What the Renters’ Rights Act means for property investors
From the 1st of May 2026, the Renters’ Rights Act changes how private rented properties are let in England. For property investors, the focus is on understanding the new rules, protecting long-term returns and making sure portfolios are managed in line with the latest requirements.
Key changes property investors need to know
- Periodic tenancies: From 1 May 2026, most existing assured shorthold tenancies become assured periodic tenancies, and any new private tenancy agreed on or after that date is periodic from the outset.
- Section 21: Section 21 no-fault evictions come to an end from 1 May 2026, so possession can only be sought using a valid legal ground and the correct legal process.
- Possession planning: Investors can still regain possession in certain circumstances, such as selling a property or moving in themselves, but they must now rely on the appropriate ground for possession and follow the correct notice and court process.
- Rent reviews: Rent can usually only be increased once a year, not in the first year of a new tenancy, and the correct notice and statutory process must be followed.
- Rent in advance: Landlords and agents cannot ask for, encourage or accept rent in advance before the tenancy agreement is signed, and once signed they can usually only request up to 1 month’s rent in advance.
- Pets: Tenants now have the right to ask to keep a pet, and landlords must consider the request and explain their decision if they choose to refuse it.
- Discrimination and rental bidding: Landlords and agents cannot refuse applicants simply because they have children or receive benefits, and they also cannot encourage or accept offers above the advertised rent.
- Operational readiness: Investors should make sure tenancy documents, rent review processes and portfolio management arrangements are updated to reflect the new rules from 1 May 2026. This follows from the Act’s commencement changes and the requirement for landlords or agents to provide updated written information to existing tenants by 31 May 2026 where applicable.
- Later-phase reforms: Some wider changes, including the PRS Database, Landlord Ombudsman and Decent Homes Standard for the private rented sector, are being introduced later rather than as part of the first phase on 1 May 2026.
How These Changes Benefit You
More Stability
More Transparency
Better Living Conditions
Stronger Legal Protections
More Stability
More Transparency
Better Living Conditions
Stronger Legal Protections
To stay informed about your rights, check out these related guides
Renters' Rights Act FAQs
The Renters' Rights Act represents a shift toward a more regulated and tenant-focused rental market. For property investors, success will depend on adaptability, compliance, and a long-term approach. Those who invest in quality housing and professional management will continue to find strong, sustainable returns in the rental sector.
Exchange of contracts is the stage when the buyer and seller become legally committed to the sale and the completion date is agreed. Pulling out after exchange can have serious financial and legal consequences, so your conveyancer will confirm that everything is ready before you proceed.
What you can afford depends on your income, deposit, regular commitments and the lender’s affordability checks. A mortgage adviser can help you understand a realistic budget, including monthly repayments, fees, insurance and the other costs of moving.
Allow for more than the purchase price. Typical costs can include your deposit, mortgage and broker fees, a survey, conveyancing, property tax where applicable, searches, insurance and removals. The amounts vary, so ask your mortgage adviser and conveyancer for a tailored estimate before you commit.
Stamp Duty Land Tax is a tax that may be payable when you buy property or land in England or Northern Ireland. The amount depends on the purchase price of the property you are buying, whether you are a first-time buyer and whether you already own another property. Rates and thresholds can change, so check the latest government guidance or ask your conveyancer before budgeting. Find out more about the Stamp Duty Land Tax.
Look at the asking price, recent sold house prices of nearby homes, the property’s condition and local demand. Your local Reeds Rains branch can explain the seller’s position and local market, but the final offer should be one you are comfortable with and can afford.
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In England and Northern Ireland, making or accepting an offer is usually not legally binding until contracts are exchanged. You can still incur costs if the sale does not proceed, and different rules apply in Scotland, so ask your conveyancer when the transaction becomes binding.
There are three main types of survey which are explained in a brochure produced by our sister company, e.surv Chartered Surveyors. The lender you choose may also request you have a survey if they think the property has structural problems.
Government-backed home-buying schemes vary by nation and can change. Options may include shared ownership, First Homes, Lifetime ISAs or local affordable-home schemes, depending on your eligibility and where you are buying.
The Help to Buy Equity Loan scheme in England is closed to new applications. Speak to a mortgage adviser and check the latest government guidance before relying on a scheme.