What’s in Store for the Lettings Industry in 2026?
Death, taxes, rising rents, and Wolverhampton Wanderers being relegated from the Premier League, these are certainties in life. Now add “tenancy reform” to the list, as the lettings industry braces for the biggest shake up in a generation. For residential lettings in England, 2026 will see the most significant overhaul of tenancy law in decades, driven by the phased rollout of the Renters’ Rights Act.
Phase One: From 1 May 2026
- Abolition of Section 21 “no-fault” evictions — Landlords must use updated Section 8 notices with specific grounds (such as arrears, sale, or moving in), ending the ability to evict without citing a reason
- All tenancies become periodic — Fixed-term Assured Shorthold Tenancies convert to open-ended, rolling tenancies with no end date.
- Rent increase limits — Only one increase per year allowed via Section 13 notice, with two months’ notice required.
- Ban on discrimination and bidding wars — Landlords cannot refuse tenants for having children or receiving benefits, nor advertise below-market fixed prices to entice bidding.
- Pets by request — Landlords refusal of a tenants pet request must be based on “reasonable” grounds.
Phase Two: Late 2026 and beyond
- Landlord Ombudsman — A mandatory, government-approved redress scheme will be phased in, offering free dispute resolution for tenants.
- Private Rented Sector Database — A national register requiring landlords to list each property alongside compliance documents (EPCs, gas/electrical safety certificates).
Other Key Changes
- Making Tax Digital (MTD) — From 6 April 2026, landlords with property income over £50,000 must keep digital records and submit quarterly updates to HMRC.
- Rising standards mandate — Later regulations will extend the Decent Homes Standard and Awaab’s Law to private rentals, and require a minimum EPC rating of C by 2030
Now is the time for Landlords to revise tenancy agreements and prepare for periodic tenancy conversions. For more information on the Renters Rights Act or for a copy of Barbers Definitive Gude to the new regulations drop me a line at r.heath@barbers-online.co.uk For landlords it is vital you ensure your properties stay let and compliant in 2026 and beyond or you run the risk of going down faster than Wolverhampton Wanderers.
Richard Heath
In-house conveyancing with Barbers
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