UK Renters Rights Act

(For owners/operators: Not legal advice — consult your local counsel.)

For operators in the UK, the "Renters’ Rights Act 2025" (often referred to during its legislative journey as the Tenant Bill of Rights) represents the most significant overhaul of the rental sector in many years.

With Royal Assent granted in late 2025 and the first major implementation phase set for May 1, 2026, the window for operational preparation is closing. Below we highlight a few areas of interest related to the multifamily industry. 

A Move to Universal Periodic Tenancies

One of the key changes brought by the Act is the elimination of fixed-term tenancies (also known as “Assured Shorthold Tenancies” (ASTs). Existing ASTs will be converted to rolling periodic tenancies, so that tenants are able to stay in their home until they end the tenancy by giving notice, or are evicted on specific grounds (discussed below).

Landlords with an existing written contract will not need to rewrite or re-issue the contract. To bridge the gap, landlords will need to provide tenants with an official government information sheet outlining how the new legal reforms impact their specific tenancy. The draft form can be found here. The final draft is expected to be released in March of 2026. 

The End of "No-Fault" Evictions

Along with the abolition of fixed term tenancies, the Act removed  Section 21, "no-fault" evictions. Historically, Section 21 allowed landlords to regain possession at the end of a fixed term without providing a reason. Moving forward, every eviction must be "for cause," utilizing reformed Section 8 grounds.

Operators will now need to prove specific grounds—such as serious rent arrears (increased from two to three months) or a desire to sell the property—in possession proceedings in court. Because "accelerated" possession routes are being phased out, having robust, digitised records of tenant communication and payment history will be essential  to court proceedings.

Rent Transparency

The Act introduces strict new rules on how rent is set and increased:

1. Bidding Bans: Landlords are prohibited from inviting or accepting offers above the advertised asking price.
2. Annual Increases: Rent hikes are limited to once per year and must follow a statutory Section 13 notice procedure.
3. Tribunal Challenges: Tenants gain stronger powers to challenge increases they deem above "market rate." If a tenant appeals, the increase is stayed until the tribunal reaches a decision.

Student Lettings

University-owned housing was outside the scope of the AST regime, and will continue to be under the new periodic tenancy regime.

Purpose-built student accommodations (PBSAs) will be exempt from the new regime as well. Instead, tenancies granted following May 1, 2026 will be common law tenancies, which allows the grant of a fixed term and recovery of possessions outside the new regime. The government intends to issue additional regulations, but it is known that PBSAs will need to comply with the UNIPOL and ANUK student housing codes.

Non-PBSA (i.e., houses in multiple occupation (HMO)) student lettings will fall under the new regime. However, a new possession Ground 4A will allow landlords to terminate student periodic tenancies. Key conditions include: (i) the tenant was provided notice before the tenancy was granted that this ground may be used and (ii) the tenancy is not granted more than six months prior to the term commencement date.

Operational Priorities for 2026

As we approach the May 2026 implementation date, software and data management will become the backbone of a successful portfolio. To prepare, operators should:

• Audit All Tenancy Agreements: Existing fixed-term ASTs will eventually move to the new periodic system. Review your current portfolio to identify which units are subject to the transition.
• Digitize "Awaab’s Law" Compliance: The Act extends social housing standards regarding damp and mould to the private sector. Having a clear, timestamped audit trail of how and when maintenance requests are addressed and communications with tenants will help to ensure compliance.
• Refine Screening and Onboarding: With possession becoming more difficult, the tenant screening process is more critical than ever. However, remember that the Act also bans discrimination against families with children or those receiving benefits.

The Bottom Line

The Renters’ Rights Act is designed to shift the balance of power toward the resident. For operators, this is an opportunity to lean into sophisticated management tools found in Entrata. By automating your rent increase periods and other required notices, streamlining maintenance workflows, and ensuring you have robust tenant screening policies, you can mitigate the risks of a "periodic-only" market and continue to deliver high-quality housing.

Entrata is Here to Help
For additional news and updates related to rental regulation changes, please visit the Compliance Center (Entrata login required). This resource is available to all clients and will be continuously updated to reflect new legal developments in the multifamily industry in 2026.