened Anti-Discrimination Measures: Landlords and agents must ensure tenancy management practices comply with enhanced anti-discrimination standards, reinforcing fair access to housing.

5. New Pet Rights: Tenants will have strengthened rights to keep pets, limiting landlords’ ability to refuse permission unreasonably.

6. Tenant Information Requirements: Landlords and agents must provide tenants with a government-issued information sheet explaining these reforms at tenancy commencement and upon conversion.

Practical Implications for Landlords and Agents

• Review and Update Documentation: Begin immediately reviewing all tenancy agreements to ensure they comply with the new legal framework. This includes drafting or updating written agreements for tenancies currently without one.

• Train Staff and Communicate: Agents should prioritise staff training on the Act’s requirements to manage queries and compliance effectively. Landlords should proactively communicate changes to tenants, explaining how their tenancy status and rights will alter.

• Adjust Rent Handling Processes: Systems must be updated to enforce limits on rent in advance and to eliminate rental bidding. Landlords can benchmark appropriate rent in advance caps locally once government guidance is finalised.

• Strengthen Compliance Checks: Implement regular reviews of tenancy management practices to ensure anti-discrimination policies are robust and documented.

• Plan for Phases Two and Three: The Act’s subsequent phases will introduce a Landlord Ombudsman, a Private Rented Sector (PRS) Database, and Decent Homes Standard reforms. Early awareness and preparation will ease future compliance.

Recommendations for Different Landlord Profiles

• Single-Unit Landlords: Focus on updating tenancy agreements and communicating with your tenant about the conversion process and new rights.

• HMO and Portfolio Landlords: Prioritise staff training and operational process changes across your properties to ensure consistent compliance and tenant communication.

• Accidental Landlords: Seek professional advice to understand how these reforms impact your tenancy agreements and management practices.

Immediate Next Steps

1. Audit your current tenancy agreements to identify those needing updates or formal written contracts.
2. Schedule staff training sessions on the Renters Rights Act reforms.
3. Develop tenant communication templates explaining the upcoming changes.
4. Review rent payment processes to implement caps on rent in advance and ban rental bidding.
5. Subscribe to government updates and industry briefings on phase two and three reforms.
6. Engage qualified letting agents or legal professionals to support compliance and operational adjustments.

How Rentals & Sales Can Support You

Our specialist team offers comprehensive portfolio reviews, compliance audits, and tenancy agreement updates tailored to the Renters Rights Act requirements. We help landlords and agents implement robust rent management processes, staff training programmes, and tenant communications to navigate these changes with confidence.

Contact us to arrange a bespoke compliance consultation or to schedule a tenancy agreement review.

Compliance Disclaimer: This article provides a summary of the Renters Rights Act reforms effective from May 2026 and general guidance. It does not constitute legal advice. Landlords and agents should seek professional legal counsel to ensure full compliance with all applicable laws and regulations.