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If you have invested in residential property, or perhaps are considering expanding your portfolio soon, the Renters’ Rights Act is making certain aspects of ownership harder.
Here are eight key facts about the Renters’ Rights Act, which partially comes into force on 1 May 2026, and the impact it may have on landlords.
1. No-fault evictions will be banned
As you may already have read in the news, a key feature of the Renters’ Rights Act is that no-fault Section 21 notices will no longer be legal.
- Under the current rules, once a fixed contract period ends, landlords can terminate a tenancy without giving a reason.
- From 1 May, you must give a legal reason if you wish tenants to vacate. This may include that you or your family are moving into the property (requiring four months’ notice), you wish to sell it, there are serious rent arrears, or the tenant is showing antisocial behaviour.
This new rule works in tandem with the below legislation to protect tenants from having to move home without a clear reason.
2. You cannot market or re-let a rescinded property for 12 months
If you ask a tenant to leave a property on the grounds listed above, you cannot re-market or re-let the property for at least 12 months afterwards.
3. Tenants can leave with a month’s notice
Tenants will no longer be tied into long contracts. As of 1 May, all contracts will become rolling agreements and tenants will be able to serve notice and leave after one month.
4. You can increase rent once a year at most
Another feature of the Act is that landlords will only be able to increase a tenant’s rental payments a maximum of once a year.
Even rental price review clauses within existing tenancy contracts will be considered void.
So, you may need to plan ahead more carefully to ensure your property portfolio remains profitable, as you will be unable to rely on incremental rent increases to cover costs.
5. Potential tenants can no longer bid for properties
The rental landscape is currently a relatively free marketplace, with potential tenants able to outbid one another if they wish to secure a property.
Under the Renters’ Rights Act, this will no longer be legal. Renters will be considered based on the quality of their application or on a “first come, first served” basis rather than how much over the asking price they are willing to pay.
6. New minimum property standards will be enforced
You likely already know that residential lettings will require an Energy Performance Certificate (EPC) of “C” or above by 2030. This may necessitate significant improvements to insulation, windows, and heating systems for one or more of your properties.
In the more immediate future, from 1 May, several more minimum standards will become law:
- The new Decent Homes Standard (DHS) demands that all rental homes are safe, warm, and in good repair. Landlords whose homes don’t meet the DHS could be fined between £7,000 and £40,000 by the local council.
- Awaab’s Law means that reports of mould or damp in properties must be investigated within a rigid time frame of 14 days, and repairs must start within seven days. Emergency cases – such as asbestos exposure or electrical hazards – must be investigated and acted upon within 24 hours.
These laws are designed to keep tenants safe from exploitative and sub-par living conditions – but all landlords, even those with consistently high property standards, must know about the new rules and comply with them.
7. Tenants will have new rights regarding pets and benefits
Under the new Act, renters can request to have pets in their homes and landlords cannot refuse unless in extenuating circumstances. You must respond to requests within 28 days.
Additionally, you may no longer list properties with blanket bans on those receiving benefits.
8. Landlords must register properties on the Private Rented Sector database
To keep track of residential lets in the UK, the government is setting up a digital platform called the Private Rented Sector (PRS) database, or the “Property Portal”.
Using the PRS, landlords must:
- Register all tenanted buy-to-let properties
- Upload their identity, property safety certificates, and evidence of deposit protection.
Not only must landlords register with the Portal by 2027 – the government has not yet stated a precise deadline – but tenants will be able to use it to search for you and your property before signing a lease. As such, they will gain the reassurance that the home meets the DHS and other safety and energy standards.
Work with IPS Capital to review your property wealth and make a long-term plan
Understandably, you may be concerned about the cost of maintaining properties in adherence with ever-tightening laws.
Our Wealth Planning team will help you review your existing property portfolio, discuss tax efficiency, and integrate these investments into a bespoke long-term financial plan.
Contact your Relationship Manager or email info@ipscap.com for more information.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning or tax planning. IPS Capital does not provide tax or legal advice.
The Financial Conduct Authority does not regulate buy-to-let (pure) and commercial mortgages.
Sources
01.11.2025 What to expect from the Renters’ Rights Act Shelter England
