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 point at which you are legally bound to buy the house and nobody can back out of the transaction.
This will depend on your individual circumstances. We would recommend that you see a mortgage adviser who can help you work out how much could afford each month for your mortgage and any associated insurance costs.
There are a number of costs to consider when buying a property such as mortgage fees, broker fees, surveys, conveyancing, removal charges, etc.
When you buy a residential property in England and Northern Ireland over a certain price you have to pay Stamp Duty Land Tax (SDLT). The cost of stamp duty will vary depending on the price of your chosen property and your reason for buying it.
There are currently reduced rates on Stamp Duty depending on the price of the property. Find out more about the Stamp Duty Land Tax and the Stamp Duty Holiday.
You could look at recently sold, comparable property in the local area to get a feel of what property is generally selling for. Speak with the team in your local Reeds Rains branch for their opinion on your offer, and whether they believe it will be successful. They will have an idea of what the seller of the property will accept.
Approximately 95% of home movers start their property search online due to its convenience. You can browse the widest number of potential properties available in your chosen location, on your chosen device from the comfort of your armchair. On the Reeds Rains website you can you save your searches and receive email alerts of new properties - so why not register with us today?
No. You are not legally bound to buy a property in the UK until you exchange contracts, usually at the end of the sale. However, your financial adviser will be able to talk you through when your offer becomes legally binding as there are some exceptions.
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.
Yes. there is a government backed Help to Buy Equity Loan schemes available in England which offer loans of 20% towards the purchase of a new build home, provided you pay 5% deposit and raise the remaining funds via a mortgage of at least 25% of the value of the property.
Whilst the recent Help to Buy Equity Loan scheme that launched in 2013, came to an end on 28th February 2021, there remains the Help to Buy Equity Loan (2021-2023) scheme which is available for purchases from April 2021, and will run until March 2023. This is only available to first time buyers.