Introduction
The Renters’ Rights Act has brought some of the biggest changes to the private rented sector in England for many years. With the main changes now in force, landlords have had a few months to start experiencing what the new rules actually mean in practice.
There has understandably been plenty of concern, particularly around the move from fixed-term Assured Shorthold Tenancies to periodic tenancies, the abolition of Section 21 and the new rules around pets.
But is the reality as concerning as some landlords feared?
At Davis & Co, we think the answer is more nuanced. Some landlords and property types will undoubtedly feel the impact more than others. Student landlords, in particular, face a new challenge around tenancy certainty and the academic year. For the typical residential landlord, however, we believe the changes are more manageable provided the property is well managed, correctly priced and let to the right tenant.
Having now had the opportunity to see the new rules begin to operate, here is our early view on what the Renters’ Rights Act really means for landlords.
ASTs are gone – what does that mean for landlords?
One of the most fundamental changes is the move away from fixed-term ASTs.
Since 1 May 2026, new assured tenancies are periodic, meaning there is no fixed end date. Existing assured shorthold tenancies have also moved into the new periodic system. In most cases, tenants can end their tenancy by giving two months’ notice.
For many traditional residential landlords, this may sound alarming.
The concern is understandable. Previously, a landlord could agree a 12-month tenancy and have a reasonable expectation that the tenant would remain for that period. Now, in principle, a tenant has considerably more flexibility to decide when they want to move.
But does this mean tenants will suddenly be moving every two months?
We don’t think so.
Moving home is disruptive, expensive and time-consuming. Tenants have to find another property, pay moving costs, arrange removals, change their address and deal with the practical upheaval that comes with moving.
If a tenant is living in a good property, paying a fair market rent and receiving a good service from their landlord or managing agent, why would they move simply because they can?
There will, of course, be circumstances where tenants need to leave. Employment can change, relationships can change, families grow and personal circumstances can be very different from when the tenancy started.
But that is different from tenants routinely leaving after two months simply because the legislation allows them to.
For a landlord offering a good-quality property at a competitive market rent, we believe tenant retention should remain relatively strong.
Student accommodation could be a different story
Where we do see a potentially significant impact is in the student HMO market.
Student accommodation has traditionally operated around the academic year. A landlord might agree a fixed-term tenancy running from, for example, July or August through to the following summer, giving them certainty that the property would remain occupied throughout the academic year.
The new periodic tenancy structure changes that dynamic.
A student who decides to leave during the academic year can generally give notice and bring their tenancy to an end, rather than being tied to the original fixed term.
For landlords operating shared student houses, this creates a very real commercial risk.
Imagine a six-bedroom student HMO where all six tenants originally intended to remain until the end of June. If one or more tenants leave early, the landlord may be left with an empty room that is difficult to re-let mid-academic year.
The bigger problem can come at the end of the academic year.
Under the old system, the fixed term provided a degree of certainty around the summer period and allowed landlords to plan their next student intake. Under the new rules, landlords need to think much more carefully about how they manage the transition between one academic year and the next.
The legislation does include a specific possession ground for HMOs let to full-time students where the property is required for a new group of students for the following academic year. This is Ground 4A. Where the relevant conditions are met, the possession date specified in the notice must fall between 1 June and 30 September, helping to preserve the traditional academic-year cycle for student accommodation.
However, Ground 4A comes with specific conditions and notice requirements, including advance notification and a four-month notice period in the relevant circumstances. For student landlords, this means the process needs to be planned well in advance rather than relying on the tenancy simply coming to an end. This makes good tenancy management, accurate records and forward planning more important than ever.
For a student HMO landlord, Ground 4A is therefore an important protection — but it is not an automatic right to regain possession at the end of the academic year. The correct notices need to be given and the statutory requirements followed.
For this part of the market, we believe the Renters’ Rights Act could have a considerably greater practical impact than it does for a typical family or professional let.
Section 21 has gone – but landlords haven’t lost all protection
Perhaps the most widely discussed change is the abolition of Section 21.
Landlords can no longer simply serve a ‘no fault’ Section 21 notice to recover possession of their property. Instead, they must rely on one of the statutory grounds for possession.
This understandably concerns landlords.
However, it is important to distinguish between the loss of Section 21 and the loss of a landlord’s ability to recover possession.
The latter has not happened.
There remain grounds allowing landlords to seek possession where there are issues such as rent arrears, serious breaches of the tenancy, antisocial behaviour, or where the landlord genuinely needs to sell the property or move into it themselves.
