25 November 2025

Private Rented Sector Reset: New Tenancy Rules from May 2026

Private Rented Sector Reset: New Tenancy Rules from May 2026

Mary Foster, Senior Surveyor at StephensonsRural, outlines the key changes coming into force from May 2026 as the Renters’ Rights Act moves the private rented sector to a new tenancy regime.

The Renters’ Rights Act received Royal Assent on 27 October, but implementation will be a long and gradual process. 

At the heart of the Act are two major changes: the abolition of Section 21 “no fault” eviction notices and a shift from fixed-term Assured Shorthold Tenancies to periodic tenancies.

Delivering this new tenancy regime is the main priority in the early stages of implementation.

27 December 2025: stronger powers for councils

From 27 December 2025, local councils will have greater powers to inspect properties, demand documents and access third-party data to enforce housing standards in the private rented sector (PRS).

1 May 2026 – Phase 1: new tenancy regime

From 1 May 2026, both new and existing tenancies will move to the new regime. In practice, this means no more fixed-term agreements (only periodic tenancies) and no further use of Section 21 to regain possession.

Phase 1 will:

  • abolish the use of Section 21 of the Housing Act 1988 to evict tenants in the PRS
  • introduce Assured Periodic Tenancies (APTs): most existing tenancies will automatically transfer into this format and all new lets will be APTs. Landlords will need to serve a valid Section 8 notice to obtain vacant possession, and tenants will be able to give two months’ notice to leave
  • reform the grounds for possession
  • limit rent increases to once a year
  • ban landlords and letting agents from encouraging, asking for or accepting rent offers higher than the level advertised, and prevent them from requesting more than one month’s rent in advance
  • make it unlawful to discriminate against renters who have children or receive benefits
  • require landlords to provide a valid reason within 28 days if they refuse a tenant’s request to keep a pet.

From late 2026 onwards: Phase 2: PRS Database and Ombudsman

From late 2026, Phase 2 will introduce a new Private Rented Sector (PRS) Database. This will hold key information for landlords, tenants and councils, with the aim of informing tenant choices when entering new agreements and setting out landlord obligations more clearly.

A Landlords Ombudsman will also be established, but only once the PRS Database is up and running. If implementation stays on track, landlords are expected to be required to join the PRS Database in 2028.

Phase 3 - raising standards

Phase 3 focuses on raising standards in the private rented sector. It will extend Awaab’s Law and the Decent Homes Standard into the PRS, although timescales will depend on the outcome of consultation. Current proposals suggest the Decent Homes Standard could come into force in either 2035 or 2037, but this has not yet been finalised.

We are also waiting for confirmation of the Government’s plans for Minimum Energy Efficiency Standards (MEES), including proposals for a minimum EPC C (or equivalent) by 2030 in England and Wales.

Tenancy agreements: what landlords need to do

For new agreements created on or after 1 May 2026, certain information about the tenancy will have to be provided to the tenant in writing. The detail of what must be included is expected to be published in draft in January 2026.

For agreements created before 1 May 2026, existing written tenancies will automatically move to the new regime. However, landlords will need to serve a government-published Information Sheet explaining the changes on or before 31 May 2026. This Information Sheet is due to be published in March 2026.

Where there is currently only a verbal agreement, landlords will need to provide a written summary of the main terms to the tenant on or before 31 May 2026.

If you are unsure how these changes will affect your existing tenancies or future lets, please get in touch with the StephensonsRural team.
We can review your current agreements, advise on the new regime and help you plan ahead.