top of page

What Are the New Tenancy Laws in England?

England's tenancy laws changed more significantly in 2026 than at any point in the previous three decades. The Renters' Rights Act 2025 came into force on 1 May 2026, fundamentally altering the legal framework that governs the relationship between private landlords and their tenants.


Whether you are a landlord trying to understand your new obligations, or a tenant wanting to know what rights you now have, this guide sets out the new tenancy laws clearly and practically.


The Foundation: A New Type of Tenancy

The starting point for understanding the new tenancy laws is the change to the tenancy structure itself.


Before 1 May 2026, the standard form of private rented tenancy in England was the assured shorthold tenancy (AST). An AST typically ran for a fixed term — usually six or twelve months — after which it either converted to a periodic tenancy or was renewed for another fixed term. The fixed-term structure gave landlords a natural point at which to end the tenancy or renegotiate the terms.


From 1 May 2026, ASTs no longer exist. All new tenancies in the private rented sector are assured periodic tenancies — open-ended arrangements with no fixed end date. All existing ASTs were automatically converted to assured periodic tenancies on the same date.


An assured periodic tenancy runs indefinitely. It does not expire at the end of a fixed term because there is no fixed term. It continues until either the tenant chooses to leave by giving notice, or the landlord establishes a valid legal ground to recover possession.

This single change — from fixed-term to open-ended — is the foundation on which all the other new tenancy laws are built.


The Abolition of Section 21

Understanding HMO Investment Fundamentals in Regional Markets

The most debated change in the new tenancy laws is the abolition of Section 21 of the Housing Act 1988 — the so-called "no-fault eviction" provision.


Section 21 allowed landlords to recover possession of a property without giving any reason, provided they gave the required notice and followed the correct procedural steps. It was widely used as a tool to end tenancies at the expiry of a fixed term, to remove tenants who had complained about disrepair, or simply to clear a property for sale or refurbishment.


From 1 May 2026, Section 21 no longer exists. Any Section 21 notice that had not been enforced by that date became void. A landlord who wants to recover possession must now establish one of the specified grounds for possession under Section 8 of the Housing Act 1988 — and in most cases, must obtain a court order.


For tenants, this means they can no longer be asked to leave without a reason. For landlords, it means that possession now always requires a valid legal ground and, in most cases, evidence to support it.


The New Grounds for Possession

To compensate for the loss of Section 21, the Renters' Rights Act introduced several new mandatory grounds for possession under Section 8. These sit alongside the existing grounds, which continue to apply.


Ground 1A: Landlord intends to sell. If a landlord genuinely intends to sell the property, they can use Ground 1A to recover possession. The ground is mandatory — if the landlord can demonstrate a genuine intention to sell, the court must grant possession.

The notice period is four months. The landlord cannot re-let the property for three months after possession is granted, which prevents the ground from being used as a pretext for removing an inconvenient tenant.


Ground 1B: Landlord or family member intends to move in. If the landlord or a specified close family member genuinely intends to occupy the property as their main home, Ground 1B applies. The notice period is four months, and the same three-month restriction on re-letting applies.


Ground 4A: Student accommodation. Landlords of purpose-built student accommodation can use Ground 4A to recover possession at the end of the academic year, recognising the specific operational cycle of the student housing market.


Ground 6A: Redevelopment. Where a landlord intends to carry out significant redevelopment works that require vacant possession, Ground 6A applies. The notice period is four months.


The existing grounds continue to apply alongside these new ones. Ground 8 — mandatory possession for rent arrears of two months or more — remains in force. Ground 14 — anti-social behaviour or nuisance — continues to apply. Ground 11 — persistent late payment of rent — is also unchanged.


New Rules for Rent Increases

Strategic Property Selection: Identifying HMO Goldmines

The new tenancy laws introduced a standardised, statutory process for rent increases that replaces the previous patchwork of contractual and statutory mechanisms.


Section 13 is the only lawful route. A landlord who wants to increase rent must use the government's prescribed Form 4A — "Landlord's notice proposing a new rent under an assured periodic tenancy." No other method is valid. Rent review clauses in tenancy agreements — even those signed before May 2026 — are no longer enforceable.


Once per year only. Rent can only be increased once in any 12-month period, regardless of what the tenancy agreement says.


Two months' written notice. The notice must be served at least two months before the proposed effective date. The period runs from the date the tenant receives the notice.


No fixed cap, but the open market rent is the ceiling. The proposed new rent must not exceed the open market rent for the property. If it does, the tenant can apply to the First-tier Tribunal (Property Chamber) to have the increase independently assessed. The application fee is £47. The increase is paused while the tribunal considers the case. The tribunal's decision is binding on both parties.


No retaliation. A landlord cannot serve a rent increase notice — or a possession notice — in response to a tenant exercising their legal rights, including challenging a rent increase.


