In short: The Renters' Rights Act has applied since 1 May 2026. Fixed terms are gone, Section 21 is gone, rent rises need a Section 13 notice, and civil penalties reach £40,000.

Updated 28 September 2026

The key facts

  • Fixed terms ended on 1 May 2026. Every assured tenancy in England now runs as an Assured Periodic Tenancy. Renters' Rights Act 2025.
  • Section 21 is gone. Possession needs a Section 8 ground, and tenants can leave with two months' notice at any point. Renters' Rights Act 2025.
  • One rent rise a year, by Section 13 notice on Form 4A. Rent review clauses and side agreements no longer work. Housing Act 1988, s.13, as amended.
  • Penalties reach £40,000. Most first breaches carry civil penalties of up to £7,000, rising to £40,000 for serious or repeat breaches. Renters' Rights Act 2025.
  • Tenants can challenge the initial rent at the First-tier Tribunal in the first six months, and the Tribunal can only confirm or reduce it, never increase it.

In this article:

  1. What did the Renters' Rights Act change on 1 May 2026?
  2. What happened to fixed-term tenancies?
  3. How should landlords set the rent now?
  4. How do rent increases work under the Act?
  5. What are the penalties for getting it wrong?
  6. What changed on pets, advance rent and student lets?
  7. What did Suzanne Smith advise landlords to do?
  8. How does Hello Neighbour support landlords under the Act?
  9. Sources

What did the Renters' Rights Act change on 1 May 2026?

Fixed terms, Section 21 and informal rent rises all ended on 1 May 2026, replaced by periodic tenancies, Section 8 possession grounds and a single statutory route for increasing rent. The Renters' Rights Act 2025 is the biggest reset of English tenancy law since 1988, and it applies to existing tenancies as well as new ones.

We hosted a webinar for more than 500 landlords in December 2025, before the reforms took effect, with Suzanne Smith, better known as The Independent Landlord, as guest speaker. Her core message has aged well: the changes are manageable if you understand the rules, stay organised and look after your tenants. This guide restates the session's themes as they now apply in force, and our Renters' Rights toolkit collects the practical checklists.

What happened to fixed-term tenancies?

Every assured tenancy in England has run as an Assured Periodic Tenancy (APT) since 1 May 2026, including most student lets. There are no fixed terms, no minimum periods, and nothing to renew, so there is no renewal paperwork and no ongoing letting fees attached to it.

Tenants can end the tenancy with two months' notice at any point. Landlords can only end it using the Section 8 grounds, because Section 21 was abolished on the same date. Suzanne Smith's reading in December 2025 was that this is a mindset shift, not a loss: tenants who pay on time and look after the property gain security, and landlords who manage professionally keep every tool they actually need.

How should landlords set the rent now?

Price at the figure you expect to achieve, because accepting an offer above the advertised rent has been banned since 1 May 2026. The advert must state the proposed rent, and that figure is now a ceiling, not an opening position.

The initial rent also carries a challenge right: a tenant can refer it to the First-tier Tribunal during the first six months if they believe it is above open market rent, and the Tribunal can only confirm or reduce the figure. Suzanne Smith's advice on the webinar was blunt: do not try to game the system, do not inflate the advert hoping for bids, know your market and price fairly. Comparable evidence from real lettings is what stands up, which is why getting the valuation right now matters more than it ever has. Our five-step guide to finding a tenant covers pricing and advertising under the new rules step by step.

How do rent increases work under the Act?

A Section 13 notice on Form 4A is the only lawful way to raise the rent on an Assured Periodic Tenancy, at most once a year. Side letters, rent review clauses and informal agreements have no legal effect since 1 May 2026, whatever the tenancy agreement says.

The proposed figure must be no higher than open market rent, and the tenant can refer the notice to the First-tier Tribunal. The Tribunal determines the rent from comparable evidence put forward by both sides, and it can only confirm or reduce the landlord's figure, so there is no upside in proposing high. Keep records of what similar properties actually let for, not what they are advertised at, under Housing Act 1988, section 13 as amended.

What are the penalties for getting it wrong?

Up to £7,000 for most first breaches, and up to £40,000 for serious, repeat or continuing breaches, enforced by the local authority as civil penalties under the Renters' Rights Act 2025. Rent repayment orders were also extended, so a tenant can reclaim up to 24 months' rent for qualifying offences.

Breaches that attract penalties include using a fixed-term agreement for a new let, trying to enforce a fixed term that no longer exists, accepting rent above the advertised figure, advertising a property without stating the proposed rent, and operating blanket bans on tenants who receive benefits or have children. Suzanne Smith's point in December 2025 stands: landlords do not need to fear these rules, they need to know them.

What changed on pets, advance rent and student lets?

Pets became a qualified right, advance rent was restricted, and student HMOs gained their own possession ground, all from 1 May 2026.

On pets, every assured tenancy now carries an implied term that the tenant may keep a pet with the landlord's consent, and that consent cannot be unreasonably refused under Housing Act 1988, section 16A. You have 28 days to respond to a written request. Our separate guide covers pets under the Act in full, including when a refusal is reasonable.

On money, landlords can no longer require rent in advance beyond the first rent period for new tenancies. On student lets, a dedicated possession ground allows landlords of student HMOs to recover the property between academic years, provided the required notice is given, which preserves the annual letting cycle without a fixed term.

What did Suzanne Smith advise landlords to do?

Treat being a landlord as a business, was the closing message Suzanne Smith gave the webinar in December 2025, because a business thrives when you take ownership of what you can control. Look after the property, look after the tenants, keep good records and stay informed. Everything else is noise.

Her other advice that landed strongly was about sources: ignore the scaremongering and stick to reliable ones. The gap between what the Act says and what circulates about it remains wide, so every figure in this guide links to the statute or to gov.uk rather than to commentary.

How does Hello Neighbour support landlords under the Act?

Compliance is built into the platform, so the Act's requirements surface in your dashboard as actions rather than reading. Rental valuations draw on our lettings data across nearly 1,000 managed homes and thousands of platform lets, which gives you the comparable evidence a Section 13 notice or a Tribunal referral needs.

Referencing carries more weight now that Section 21 has gone, and ours runs credit checks, employer references, landlord histories and document-fraud scanning on every applicant. If a tenant found through Hello Neighbour leaves within the first six months, we find you a replacement free of charge (terms and conditions apply). Six-monthly inspections and automated rent-payment records maintain the evidence trail a Section 8 notice needs if arrears ever arise.

Sources

Legislation

Government

Sector

  • Suzanne Smith, The Independent Landlord, Hello Neighbour webinar, December 2025

This guide is general information for landlords in England, not legal advice. It reflects the law in force at the date above.

All of our Renters' Rights guidance, checklists and updates live in one place. Visit the Renters' Rights hub.