What It Means for Landlords, Tenants and Property Investors
By Coresworth Research, Coresworth Properties. Last updated 8 October 2026.
Key takeaways
- Possession now needs evidence. Section 21 is gone, so every possession needs a valid ground. Court claims rose 6% in April to June 2026, and the Ministry of Justice says it is unclear whether that is down to the Act.
- Demand still outstrips supply. RICS surveyors report tenant demand at +18% and new landlord instructions at -14%, and Propertymark members average nine applicants for every available rental.
- Underwrite the downside. Test every rental for voids, arrears and a slow possession. Registration on the new landlord database opens on 15 December 2026.
The is changing how the private rented sector operates in England.
The biggest changes came into force on 1 May 2026. Section 21 was abolished, fixed-term assured shorthold tenancies (ASTs) became rolling assured periodic tenancies, and landlords now need a valid legal ground to regain possession. The government’s sets out the detail.
The bigger question is what the changes mean for rents, tenant demand, landlord behaviour, cash flow and property investment.
Five months in, the evidence we can check suggests the private rented sector is adapting rather than collapsing. Court statistics show a caseload that is shifting. A surveyors’ survey shows demand still outstripping supply. Landlord research shows a sector becoming more professional.
What changed on 1 May 2026?
The first phase brought in several major changes, summarised below.
The main changes, and what each means for an investor
Swipe sideways to read across.
| Area | Before | Now | What it means for an investor |
|---|---|---|---|
| Possession | Section 21 let a landlord end a tenancy without giving a reason | Section 21 is abolished. A landlord needs a valid Section 8 ground | Budget for a slower, evidence-led route if a tenancy goes wrong |
| Tenancy type | Fixed-term assured shorthold tenancies | Rolling assured periodic tenancies with no fixed end date. A tenant can leave on 2 months' notice | A void can start on the tenant's timetable, so keep cash reserves |
| Rent increases | Rises could be written into the agreement or agreed with the tenant | One rise a year, by Section 13 notice with at least 2 months' notice. Tenants can challenge it at the First-tier Tribunal | Set rent at the market level and keep evidence to support it |
| Rental bidding | Bidding above the asking rent could happen | An asking rent must be published. Landlords and agents cannot ask for, encourage or accept more. Councils can fine up to £7,000 | Underwrite on the advertised rent, not on a hoped-for bid |
| Pets | A landlord could refuse pets more broadly | A tenant can request a pet. The landlord must consider it and cannot unreasonably refuse | Have a pet policy, and check the lease on a flat first |
| Tenant selection | Some selection practices were less restricted | Discrimination against applicants who receive benefits or have children is prohibited. Councils can fine up to £7,000 | Use consistent, written criteria for every applicant |
| Information Sheet | Not required | Existing tenants had to receive the government's Information Sheet by 31 May 2026. A fine of up to £7,000 applies. It must be a hard copy or a PDF attachment, never a link | If it was missed, issue it now and keep proof of delivery |
Sources: GOV.UK guide to the Renters' Rights Act and GOV.UK Information Sheet page. The "Before" column describes the usual position under the old system.
Existing written tenancies did not generally need a new agreement. Landlords did have to give tenants the official by 31 May 2026, as a hard copy or a PDF attachment. A link to the PDF is not valid. The government says a landlord who missed the deadline could be fined up to £7,000.
The practical effect is significant. Landlords now need to manage a tenancy as an ongoing relationship, rather than relying on a fixed end date or Section 21 when they want possession.
The Timeline, for Anyone who Lost Track
The Act received Royal Assent on 27 October 2025 and arrives in phases. The government’s describes the sequence.
Key dates, done and still to come
Swipe sideways to read across.
