What The Renter’s Rights Act May Mean For Landlords And Tenants

On May 1, 2026, the first phase of the Renter’s Rights Act reforms will come into effect.

The government said the act was created to “empower renters by providing them with greater security, rights and protections so that they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

But what does it actually mean for tenants and landlords?

Here’s what Amy Rootham, home insurance expert at Compare the Market, told us about the most important changes for both groups.

How will the Renter’s Rights Act 2026 affect tenants?

“While the Renter’s Rights Act is largely focused on improving protections for tenants, it will also change how renting works day-to-day. Renters will have more flexibility and security, but may also need to plan more carefully around things like moving, budgeting, and maintaining the property,” said Rootham.

She said five significant changes will include:

  1. The end of ‘no-fault evictions’. “The end of ‘no-fault’ evictions means renters have greater protection against being asked to leave without reason. However, the shift to rolling tenancies also means contracts are more open-ended, making longer-term planning feel less predictable.”

  1. Greater flexibility to move. “Tenants will be able to leave with shorter notice, making it easier to relocate for work or personal reasons.”

  1. Better protection against poor living conditions. “Stricter rules on issues like damp and mould should lead to quicker fixes and improved housing standards, giving renters more confidence to raise concerns.”

  1. Easier access to renting with pets. “Tenants will have a stronger right to request a pet, which is a major shift for many households. However, renters should still be mindful of their responsibilities, as they may be expected to cover any damage caused.”

  1. Rent increases will follow a set process. “Under the new rules, landlords will need to use the Section 13 process to increase rent, with increases limited to once per year and at least two months’ written notice required. Tenants may also be able to challenge increases they believe are above market rate.”

How will the Renter’s Rights Act 2026 affect landlords?

Per Rootham, some of the most significant changes for landlords will be:

  1. Rolling tenancies. “As of the 1st May, all fixed-term contracts will move to rolling monthly contracts, removing the certainty of long-term contracts. Landlords must check that their loss-of-rent cover doesn’t lapse or become invalid if a tenant decides to leave. The new regulations mean tenants only need to give a minimum of two months’ notice.”

  1. Extended liability for missed rental payments. “The threshold for mandatory eviction due to arrears is increasing from two months to three. This means landlords could face significantly longer periods without income.”

  1. Stricter health and safety responsibilities. “With Awaab’s Law now applying to the private rented sector, landlords will be legally required to fix hazards like damp and mould within strict timeframes.”

  1. Reduced grounds for refusing pet ownership. ”One of the most significant changes likely to impact landlords relates to pets. Tenants will gain a legal right to request a pet – this cannot be refused without a ‘reasonable’ justification.

    “Crucially, consent will be legally implied unless landlords respond to the request within 28 days.”

  1. Removal of ‘no-fault’ legal protection. “The end of Section 21 ‘no fault’ evictions means all expulsions must now go through a ‘Section 8’ court process. This is often slower and more expensive. Landlords should consider reviewing their legal expenses cover to make sure it can help handle these more complex, evidence-based court hearings.”

  1. Mandatory database fees. “Landlords will have to join a new Private Rented Sector Database and an Ombudsman scheme. Unregistered landlords could find their insurance voided if they are not compliant with these new statutory registries.”

Shelter says this could be good news for tenants

Speaking to HuffPost UK, Sarah Elliott, chief executive of housing and homelessness charity Shelter, said: “For too long, renters have stayed silent about discrimination and endured hellish conditions, for fear of losing their homes. The Renters’ Rights Act has the potential to transform private renting, finally freeing tenants from the injustice of no-fault evictions, which have pushed record numbers into homelessness.

“But renters must understand that the current system remains in place until May 1, 2026. Until then, we stand ready to help them understand the vital changes the Act will introduce. Anyone in need of support should visit our website for housing advice or use the webchat to speak to one of our advisers.”

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‘Giving Leaseholders Real Power Over Their Homes Is A Historic Step’

Since being elected, one of my priorities has been to tackle the inequalities and injustice faced by leaseholders across the country and across my constituency.

In the Cities of London and Westminster, we have some of the highest concentrations of leasehold properties, and the challenges residents face are daily and tangible: escalating fees, unaccountable managing agents, delays in repairs, and a system that leaves homeowners with little control over their own homes.

Since my election I have made it my priority to meet with residents, listening to their stories, and using that insight to shape my work in parliament. I have worked with constituents to gather evidence, collaborated with fellow MPs, and rallied action to ensure leaseholders’ voices are heard. This has included summoning unscrupulous managing agents into parliament and holding them to account for their poor service.

“A practical solution to a long-standing problem”

Today, those efforts are being followed up with a real win for leaseholders, as the Government announces a Bill introducing a new process for converting leasehold property into commonhold.

This legislation is a practical solution to a long-standing problem. It brings conversion into line with wider enfranchisement processes, making it possible when 50% of qualifying leaseholders agree. By creating a clear, fair path to ownership, it empowers residents to take control of their homes, rather than being subject to distant freeholders or unaccountable management companies.

Importantly, the legislation introduces measures to align the community rules and existing leases, ensuring blocks can be managed effectively, fairly, and sustainably. For the first time, there is a framework that balances the rights of all residents while creating genuine accountability in the management of shared homes.

“This is a restoration of trust and fairness”

The bill also includes a mechanism to phase out remaining leases, replacing them with commonhold units over time. Leaseholders gain a new right to buy their commonhold unit, replacing their existing right to a lease extension, and ensuring clarity and security for the future. Where a leaseholder wishes to sell, the commonhold unit must also be sold, making transactions straightforward and protecting residents’ interests.

