The Renters’ Rights Act: Key Points for Mortgage Brokers

The first phase of the Renters’ Rights Act came into force in England on 1 May 2026, bringing significant changes to the private rental sector. For brokers, it matters because it could affect how lenders assess buy-to-let risk, tenancy stability and landlord clients.

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The End of Fixed-Term Tenancies

Perhaps the biggest change is that all Assured Shorthold Tenancies (ASTs) and fixed-term agreements have now transitioned to Assured Periodic Tenancies (APTs). These run on a rolling basis, typically monthly, with no fixed end date. The tenancy continues until the tenant leaves or the landlord successfully applies for possession under Section 8.

Also, by 31 May 2026, landlords must provide the government’s Renters’ Rights Act Information Sheet to existing assured or assured shorthold tenants.

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The Removal of Section 21

The abolition of Section 21 "no-fault" evictions means landlords can no longer remove tenants without giving a legal reason. All possession claims must now go through Section 8, which requires specific grounds such as rent arrears, anti-social behaviour, or the landlord's intention to sell.

Notice periods are no longer standardised, and they now vary depending on the ground used, with most non-fault grounds requiring around four months' notice. Additionally, most tenancies now have a 12-month protected period from the start, during which possession is harder to obtain. This may lengthen possession timelines in some cases, which could affect lender risk appetite and underwriting decisions for certain landlord profiles.

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Student Lets: Ground 4A

Student properties are a slight exception to rolling tenancies. The new Ground 4A lets landlords regain possession between June and September to relet to new students, but only under strict conditions:

• HMOs only (3+ unrelated tenants). Studios and 1-2 bed student flats do not qualify and are now on standard rolling tenancies.
• Landlords must give written notice before the tenancy starts (or by 31 May 2026 for existing lets).
• Four months' notice required, with possession dates falling 1 June–30 September.
• Existing pre-May 2026 student tenancies get a transitional two-month notice period until 31 July 2026.

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Rent and Affordability Rules

There are several changes that directly affect the financial mechanics of letting:

• Advance rent is now capped at one month, plus the standard deposit. Existing agreements already in place are unaffected.
• Rent increases are limited to once per year and require at least two months' notice.
• Tenants now have the right to challenge rent increases they believe exceed market levels.
• Rental bidding is banned, meaning landlords cannot let properties above the advertised price.

These changes could limit some landlords’ ability to increase rents in line with rising interest costs, which may put pressure on interest cover ratios in some cases and affect refinancing or future borrowing options.

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Stronger Tenant Protections

The Act introduces several anti-discrimination and quality-of-life measures:

• Landlords cannot discriminate against tenants with children or those in receipt of benefits.
• Pets must be reasonably considered, though landlords can still require pet insurance.
• The Decent Homes Standard will eventually extend to the private rented sector, raising baseline property condition and safety requirements (date TBC).

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Enforcement and the New Ombudsman

Local authorities now have wider inspection powers, and fines for non-compliance have increased to up to £40,000.

Two major new systems are rolling out:

• Private Rented Sector (PRS) Database - expected late 2026
• Mandatory Landlord Ombudsman - also late 2026

The Ombudsman will provide a free complaint route for tenants and can require landlords to take corrective action, apologise, or pay compensation. Membership is mandatory, with penalties for non-compliance.

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What This Means for Brokers

For brokers, the practical task is to help landlord clients understand how the new rules affect their borrowing, tenancy management, and compliance responsibilities. This includes reviewing portfolio structure, how rental income is evidenced, and whether any cases need more detailed presentation to lenders.

In practice, many landlord clients will need clear guidance on what has changed immediately, what may affect future lending or transactions, and which compliance steps now have fixed deadlines.

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Your Next Steps

Overall, the Renters’ Rights Act changes possession rules, tenancy structure, and landlord compliance obligations. For brokers, staying ahead of these changes will be key to supporting clients and navigating evolving lender requirements.

If you’re seeing cases affected by the new rules or want to sense-check a scenario, we’re here to help. Please get in touch.