| Date | What happens | Status |
|---|---|---|
| 27 Oct 2025 | The Renters' Rights Act 2025 receives Royal Assent | Done |
| 27 Dec 2025 | Councils get stronger powers to inspect properties, demand documents and enforce housing standards | Done |
| 1 May 2026 | Section 21 abolished. Assured periodic tenancies begin. Possession grounds reformed. New rules on rent rises, bidding, pets and discrimination | Done |
| 31 May 2026 | Deadline to give existing tenants the Information Sheet | Passed |
| 31 Jul 2026 | Last date to start court proceedings on a Section 21 notice served before 1 May 2026 | Passed |
| 1 Oct 2026 | Updated Home Office Right to Rent guidance applies to checks, including digital checks | In force |
| 12 Nov 2026 | Next Ministry of Justice possession statistics are due | Due |
| 15 Dec 2026 | Landlord registration (the Private Rented Sector Database) opens, region by region, starting in the West Midlands | Confirmed |
| 2027 onwards | Regional registration deadlines run through 2027 (see the table below) | Confirmed |
| Not yet dated | The mandatory landlord Ombudsman, Awaab's Law for private rentals and a Decent Homes Standard for private rentals | To be confirmed |
Sources: GOV.UK implementation roadmap, GOV.UK guide to the Act, Home Office Right to Rent guide and NRLA registration guide. The 31 July 2026 cut-off is reported by law firms, for example Nockolds.
Has Section 21 really Changed the Possession Market?
Yes, but the early court data does not show a simple collapse in landlord possession activity.
The latest recorded 23,635 landlord possession claims, up 6% on the same quarter of 2025. Landlord orders were broadly stable, warrants fell 6% and repossessions fell 3%. The median time from claim to repossession was 27.1 weeks, against 27.9 weeks a year earlier.
The , from the quarter either side of commencement, showed the opposite direction, with claims down 5% year on year.
Landlord possession in England and Wales, before and after 1 May
Swipe sideways to compare the quarters.
| Measure | January to March 2026 | April to June 2026 |
|---|---|---|
| Claims | 22,733, down 5% on 23,964 | 23,635, up 6% on 22,352 |
| Orders | 16,848, down 10% on 18,674 | Broadly stable |
| Warrants | 10,172, down 7% on 10,929 | 9,715, down 6% on 10,349 |
| Repossessions | 6,888, down 6% on 7,345 | 6,560, down 3% on 6,767 |
| Median weeks, claim to repossession | 26.4 weeks | 27.1 weeks, against 27.9 a year earlier |
| Accelerated claims | Not covered here | 8,569, up 16% |
| Private landlord claims | Not covered here | 7,617, up 5% |
Source: Ministry of Justice, January to March 2026 and April to June 2026. Each change compares with the same quarter a year earlier. The figures are provisional and cover the first two months after the Act only.
The detail matters more than the headline. Accelerated possession claims rose 16% to 8,569 and private landlord claims rose 5% to 7,617. The more honest read of what has changed on the ground is a shift in which route landlords use, alongside a caseload that is starting to climb now that Section 21 is not there to absorb it.
Be careful about cause. The Ministry of Justice says the April to June figures cover only two months under the Act and that it is unclear whether the changes can be attributed to it. One industry commentator suggests the rise in accelerated claims is consistent with landlords acting before the old procedure closed, which the figures cannot prove. Lender distress does not explain the rise either, because buy-to-let mortgage arrears fell 26% year on year in the second quarter, according to UK Finance figures .
The next release is due on 12 November 2026, and it should give a clearer test.
Landlords are also worried about the courts. NRLA research reported by found 90% of landlords concerned about court backlogs when they need to repossess for a legitimate reason.
The Investment Lesson
Possession is now a greater cash-flow risk.
A landlord should not underwrite a property on the assumption that possession will always be quick if a tenancy goes wrong. Investors should allow for:
- void periods
- arrears
- legal costs
- management costs
- mortgage payments during disputes
- property repairs
- potential delays before possession
A strong gross yield does not automatically mean a strong investment. Our covers this trade-off in more detail.
What is Happening to Rental Demand?
The rental market remains supply-constrained.
The recorded a net balance of +18% for tenant demand, while new landlord instructions stayed negative at -14%. Short-term rent expectations rose to a net balance of +44%, up from +33% in the previous survey, and respondents expect rents to rise by around 3% over the next twelve months.
points the same way, with an average of nine applicants for every available rental property at member branches.
This creates an important contradiction. Tenant demand remains strong, but the supply of rental property remains under pressure. Surveyors responding to the RICS survey also described small landlords selling up and rents holding firm because the homes leaving the market are not being replaced fast enough.
That matters for landlords and investors because regulation may encourage some owners to sell or reduce their portfolios at the same time as demand for rented homes remains high. The result could be a more professional, more concentrated private rented sector. For a city-level view of how rents and supply are playing out, see our and , and for the wider picture our .
Are Landlords Leaving?