For example, specific grounds exist where a landlord intends to sell a property or where the landlord or certain family members need to occupy it. There are, however, important conditions and notice periods attached to these grounds, so landlords need to understand the rules before relying on them.
The key difference is that landlords can no longer use possession simply because they want the property back without giving a qualifying reason.
Tenant selection is now more important than ever
For us, this is one of the biggest practical lessons from the new legislation.
If it is harder to recover possession without a specific ground, then choosing the right tenant in the first place becomes even more important.
Good referencing and tenant vetting have always been important, but we believe they are now absolutely fundamental to professional property management.
Checking income, employment, previous rental history, affordability and references can help identify potential problems before a tenancy starts.
No referencing process can guarantee that a tenancy will be trouble-free. People’s circumstances change and even the best tenant can experience financial or personal difficulties.
But landlords should be aiming to minimise risk rather than dealing with problems after they occur.
In our view, the Renters’ Rights Act makes a professional approach to tenant selection more important, not less.
What about landlords who want to sell or move back in?
Another concern we regularly hear is: “What happens if I need my property back?”
The answer is that landlords can still recover possession in certain circumstances.
If a landlord genuinely intends to sell the property, there is a specific possession ground for this. Similarly, there is a ground where the landlord or a qualifying family member needs to occupy the property.
However, these grounds are subject to rules and notice periods. For example, the sale ground cannot generally be used to end a new tenancy within its first 12 months, and four months’ notice is required before applying to court under that ground.
The message for landlords is therefore simple: you still have routes to recover your property, but planning and compliance are more important than they were under Section 21.
Pets: a significant change, but not a free-for-all
The new rules around pets have also generated considerable discussion.
Tenants now have the right to request permission to keep a pet, and landlords cannot simply impose a blanket “no pets” policy.
The legislation defines a pet broadly as an animal kept mainly for personal interest, companionship, ornamental purposes, or a combination of these.
A tenant must make their request in writing and provide details of the proposed pet. The landlord must respond in writing, generally within 28 days, and consent cannot be unreasonably refused.
That does not mean every landlord has to accept every pet.
There can be legitimate reasons for refusing a request. Examples could include a property being unsuitable for the size or number of animals, a genuine allergy affecting another tenant, safety considerations or restrictions contained within a superior lease.
What has changed is that “I don’t allow pets” is no longer, by itself, a sufficient reason.
Landlords and agents therefore need to consider pet requests individually and keep a proper record of the decision-making process.
Importantly, allowing a pet does not mean the landlord takes responsibility for damage caused by that animal.
Pet-related damage remains the tenant’s responsibility. Where appropriate, legitimate costs for damage beyond fair wear and tear can be claimed against the tenancy deposit in the same way as other tenant-caused damage.
The new rules also do not allow landlords simply to demand an additional pet deposit. The existing tenancy deposit rules continue to apply.
Our overall view
After the first few months, our view is that the Renters’ Rights Act is a significant change, but it is not necessarily the disaster for landlords that some predicted.
For the typical residential landlord with a good property, a sensible rent and a well-selected tenant, we don’t expect tenants to suddenly start moving every two months.
The biggest practical change is that landlords have less control over the length of the tenancy and more responsibility for getting the initial letting right.
Student landlords, particularly those operating HMOs around the academic year, may face greater challenges because the periodic tenancy model does not naturally fit the traditional student letting cycle.
For all landlords, however, the message is the same: good systems, good referencing, good communication and good property management matter more than ever.
The Renters’ Rights Act has changed the rules, but it hasn’t changed the fundamentals of successful property letting.
A well-maintained property, priced correctly, with a good tenant and a professional management process remains a strong proposition.
The landlords who adapt their systems and processes rather than simply worrying about the legislation are likely to be the ones who come through the changes most successfully.
At Davis & Co, we believe the role of a letting and property management agent is increasingly about helping landlords navigate these changes, not simply collecting the rent.
The legislation may have changed the rules of the game. It has not changed the importance of playing it well.
Thinking about what the changes mean for your property?
The Renters’ Rights Act is undoubtedly changing the way landlords need to approach lettings and property management. But with the right systems, processes and advice in place, we believe there is still plenty of opportunity for landlords to run successful and profitable rental properties.
If you are reviewing your current letting arrangements or simply want to understand how the new rules could affect your property, we are always happy to have an informal conversation, so please feel free to get in touch. Sometimes a fresh pair of eyes is all that is needed.
