The Renters' Rights Act 2025: What Changed for London Landlords in May 2026

The Renters' Rights Act 2025 is the biggest change to private renting in England for decades. Its main tenancy reforms took effect on 1 May 2026. Here's what changed for landlords, and what's still to come.

What changed on 1 May 2026

No more section 21 or fixed-term ASTs

"No-fault" evictions under section 21 have ended, and assured shorthold tenancies (ASTs) have been abolished. Existing ASTs automatically became periodic (rolling) assured tenancies, and new fixed-term assured tenancies can no longer be granted. Tenants can leave by giving two months' notice.

Possession now relies on section 8 grounds

To regain possession, landlords must use the revised section 8 grounds and give a specific reason, such as selling the property, moving in themselves or rent arrears.

Rent increases once a year

Rent can be increased once a year using a section 13 notice, with at least two months' notice. Tenants can challenge the starting rent and increases at the First-tier Tribunal.

No rental bidding, and limits on rent in advance

Adverts must state the asking rent, and landlords and agents can't accept or encourage offers above it. No rent can be taken before the agreement is signed, and after that landlords can only require one month's rent at a time.

Fairer access

Landlords can't refuse tenants because they have children or receive benefits. Tenants can ask to keep a pet, and landlords must respond within 28 days and can only refuse for a valid reason.

Written information and penalties

New tenancies need prescribed written information, and landlords had to give existing tenants the official Information Sheet by 31 May 2026. Fines run up to £7,000 for a single breach and up to £40,000 for repeated breaches.

What's still to come

• A private rented sector database, which landlords must register with and pay an annual fee. A phased regional rollout is expected to begin in late 2026.
• A landlord ombudsman, giving tenants binding redress. Set-up is due to start later in 2026, with compulsory sign-up expected around 2028.
• Awaab's Law and the Decent Homes Standard for private rentals, which are still subject to consultation and aren't expected to apply in full for several years.

What this means for guaranteed rent

Most of these reforms apply to assured tenancies, which are lettings to individuals who live in the property. A guaranteed rent agreement is usually a company let, where the tenant is a business, and lettings to companies generally fall outside the assured tenancy rules. That's one reason some landlords now prefer a fixed-term company let: it gives a set term and a fixed income.

Every arrangement is different, so take independent legal advice on your own property and agreement before you sign.

In short

Landlords now have rolling tenancies, more rules on rent and possession, and new registration duties on the way. If you'd rather have a fixed term, a fixed income and someone else handling the day-to-day, guaranteed rent is worth comparing.

This article is general information, not legal advice.