The Renters Reform Act represents the most significant overhaul of England’s private rental sector in decades. After years of consultation, delays, and political debate, the legislation that fundamentally reshapes the landlord-tenant relationship is now being implemented throughout 2026.
For the UK’s 11 million private renters, this means substantially stronger protections against unfair evictions, improved property standards, and genuine security of tenure. For the 2.7 million private landlords, it means the end of Section 21 “no-fault” evictions, stricter compliance requirements, and a more regulated operating environment.
Whether you’re a tenant seeking stability, a landlord managing property portfolios, or an investor evaluating the rental market, understanding these reforms is essential. This comprehensive guide breaks down exactly what’s changing, who’s affected, and how both tenants and landlords should prepare for the new rental landscape.
What Is the Renters Reform Act?
The Renters Reform Act is legislation designed to rebalance power in England’s private rental sector by abolishing Section 21 “no-fault” evictions, strengthening tenant rights, and increasing landlord accountability.
Background and Purpose:
The private rented sector has grown from 2.8 million households in 2007 to over 4.6 million in 2026. This rapid expansion revealed systemic problems: tenants living in fear of arbitrary eviction, poor property conditions going unaddressed, and retaliatory evictions after complaints. Section 21 allowed landlords to evict tenants with just two months’ notice without providing any reason—a power many argued created fundamental insecurity.
The government’s stated objectives are clear:
- Eliminate unfair evictions
- Improve rental property standards
- Create genuine long-term security for responsible tenants
- Maintain a functioning rental market with sufficient supply
Why Section 21 Is Controversial:
Landlords valued Section 21 for providing flexibility—the ability to regain possession when circumstances changed without lengthy court processes. Tenant advocacy groups condemned it as enabling abuse, preventing tenants from challenging poor conditions for fear of eviction, and creating constant housing instability.
Timeline and Rollout:
The Act received Royal Assent in late 2025, with phased implementation throughout 2026:
- April 2026: Section 21 abolition takes effect for new tenancies
- July 2026: Section 21 abolished for all existing tenancies
- October 2026: Enhanced property standards and ombudsman requirements enforced
- 2027: Full enforcement powers operational
Abolition of Section 21: What Changes?
Section 21 allowed landlords to evict tenants without providing grounds for possession, offering just two months’ notice. This is now completely abolished.
What Section 21 Was:
Under the Housing Act 1988, Section 21 enabled landlords to terminate assured shorthold tenancies (ASTs) at the end of fixed terms, or during periodic tenancies, without stating reasons. Provided correct notice procedures were followed, courts automatically granted possession orders.
Why It’s Being Removed:
Government analysis showed Section 21 evictions disproportionately affected families with children, created housing instability impacting education and employment, and discouraged tenants from asserting their rights to repairs and safe living conditions. Approximately 21,000 Section 21 possession claims were made annually—representing significant housing insecurity.
What Landlords Can No Longer Do:
- Evict tenants simply because the fixed term ended
- Remove tenants without providing legitimate grounds
- Use eviction threats to discourage maintenance requests
- Regain possession within weeks through streamlined processes
How Evictions Will Now Work:
All evictions must now proceed under Section 8, requiring landlords to prove specific grounds for possession. This fundamentally shifts burden of proof from tenants (who previously had to leave regardless) to landlords (who must now justify eviction decisions to courts).
Section 8 Reforms: How Landlords Can Regain Possession
While Section 21 disappears, Section 8 has been strengthened to provide landlords with legitimate routes to possession.
Mandatory Grounds (Court Must Grant Possession):
Rent Arrears: Two months or more of unpaid rent (unchanged from previous rules). Courts must grant possession where arrears exceed this threshold at both notice service and hearing dates.
Selling the Property: Landlords intending to sell can serve notice after tenants have occupied for six months. This prevents immediate sale-and-evict schemes but provides exit routes for landlords divesting portfolios. Crucially, this applies only to genuine sales—fraudulent claims attract substantial penalties.
Moving in Family: Landlords or close family members (parents, children, siblings) moving into the property can regain possession after six months’ occupation. Again, misuse carries penalties including extended notice periods if the landlord subsequently re-lets rather than occupying.