Some are, but the question for investors is which landlords are leaving, and what happens to their properties.
Landlords were asked about their plans long before the Act took effect, and the answers are intentions rather than exits.
What landlords said, and what has been measured
Swipe sideways to read across.
| Source | What it found | How to read it |
|---|---|---|
| NRLA Landlord Eye, published 26 Nov 2025 | 24% of landlords plan to leave the market because of the reforms | A stated intention, gathered before the Act took effect |
| English Private Landlord Survey 2024, published 5 Dec 2024 | 31% plan to reduce their portfolio within two years, up from 22% in 2021. 16% plan to sell all their properties. 45% of landlords own one property | Intentions, and mostly small landlords. It predates the Act |
| RICS survey, August 2026 | New landlord instructions at -14%. Surveyors report small landlords selling and supply not being replaced fast enough | Measured current activity, from surveyors working in the market |
| UK Finance, Q2 2026 | Buy-to-let mortgages in arrears down 26% on a year earlier | Lender distress is falling, so the rise in court claims has other causes |
Sources: NRLA Landlord Eye, English Private Landlord Survey 2024, RICS UK Residential Market Survey, August 2026 and UK Finance buy-to-let arrears as reported by Property118.
Landlords operating on thin margins, with high leverage, poor-quality stock or weak management systems may find the new environment harder to navigate. Better-capitalised landlords with efficient management, good properties and strong tenant demand may be better positioned.
This could create opportunities for investors willing to acquire and improve existing rental stock. Investors should not assume that every landlord exit represents a bargain. A property sold because it is difficult to operate profitably may stay difficult to operate profitably after purchase. Our and the cover how to weigh price against income.
Tenant Selection is Changing, and Compliance Matters
One of the clearest behavioural changes is greater attention to tenant selection. NRLA research found that 78% of landlords said the Act would make them more selective about who they let to.
That is understandable. With Section 21 gone, landlords have more reason to focus on affordability, referencing, rental history and the quality of the tenancy from the start.
But greater selectivity must not become unlawful discrimination. The Act prohibits discrimination against applicants because they receive benefits or have children, and councils can fine up to £7,000 for a breach. Landlords should use consistent, evidence-based criteria written down before they assess applicants.
The Right to Rent rules also remain important. Landlords in England have had to check that adult occupiers have the right to rent since 2016. The Home Office’s was updated for checks carried out on or after 1 October 2026. The main changes:
- A landlord who chooses a digital check must now use a provider registered with the Office for Digital Identities and Attributes.
- Digital checks stay optional, and manual checks remain available. A landlord must offer a manual check to someone who cannot or prefers not to verify digitally.
- Share codes from eVisa holders must be used together with the person’s date of birth, and are valid for 90 days.
- Every adult who will occupy the property as their only or main home must be checked, whether or not they are named on the tenancy agreement.
The principle is simple: good tenant selection is consistent risk management, and never a way to exclude tenants because of legally protected characteristics.
Section 8 is now Central
With Section 21 gone, landlords must understand the reformed possession grounds. They include rent arrears, anti-social behaviour, serious tenancy breaches, the landlord wanting to sell, and the landlord or a close family member needing to move in. The mandatory arrears ground now requires at least three months of arrears, and the selling and moving-in grounds cannot be used in the first 12 months of a tenancy.
The main possession grounds at a glance
Swipe sideways to read across.
| Ground | What it covers | Notice and limits |
|---|---|---|
| Ground 8 | Serious rent arrears. At least 3 months (13 weeks if rent is paid weekly or fortnightly), both when notice is served and at the hearing. A mandatory ground | 4 weeks' notice |
| Grounds 10 and 11 | Any arrears, or persistent late payment. Discretionary grounds | 4 weeks' notice |
| Ground 12 | Breach of a tenancy term other than paying rent. A discretionary ground | 2 weeks' notice |
| Ground 14 | Anti-social behaviour | Proceedings can begin immediately |
| Ground 1 | The landlord or a close family member wants to move in. A mandatory ground | 4 months' notice. Not available in the first 12 months of a tenancy |
| Ground 1A | The landlord wants to sell. A mandatory ground | 4 months' notice. Not available in the first 12 months of a tenancy |
After using Ground 1 or 1A, a landlord cannot market or re-let the property for 12 months. A landlord who has not protected the deposit properly, or who is not on the new database, cannot gain possession on most grounds. Source: GOV.UK guide to the Renters' Rights Act. This is a summary, so take legal advice on any specific ground.
