What the Renters’ Rights Act means for landlords and insurance
The Renters’ Rights Act is due to be introduced in phases from May 1, 2026, with immediate changes to all tenancies.
The act is designed to ‘rebalance’ the landlord-tenant relationship in England and Wales, giving more rights to tenants - improving housing quality, fairness and safety.
What does this mean if you’re a residential landlord or commercial landlord? There’s no need to fret, but you will be responsible for making changes to reflect these new reforms, so it’s important to understand what the changes mean for you and the property you rent out.*
In this guide, we’ll explain what the Renters’ Rights Act involves, when the changes will take place, how they could impact landlord insurance and the steps you can take to prepare for the changes.
For more information on landlord vs tenant obligations, check out our helpful insurance guide.
*This article is for general information only and is intended to highlight key changes in the law. It does not constitute legal, financial, or professional advice.
Renters' Rights Act: changes for landlords from May 1, 2026
Phase one of the changes to the Renters' Rights Act will begin from May 1, 2026, and will see the following changes:
If you’re a landlord, you should familiarise yourself with these changes before May 1, 2026. If you’re unsure about what you need to do, the government has published guidance for landlords and letting agents to help landlords prepare for these changes.
Here’s a breakdown of the major changes in phase 1:
| Before May 1, 2026 | From May 1, 2026 |
| Section 21 is still valid - As a landlord, you can use Section 21 ‘no-fault’ eviction notices to regain possession of a property without giving a specific reason. | Section 21 abolished - Landlords now must have specific legal reasons (via Section 8) to evict a tenant. For example, rent arrears or wanting to sell the property. |
| The use of Fixed-term tenancies - Most tenancy agreements are ‘assured shorthold tenancies (ASTs) with a fixed term contract, typically 6 or 12 months, after which renewal or notice applies. | Assured periodic tenancies standardised - Fixed-term contracts will be replaced by open-ended tenancies that continue without an ‘end’ unless ended for legal reasons. |
| Flexible rent increases – Currently, rent increases are usually set out in the tenancy agreements, and you can increase the rent whenever you want, as long as you give proper notice. | Rent rise limited to once per year - Landlords will now have to use ‘Form 4’ to notify tenants of rent increases, giving at least two months’ notice. |
| The right to select tenants – At the moment, as a landlord, you may decide not to rent to anyone with children or those receiving benefits (although this is discouraged, it still happens). | A ban on discrimination and bidding wars - As a landlord you won’t be able to reject tenants solely for having children or receiving benefits, and you can’t accept offers above the advertised rent. |
No formal right to keep pets – Currently, a tenant must ask permission to have a pet, and you can refuse without providing a specific reason.
| Pet requests protected by law -Tenants will now gain the right to request pets, and as a landlord, you can only refuse for valid reasons and must respond within 28 days. |
What does this mean for you as a landlord?
These measures give tenants more rights. This means you must understand the new measures so you can act and prevent the likelihood of breaching the new rules. Here’s what you need to know:
Abolition of Section 21 ‘no-fault’ evictions
A section 21 notice is a "no-fault" eviction notice that can be used by landlords in England to end an Assured Shorthold Tenancy (AST) without needing a reason. Historically, this has been used by some landlords to “kick out” tenants to hike up the rent. This will help to bring that practice to an end.
What this means for you as a private landlord from May 1, 2026:
- You can’t serve a section 21 notice, because it won’t exist
- You can’t evict a tenant just because you don't like them
- You can’t evict a tenant just to push up the rent for a new tenant
- You can’t evict a tenant without specific legal grounds, (see below)
You should still be able to evict a tenant from May 1, 2026, with, 6A notice - in the following circumstances:
- The tenant is in rent arrears
- The tenant demonstrates anti-social behaviour (for example, excessive partying, neighbour complains and issues with police)
- The tenant has damaged your property
- The tenant has been carrying out illegal activities from your property
New ‘assured periodic tenancies’
An assured periodic tenancy is essentially a flexible "rolling" rental contract with no fixed end date, typically running month-to-month or week-to-week. Think of it like a permanent employment contract – there isn’t an end without a specific reason. This means you will no longer provide ‘fixed rental contracts’.
