The Renters’ Rights Act Explained

What Is the Renters’ Rights Act?

The Renters’ Rights Act is a major reform of England’s private rented sector.

The legislation aims to provide tenants with greater security while creating a more transparent and professional rental market. Among its most significant changes are:

• Assured Shorthold Tenancies (AST’s) become periodic tenancies
• New tenancy structure
• Clearer grounds for termination and limits on ‘no-fault’ evictions
• New rules on rent increases
• Restrictions on rent bidding
• Greater rights for tenants to keep pets
• New anti-discrimination measures
• New standards for private rented homes
• New landlord registration and redress requirements
• Expanded local authority powers for enforcement

These changes represent the most substantial housing changes since the Housing Act 1988.

AST’s become periodic tenancies

From 1 May 2026, all tenancies will automatically become assured periodic tenancies (rolling contracts).

This means that they continue indefinitely until ended by a notice from the tenant or a notice from the landlord for specific reasons.

New tenancy structure

All ‘Assured Shorthold Tenancies’, will automatically become Assured Periodic Tenancies.

Rent cannot be taken in advance of the tenancy agreement being signed, but the deposit can be.

Clearer grounds for termination and limits on ‘no-fault’ evictions

Section 21 evictions are abolished.

A landlord can only end a tenancy by serving a Section 8 notice, which specifies one or more appropriate grounds for possession.

Landlords won’t be able to evict tenants to sell or move into the property themselves during the first 12 months of a tenancy.

A tenant can end a tenancy at any point by serving two months’ notice in writing to the landlord.

If there are joint tenants, then notice by one will be effective for all tenants.

New rules on rent increases

Rent periods can only be monthly or less, and in the first month of the tenancy, only one month’s rent can be accepted.

In subsequent months, tenants can voluntarily pay more but cannot be required to do so.

Rents can only be increased once per year by serving a Section 13 notice, and tenants must receive at least two months’ notice.

Tenants can challenge unfair rent increases via the First Tier Tribunal.

Restrictions on rent bidding

The Act requires landlords and letting agents to publish the asking rent for the property.

Prospective tenants can be asked to bid up to the advertised amount, but cannot be encouraged to bid over that amount, and no offer over the advertised amount can be accepted.

Greater rights for tenants to keep pets

A landlord may not unreasonably refuse a request from a tenant to keep a pet. Landlords must respond to pet requests within 28 days.

If a superior landlord (such as a freeholder) does not allow pets, and they will not give permission when asked, this is a reasonable basis for refusing a request.

In other cases, it will be for the landlord to show that the request was unreasonable.

New anti-discrimination measures

Landlords must not discriminate against prospective tenants on the basis that they might or will have children living at or regularly visiting the property, or that they are, or may be, in receipt of benefits.

Landlords can still carry out affordability checks and not grant a tenancy based on income.

In certain circumstances, landlords can refuse to let to a household with children if it is a proportionate means of achieving a legitimate aim.

For example, it may be reasonable to refuse to allow children if it would lead to the property being legally defined as overcrowded.

New standards for private rented homes

Following the outcome of the UK Government’s consultation, a date will be set as to when private rented homes must meet the Decent Homes Standard.

This includes being safe and well-maintained, free from serious hazards, fit for human habitation, and in compliance with Awaab’s Law.

In practice, this means making a timely response to damp and mould issues if they arise at the property.

New landlord registration and redress requirements

When it is up and running, all landlords must register with the Private Rented Sector Database and join the new Landlord Ombudsman service, which will resolve disputes.

Expanded local authority powers for enforcement

Local councils will enforce the new rules with penalties, resulting in a £7,000 fine for a first offence and rising to £40,000 for repeat offences.

For many offences, tenants can apply to the First Tier Tribunal for a Rent Repayment Order for up to 24 months of rent.

Redress schemes can also deal with complaints from tenants and require payment of damages or remove a landlord from the scheme for serious breaches.

What does this mean for Landlords and Tenants?

Manchester, Leeds and Liverpool remain some of the UK’s strongest rental markets.

Continued investment, population growth, employment opportunities and regeneration projects have driven sustained tenant demand across many parts of the city.

The Renters Rights Act will continue to raise the standard for city centre properties and enhance the rental experience for both landlords and tenants, by promoting a fair and transparent rental market.

How can Kingsdene Help?

At Kingsdene, we help landlords across Manchester, Leeds and Liverpool navigate regulatory changes, maximise their rental income and manage their properties effectively.

Our services include:

• Sales
• Lettings
• Property management

If you would like to speak to one of our experienced team, please get in touch today with any questions or advice you wish to seek.