Discretionary Grounds (Court May Grant Possession):
Anti-Social Behaviour: Tenants causing serious nuisance to neighbours or using property for illegal purposes can be evicted. The burden of proof lies with landlords to document incidents comprehensively.
Property Condition Damage: Deliberate damage beyond normal wear and tear, though proving this requires extensive evidence.
Court Process Expectations:
With all evictions now requiring court proceedings, expect:
- 3-6 month timelines from notice to possession (versus 2-3 months under Section 21)
- Higher legal costs (£1,000-£3,000 average)
- Greater evidential burden (documentation, photographs, witness statements)
- Increased court capacity pressures potentially extending timelines
For landlords managing portfolios, understanding buy-to-let mortgage implications of longer void periods becomes essential for cash flow planning. Professional landlords with multiple properties may also need to consider specialist mortgage advice to restructure financing arrangements for the new regulatory environment.
Concerned about how rental reforms affect your property investment strategy? Contact our specialists at Paul.welch@millionplus.com who can model the financial impact of extended void periods and help restructure portfolios for the new regulatory environment.
Open-Ended (Periodic) Tenancies Explained
The Renters Reform Act eliminates fixed-term tenancies entirely, replacing them with open-ended periodic tenancies from day one.
End of Fixed-Term Tenancies:
Previously, most tenancies began as 6-12 month fixed terms before converting to periodic (rolling month-to-month). Landlords used fixed-term ends as natural exit points via Section 21. This structure is abolished—all tenancies now begin as periodic immediately.
How Rolling Tenancies Work:
Tenancies continue indefinitely until either party gives notice under permitted grounds. Rent is typically paid monthly, with the tenancy automatically renewing each month unless notice is served.
Notice Periods for Tenants:
Tenants can end tenancies with two months’ written notice at any time, for any reason. This provides complete flexibility—if you find better accommodation, receive job relocations, or simply want to move, you’re not locked into fixed terms. This represents substantial improvement over previous rules where breaking fixed terms incurred penalties.
Notice Periods for Landlords:
Landlords must provide minimum two months’ notice (longer for some grounds). Crucially, notice can only be served under specific Section 8 grounds—no arbitrary terminations exist.
What the Renters Reform Act Means for Tenants
The reforms deliver substantial improvements for private renters across multiple dimensions.
Greater Security:
The elimination of Section 21 means you can’t be evicted without legitimate cause. Families can settle in communities, children can complete school years without disruption, and tenants can genuinely treat rental properties as long-term homes rather than temporary accommodations.
Easier Dispute Resolution:
The new Property Ombudsman scheme provides free dispute resolution. Tenants can challenge unfair rent increases, poor property conditions, and deposit disputes without expensive legal proceedings. The ombudsman has enforcement powers including fines against non-compliant landlords.
Protection Against Unfair Rent Increases:
Landlords can increase rent maximum once annually, and tenants can challenge increases to the First-tier Tribunal if they exceed market rates. Previously, tenants facing excessive increases had limited recourse—acceptance or Section 21 eviction often followed complaints.
Improved Property Standards:
The Decent Homes Standard now applies to private rentals. Properties must be:
- Free from serious hazards
- In reasonable repair
- Have reasonably modern facilities
- Provide effective insulation and heating
Local authorities gain stronger enforcement powers, with fines up to £30,000 for serious breaches.
Right to Challenge Poor Conditions:
Crucially, tenants can now request repairs and raise concerns without fearing retaliatory eviction. With Section 21 abolished, landlords can’t punish complaints with eviction notices. This fundamental shift should drive property condition improvements across the sector.
For tenants considering whether renting or buying makes more sense in this new environment, our shared ownership guide explores alternative pathways to housing security. If you’re ready to explore property ownership, create a free account to view properties and set alerts for homes in your target areas.
What the Renters Reform Act Means for Landlords
While tenant protections strengthen, landlords face substantially changed operating environments.
Reduced Flexibility:
The loss of Section 21 means you can’t simply end tenancies when circumstances change. Selling properties, moving family in, or portfolio restructuring all require longer notice periods and legitimate justification. This reduces agility and complicates strategic planning. Landlords considering portfolio exits should explore options including remortgaging to release equity before divesting rental stock.