What this means for you as a landlord:
- You must provide a rolling contract, not a fixed one
- You can’t just evict tenants at the ‘end of their contract’ because there won’t be an end
- You can’t sell the property or move-in until after 12 months into a contract
- After 12 months, you can serve four months' notice to sell or move in, but you can’t re-let the property for a certain period. This is to avoid false evictions.
- A tenant can end the tenancy at any time by providing at least two months' notice
- To evict a tenant, you’ll need a valid legal reason such as moving in, selling, repair works or anti-social behaviour.
Rental increases just one a year
Under the new Renters Rights Act, as a landlord, you won’t be able to increase the rent whenever you want to. Instead:
- You can only increase the rent once per year
- To increase the rent, you must serve a section 13 Notice, at least two months in advance
A ban on ‘rental bidding’ and rent in advance
The ban on rental bidding aims to level out tenant selection, but it also means tightening of some common practices. When the changes kick-in, as a landlord:
- You won't be able choose a potential tenant who is offering an upfront cash payment over a tenant who is offering to pay the rental amount
- You can’t encourage tenants to enter a bidding war or ask if they can bid any higher
- You can’t accept a tenant who is offering a higher rent amount
- You can’t ask for more than one month’s rent in advance
Instead, you can decide on which tenant you choose in the following ways:
- Strict affordability checks to make sure they can pay the rent
- Thorough reference checks making sure they have a consistent employment history and a good credit score
Based on this you can select a tenant who is unlikely to breach your contract.
With the tightening on evictions, it’s important you get in the right tenant who will respect your property, so ensure you take checks seriously – or pay a reputable agent if you don’t have the time.
No discrimination for tenants with children or on benefits
When it comes to the selection of tenants, you can’t discriminate. This means:
- You can’t turn away a potential tenant because they have children
- You can’t tell the tenant the reason they haven’t been considered is because they are receiving benefits. If they can pay the rent, they need to be considered. Always check references to be sure.
Tenants’ right to keep pets
When the bill kicks in, tenants will gain stronger rights to request pets and you must respond within 28 days, only refusing where reasonable.
As a landlord, this means you can’t:
- Have a blanket "no pets" policy
- Refuse because you don’t like certain pets
- Refuse based on what could happen. For example, you’re worried the dog will bark or damage your fixtures and fittings - as you don’t have grounds to prove the pet will be a nuisance.
When can you refuse pets?
- When the property is too small or doesn't have enough space. For example, the tenant wants a large dog in a small upper-floor flat with no outdoor space.
- Another tenant in a shared house has an allergy, or the pet poses a safety risk.
- The property is leasehold, and the freeholder’s, head lease, or management company rules strictly prohibit pets.
- The pet is illegal, dangerous, or unsuitable to live in the property.
- The pet is already known to cause a lot of damage or nuisance, or the tenant is not a responsible pet owner.
New, stronger council enforcement and repayment orders
As of May 1, 2026, councils will be able to help tenants stand up to bad landlords, with the aim of improving the safety and conditions of homes for tenants. The new changes aim to deter poor housing practices by ‘hands-off’ landlords - who are neglecting their property, and therefore, the tenants living there.
A rent repayment order (RRO) is essentially an amount you are ordered to pay back to the tenant – these are mostly around breaching your side of the contract.
What does this mean for you as a landlord? As long as you’re letting out your property the right way, you should have nothing to worry about, however, it’s worth noting these new changes:
- The council will have more rights to enter your property, demand to see documents, and inspect records. This aims to address the behaviour of neglectful landlords.
- If you’re found to commit a housing offence, the maximum civil penalties will increase to £40,000
- Landlords could be ordered to repay up to 24 months' rent to the tenant (previously 12 months).
- Tenants will have up to 24 months to apply for any repayments (previously 12 months).
- RROs could be issued to "superior landlords" (the actual owner of the property) in "rent-to-rent" schemes, not just the immediate landlord.
- Landlords who have already been penalised for an offence will automatically face the highest financial sanctions.
Phase two: New rules from late 2026
The second stage of the Renters Rights Act shifts focus from tenancy changes that protect tenants to changes to the system itself. From late 2026 (the dates are to be confirmed), there will be changes rolling out to improve landlord accountability across the private rental sector.
How will phase 2 of the Rights Rent Act affect me as a landlord?
There are some major changes you need to be aware of where you’ll need to act.
