Renters reform in a nutshell

Renters reform is now moving from headlines to reality. The Renters’ Rights Act 2025 has received Royal Assent and a phased rollout will begin from May 2026 in England.

The headline change is simple. Section 21 no fault evictions are being abolished. Landlords will no longer be able to end a tenancy without a valid ground once the new system is fully in force.

At the same time:

• Fixed term assured shorthold tenancies will be replaced by assured periodic tenancies.
• Tenants will gain the right to leave with two months’ notice.
• Rent increases will be capped at once per year and can be challenged if seen as unfair.

Some details and dates may still change as guidance is updated. Always check the latest information on GOV.UK or from your local council before relying on a specific timetable.

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Houst can manage your property as a fully serviced short let so you stay the owner while we handle listings, guests, and compliance. Get a free management proposal to see how your property could perform as a managed short stay.

Key changes landlords need to know about

1. Open ended tenancies become the norm

Most new and existing private tenancies in England will become rolling periodic agreements. There will be no fixed end date. Tenants can usually leave with two months’ notice once the new rules apply to them.

For landlords, that means:

• Less certainty about when a tenancy will end.
• More planning needed around refurbishments, resales, or moving back in yourself.

2. New repossession rules and Section 8

With Section 21 removed, landlords must rely on Section 8 style grounds to regain possession. These include serious rent arrears, breach of tenancy, antisocial behaviour, or moving back in yourself, subject to the final regulations.

That usually means:

• More paperwork and evidence.
• Greater dependence on the court system, which already has backlogs in many areas.
• Less flexibility if you simply want to exit the long term rental market.

3. Pets become harder to refuse

The Act is designed to make it easier for tenants to keep pets. Landlords will need a reasonable ground to say no, for example a strict lease restriction in a block.

In practice that could mean:

• More wear and tear to manage.
• Greater focus on inventories, mid term inspections, and pet clauses.
• Potential disputes over what counts as “reasonable” refusal, so always confirm the latest guidance.

4. Rent increase rules tighten

Rent increases will normally be limited to once a year. Tenants will be able to challenge increases that they believe are above market level, often via a tribunal process.

That makes it harder to catch up if you have frozen rents in the past. It increases the value of staying on top of local market data and reviewing your pricing strategy regularly.

5. Wider tenant rights and enforcement

The new framework also covers:

• Stronger rules around discrimination against renters with children or on benefits.
• A landlord database and new Ombudsman to handle complaints outside court.
• Greater expectations on councils to use civil penalties and enforcement powers.

Enforcement capacity still varies a lot between councils. Some already pursue rogue landlords aggressively while others have very limited resources. Expect this to evolve over time and confirm local practice with your council.

Want to see what your property could earn as a short let?
Use Houst’s free Airbnb income estimate to compare long term rent with short let earnings. It is a quick way to test whether a different model could work for your property and risk profile.

What renters reform means for your rental strategy

When the rules change, the risk profile changes too. Even if you have never had a serious issue with tenants, the new system means:

• Less flexibility to end a tenancy on your own timetable.
• More tenant power around rent increases and pets.
• Higher exposure to disputes and claims if processes are not followed correctly.

None of this means buy to let is finished. Many landlords will continue with long term tenants quite happily. The key question is whether that model still fits your personal goals.

You might ask:

• Do I want predictable, steady income even if regulation and risk increase.
• Or would I prefer a more flexible model with bookings and pricing that can react to demand, while a management company handles the operational work.

Short term and medium term lets are not loopholes and they have their own planning, licensing, safety, and tax rules. However, they sit under a different framework to long term tenancies and can offer more control between stays. Always confirm how local rules apply to holiday lets and serviced accommodation in your area.

Ready to stress test your portfolio for the new rules?
Speak with Houst about switching one or more properties to a fully managed short or medium term model. Our team can map out likely earnings, seasonality, and operational support so you can decide with confidence.

Long term vs short term lets after renters reform

To help you think through your options, we have set out a simple comparison of long term lets under the new rules and short term lets managed by Houst in the table below.