Increased Compliance Requirements:
Landlords must:
- Register with the Property Ombudsman scheme (£100-£300 annually)
- Maintain comprehensive property records
- Document all communications with tenants
- Ensure properties meet Decent Homes Standard
- Provide detailed grounds for any possession proceedings
Higher Legal Certainty Required:
Every eviction now requires court proceedings with evidential standards. Landlords must maintain meticulous records—rent payment histories, maintenance request logs, neighbour complaint documentation—to support Section 8 claims. Amateur landlords managing one or two properties may find this professionalism requirement challenging.
For those new to property investment or considering entering the rental market despite these reforms, understanding how to become a real estate investor in today’s regulatory environment is essential before committing capital.
Record-Keeping:
Contemporary property management demands:
- Timestamped communication logs
- Photographic property condition evidence
- Detailed financial records
- Compliance certification (gas safety, EPC, electrical, etc.)
- Maintenance request and completion documentation
Risk of Penalties:
Non-compliance attracts substantial penalties:
- £7,000 fines for ombudsman non-membership
- £30,000 fines for serious property standard breaches
- Extended notice periods for fraudulent possession claims
- Potential prosecution for serious or repeated violations
Many landlords are reconsidering whether the hassle justifies returns, particularly those with properties in high-maintenance older buildings where compliance costs are mounting.
Impact on the UK Rental Market
The reforms create predictable market dynamics that will reshape rental supply and demand through 2026-2027.
Potential Landlord Exits:
Industry surveys suggest 15-25% of landlords are considering portfolio exits within 2-3 years. Drivers include:
- Section 21 abolition reducing flexibility
- Increased compliance costs
- Mortgage interest tax restriction impacts
- EPC rating requirements (minimum Band C by 2028)
- General regulatory burden accumulation
High-net-worth landlords with substantial portfolios may seek large mortgage loans to consolidate holdings and professionalize operations, while smaller landlords increasingly exit the market entirely.
Supply vs Demand Imbalance:
If substantial landlord exits materialize without corresponding demand reduction, rental supply tightens. Basic economics suggests constrained supply with sustained demand pushes rents upward—the opposite of what reforms intend.
Rent Pressure:
Compliance costs (ombudsman fees, enhanced maintenance, legal fees for possession) ultimately flow to rent levels. Landlords operating on thin margins may increase rents to maintain profitability, though tribunal challenge rights should moderate excessive increases.
Regional Differences:
Southern regions with higher prices and yields may absorb compliance costs more easily than northern regions with lower rents. Expect differential impact—London landlords might absorb costs that make properties in Stoke-on-Trent or Scunthorpe uneconomical as rentals.
Conversely, landlords with high-value London property portfolios may find that professional management and higher rents make compliance economically viable despite increased regulatory burden.
Long-Term Market Stability:
Optimistically, reforms should drive professionalisation. Amateur landlords exit, professional operators with scale and systems remain, and overall property standards improve. Pessimistically, reduced supply and higher rents harm the tenants reforms aimed to protect. The actual outcome emerges through 2026-2028 as market adjustments unfold.
Wondering how rental market changes might affect your decision to rent versus buy? Use our mortgage comparison calculator to see if homeownership becomes financially viable as rental costs potentially increase under the new regulations.
Practical Steps to Take Now
For Tenants:
Understand Your Notice Rights: Familiarize yourself with the two-month notice requirement and your protection against arbitrary eviction. You can’t be evicted without legitimate Section 8 grounds.
Document Property Condition: Photograph your property comprehensively at move-in and regularly thereafter. If disputes arise about property condition or deposits, contemporaneous evidence proves invaluable.
Know Dispute Channels: Register with the Property Ombudsman scheme details for your landlord and understand how to raise complaints if issues arise.
Challenge Unfair Practices: If your landlord attempts Section 21-style evictions (which are now illegal) or threatens eviction following maintenance requests, report this to local authorities immediately.
Explore Property Ownership: With increased rental security, now may be the time to assess whether you could transition from renting to ownership. Create an account to browse properties and understand what’s achievable within your budget.
