PHASE 1 · ENGLAND

What Changes for Landlords on 1 May 2026

A practical guide to the major Phase 1 changes under the Renters' Rights Act 2025. From Section 21 abolition to new possession grounds, rent controls, and operational requirements.

Section 21 Abolished: No More "No-Fault" Evictions

What's Ending

From 1 May 2026, you can no longer serve a Section 21 "no-fault" eviction notice. All possession proceedings must now be brought under Section 8 grounds only.

This is a fundamental shift: you must now have a reason—and grounds—to take possession of your property.

For Existing Section 21 Notices

Section 21 notices served before 1 May 2026 may still be valid, provided:

  • The correct notice period was given (2 or 3 months depending on when the tenancy started).
  • The notice is still in-flight on 1 May 2026 (i.e., the notice period has not expired).
  • All prescribed information requirements were met.

You should act quickly if you have an outstanding Section 21 notice; these will expire on or before 30 September 2026 depending on service date.

Practical Impact

You now need grounds to evict. These grounds are set out in Section 8 of the Housing Act 1988 (expanded and modified by Phase 1). Understand the new grounds and protected periods before the change takes effect.

All Tenancies Become Periodic

Fixed-Term ASTs Are Prohibited

From 1 May 2026, you cannot create a new fixed-term Assured Shorthold Tenancy (AST). New tenancies must be periodic from the start.

Existing Fixed Terms Convert

All existing fixed-term ASTs will automatically convert to periodic tenancies on 1 May 2026. The rent and other terms remain the same, but the tenancy no longer has an end date. Instead, it continues on a monthly or other periodic cycle.

Tenant Notice to Quit

Tenants can now give notice to end their tenancy at any time, with 2 months' written notice. This is a significant change: you may no longer rely on fixed-term end dates to regain possession.

Planning point: Review how this affects your portfolio. Periodic tenancies require proactive management and clear communication with tenants about their rights and your obligations.

New Possession Grounds and Protected Periods

37 Grounds for Possession

Phase 1 introduces or modifies 37 grounds under Section 8 of the Housing Act 1988. These include mandatory grounds (where the court must grant an order) and discretionary grounds (where the court may grant, if it considers it reasonable).

Grounds cover rent arrears, nuisance, waste, anti-social behaviour, breach of tenancy terms, and (in limited cases) landlord's own occupation.

12-Month Protected Period

For most grounds, there is a 12-month protected period at the start of each tenancy. During this period, you cannot rely on those grounds to seek possession, except for:

  • Serious antisocial behaviour or criminality.
  • Domestic abuse.
  • Actual or threatened violence.
  • Failure to provide a reference or prescribed information.

Prior Written Notice Requirements

Some grounds (e.g., Ground 1, Ground 1A, Ground 6A) require you to give prior written notice to the tenant before you can rely on them. For example, if you plan to occupy the property yourself (Ground 1), you must serve notice at the start of the tenancy.

Failure to give the required notice may defeat your claim, even if the ground exists.

Rent Increases via Form 4A Only

Statutory Process Only

From 1 May 2026, you can only increase rent using the statutory Section 13 process and the prescribed Form 4A. Rent review clauses in tenancy agreements become void.

No more negotiated or contractual rent increases: the law sets the procedure.

Once Per Year Maximum

You can serve a rent increase notice at most once per year. You must give at least 2 months' notice (for periodic tenancies). The notice takes effect on the next rent payment date after the notice period expires.

Tenant Challenge Rights

Tenants can challenge your rent increase at the First-tier Tribunal (Property Chamber) if they believe it is excessive. The Tribunal will consider the open market rent for comparable properties. You must be prepared to justify your increase.

Rent Cap (From September 2025)

Note: From September 2025, there is a 5% cap on rent increases year-on-year (aligned with the Consumer Price Index). Check the latest cap before issuing Form 4A notices.

Bidding and Rent-in-Advance Restrictions

No Bidding Above Asking Rent

You (and your letting agent) cannot invite tenants to bid for a property above the advertised rent, nor can you accept a bid above asking rent. This closes a significant loophole used to circumvent rent controls.

Breach can result in a Rent Repayment Order and potential civil penalties.

Rent in Advance Limited

Rent in advance is limited to one month maximum, except in very specific circumstances (e.g., where a guarantor is not available, or during the protected period). Any rent paid in excess of one month must be returned.

Compliance point: Review your lettings practices and agent agreements. Ensure your property advertisements and tenancy agreements comply with these restrictions.

