The Biggest Shake‑Up for Landlords and Letting Agents in Years — What’s Coming in 2026

The private rented sector is on the cusp of its most significant overhaul in a generation. With new legislation, compliance obligations and shifting expectations, 2026 is shaping up to be a defining year for landlords and letting agents across England. Here’s what you need to know — and how you can prepare.

📅 1. The Renters’ Rights Act: A New Era Begins (from 1 May 2026)

At the heart of these changes is the Renters’ Rights Act 2025, which received Royal Assent in October 2025 and will begin to transform the rental landscape from 1 May 2026.

Abolition of No‑Fault Evictions

No‑fault evictions under Section 21 will end. Landlords will no longer be able to regain possession simply by serving notice — valid legal reasons (like rent arrears or redevelopment) will be required.

Periodic Tenancies Replace Fixed Terms

Assured Shorthold Tenancies (ASTs) with fixed end dates are being phased out. Most new and existing tenancies will become assured periodic tenancies, meaning they continue indefinitely until one party gives notice.

Rent Control & Fair Practices

• Rent rises will be limited to once per year and must follow the formal Section 13 procedure.

• Rental bidding wars and asking for more than one month’s rent in advance will be banned.

• Discrimination against tenants because they have children or receive benefits will be unlawful.

🔍 2. Phase Two and Three — Beyond May 2026

The Renters’ Rights Act will be rolled out in stages, with further changes set to follow later in 2026 and beyond:

Phase Two – Late 2026

• A national Private Rented Sector Database will be introduced, requiring landlords to register properties and supply safety and contact information.

  
  

• A PRS Landlord Ombudsman will be established to help resolve disputes between tenants, landlords and agents without costly court action.

  
  

Phase Three – Future Standards

• Plans to extend a Decent Homes Standard and expand protections like Awaab’s Law to private rentals are expected — although the dates for these reforms are not yet finalised.

  
  

🛠️ 3. Compliance & Regulation Updates Agents Can’t Ignore

It’s not only tenancy law that’s changing:

Financial Sanctions Reporting

From May 2025, letting agents must comply with new financial sanctions regulations — reporting suspicious cases to the Office of Financial Sanctions Implementation.

Advertising and Transparency Rules

Rules around lettings ads have been updated, affecting what information must (or must no longer) be included.

Safety and Standards

Electrical safety requirements, including more rigorous EICR guidance, are tightening — reflecting the growing emphasis on property safety and standards compliance.

New Tax Reporting Regime

From 6 April 2026, landlords earning over £50,000 will have to comply with Making Tax Digital quarterly reporting requirements — impacting financial administration for both self‑managed landlords and agents handling accounts.

💡 4. What This Means for Your Business

These reforms will require landlords and letting agents to rethink several core aspects of their business:

✔ Documentation overhaul — tenancy agreements, notices, and procedures must be updated to reflect new law.

✔ Training and systems — teams need to be up‑to‑speed on compliance, from rent increases to eviction rules.

✔ Marketing and lettings processes — pricing, adverts and tenant selection must align with strict new standards.

✔ Risk management strategy — with the end of no‑fault evictions and new ombudsman oversight, minimizing disputes and staying compliant matters more than ever.

🎯 Final Thoughts

While some landlords are choosing to exit the market in response to these reforms, many see opportunities to adapt and thrive. The message for letting agents and property owners is clear: preparation is key. Understanding these changes now and updating policies, systems and client communications will be crucial to not just staying compliant — but staying competitive.