For Landlords:
Review Tenancy Agreements: Ensure agreements reflect open-ended periodic structures and don’t reference Section 21 provisions. Use solicitor-approved templates aligned with 2026 legislation.
Understand Section 8 Grounds Thoroughly: Know which grounds are mandatory versus discretionary, what evidence courts require, and realistic timelines for possession proceedings.
Prepare Evidence Systems: Implement systematic record-keeping—digital communication logs, maintenance tracking software, monthly property inspections with photographic records.
Join the Property Ombudsman: Membership is now mandatory. Choose between approved schemes and factor annual costs into budget planning. According to The Property Ombudsman official guidance, membership costs range £100-£300 annually depending on portfolio size.
Consider Professional Management: Landlords with full-time jobs may find DIY management increasingly difficult. Professional management companies charge 10-15% of rent but handle compliance, maintenance, and tenant communications. For those with complex property holdings requiring high-net-worth mortgage solutions, professional management becomes almost essential.
Frequently Asked Questions
When does the Renters Reform Act start?
Implementation is phased throughout 2026. Section 21 abolition takes effect April 2026 for new tenancies and July 2026 for existing tenancies. Full enforcement powers become operational in 2027.
Can landlords still evict tenants?
Yes, but only under specific Section 8 grounds including rent arrears, anti-social behaviour, property sale, or moving in family. All evictions require court proceedings—landlords can’t simply serve notice and expect automatic possession.
Will rents go up?
Likely in many areas. Increased compliance costs, longer possession timelines, and reduced landlord supply all create upward pressure. However, tribunal challenge rights for excessive increases should moderate the most extreme rises.
Does this apply to existing tenancies?
Yes. All tenancies—new and existing—convert to open-ended periodic tenancies by July 2026. Section 21 is abolished universally, not just for new agreements.
Is Section 21 fully banned?
Completely. No exceptions exist. All possession claims must proceed under Section 8 grounds with court oversight. This represents permanent structural change to English rental law.
Comparison Table: Before vs After Renters Reform Act
| Aspect | Before Reform | After Reform (2026) |
|---|---|---|
| Section 21 Evictions | Allowed – no reason needed | Abolished completely |
| Tenancy Type | Fixed-term (6-12 months) | Open-ended periodic only |
| Tenant Notice Period | 1 month (periodic) | 2 months (any time) |
| Landlord Possession Route | Section 21 (no grounds) or Section 8 | Section 8 only (specific grounds) |
| Rent Increases | Annual (limited challenge) | Annual + tribunal challenge right |
| Property Standards | Basic statutory requirements | Decent Homes Standard |
| Dispute Resolution | Courts or deposit schemes only | Property Ombudsman access |
| Landlord Compliance | Basic safety certificates | Ombudsman membership + enhanced record-keeping |
Final Verdict: A New Era for UK Renting
The Renters Reform Act delivers on its promise of stronger tenant protections while creating genuine challenges for landlords adapting to more regulated operations.
Who Benefits Most:
Long-term tenants seeking stability win substantially. Families can put down roots, children maintain school continuity, and the psychological security of knowing you can’t be arbitrarily evicted transforms rental housing from temporary shelter into genuine homes.
Who Faces Challenges:
Small-scale landlords with one or two properties, particularly older individuals who’ve operated informally, face the steepest adjustment. The professionalization requirement—systems, record-keeping, legal compliance—may exceed their capability or interest, driving portfolio exits.
Long-Term Outlook:
The rental sector will likely contract then stabilize at a smaller, more professional scale. Remaining landlords will be those with systems, scale, and commitment to proper property management. Rent levels may increase moderately, but property standards should improve commensurately.
For tenants, security and standards improve measurably. For landlords, flexibility decreases while compliance requirements increase. For the market overall, these represent necessary adjustments toward a more balanced, fair rental sector that treats housing as homes rather than purely financial instruments.
Both tenants and landlords should approach 2026 proactively—understanding rights and responsibilities, implementing proper systems, and recognizing that English renting has permanently shifted toward European models prioritizing tenant security over landlord flexibility.
For detailed advice on how these rental reforms affect your property investment decisions or housing strategy, contact Million Plus at Paul.welch@millionplus.com for expert guidance navigating the new regulatory landscape.