Use it as a general sense check only. Exact outcomes will depend on your property type, mortgage, local rental market, and personal tax position. Short lets are still subject to planning rules, safety law, and local licensing, so always confirm with your council and professional advisers before changing strategy.

Want a broader view of where short term accommodation performs best in the UK
Read our overview of top performing short let localities →

How to stay compliant with renters reform

Here is a practical, high level checklist. Adapt it to your own portfolio and always confirm the details with your letting agent, solicitor, or local authority.

1. Check which rules apply to you and when
   Read the official Guide to the Renters’ Rights Act and your local council’s landlord pages. Make a note of when tenancy reforms start for your type of tenancy and area.
2. Audit your existing tenancies
   List each property, tenancy type, and key dates. Note where you currently rely on fixed terms, rent review clauses, or Section 21 as a backstop. This will show where you are most exposed when the law changes.
3. Review documentation with a professional
   Ask an experienced letting agent or housing solicitor to review your tenancy agreements, notices, and processes. Focus on arrears handling, repairs, rent increases, and how you respond to complaints.
4. Plan for pets and adaptations
   Decide in advance how you will handle pet requests. Check any lease or building restrictions, set expectations in your adverts, and look at options such as higher deposits only where legally allowed, or specific pet damage cover. Confirm the latest rules before you act.
5. Update your communication and record keeping
   Keep written records of requests, inspections, repairs, and rent discussions. Good notes reduce the risk of disputes about harassment, retaliatory action, or disrepair claims later.
6. Stress test your cash flow
   Model how your portfolio performs if a tenant leaves with two months’ notice or if a rent increase is delayed by a tribunal challenge. Build in contingency for higher legal and management costs.
7. Explore whether a different letting model makes sense
   For some properties, especially in strong short stay markets, a professionally managed short let can offer higher income and more control between stays. Compare options before reforms take full effect.

Need a refresher on holiday let rules before you switch models
Read our legal essentials guide for UK Airbnb hosts →

FAQs

1. When do the new renters reforms start to bite?
Key tenancy reforms are due to start from May 2026 in England, with further changes following in later phases. Check GOV.UK for the latest roadmap and precise dates for your situation.

2. Do these reforms apply across the whole UK?
No. The Renters’ Rights Act currently applies to England. Scotland, Wales, and Northern Ireland have their own frameworks and timelines, so always confirm with the relevant devolved government or local authority.

3. What happens to my existing fixed term ASTs?
Over time, most fixed term assured short-hold tenancies will convert to rolling periodic tenancies. The detail depends on how and when the Act is implemented, so check the latest official guidance or speak to a housing solicitor.

4. Can I still regain possession if a tenant stops paying rent or causes serious problems?
Yes. Landlords will still be able to seek possession using grounds based routes similar to Section 8 where there are serious arrears, breaches, or a genuine need to move back in. The process will rely more heavily on evidence and the courts, so good records are essential.

5. Are short term lets covered by the Renters’ Rights Act?
The Act focuses on assured and assured short-hold tenancies, not typical short term holiday lets. However, short lets are still subject to planning law, licensing, safety regulations, and tax rules. Check with your local council and adviser before assuming they sit outside new requirements.

6. How will rent increases work under the new rules?
Landlords will normally be limited to one rent increase per year, which tenants can challenge if they believe it exceeds local market levels. You may need to justify increases with clear evidence, so keep records of comparable rents.

7. What if I ignore the reforms and keep using old documents and processes?
Using outdated notices or failing to follow new procedures could lead to invalid evictions, fines, or disputes you are likely to lose. In serious cases, councils can impose civil penalties or pursue prosecution. Always confirm the correct documents and timelines with a professional.

8. I am thinking about selling. Should I wait until after the reforms?
That depends on your wider finances, mortgage position, and local market. Some landlords may sell before reforms take effect, others will adapt and stay in. It can be helpful to get both legal advice on the changes and a realistic view of what your property could earn under different letting models.