The exact ground, notice requirements and evidence depend on the circumstances. Landlords should therefore understand the possession process before they need it. A landlord who has not protected the deposit properly, or who is not registered on the new database, cannot gain possession on most grounds.
For investors, this changes the importance of documentation. A well-run tenancy creates an evidence trail. A poorly documented tenancy creates risk.
Rents: What a Landlord Can and Cannot do Now
Rent can rise once a year to the market level, using a Section 13 notice that gives at least two months’ notice. A tenant who disagrees can challenge the increase at the First-tier Tribunal, which cannot set the rent above what the landlord proposed. Rent review clauses are no longer permitted.
Rental bidding has ended. The asking rent must be published, and landlords and agents cannot ask for, encourage or accept more.
For an investor, this means rental growth has to be evidenced and cannot be assumed. Underwrite on the advertised rent, and treat any future rise as a bonus.
The Next Stage of Reform
The Act is not finished. Three further changes are on the way.
The landlord database. The Private Rented Sector Database, branded the Register Your Rental Property service, opens on 15 December 2026. Registration is mandatory for landlords of assured tenancies and rolls out region by region, with a three-month window in each. It costs £65 a year for each property, according to the . The landlord has to register personally, and councils can fine up to £7,000 for marketing a property without a registration, and up to £40,000 for repeated breaches.
When landlord registration starts, by region
Swipe sideways to read across.
| Region | Registration required from | Deadline to register |
|---|---|---|
| West Midlands | 15 December 2026 | 14 March 2027 |
| Yorkshire and the Humber | 15 April 2027 | 14 July 2027 |
| North West | 15 May 2027 | 14 August 2027 |
Six more regions open between January and August 2027. The fee is £65 a year for each property. The landlord registers personally, and an agent cannot do it on their behalf. Source: NRLA Register Your Rental Property guide. The government's own registration page was not yet published when this was written, so check GOV.UK before relying on a date.
The Ombudsman. A mandatory PRS Landlord Ombudsman will give tenants a formal redress route, and landlords will fund it. The government’s roadmap says it follows the database, and we have found no confirmed start date.
Standards. Awaab’s Law already applies in social housing, and the government says it will extend it to private rentals after consulting on the timescales. A Decent Homes Standard for private rentals is also planned. The government consulted on bringing it in by 2035 or 2037 and has yet to confirm the timeline. The roadmap also refers to a consultation on requiring an EPC rating of C by 2030.
This means landlords should not view 1 May 2026 as the end of regulatory change. It is the beginning of a new operating model.
What Does this Mean for Property Investors?
The Renters’ Rights Act should be treated as an investment underwriting issue as well as a legal one. Before buying a rental property, test it against these six questions.
Six tests before buying a rental
Swipe sideways to read across.
| Test | The question | What to do |
|---|---|---|
| 1. Rental demand | Who is the likely tenant, and is demand deep enough if the market weakens? | Check local rents, listing times and the type of tenant the property suits |
| 2. Net cash flow | What is left after every cost? | Deduct mortgage, management, insurance, maintenance, compliance, service charges, voids, repairs, tax and a contingency |
| 3. Possession risk | What if rent stopped for several months? | Confirm you could fund the mortgage and costs through a long dispute |
| 4. Property quality | Will the property meet rising standards? | Allow for upgrades. Poor stock gets harder to operate as enforcement develops |
| 5. Tenant profile | Does the property depend on a narrow tenant pool? | A narrow pool carries more void and affordability risk |
| 6. Exit strategy | Could you sell easily if your plans change? | Check resale demand and who the buyers would be |
The best investment is the property that continues to work when the assumptions are stress-tested, which is often a different property from the one with the highest headline yield.
Who is best positioned?
The new environment is likely to favour landlords who operate professionally.
Better placed, and more exposed
Swipe sideways to compare.
| Factor | Better placed | More exposed |
|---|---|---|
| Money | Well capitalised, with adequate cash reserves | Highly leveraged, on thin margins |
| Operations | Professional management and well-documented tenancies | Relying on quick possession, with weak documentation |
| Property | Good-quality, compliant homes | Poor-quality or non-compliant stock |
| Buying | Sensible entry price in a location with strong tenant demand | Buying on gross yield alone |
Landlords can still make money under the new rules. The margin for poor underwriting is smaller.
