Introduction
From 1 May 2026, the private rental market in England enters a new phase. This is no longer a matter of simple policy proposals, a white paper or a reform that was announced and postponed several times. With the Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, the UK legislator has set out a concrete shift for the English private rented sector, meaning the majority of private residential lettings. The core of the first phase comes into force precisely on 1 May 2026.
The scale of the change is significant. The traditional system based on Assured Shorthold Tenancies, or ASTs, is substantially superseded for most private lettings. Section 21, meaning the “no fault eviction” mechanism, is abolished. Rentals move into a model in which the tenant can remain in the property for as long as they wish, unless the landlord has a specific legal ground to regain possession and follows the correct procedure. At the same time, rent increases are brought back within the section 13 procedure, bidding above the advertised rent is banned, large advance rent payments are limited, and new rules are introduced on discrimination, pets and day to day tenancy management.
For owners, investors, property professionals, agencies and tenants, the key point is not simply understanding that the reform is coming, but understanding which parts genuinely come into force on 1 May 2026, which parts are already sufficiently defined to allow practical preparation, and which parts still depend on guidance, prescribed forms or secondary legislation. That is exactly where many of the misleading simplifications seen online begin.
For a broader overview of property reform in the United Kingdom, read also our complete guide to UK property reform. In this article, however, the focus is deliberately narrower: only what genuinely changes from 1 May 2026 in the private rental market in England.
Why 1 May 2026 is a turning point
The UK government has chosen a phased implementation. The first phase begins on 1 May 2026 and is the one that affects the heart of the tenancy relationship in the private rented sector. The official roadmap expressly states that, from that date, the abolition of Section 21, the introduction of assured periodic tenancies, the reform of possession grounds, the new regime for rent increases through section 13, the ban on rental bidding, the limit on rent in advance, the ban on discrimination against families with children and benefit claimants, new rules on pets and the strengthening of local authority enforcement and rent repayment orders all come into force.
This means that 1 May 2026 is not simply a symbolic date. It is the moment when the sector moves away from a logic still dominated by the AST structure and the landlord’s ability to plan the tenant’s exit through Section 21, towards a logic in which possession of the property can be recovered only on the basis of specific grounds, with different notice periods and, where necessary, court intervention. For the market, this changes the mechanics of risk: less dependence on the fixed term contract, and more dependence on tenant selection, documentation, correct procedures and available evidence.
The government has also clarified that the first phase applies both to new lettings and, to a large extent, to existing tenancies in the private rented sector. We are therefore not dealing with a system in which only contracts signed after 1 May change, while old ASTs remain untouched for years. The transition is broader and more immediate.
The end of ASTs: what really changes with assured periodic tenancies
One of the most important elements of the reform is the substantial exit of the Assured Shorthold Tenancy as the ordinary model for private lettings in England. The new framework provides that the majority of private sector tenancies become assured periodic tenancies, meaning a periodic tenancy with no fixed end date, in which the tenant remains in the property until they choose to leave or the landlord has a valid legal reason to recover possession.
In practical terms, this changes the meaning of the tenancy agreement. Under the classic AST model, the fixed term was the psychological and operational centre of the relationship. Even when a tenant stayed beyond the original term, the market still tended to think in terms of six months, twelve months, renewal, break clauses and, above all, Section 21 as the route out. Under the new system, that logic is weakened significantly. The tenancy agreement will no longer be structured as a relationship with a predetermined final expiry date, but as an ongoing relationship that requires a specific legal reason for the landlord to bring it to an end.
It is also important to clarify what does not fall within the new regime in the same way. Guidance for landlords states that these rules apply to the private rented sector in England and do not apply in the same way, among others, to lodgers with a resident landlord, furnished holiday lets, commercial lettings and tenancies with annual rent above £100,000. In addition, for the social rented sector, implementation is placed in a later phase.
Abolition of Section 21: what really replaces it
The best known part of the reform is the abolition of Section 21. From 1 May 2026, in the English private rented sector, landlords will no longer be able to use Section 21 of the Housing Act 1988 to recover possession of a property without giving a specific reason. This is confirmed expressly both by the government roadmap and by the government’s general guide.
But saying simply “Section 21 is abolished” is an overly lazy summary. The real question is: what replaces it in functional terms? The answer is that the landlord must act through Section 8, using one or more grounds for possession set out in law. This moves the system away from a model in which it was enough to comply with the formal Section 21 procedure and wait for expiry, towards a model in which the landlord must identify the correct ground, respect the relevant notice period, use the prescribed forms and, if the tenant does not leave, prove in court that the ground genuinely exists.
In essence, the legislator is not removing the owner’s right to recover the property, but is making that recovery more causal, more documented and more evidential. On the one hand, tenant security increases. On the other, the landlord, or the landlord’s agent, is required to work in a more rigorous way. A landlord who previously thought in terms of “when does the fixed term end” will now need to think in terms of “which ground can I rely on, with what evidence and within what timeframe”.
The most important possession grounds from 1 May 2026
If Section 21 disappears, the new architecture of possession revolves around the Section 8 grounds. Precision is essential here, because this is where the market most easily slips into confusion.
