Are you ready for the Renter's Reform?

The traditional fixed-term assured shorthold tenancy (AST) will be abolished and replaced with a new system where all private tenancies are periodic assured tenancies with no fixed end date. This means that both new and existing ASTs will automatically convert to rolling contracts from 1st May 2026, offering tenants a significantly greater level of security. 

However, tenants can end their tenancy at any time by giving two months' notice (currently one month) in line with their rental period, providing flexibility that was previously restricted by fixed-term agreements. This means that if a tenant gave notice to end their tenancy on the first day of their tenancy starting, the minimum term of the tenancy will last 3 months. This should be considered as a worst case scenario for landlords regarding tenant churn. 

Landlords, however, can still gain possession of their property, but with the abolishment of Section 21 "no fault" evictions', will only be able to do so if they have a legitimate, legally-defined reason (i.e. grounds for possession).

The practice of "no fault" evictions under Section 21 of the Housing Act 1988 will be abolished. This transformative change will end a landlord's ability to evict a tenant with two months' notice without needing to provide a reason. 

Instead, landlords will be required to use the Section 8 notice, citing one of the clearer and expanded statutory grounds for possession (e.g. rent arrears, property sale, or moving in themselves). 

This change is designed to empower tenants to challenge poor housing conditions or unfair rent increases without the fear of a retaliatory or arbitrary eviction.

To make renting more accessible and reduce the financial burden on tenants, the Renters' Rights Act will restrict the maximum amount of rent landlords and letting agents can ask for in advance to a single month's rent. 

This ban on pre-tenancy rent payments is intended to prevent situations where tenants are forced to pay several months of rent upfront, which, in some cases, can be a significant barrier to securing a home, especially for those on lower incomes or receiving benefits. 

The downside for tenants is that landlords often accept more than 1 months' rent as an alternative to providing a guarantor, therefore those tenants that do not have a guarantor, nor can afford to use a professional company guarantor, may lose out to other tenants that do or can, actually making it harder for them to rent.

Much like bidding to buy a home, the practice of rental bidding, where prospective tenants are encouraged to offer more than the advertised rent, will be outlawed. 

Under the new rules, landlords and letting agents must publish a rental amount for a property in all advertisements and are prohibited from soliciting, encouraging, or accepting offers that exceed that published price. 

This measure aims to introduce fairness and transparency to the rental application process, preventing tenants from being pressured into bidding wars that inflate rental costs.

The Act introduces stricter controls over how and when rent can be increased, preventing arbitrary or "informal" hikes. 

Landlords will be limited to increasing rent only once per year and must use the formal, prescribed legal route of a Section 13 notice, giving the tenant at least two months' (currently one month) advance notice of the change. 

Critically, tenants will be given a clearer right to challenge any proposed increase they believe is above the local market rate by applying to the First-tier Tribunal (Property Chamber) for an independent assessment.

Tenants will gain the right to request a pet, and landlords will no longer be able to enforce blanket 'no pets' bans. 

A landlord must "reasonably" consider and not "unreasonably" refuse a tenant's written request to keep a pet. They are required to respond to the request within a set timeframe and must provide a valid reason in writing if they choose to refuse it. 

To mitigate potential damage, the Act will also amend the Tenant Fees Act 2019 to allow landlords to require tenants to take out or pay for pet insurance, ensuring a balance between the tenant's well-being and the protection of the property.