Last updated: 18 August 2026
LETTING AGENTS
The first major phase of the Renters’ Rights Act 2025 came into force in England on 1 May 2026, bringing fundamental changes to tenancy structures, possession, rent increases, rental advertising and agency procedures.
Section 21 has now been abolished, most existing and new private rented sector tenancies have become Assured Periodic Tenancies, and letting agents must operate within the new legal framework.
This guide explains the principal changes now in force, what letting agents should already have done and what further reforms are still to come.
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The Renters’ Rights Act 2025 represents the biggest change to the private rented sector in a generation.
Since 1 May 2026, the majority of new and existing tenancies in England have operated as Assured Periodic Tenancies. Fixed-term Assured Shorthold Tenancies are no longer the standard model and Section 21 can no longer be used for notices served under the new regime.
Landlords who need to regain possession must now rely on one or more of the statutory grounds contained within Section 8 of the Housing Act 1988.
For letting agents, this affects far more than tenancy agreements. Agency procedures, landlord advice, marketing, referencing, rent collection, possession records, Terms of Business and staff training must all reflect the new legislation.
1. Assured Periodic Tenancies Are Now the Standard
From 1 May 2026, the vast majority of private rented sector tenancies became Assured Periodic Tenancies.
This means:
- New tenancies are periodic from the outset.
- Most existing Assured Shorthold Tenancies automatically converted.
- Tenants can remain until they choose to leave or the landlord obtains possession using a valid Section 8 ground.
- Tenants can normally end the tenancy by giving two months’ notice.
- Landlords can no longer create a standard fixed-term AST or rely on Section 21.
Not every residential letting falls within the assured tenancy regime. Company lets, resident landlord arrangements, holiday accommodation and certain other tenancy types remain outside it.
Agents must therefore identify the correct tenancy type rather than applying the same agreement to every instruction.
What happened to existing tenancy agreements?
Existing written tenancy agreements did not all need to be replaced or reissued.
However, most landlords and managing agents were required to provide every named tenant with the Government’s official Renters’ Rights Act Information Sheet by 31 May 2026.
Where an agent manages the property on the landlord’s behalf, the responsibility rested with the agent, even if the landlord had also provided the Information Sheet.
The exact Government PDF had to be supplied as an attachment or hard copy. Sending tenants a link to it was not sufficient.
Agents should retain evidence showing when and how the Information Sheet was provided.
2. Section 21 Has Been Abolished
Under the Renters’ Rights Act a Section 21 Notice can no longer be used to begin possession proceedings under the new tenancy system.
Landlords must instead establish a valid reason for possession under Section 8. Depending on the ground being used, the landlord may also need to provide evidence and comply with a prescribed notice period.
Important grounds include:
- Ground 1: Landlord or close family occupation. This can be used when the landlord or a qualifying family member genuinely intends to live in the property.
- Ground 1A: Sale of the property. This applies where the landlord genuinely intends to sell.
- Ground 8: Serious rent arrears. For monthly tenancies, at least three months’ rent must normally be outstanding when notice is served and at the court hearing.
- Grounds 10 and 11: Rent arrears and persistent late payment.
- Grounds 7A and 14: Serious criminal or anti-social behaviour.
- Ground 12: Breach of the tenancy agreement.
The selling and occupation grounds are subject to a 12-month protected period at the beginning of a new tenancy. Notices under Grounds 1 and 1A require at least four months’ notice and cannot expire before the protected period ends.
Agents must use the correct prescribed notice, observe the appropriate notice period and retain evidence supporting the ground being relied upon.
The Government has published detailed guidance on the revised possession grounds.
3. Deposit Compliance Affects Possession
Deposit protection remains critically important.
A court will generally be unable to make a possession order if a tenancy deposit has not been protected in a Government-approved scheme.
Agents should ensure that:
- The correct deposit has been protected within the required timescale.
- The prescribed information was properly served.
- The deposit records match the landlord, tenants, property and tenancy.
- Evidence of compliance can be retrieved quickly.
- Any historic discrepancies are identified before possession advice is given.
The abolition of Section 21 does not make deposit compliance less important. It can now affect a landlord’s ability to obtain possession under Section 8.
4. New Rent-in-Advance Rules
Since 1 May 2026, landlords and agents have been prohibited from asking for, encouraging or accepting rent before the tenancy agreement has been signed by all parties.
Once the agreement has been signed, an agent can normally request:
- The first month’s rent for a monthly tenancy; or
Up to 28 days’ rent where rent is paid more frequently.
After the tenancy begins, rent becomes payable on the date stated within the agreement. A landlord or agent cannot require the tenant to pay it earlier.
A tenant may voluntarily choose to make an early payment after the tenancy has started, but it must be genuinely voluntary and not requested, encouraged or made a condition of granting the tenancy.
A first breach can result in a civil penalty of up to £5,000. A repeat breach within five years may lead to prosecution or a penalty of up to £30,000.