A practical Landlord Checklist
Landlords should review their portfolio against the checklist below. Where there is uncertainty over a specific legal obligation, take professional legal advice rather than rely on a general property article.
Twelve checks for your portfolio
Swipe sideways to read across.
| Area | What to check | Why it matters |
|---|---|---|
| Information Sheet | Every tenant has the official sheet as a hard copy or PDF attachment, with proof of delivery | A fine of up to £7,000 applies |
| Tenancy paperwork | Agreements and records are complete and up to date | Possession depends on evidence |
| Rent increases | You use the Section 13 process, once a year, with proper notice | Tenants can challenge a rise at the First-tier Tribunal |
| Possession readiness | You know which ground would apply and what evidence it needs | Understand the process before you need it |
| Referencing | The same written criteria apply to every applicant | Consistency protects you from discrimination claims |
| Right to Rent | Every adult occupier is checked before the tenancy starts | Penalties apply to a landlord who rents to a disqualified person |
| Insurance | Landlord policies are reviewed against the new rules | Legal costs and lost rent are the main exposures in a dispute |
| Licensing | You have checked whether the property needs a licence | Licensing rules differ by council, so confirm each property |
| Reserves | Repair and maintenance funds are in place | Voids and repairs arrive together |
| Stress test | Mortgage and void costs are tested on a bad month | Shows whether the property survives a long dispute |
| PRS Database | You know your region's registration date and have your property details ready | An unregistered landlord loses most routes to possession |
| Future standards | You track the Ombudsman, Awaab's Law and Decent Homes rules | Plan for them before they land |
What does the Renters’ Rights Act really change?
The biggest change may be the shift in the landlord operating model.
The old model placed greater emphasis on fixed terms, Section 21 and relatively simple possession routes. The new model places greater emphasis on:
tenant selection → documentation → property quality → compliance → cash flow → management → evidence.
That makes professional management more important. It also makes investment analysis more important.
For investors, the question should no longer be:
“What yield does this property produce?”
It should be:
“Does this property still produce an acceptable risk-adjusted return under the new rules?”
That is a much more useful investment question.
Conclusion
The Renters’ Rights Act has changed the rules of private renting in England.
The early evidence does not support a simple story of landlords abandoning the market or the rental sector collapsing.
- Tenant demand remains strong.
- Rental supply remains constrained.
- Landlord possession claims remain significant,
- While the courts are still working through the transition.
The market is adapting.
- For landlords, the direction is clear: professionalise the operation, strengthen compliance and protect cash flow.
- For investors, there may be opportunities as some owners reconsider their portfolios, but the Act makes disciplined buying more important, not less.
The winning strategy is to buy the right property, in the right location, at the right price, with enough rental demand and enough financial resilience to work under the new rules.
That is where property investment becomes a numbers exercise rather than a headline exercise.
Work With Coresworth Properties
Already have an investment strategy? Tell us your target city, budget, property type and criteria. We source properties to match your requirements, and you decide whether to proceed.
Register your interest with Coresworth.
This article is for general information only and is not investment advice. Property values, rents, yields and demand can change. Undertake independent due diligence and seek appropriate professional advice before committing to a purchase.
Coresworth Research writes the Propertyology series for Coresworth Properties. Sources are linked within the article or listed below.
Sources
- Legislation.gov.uk:
- GOV.UK: (changes on 1 May 2026, possession grounds and notice periods, rent increases, bidding, pets, discrimination, penalties)
- GOV.UK: (phases, 27 December 2025 enforcement powers, database, Ombudsman, Decent Homes Standard, Awaab’s Law)
- GOV.UK: (31 May 2026 deadline, how it must be given, penalty)
- GOV.UK:
- Ministry of Justice:
- Ministry of Justice:
- RICS:
- Propertymark:
- NRLA: (published 26 November 2025)
- The Intermediary: (NRLA research, 28 May 2026)
- GOV.UK: (published 5 December 2024)
- Property118: (UK Finance arrears figures and commentary)
- NRLA: (registration dates, fee and penalties)
- Nockolds: (31 July 2026 cut-off)
Sources checked 8 October 2026. The Act is being phased in, and dates and figures can change. Check GOV.UK for the latest position before acting.