The Right to Keep Pets

The new tenancy laws give tenants the right to request permission to keep a pet in their rented home. A landlord cannot unreasonably refuse such a request.


The process is straightforward. The tenant makes a written request. The landlord has 28 days to respond — either agreeing, agreeing with conditions, or refusing with documented reasonable grounds. Blanket "no pets" policies are no longer enforceable.


Where a landlord agrees to a pet, they can require the tenant to take out pet insurance to cover potential damage to the property. This provides a degree of protection for the landlord without preventing tenants from keeping animals.


The Ban on Rental Bidding

The Benefits of Professional Property Management

The new tenancy laws ban rental bidding — the practice of inviting or accepting offers above the advertised asking rent. Landlords and letting agents must advertise a fixed asking rent and cannot accept higher bids, even if prospective tenants offer them voluntarily.


This change was introduced in response to evidence that competitive bidding for rental properties — particularly in high-demand urban areas — was pricing out lower-income renters and creating a market dynamic that disadvantaged those with less financial flexibility. Landlords who want to achieve a higher rent must advertise at that figure from the outset.


The Ban on Discrimination in Letting

The new tenancy laws strengthened protections against discrimination in the private rented sector. Landlords and letting agents cannot refuse to let a property to someone solely because they receive housing benefit or other welfare payments, or because they have children.


Blanket policies such as "no DSS" or "no children" are unlawful. Landlords can still carry out affordability assessments and reference checks — the ban is on blanket refusals based on benefit status or family composition, not on legitimate assessment of individual applicants.


The Private Rented Sector Database

The Renters' Rights Act requires the establishment of a national Private Rented Sector Database — a register of landlords and their properties. Landlords are required to register their properties before letting them. Tenants will be able to check whether a property is registered and whether the landlord has any enforcement history.


The database is intended to improve transparency in the sector and to support local authorities in identifying and taking action against non-compliant landlords. Failure to register carries civil penalties.


The Mandatory Private Rented Sector Ombudsman

The Act requires all private landlords to join a mandatory Private Rented Sector Ombudsman — a dispute resolution service that tenants can use to bring complaints without going to court. The Ombudsman can investigate complaints, award compensation, and require corrective action. Membership is mandatory, and failure to join carries civil penalties.


What the New Laws Mean in Practice

For landlords, the new tenancy laws require a more structured and documented approach to property management. Possession now always requires a valid ground and, in most cases, evidence to support it. Rent increases must follow the Section 13 process. Pet requests must be handled within 28 days. Properties must be registered on the national database, and landlords must join the Ombudsman scheme.


The landlords who will navigate the new framework most successfully are those who treat compliance as an operational discipline — maintaining clear documentation, reviewing rents regularly through the correct process, and responding to tenant requests promptly and professionally.


For tenants, the new laws provide significantly stronger security of tenure and clearer rights. You cannot be asked to leave without a reason. Your tenancy has no end date. Rent can only be increased once per year through a formal process, and you have an affordable route to challenge increases you believe are unfair. You have the right to request a pet. You cannot be refused a tenancy solely because of your benefit status or family composition.


A Note on Scotland, Wales, and Northern Ireland

The new tenancy laws described in this guide apply to England. Scotland, Wales, and Northern Ireland each have their own distinct legislative frameworks for the private rented sector. Landlords and tenants in those nations should seek specific guidance for their jurisdiction.


Key Takeaways

The Renters' Rights Act 2025 introduced the most significant changes to English tenancy law since 1988. ASTs are abolished; all tenancies are now open-ended assured periodic tenancies. Section 21 is gone; possession requires a valid Section 8 ground. New grounds for possession — selling, family occupation, student accommodation, redevelopment — provide landlords with legitimate exit routes. Rent increases are limited to once per year, require Form 4A and two months' notice, and cannot exceed the open market rent. Tenants have new rights around pets, discrimination, and rent challenges. A national database and mandatory Ombudsman are being established.


Need Help Navigating the New Tenancy Laws?

Whether you are a landlord adapting to the new framework or a tenant wanting to understand your rights, professional guidance makes a significant difference.


Speak with our team on WhatsApp: +44 330 341 3063


Or visit comfortandco.uk to learn how professional management supports landlords in operating compliant, well-structured properties under the new tenancy laws.


Disclaimer: This blog is for general information purposes only and does not constitute legal advice. Rules described apply to England; different rules apply in Scotland, Wales, and Northern Ireland.

Comments


Essential property options UK
  • Whatsapp
  • Instagram
  • Facebook
  • LinkedIn
  • YouTube
  • Apple Music
  • Spotify

Essential Property Options is a trading name of Essential Management Ltd, 3rd Floor, 207 Regent St, London, W1B 3HH        
Established 2010

bottom of page