This has particular implications for overseas applicants, students, contractors, the self-employed and anyone who would previously have offered several months’ rent in advance to overcome referencing difficulties.
Agents should review their referencing policies and consider suitable guarantor, rent guarantee and legal expenses solutions.
Read the Government’s rent-in-advance guidance.
5. Rental Bidding Has Been Banned
Agents and landlords must advertise a clear asking rent and cannot ask for, encourage or accept an offer above that figure.
Applicants must not be invited to bid against one another, and agents should ensure that negotiators, online enquiry responses and offer procedures comply with the prohibition.
This makes accurate rental valuations more important than ever. The advertised rent must reflect the market without relying on competition between applicants to increase it.
6. Rent Increases Are Limited
Rent increases for Assured Periodic Tenancies under the Renter’s Rights Act are limited to once a year and must follow the revised statutory procedure.
Landlords must use the prescribed notice and give the tenant at least two months’ notice of the proposed increase.
Agents should ensure rent-review diaries, landlord communications and management procedures have been updated. Historic renewal-based rent reviews should no longer be treated as the default process.
7. Discrimination Against Families and Benefit Recipients
It is now unlawful for landlords or letting agents to disadvantage applicants because they have children or receive benefits.
This includes:
- Refusing to provide information about a property.
- Preventing an applicant from viewing.
- Refusing to consider an application.
- Applying blanket “no children” or “no benefits” policies.
- Making it less likely that someone will be offered a tenancy for either reason.
Affordability and referencing checks can still be undertaken, but they must be applied fairly and based on the applicant’s individual circumstances.
Agents should review advertising templates, landlord instructions, applicant qualification questions and staff training.
8. Requests to Keep Pets
Tenants now have a statutory right to request permission to keep a pet.
Landlords must consider the request and normally respond within 28 days. Permission cannot be unreasonably refused, although the circumstances of the property, tenancy and proposed pet can be considered.
Agents need a consistent process for:
- Receiving and recording requests.
- Obtaining sufficient information about the pet.
- Referring the request to the landlord.
- Recording the landlord’s reasons and response.
- Ensuring decisions are communicated within the required timescale.
9. Stronger Enforcement and Penalties
Local authorities have wider investigatory and enforcement powers, including powers to request information, inspect premises and obtain evidence.
Depending on the breach, penalties can include:
- Civil penalties of up to £7,000 for certain initial breaches.
- Penalties of up to £40,000 for serious, continuing or repeated breaches.
- Rent Repayment Orders covering up to 24 months’ rent.
- Further consequences for landlords and agents who repeatedly fail to comply.
Accurate records are therefore essential. An agent should be able to demonstrate what advice was given, what action was taken and when each legal requirement was completed.
10. Further Reforms Are Still to Come
Not every provision within the Renters’ Rights Act was implemented on 1 May 2026.
Further phases include:
- The phased introduction of the Private Rented Sector Database from late 2026.
- The development of the new PRS Landlord Ombudsman.
- Mandatory landlord membership of the Ombudsman, currently expected in 2028.
- The future application of Awaab’s Law to the private rented sector.
- A new Decent Homes Standard for privately rented properties.
The implementation dates for Awaab’s Law and the Decent Homes Standard remain subject to further consultation and regulations.
Agents should therefore avoid telling landlords that every element of the Renters’ Rights Act is already operational.
What Letting Agents Should Do Now
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Letting agents should now:
- Confirm that all tenancy templates and prescribed notices are current.
- Retain proof that the official Information Sheet was provided where required.
- Audit deposit protection and prescribed information records.
- Review your landlord Terms of Business and service descriptions. We can write these for you!
- Update rent-in-advance, rental bidding and referencing procedures.
- Introduce a clear process for pet requests.
- Review rent-increase procedures and diary systems.
- Train staff on the revised Section 8 grounds and notice periods.
- Explain the changes clearly to landlords.
- Monitor the implementation of the Database, Ombudsman and later reforms.
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The Renters’ Rights Act Is Here, but Implementation Continues
The first phase of the Renters’ Rights Act 2025 is now in force, but the work is not finished.
Letting agents must ensure that their current procedures comply while continuing to prepare for the Database, Ombudsman and future property-standard reforms.
Those who communicate clearly, maintain reliable compliance records and help landlords navigate the changes will be best placed to protect their clients and strengthen their managed portfolios.
>>> Download our FREE ‘Getting Reform Ready’ Checklist now using the form below! <<<
Getting Reform Ready Checklist
Download our Checklist to help Letting Agents and Property Managers to get 'Renters Reform Ready'
Jane Gardner
I work all over the UK with various business owners, dedicating my creative and expert property knowledge from 35 years in the industry. I am a Level 4 ARLA Propertymark examiner, I sit on the board of Agents Giving Charity and I love everything property related! I can be contacted on 01923 627777 or by email to jane@social-angels.co.uk
