Phase One of the Renters Rights Act: What WE Need to Know Before May 2026
The Ministry of Housing, Communities and Local Government has officially confirmed the start date for phase one of the Renters Rights Act. This marks the beginning of the most significant tenancy reforms England has seen in decades.
When the First Changes Begin
Phase one takes effect on 1 May 2026.
From this date, all existing and new private tenancies in England will shift onto the new system.
This first stage focuses entirely on tenancy reform and aims to modernise how renting works across the country.
Key Changes Coming in Phase One
1. All Tenancies Become Periodic
Fixed terms will disappear. Every existing assured shorthold tenancy (AST) and every new tenancy will automatically become a rolling, periodic tenancy.
2. Limits on Rent in Advance
Landlords will no longer be able to request large upfront payments. A new cap will restrict how much rent can be taken in advance.
3. Ban on Rental Bidding
Tenants may no longer be asked or encouraged to bid above the advertised rent.
4. Stricter Rules on Rent Increases
Rent increases via Section 13 notices will follow clearer, standardised rules.
5. Stronger Anti-Discrimination Measures
The Act introduces reinforced protections to ensure fair access to housing.
6. New Rights Around Pets
Tenants gain clearer rights to request pets, with a structured process for landlords to consent or reasonably refuse.
What Happens to Existing Tenancies?
All current ASTs will automatically convert into the new system on 1 May 2026.
If a tenancy does not have a written agreement — for example, if it is verbal or protected — the landlord must provide a written document containing the required information set out by government guidance.
Landlords do not need to rewrite existing tenancy agreements. Instead, they must provide tenants with the government-issued information sheet explaining how the reforms affect their tenancy.
Section 21 Notices
A Section 21 notice served before 1 May 2026 remains valid until:
-
its six-month expiry date, or
-
the tenant leaves.
Future Phases of the Act
The government has outlined two later phases:
-
Phase Two (late 2026): Introduction of the Landlord Ombudsman and new Private Rented Sector Database.
-
Phase Three (TBC, with consultation expected 2035–2037): Implementation of the Decent Homes Standard and Awaab’s Law.
Industry Reaction
Propertymark: Relief and Preparation
Propertymark welcomes the clarity.
They emphasise that agents now have the lead time they requested and must begin preparing internal systems, working with landlords and tenants, and understanding the practical impact of periodic tenancies.
They highlight that comprehensive toolkits, events, and conferences will support agents through the transition.
NRLA: “Not Enough Information Yet”
The National Residential Landlords Association has taken a firmer stance.
Chief Executive Ben Beadle argues that the date alone is not sufficient. Landlords, agents, councils, legal professionals, and courts cannot prepare effectively until the government publishes the full guidance and updated written materials needed for compliant tenancy agreements.
Key concerns include:
-
Courts are already overwhelmed; without reform, they will not cope with increased possession cases.
-
The sector needs at least six months’ notice after all regulations are finalised, not merely a set date.
-
Over 11 million tenants will need to be informed about changes to their tenancy agreements.
-
Landlords require clarity on the Housing Health and Safety Rating System before the Decent Homes Standard begins.
-
Solicitors must be trained on new possession routes.
-
Lettings processes and computer systems need updating.
-
Local authorities must recruit staff and update enforcement policies.
-
Property Tribunals will likely face more rent appeals and must be prepared.
The NRLA warns that without detailed guidance, the implementation risks becoming confusing, rushed, and ultimately dysfunctional.
What This Means for the Sector
Phase one creates a major shift in how tenancies are structured and managed. While some welcome the predictability and modernised approach, others worry that the lack of published detail could lead to operational chaos.
For now, landlords and agents should begin preparing for:
-
the end of fixed-term ASTs
-
new rules on rent in advance
-
stricter processes for rent increases
-
changes around pets
-
mandatory written information for tenants
The next 18 months will set the foundation for the biggest transformation in the private rented sector in 40 years.