Private renting in England changed on 1 May 2026, when the main tenancy reforms in the Renters’ Rights Act took effect. This article sets out what the government’s guidance says now applies, and what it means for the money side of renting, for tenants and for landlords.
What actually changed on 1 May 2026?
According to the government’s guidance, the new tenancy regime applies from 1 May 2026, to new tenancies and to most existing ones. Two changes sit at the centre of it. No-fault section 21 evictions were abolished, and assured shorthold tenancies in the private rented sector converted into assured periodic tenancies with no end date.
The government’s tenant overview puts the first point plainly: from 1 May 2026 a tenant can no longer be evicted using the “no fault” section 21 process, even if the tenancy agreement says otherwise. A tenancy is therefore no longer a fixed term of, say, twelve months followed by a decision point. It runs on a rolling basis until the tenant ends it or the landlord uses a legal ground for possession.
The reforms apply to private tenancies in England. The government’s guidance on social housing says the changes will reach assured tenancies of social housing provided by private registered providers only from October 2027, so most social tenants are not yet covered.
How do rolling tenancies change household planning?
For tenants the biggest practical shift is that the end of a fixed term is no longer a cliff edge. Before the change, a tenant whose landlord served a section 21 notice could be required to leave without a reason being given. That uncertainty is a real financial cost: moving means a deposit and often a month’s rent in advance for the next home, removal costs, and sometimes overlapping rent.
Under the new rules a landlord has to rely on a specific possession ground, use the correct forms and give the correct notice, which the government says is usually four months, though shorter for some grounds. The landlord must also give a reason. For a household, a more predictable tenancy makes it easier to plan around school places, jobs and savings goals. It does not remove the risk of having to move, since the grounds still exist, but it changes who has to justify the decision.
How can a tenant leave, and what does it cost?
The flexibility works both ways. The government says a tenant can end a periodic tenancy by giving two months’ written notice, given on the rent due day or the day before. Rent still has to be paid during the notice period. A landlord and tenant can also agree a shorter period in writing.
Compared with a fixed term, where leaving early could mean arguing over remaining rent, this gives tenants more control over timing. For a landlord it means that rental income cannot be assumed to continue for a set period. Anyone modelling a buy-to-let should treat void periods and re-letting costs as an ordinary part of the budget rather than an exception.
Which reasons can a landlord still use to regain a property?
Landlords can still recover a property, but they need a ground. The government’s overview lists examples including:
- the landlord needs to sell the property or move in themselves;
- the student houseshare ground, where a student does not move out at the end of the academic year;
- rent not being paid on time;
- antisocial behaviour by the tenant, household members or visitors.
The sale and move-in grounds cannot be used in the first 12 months of a tenancy. The government’s fuller guide adds that a landlord who uses those grounds cannot market or re-let the property for 12 months afterwards. That matters for anyone who thinks of a rental as a flexible asset to be sold when convenient: the exit route is more constrained and slower than it was, and the notice for these grounds is generally four months.
Rent arrears are treated separately. The government’s guide describes the mandatory arrears ground as requiring three months of arrears (or 13 weeks where rent is paid weekly or fortnightly), with shorter notice than other grounds. That is a reminder that the new framework is not one-sided: a tenant who falls behind can still lose the tenancy.
How do rent increases work now?
Under the government’s tenant guidance, a landlord may raise the rent once a year, and not during the first 12 months of a new tenancy. They must give at least two months’ notice. A tenant who thinks the increase is above market rent can challenge it; the government’s guide says such challenges go to the First-tier Tribunal and must be made before the proposed new rent starts.
A worked example shows the scale. Take a rent of £1,200 a month with a 5% increase:
| Item | Amount |
|---|---|
| Current rent | £1,200 a month |
| Increase at 5% | £60 a month |
| New rent | £1,260 a month |
| Extra cost over a year | £720 |
The arithmetic is simple, but the timing is the useful part. With two months’ notice, a tenant has time to compare the figure against local advertised rents, to challenge it if it looks above market level, or to give their own two months’ notice if they decide to move. The fuller government guide also says that an increase can no longer be backdated, so any change applies from the tribunal’s decision date rather than reaching back to an earlier point.
What is the limit on upfront payments and bidding?
The reforms also changed what can be asked for before a tenancy starts. The government’s overview says no rent can be requested, encouraged or accepted before the tenancy agreement is signed. After signing, a maximum of one month’s rent in advance can be requested.
Rental bidding has been tightened as well. Written adverts or offers must include a specific price, and landlords cannot accept or encourage offers above the advertised rent. In a competitive local market, that removes one source of upward pressure on the first month’s cost, because the headline rent should be the price that applies.
Putting numbers on it: at £1,200 a month, the most that can be requested in advance after signing is £1,200, and a deposit is a separate matter that this article does not cover. A would-be tenant who has previously been asked to pay several months up front, or to outbid others, now has a clear reference point.
Pets, discrimination and enforcement
Three further changes affect the cost and availability of homes. First, tenants can ask to keep a pet, and the landlord must consider the request and give a reason if they refuse. Second, landlords cannot discriminate on the basis of a protected characteristic under the Equality Act, and they cannot refuse to rent to someone because they receive benefits or have children.
Third, enforcement has been strengthened. The government says councils have new powers to investigate and act against landlords who break the law. For some offences, such as failing to licence a property, tenants can apply to the First-tier Tribunal for a rent repayment order, which can recover rent paid for up to two years.
For landlords, the financial implication is compliance risk: getting forms, notices and licensing right now has a direct cost if it goes wrong. Landlords also had a deadline of 31 May 2026 to give existing tenants with written agreements the government’s information sheet, and the government says failure could lead to a fine.
What does this mean for the rent-or-buy decision?
Tenancy security is one of the factors people weigh when comparing renting with buying, and the reforms narrow one of the traditional gaps. A tenant still has no equity building up, still faces annual rent rises and still can be asked to leave on valid grounds. But the argument that renting means a sudden, reasonless notice to quit carries less weight than it did.
For a fuller comparison of the costs on each side, see the economics of renting versus buying. Buyers weighing the alternative should also look at the real costs of buying UK property, and at how mortgage rates change the monthly bill, since a landlord’s own borrowing costs feed into the rents they ask.
Reading the new rules sensibly
The Act changes who holds the cards in a tenancy rather than removing risk. Tenants gain more predictable housing and more control over leaving; landlords gain clearer rules but lose the ability to end a tenancy without giving a reason. Because the detail depends on the ground used, the dates involved and the exact forms, anyone in a live dispute should check the official guidance or seek advice from an organisation such as Citizens Advice before acting. Some parts of the wider reform programme were still being rolled out, so the position on matters such as landlord registration should be checked against current official pages.
This is general information, not personalised financial or legal advice. Rules, rates and guidance change, so check the current official position.
Sources: GOV.UK