This is more than just legal reform. It is a restoration of trust and fairness in a system that has too often left leaseholders powerless. It demonstrates what government can do when it listens to residents, engages meaningfully with the communities it serves, and acts decisively to correct long-standing injustices.

For me, the Government’s thorough action here reflect how important an issue this is for resident across the Cities of London and Westminster. The constituents who have written to me, attended my Leasehold Action Group, and supported each other with the work of unscrupulous managing agents, have a government which is listening to them and standing up for them against vested interests in the freehold sector.

It is a win not just for the residents of my constituency, but for leaseholders across the country who have long campaigned for clarity, control, and fairness in their homes.

Bringing forward this radical change to our housing system reflects a broader principle: the state exists to make systems work for citizens, not against them. This bill is a clear, practical example of how government can do just that. It puts power back in the hands of residents, ensures blocks are managed fairly, and begins to dismantle the inequities of the leasehold system.

I welcome this bill wholeheartedly. Today, leaseholders have reason to hope and to celebrate because, finally, the law is starting to work for them.

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Rachel Reeves Announces £39 Billion Housing Boost As She Vows To ‘Renew’ Britain

Rachel Reeves will announce plans to spend nearly £40 billion building affordable homes in a bid to solve the UK’s housing crisis.

The chancellor will outline details of the cash boost in the spending review on Wednesday.

It will be seen as a major victory for Angela Rayner, the deputy PM and housing secretary, who has been locked in a battle with the Treasury for more funding for her department.

Under the plans, £39bn will be spent over the next 10 years on a social and affordable homes programme, which works out at £3.9bn a year.

The last five-year programme, which comes to an end in 2026, was worth £11.5bn, or £2.3bn a year.

A government source said: “The government is investing in Britain’s renewal, so working people are better off.

“We’re turning the tide against the unacceptable housing crisis in this country with the biggest boost to social and affordable housing investment in a generation, delivering on our commitment to get Britain building.”

Reeves will confirm plans to spend billions on new transport links in the north and Midlands, and fund the completion of a new nuclear power station at Sizewell C.

The NHS and Ministry of Defence are expected to be the big winners in the financial settlement, with other departments facing real terms cuts to their budgets as Reeves tries to balance the nation’s books.

The chancellor will tell MPs: “This government is renewing Britain, but I know too many people in too many parts of the country are yet to feel it.

“My task – and the purpose of this Spending Review – is to change that.

“To ensure that renewal is felt in people’s everyday lives, their jobs, their communities.

“So that people can see a doctor when when they need one, know that they are secure at work and feel safe on their local high street.

“The priorities in this Spending Review are the priorities of working people. To invest in our country’s security, health and economy so working people all over our country are better off.

That is what this Spending Review will deliver.”

She will add: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.

“These are my choices. These are this Government’s choices. These are the British people’s choices.”

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Ed Balls Slams Labour’s Housing Delays And Says Party Has Been ‘Twiddling Thumbs’ In Opposition

Ed Balls accused the Labour Party of “twiddling their thumbs” for the last 14 years in a spat over delays to housing reforms.

The ITV Good Morning Britain host was interviewing the minister Matthew Pennycook over the government’s plans to ease the housing crisis this morning.

This includes a new task force “to present a final shortlist of recommendations on appropriate locations” to build new homes to ministers, according to the gov.uk website.

So Balls asked Pennycook: “Given the urgency, is that new towns task force going to report in September or October?”

The housing minister said they had asked to report within a year, to which Balls said with incredulity: “A year? I thought it was urgent? Are you serious?

“Are you actually saying a year from now?”

Pennycook said: “Up to a year, but we’ve made very clear to Sir Michael [Lyons] that if the task force can identify appropriate locations quicker than that, we will get moving on them immediately, shovels in the ground.”

Regeneration expert Sir Michael will be leading the new task force.

Balls pushed: “Why are they taking a year?”

“Because, they are doing in a sense, Ed, a high-level spatial strategy,” Pennycook began, but Balls interrupted.

He said: “You’ve had 14 years to get ready. Surely you need to go a bit quicker than that?”

Pennycook said he had only three years shadowing the housing minister role before the general election.

Balls hit back: “You’ve been in in opposition for 14 years, twiddling your thumbs as a party, ready for this moment – you come in, you say you want new towns and we’re not going to have a report for a year!”

“We want to give the expert task force the time to report back,” the minister said.

It was not an easy morning for Pennycook on the broadcast round, as he was then called out on Radio 4′s Today programme, too – but this time, for setting “unrealistic” targets.

Presenter Amol Rajan said it seemed deputy PM Angela Rayner wanted to see housing completion in new towns within five years.

He said: “Given a normal scheme of 2000+ homes takes around seven years to get to completion, Angela Rayner’s target of five years is totally unrealistic, isn’t it?”

“I don’t think it’s unrealistic to have spades on the ground on several of these large scale housing communities by the end of the five-year parliament.

“That would be our objective,” Pennycook hit back.

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\"Given a normal scheme of 2000+ homes takes around seven years to get to completion, Angela Rayner’s target of five years is totally unrealistic isn’t it?\"@amolrajan asks Housing Minister Matthew Pennycook, as the government announces a new housing taskforce.#R4Today

— BBC Radio 4 Today (@BBCr4today) July 31, 2024

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“Given a normal scheme of 2000+ homes takes around seven years to get to completion, Angela Rayner’s target of five years is totally unrealistic isn’t it?”@amolrajan asks Housing Minister Matthew Pennycook, as the government announces a new housing taskforce.#R4Today

— BBC Radio 4 Today (@BBCr4today) July 31, 2024

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