Renters’ Rights Act Now in Effect: What Landlords and Property Investors Need to Know

The Renters’ Rights Act officially came into force on 1st May 2026, introducing some of the most significant reforms the private rented sector has seen in decades.

For landlords, developers, and property investors, the new legislation represents a major shift in how residential investment properties are managed, financed, and regulated. Understanding the implications, both operationally and financially, will be essential in the months ahead.

Key Changes Introduced Under Phase 1

The first phase of reforms is now live and includes several important changes affecting tenancy structures, possession rights, and landlord obligations:

• The abolition of Section 21 “no-fault” evictions.

• The transition from Assured Shorthold Tenancies (ASTs) to Assured Periodic (rolling) tenancies  (APTs).

• Reformed possession grounds, requiring landlords to provide valid and evidenced reasons for regaining possession, such as property sale, owner occupation, or serious rent arrears.

• Rent increases limited to once annually through a formal statutory process, with tenants given the right to challenge increases.

• Restrictions on rental bidding practices and excessive upfront rent requests.

• Enhanced protections against discrimination, including for tenants with children or those in receipt of benefits, alongside updated guidance relating to pet requests.

• Increased enforcement powers for local authorities, with tougher penalties for non-compliance.

What’s Still to Come?

Further reforms are expected under Phase 2, currently anticipated later in 2026. These include:

• A new Private Rented Sector (PRS) Database requiring landlords to register properties, provide compliance information, and pay an annual fee.

• The introduction of a PRS Landlord Ombudsman to support dispute resolution and provide guidance on best practice and compliance standards.

What Could This Mean for Property Finance?

While the legislation is primarily focused on tenant rights and rental sector reform, it is also likely to influence lender behaviour across the buy-to-let market.

As lenders assess the impact of the new framework, landlords may begin to see changes in areas such as:

• Affordability assessments

• Rental stress testing

• Acceptance criteria for tenancy agreements

• Product availability and pricing

• Portfolio underwriting requirements

• Overall lender appetite within the sector

For portfolio landlords in particular, maintaining a well-structured and compliant borrowing strategy is likely to become increasingly important.

Why Working With a Broker Matters More Than Ever

In a rapidly evolving regulatory environment, having access to informed and proactive finance advice can make a significant difference.

Here at Key Commercial Finance, we work closely with landlords and property investors to help navigate market and regulatory changes by:

• Monitoring lender criteria and policy updates

• Structuring finance solutions that support both compliance and long-term investment objectives

• Assisting with portfolio reviews and refinancing strategies

• Helping clients access lenders best suited to their investment approach and future plans

The buy-to-let landscape is changing, but with the right guidance and finance structure in place, landlords can continue to invest with confidence.

If you would like to discuss how the Renters’ Rights Act may affect your portfolio, refinancing options, or future borrowing plans, please get in touch with our team.