Landlord Database
A new national landlord database is set to be rolled out gradually across England from late 2026. This will act as a central register for landlords and rental properties, showing who is renting out homes and allowing tenants and authorities to check whether a property and landlord are properly registered. You will need to make sure you are registered on the database.
Landlord ombudsman
The introduction of a Private Landlord Ombudsman scheme will provide tenants with an independent route to resolve complaints without going to court. This will be mandatory for private landlords, meaning if your tenant gets the Ombudsman involved, you must respond as per the regulations set out by the Ombudsman.
The date for this change is yet to be announced.
Phase three: A new Decent Homes Standard in the private rented sector (proposed 2030 onwards)
Phase three of the Renters Rights Act moves beyond tenancies and contracts and focuses on property condition and standards.
Minimum Energy Efficiency Standards (MEES)
By 2030 it’s expected that privately rented homes must meet new energy efficiency standards under the Act. An Energy Performance Certificate (EPC) rating of C or above is anticipated to be the new baseline. So, if you know your EPC rating is D or below for your rental, you’ll need to act improve it before the deadline. Although this has yet to be announced, it’s a good idea to think about improving insulation and energy efficiency in your property now.
For landlords, energy improvements may include insulation upgrades, window replacements, double glazing, HVAC system optimisation and smart controls. This applies to residential and commercial properties.
Awaab’s Law for the private rented sector
Awaab’s law came into effect in October 27, 2025, for social housing. It addresses damp, mould and other health hazards for tenants – meaning landlords must respond and fix serious issues with a certain timeframe. It is likely to be extended to the private sector in 2026/2027, so private landlords should read up on it and consider the state of their properties now, to avoid complains from tenants if the law does come into effect.
How the Renters' Rights Act may impact your insurance needs
The Renters’ Rights Act will see tenants get stronger rights. This means, as a landlord, your risk exposure could increase as a result. It may also lead to higher property maintenance costs or even legal fees if you end up in court.
Now is a good time to consider getting residential landlord or commercial landlord insurance, which could help protect you financially against the increase in risk. For example, property damage, loss of rent or legal expenses depending on the cover and extent of it Here are some reasons as to why you should consider landlord insurance:
Changes to repossession grounds
With Section 21 “no-fault” evictions disappearing, as a landlord, you must now rely on specific legal grounds to regain possession of a property. From an insurance perspective, this makes legal expenses cover essential.
Periodic rolling agreements
The shift to assured periodic tenancies means most rental agreements will no longer have fixed end dates. Instead, they’ll roll on until either the tenant leaves or you have a legal reason for getting it back. It’s a good idea to check that any existing policy details reflect these changes and speak your insurer/broker if you need to update details or if you’re unsure.
A new ‘Private Landlord Ombudsman’
Just like other Ombudsman, the new Private Landlord Ombudsman will be a formal dispute resolution channel outside of court – but that doesn’t mean some claims may not end up in court. If you have tenants in property, you should consider comprehensive landlord insurance. This could include: legal expenses insurance to help towards legal costs if you end up court, building insurance to help cover property damage, landlord contents insurance to help protect your fixtures and fittings against damages and loss of rent insurance, which can help if your property is damaged due to an insured event like fire or flood and the tenants need to find somewhere else to live.
Comparing landlord insurance quotes with Bionic
If you’re a landlord in England or Wales, understanding the upcoming changes in the Renters’ Rights Act 2025 is essential to help protect your expensive investment and comply with new regulation. At Bionic, we can help you compare business insurance quotes that are suitable for protecting your property.
Compare residential landlord insurance or commercial landlord insurance today by starting a quote online.
Renters’ Rights Act FAQs
When does the Renters’ Rights Act come into effect?
Phase one begins on May 1, 2026, with further reforms rolling out from late 2026/2027 with some dates still to be announced.
How does the new landlord database affect me?
You’ll need to register your properties to remain legally compliant once the national register launches.
Is the Renters’ Rights Act beneficial for landlords?
The Act introduces new duties for landlords, while aiming to improve transparency and tenancy stability across the sector.**
**The information provided in this article should not be relied on as a substitute for advice tailored to your specific circumstances. You should always seek independent legal, financial, or other professional advice before taking (or refraining from taking) any action based on this content.
Bionic accepts no responsibility or liability for any loss or damage arising from reliance on this article or the information contained within it.
