Renters’ Rights Act 2026: what it means for London property
On 1 May 2026, the most significant overhaul of private rented sector legislation in more than 30 years came into force. [1] At Tremula, we think it’s worth understanding what’s changed, not just for landlords and tenants, but for anyone thinking about buying, developing, or investing in London property over the coming years.
What’s actually changed
The headline reform is the abolition of Section 21. From 1 May 2026, private landlords can no longer issue a Section 21 eviction notice. If a landlord wants a tenant to leave, they need a legal reason and must use a Section 8 notice to do so. [2]
Fixed-term tenancies are also gone. All Assured Shorthold Tenancies have automatically converted into rolling periodic contracts. Tenants can leave with two months’ notice, while landlords must cite specific grounds to end a tenancy; such as serious rent arrears, antisocial behaviour, or an intention to sell or move back in themselves. [1]
Rent can now only be increased once a year and with two months’ written notice, and landlords can only request a maximum of one month’s rent in advance of a tenancy starting.[3] Rental bidding wars – where tenants are encouraged to offer above the asking price – are now banned. Landlords also have to respond to pet requests within 28 days, and can no longer impose blanket refusals.
One immediate compliance deadline: landlords must give existing tenants the official government information sheet by 31 May 2026, or face a fine of up to £7,000. [4]
How the market is responding
The exit of smaller landlords was already underway before the Act came into force. According to the English Private Landlord Survey, 31% of landlords plan to reduce the size of their portfolio, while 16% are considering selling all their rental properties within the next two years. [5] Around a third of those surveyed named the Renters’ Rights Act as a reason for leaving the market. [6]
Single-property landlords are twice as likely to exit as those who own two or more properties[7] , and their departure is adding stock to the sales market in certain parts of London, particularly where smaller buy-to-let investors have historically been most active.
What hasn’t changed is the underlying pressure on supply. Rightmove data suggests there are now around 17 households bidding for each advertised rental property [8] – a figure that captures just how far demand outstrips available stock. That imbalance is unlikely to ease any time soon, and is likely to continue pushing rents upward, particularly for well-managed, well-maintained homes.
What this means for developers
For professional developers and institutional-grade landlords, the changes largely play to existing strengths. Higher compliance standards, more rigorous regulation, and greater tenant selectivity all favour well-designed, well-run developments that have been built with long-term occupation in mind. As less-prepared operators leave the market, quality stock becomes more valuable — not less.
There’s also a shift in what tenants are looking for. Greater security of tenure means renters are becoming more discerning about where they choose to live. A rolling tenancy that could last years is a different decision to a 12-month fixed term. That’s good news for developments that can offer genuine quality and reliability.
What’s coming next
The Renters’ Rights Act is unlikely to be the final word on reform. The legislation includes provisions to extend Awaab’s Law – which currently applies to social housing and requires landlords to investigate and resolve serious hazards within fixed legal timeframes – to the private rented sector.[9] The extension is confirmed in the Act, though the exact implementation date remains subject to government consultation, with the earliest realistic date likely being 2027.[10] The Decent Homes Standard is expected to follow a similar path.
The overall direction of travel is clear: higher standards, greater accountability, and an increasingly professionalised private rented sector. For those already operating at that level, these changes are less of a disruption and more of a long-term advantage.
📚 Sources:
- NRLA — https://www.nrla.org.uk/resources/renters-rights/existing-tenancies-renters-rights-act
- Shelter England — https://england.shelter.org.uk/housing_advice/private_renting/renters_rights_act_changes_for_private_renters
- St. James’s Place — https://www.sjp.co.uk/individuals/news/renters-rights-act-what-landlords-need-to-know
- GOV.UK — https://www.gov.uk/government/publications/the-renters-rights-act-information-sheet-2026
- Mortgage Strategy — https://www.mortgagestrategy.co.uk/news/thousands-of-smaller-landlords-set-to-sell-up-in-2026/
- Property118 — https://www.property118.com/small-landlords-more-likely-to-leave-the-market-claims-nrla/
- Property Investor Today — https://www.propertyinvestortoday.co.uk/breaking-news/2026/04/rental-stock-warning-as-landlords-exit-prs/
- Wikipedia (citing Rightmove data) — https://en.wikipedia.org/wiki/Renters’_Rights_Act_2025
- Russell-Cooke — https://www.russell-cooke.co.uk/news-and-insights/news/awaab-s-law-extending-safety-standards-to-the-private-rented-sector
- HazardClock — https://hazardclock.co.uk/blog/awaabs-law-private-landlords/