Ground 1: landlord or family moving back into the property
Ground 1 allows the landlord to regain possession if they themselves, or a close family member, need to move into the property. Official guidance states, however, that this ground cannot be used within the first 12 months of a new tenancy and requires a notice period of 4 months.
Ground 1A: sale of the property
The new Ground 1A allows possession to be recovered where the landlord intends to sell the property. This ground also cannot be used within the first 12 months of the tenancy and requires 4 months’ notice. In addition, the legislation provides a restriction on reletting after use of the sale ground or the landlord / family occupation grounds, specifically to prevent a manipulative use of the possession procedure.
Ground 8: serious arrears
As regards rent arrears, Ground 8 remains the mandatory route for serious arrears, but with a higher threshold than many people remember from the old system. Under the new regime, the tenant must owe at least 3 months’ rent if rent is paid monthly, or at least 13 weeks’ rent if rent is paid weekly or fortnightly, both at the date of the notice and at the date of the hearing. The notice period is 4 weeks.
Ground 10 and Ground 11: arrears and persistent delay
Alongside Ground 8, the discretionary grounds relating to rent remain important. Ground 10 covers the situation where the tenant is in arrears even without reaching the Ground 8 threshold. Ground 11 concerns persistent delay in paying rent. In both cases, the guidance indicates a 4 week notice period.
Ground 12: breach of tenancy
Ground 12 concerns breach of one or more clauses of the tenancy agreement other than non payment of rent. The notice period indicated is 2 weeks. This ground may become more important under the new system because the quality of the written agreement and the clarity of the tenant’s obligations will matter more.
Ground 14: antisocial behaviour
In cases of antisocial behaviour, the official guidance is very clear: Ground 14 allows the landlord to act immediately after service of the notice, even though the court cannot make the order for the following 14 days. It is one of the clearest signals that the reform is not simply “pro tenant”, but is also intended to strengthen landlords’ tools in genuinely problematic cases.
The key point is this: there is no one to one replacement of Section 21 with a new universal ground. Instead, there is a broader and more technical toolbox, which requires greater operational competence.
The new tenancy agreement: what we know and what is not yet fully defined
One of the most delicate issues concerns the new tenancy agreement. Official sources confirm that, for new tenancies created from 1 May 2026, landlords will be required to provide the tenant with certain information about the tenancy in writing, but also make clear that the exact detail of this information depends on the regulatory framework and the relevant guidance. Government guidance states that from 1 May 2026 landlords will need to provide new tenants with written information on the key terms of the tenancy.
What we know with certainty is the principle: the tenancy relationship will need to be documented in writing in a clearer and more structured way. We also know that, for existing tenancies already supported by a written agreement, it will not normally be necessary to rewrite the contract from scratch, but it will be necessary to provide the government published Information Sheet by 31 May 2026. If the existing tenancy was verbal, the landlord will need to provide a written summary of the main terms by the same date.
The correct message, therefore, is not “nothing is known about the new contract”, but neither is it “the final model has already been defined in every detail for a long time”. The pillars are clear. Some operational elements are consolidating through guidance and prescribed forms.
Rent increases: from 1 May 2026 everything goes through Section 13
From 1 May 2026, in the English private rented sector, rent increases during the tenancy must go through Section 13. The government’s official guide states that rent increases in the PRS will be made through the statutory section 13 procedure as amended by the legislation. The landlord will be able to increase the rent only once a year, must give at least two months’ notice, and the new rent must reflect the market rate. If the tenant believes the increase exceeds the market level, they may challenge it before the First-tier Tribunal.
This does not amount to classic rent control. Landlords will still be able to align rent with the market. But they will not be able to do so whenever they want, however they want, and on the basis of opaque contractual mechanisms. The increase becomes annual, formalised, challengeable and tied to the market. It is a discipline against arbitrariness, not a freeze on rents.
Rent in advance: the end of excessive requests
The issue of rent in advance is one of the most relevant in practical terms, especially in London. The government has clarified that the reform will prevent landlords and agents from requesting more than one month’s rent in advance. Official guidance states that, once the tenancy agreement has been signed and before the tenancy begins, the landlord may request up to one month’s rent, or 28 days’ rent if the rental period is shorter than a month. Once the tenancy has started, the landlord may not enforce clauses requiring advance payment ahead of the agreed due dates.
This changes a great deal for international students, the self employed, applicants without UK credit history or tenants with more complex income profiles. Credit risk does not disappear, but it shifts: more importance is placed on guarantors, referencing, insurance and initial selection. That is a reasonable practical consequence of the rule.
Rental bidding: the end of offers above the advertised rent
Another high impact practical change is the ban on rental bidding. The government states that landlords and letting agents will not be able to ask for, encourage or accept an offer above the advertised rent. This means that the rent will have to be set more realistically from the outset and that it will no longer be lawful to construct explicit or implicit bidding wars between applicants.
For the London rental market, this is a concrete change, because in many high pressure areas initial pricing was sometimes used as bait to stimulate higher offers. From 1 May 2026, that tactic loses ground.
