LANDLORDS are being warned about major changes coming next month that they all need to be ready for as experts warn it’s “the biggest reform in almost 40 years”.
The Renters’ Rights Act will take effect from next month, May, and they are set to introduce further complexity for landlords and portfolio owners.
Under the changes, all tenancies will move to rolling assured periodic agreements, continuing on a month-to-month basis until ended by either the tenant, with two months’ notice, or the landlord, via a Section 8 notice with appropriate grounds.
Notice periods are also going to change, for example extending to four months where a property is being sold, or reducing to four weeks in cases of rental arrears.
Additional measures will affect day-to-day management. Landlords will be restricted to collecting only one month’s rent in advance, rents can be increased only once per year with two months’ notice, and tenants will have the right to challenge increases at tribunal.
There are also changes to tenant selection and requests, including a ban on refusing applicants based on children or benefit status, and a requirement to respond to statutory pet requests within 28 days with reasonable grounds if refusing.
Flexibility will reduce and administration will increase
Giordan Boston, Partner at Sampson Fielding, Chartered Accountants, said landlords are increasingly being restricted by red tape.
He added: “Rental reforms from May 2026 will introduce added complexity for landlords and portfolio owners.
“Flexibility will reduce and administration will increase, making early review of tenancy arrangements and portfolio strategy essential for landlords.”
Suzanne Smith, Founder at The Independent Landlord, said it is the biggest reform for decades.
She added: “The Renters’ Rights Act is the biggest reform in almost 40 years, but it’s manageable for landlords who take time to understand the new rules, are careful about tenant selection and focus on providing a good service.
“There are many practical steps which landlords can take to get ready. Use an updated tenancy agreement from 1 May, which includes the new mandatory terms, but without a fixed term. Use Form 4A to increase rent. Keep proper records, and go on regular inspections, even if you use an agent. The Act is complex and will take time to bed in.
“The administrative burden is real, but it’s not insurmountable for landlords who take the job seriously. Some landlords will leave the market, particularly those with one or two properties who were already weighing up the numbers. But the ones who will succeed are those who recognise that tenants are customers, and housing is a people-focused service.”
The biggest reform in almost 40 years
Michelle Lawson, Director at Fareham-based Lawson Financial, said it is a “massive shock” for landlords.
She added: “Landlords that are not prepared for this are in for a massive shock. This is the biggest piece of legislation change in the private rented sector for a generation and beyond. Some landlords have been selling as the balance of rights further tip more in favour of tenants and the onslaught of red tape and regulations and tax continues to deal hammer blows.
“Any increase in costs will be passed on by way of higher rents to tenants. This is no shock and the successive governments have been warned of the unintended consequences. Huge fines await those who don’t comply.
“Bear in mind these finds will directly benefit the local council coffers so enforcement will be rife. Batten down the hatches, protect yourself, know the rules inside out and, more importantly, if you have an agent, make sure they are well versed as ignorance is not a defence in a court of law.”
