The Renters' Rights Act Explained: What It Means for London Landlords in 2026
The Renters' Rights Act Explained: What It Means for London Landlords in 2026
- The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and came into force on 1 May 2026
- Section 21 "no-fault" evictions are abolished — landlords must now rely on specific legal grounds to regain possession
- All assured shorthold tenancies (ASTs) have converted to open-ended periodic tenancies — fixed terms no longer exist
- Rent can only be increased once per year with at least two months' written notice; contractual rent review clauses are abolished
- A national landlord register and ombudsman scheme are coming in late 2026
- For prime central London owners, the short-let and mid-term model sits entirely outside the Act — and is attracting increased interest as a result
What is the Renters' Rights Act?
The Renters' Rights Act 2025 is the most significant reform to the private rented sector in England since the late 1980s. It was introduced by the Labour government, received Royal Assent on 27 October 2025, and came into force in its first phase on 1 May 2026. It replaces the previous Conservative government's unfinished Renters (Reform) Bill.
The Act affects every private landlord in England who lets under an assured or assured shorthold tenancy. For London landlords — particularly those in the prime central market — the changes are material and immediate. Understanding what has changed, and what it means for your specific property, is now essential.
It is worth noting from the outset that the Act applies to standard long-term residential tenancies. Short-let and mid-term corporate lets — the models Curated Property operates — sit outside its scope entirely. This distinction is increasingly relevant for London property owners weighing their options.
The Key Changes — What Has Actually Come Into Force
Summary of changes in force from 1 May 2026
| Change | What it means in practice |
|---|---|
| Section 21 abolished | Landlords can no longer issue "no-fault" eviction notices. Regaining possession now requires a specific legal ground under Section 8. |
| Fixed-term tenancies ended | All ASTs have converted to rolling periodic tenancies with no set end date. No new fixed-term tenancy can be granted. |
| Tenant notice period | Tenants can leave at any time with two months' written notice — from day one of the tenancy, with no minimum term. |
| Rent increases restricted | Rent can only be increased once per year, on at least two months' written notice using the new Form 4A. Contractual rent review clauses are abolished. |
| Rent in advance capped | For new tenancies, landlords cannot require more than one month's rent in advance. Any clause requiring more is void. |
| Possession grounds tightened | Key grounds now require four months' notice (sale, owner occupation). Serious rent arrears ground requires three months' unpaid rent. Ground 1A (sale) cannot be used in the first 12 months. |
| No rental discrimination | Landlords cannot refuse tenants on the basis of benefits, children or other protected characteristics. Blanket "no DSS" policies are unlawful. |
| Pet requests | Tenants have the right to request permission to keep a pet. Landlords may only refuse on reasonable grounds. |
Section 21 — What the Abolition Actually Means
Section 21 of the Housing Act 1988 gave landlords the right to regain possession of their property at the end of a fixed term without giving a specific reason. It was the legal mechanism most commonly used when landlords wanted to sell a property, move back in, or simply end a tenancy that was not working out.
From 1 May 2026, Section 21 no longer exists. Landlords who want to end a tenancy must now cite a specific ground under Section 8 — and those grounds have become more demanding. Regaining possession in order to sell the property requires four months' notice and cannot be exercised in the first 12 months of a tenancy. Recovering possession on the basis of rent arrears now requires three months' unpaid rent before the ground applies.
Possession proceedings already average more than six months through the courts. That timeline is expected to lengthen in the short term as the new system embeds. For London landlords, the practical consequence is that regaining access to your own property — in any circumstances short of serious breach — has become a considerably more complex and time-consuming process.
"The question London landlords are now asking is not just how the Act affects their current tenancy — it is whether the long-term letting model still makes sense for their property."
The End of Fixed-Term Tenancies
From 1 May 2026, no new fixed-term tenancy can be granted in the private rented sector. All existing assured shorthold tenancies have automatically converted to rolling periodic tenancies — month to month, with no set end date.
This has two immediate practical effects. First, tenants can give notice and leave at any time with two months' written notice, from the very first day of a tenancy. There is no minimum commitment period. Second, landlords cannot plan around a tenancy end date in the way that was previously possible. The tenancy continues indefinitely until the tenant chooses to leave or the landlord successfully obtains possession through the courts.
For landlords who valued the planning certainty of a fixed term — particularly those who intended to sell or redevelop their property within a known timeframe — this represents a significant change to how that planning needs to work.
Rent Increases Under the New Rules
Contractual rent review clauses in existing tenancy agreements are abolished. From 1 May 2026, rent can only be increased through the Section 13 process — once per calendar year, with at least two months' written notice to the tenant using the new Form 4A.
The proposed increase must reflect open market rent. Tenants have the right to challenge any increase they consider above market value through the First-tier Tribunal. This tribunal route, while available previously, is now more actively encouraged and is expected to be used more frequently.
For London landlords who had relied on contractual rent review schedules to keep pace with market rates, the new process introduces additional administrative steps and a potential challenge mechanism on every increase.
What is Coming in the Next Phases
The Act is being implemented in three phases. Phase one — covering tenancy reform, Section 21 abolition and rent increase changes — is now in force. Two further phases follow.
What This Means for Prime Central London Property Owners
The Renters' Rights Act applies to the standard long-term residential letting market. Short-term lets (under the 90-day London limit) and mid-term corporate lets — the models Curated Property uses — sit outside its scope entirely. This is a meaningful distinction for prime central London property owners.
Under the long-term model, a London landlord now faces: no guaranteed end date on a tenancy, a possession process that can take a year or more if contested, rent increase restrictions, and mandatory registration on a national database from late 2026. For owners who valued flexibility and control over their asset, these changes materially alter the calculation.
Under a professionally managed short-let and mid-term model, none of these constraints apply. The property is let on terms that do not fall within the Renters' Rights Act framework — which means the owner retains full flexibility, the ability to access the property between lets, and control over how the asset is used year-round.
We are seeing a clear increase in enquiries from London landlords who have held long-term tenancies for years and are now reassessing whether that model continues to suit their circumstances. For those with prime central London properties in good condition, the comparison with a hybrid short-let and mid-term income is increasingly favourable — both financially and in terms of practical control.
Important: This article provides a general overview of the Renters' Rights Act 2025 for information purposes. It is not legal advice. If you have specific questions about how the Act affects your tenancy or property, you should consult a qualified solicitor or property lawyer.
Frequently Asked Questions
Considering your options as a London landlord?
Curated Property helps prime central London property owners understand how the short-let and mid-term model compares to a standard tenancy — financially and practically. Talk to the team for an honest assessment.
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