Discrimination: what changes for families with children and benefit claimants
From 1 May 2026, it becomes unlawful to discriminate against renters who have children or who receive benefits. The government states that landlords and letting agents will not be allowed to act in ways that make it less likely, or prevent, the grant of a tenancy for those reasons. This includes withholding information, preventing viewings or refusing a tenancy on the basis of a blanket ban.
Government guidance also makes clear that clauses in mortgages or superior agreements imposing restrictions against tenants with children or benefit claimants cannot be used to justify discrimination, subject to some transitional rules for existing policies and agreements. In practice, old formulas such as “no DSS” or “no children” become much harder to sustain.
Pets: more rights for tenants, but not an automatic yes
The issue of pets has often been described badly. The reform does not create an automatic and absolute right for tenants to keep pets. The landlord will have to consider the tenant’s request, will have an initial 28 day period to respond, and will have to provide valid reasons in the event of refusal. Consent cannot be unreasonably withheld.
This means that an absolute “no pets” position loses strength, but not that every possible refusal disappears. Objective restrictions remain relevant, such as head lease restrictions or the nature of the property. The philosophy of the reform is clear: fewer automatic bans, more reasoned and verifiable decisions.
Existing tenancies: what happens to contracts already in place
One of the most important points for landlords is this: if the tenancy in the PRS already has a written tenancy agreement, the landlord will not normally need to rewrite the contract from scratch simply because the new regime comes into force. However, the landlord will need to provide the tenant with the government published Information Sheet by 31 May 2026. If the existing tenancy was oral, the landlord will need to provide a written summary of the main terms by the same date.
This avoids unnecessary panic. There is no need for a universal and immediate rewriting of every tenancy agreement. What is needed, however, is a serious adaptation of documentation, processes and management.
What does not yet come into force on 1 May 2026
To avoid confusion, it is also essential to explain what will not yet be fully live on 1 May 2026. The PRS Database and the Landlord Ombudsman arrive in Phase 2, from late 2026 onwards, with a gradual rollout. For the ombudsman, the government places full mandatory sign up in prospect in 2028, once the system is ready.
The extension of the Decent Homes Standard and Awaab’s Law to the private rented sector is placed in a later phase, subject to consultation and progressive implementation. This matters because public discussion often compresses everything into a single narrative, as if it all starts together. It does not. 1 May 2026 is a huge threshold, but it does not coincide with the activation of every single part of the reform.
What really changes for landlords, investors and agencies
For landlords, the new system does not simply mean more restrictions. Above all, it means a change of method. More selection upfront, more documentation, more precision in initial pricing, less reliance on shortcuts such as Section 21, bidding wars or large advance payments. Recovering possession remains possible, but it requires more structure and more discipline. That is the most significant operational consequence of the new framework.
For investors and agencies, the reform does not eliminate the attractiveness of the English rental market, but it does make management of rental risk more important. Properties and segments that also depended on a high degree of flexibility may be affected more than others. More professional operators, by contrast, may even benefit from a more orderly and legible market. This is an analytical assessment, not a promise.
Conclusion
1 May 2026 marks the moment when the private rental market in England ceases to be governed primarily by the logic of the AST and Section 21 and moves to a system based on periodic tenancies, specific possession grounds, rent increases through section 13, limits on rent in advance, a ban on bidding, new protections against discrimination and a more regulated approach to pet requests. All of this is confirmed by official government sources.
At the same time, not everything is defined in every operational detail months and months in advance. Some elements depend on guidance, forms and secondary legislation. So the correct analysis is not to say “we already know everything”, but neither is it to say “nothing is known”. The pillars of the new regime are clear. The practical tools are consolidating. And the competitive advantage, as often happens, will go to those who understand first where the real rules of the game actually lie.
FAQ
What is the Renters’ Rights Act 2025?
It is the reform that fundamentally changes the private rental market in England, introducing a new tenancy structure, abolishing Section 21 and changing rules on possession, rent increases, rent in advance, bidding, pets and discrimination.
When do the new rules come into force?
The first phase comes into force on 1 May 2026 and applies to the private rented sector in England, both for new tenancies and, to a large extent, for existing ones.
Is Section 21 really being abolished?
Yes. From 1 May 2026, landlords in the private rented sector will no longer be able to use Section 21 to recover possession without giving a specific reason.
How will a landlord be able to regain possession of the property?
Through Section 8, using one or more possession grounds provided by law, such as sale, landlord or family occupation, arrears, breach or antisocial behaviour.
Will rents still be able to increase?
Yes, but under more precise rules. An increase will only be possible once a year through the Section 13 procedure, with at least two months’ notice and the possibility of challenge by the tenant.
Will it still be possible to ask for six months’ rent in advance?
Generally no. The reform limits the rent in advance that can be requested by the landlord to one month.
Will the new rules change the London rental market?
They are likely to affect pricing, tenant selection, risk management, contract structure and the time needed to recover possession. The impact will also depend on market practice, case law and the wider economic context. This is a reasoned inference based on the official legal framework.
If I own a property in London, why should I follow these changes?
Because from 1 May 2026 key rules change that directly affect letting, compliance, documentation, rent, exit strategy and tenant management. Ignoring them means exposing yourself to operational mistakes and economic risk.