Government Information Sheet

Must Be Served on All Existing Tenants

By 31 May 2026, you must serve the prescribed Government Information Sheet on all existing tenants. This is a statutory obligation.

The Information Sheet is a document from GOV.UK that explains tenants' rights and obligations under the Renters' Rights Act 2025.

New Tenancies

The Information Sheet must also be provided to all new tenants at the start of each tenancy, before or at the point of move-in.

How to Comply

The prescribed document is published on GOV.UK. You must serve it in person or by post. Consider keeping evidence of service (signed receipt or postal tracking).

Failure to serve the Information Sheet may render any possession proceedings invalid.

Written Information Requirements

New Prescribed Information

Phase 1 introduces new prescribed information that must be provided in writing to tenants. This is set out in SI 2026/324 (The Assured and Assured Agricultural Tenancies (Amendment) Regulations 2026).

Information includes details of:

  • Your name, address, and contact details.
  • The property address and type.
  • Rent and payment arrangements.
  • Deposit protection details.
  • Tenants' rights (including right to request a pet, complaint procedures, etc.).
  • Your obligations as a landlord.

Timing

For new tenancies: this information must be provided in writing before or at the point of move-in.

For existing tenancies: you should provide it as soon as possible (ideally by 31 May 2026 alongside the Government Information Sheet).

Consequence of Non-Compliance

Failure to provide prescribed information may invalidate possession proceedings and expose you to Rent Repayment Orders.

Pet Requests

Tenants Can Request to Keep a Pet

Tenants now have a statutory right to request to keep a pet. You cannot automatically refuse.

Your Response Obligations

You must respond in writing within 28 days of the request. If you refuse, you must provide written reasons. These reasons must be reasonable grounds related to:

  • The size, type, or breed of the animal.
  • Allergies of other residents.
  • Safety concerns.
  • Structural features of the property (e.g., no garden).
  • Impact on other tenants or the property.

Pet Insurance and Conditions

You can require the tenant to obtain pet insurance to cover damage. You can also impose reasonable conditions on pet ownership (e.g., cleaning, veterinary certificates).

Arbitrary or blanket pet bans are no longer acceptable.

Anti-Discrimination Provisions

Benefits Receipt

You cannot refuse a tenant, or offer less favourable terms, on the grounds that they receive state benefits (e.g., Housing Benefit, Universal Credit). Many landlords have historically excluded benefit-receiving tenants; this is now unlawful.

Children

You cannot refuse a tenancy to a family with children, or impose additional conditions or charges on the basis of their children.

Enforcement

These protections are enforceable by tenants through the courts. Breach may result in compensation and potential damages. Local authorities also have enforcement powers.

Rent Repayment Orders

Expanded Scope

Phase 1 expands the scope of Rent Repayment Orders (RROs). Tenants (and local authorities) can now apply for RROs if you breach certain statutory obligations, including:

  • Failing to provide prescribed information.
  • Failing to serve the Government Information Sheet.
  • Unlawfully discriminating against tenants (benefits, children, etc.).
  • Violating bidding or rent-in-advance restrictions.
  • Breaching deposit protection rules.
  • Harassment or unlawful eviction.

Quantum

An RRO can order you to repay up to 12 months' rent. The amount is at the tribunal's discretion, but there is a presumption of full repayment unless you can show good reason otherwise.

Risk Mitigation

Ensure full compliance with all prescribed information, notification, and procedural requirements. RROs are a significant financial exposure.

Civil Penalties

Local Authority Enforcement

Local authorities can now impose civil penalties for breach of certain Phase 1 obligations. This is in addition to criminal prosecution and RROs.

Starting Points and Maximums

Civil penalties vary by breach type and severity. Examples include:

  • Failing to provide prescribed information: Starting point £5,000–£10,000.
  • Unlawful discrimination (benefits/children): Starting point £10,000–£20,000.
  • Bidding or rent-in-advance violation: Starting point £5,000–£15,000.
  • Maximum per breach: up to £30,000 in some cases (depending on breach severity and recidivism).

Cumulative Exposure

If you commit multiple breaches (e.g., failing to provide information to 10 tenants), you may face penalties for each breach. This can escalate quickly.

The SunClause Toolkit Covers Every One of These Changes

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Author: SunClause Compliance Desk

Last Reviewed: April 2026

Sources: Renters' Rights Act 2025; The Assured and Assured Agricultural Tenancies (Amendment) Regulations 2026 (SI 2026/324); Housing Act 1988 (as amended); Ministry of Housing, Communities and Local Government guidance.

Disclaimer: This page is for general information only and does not constitute legal advice. Landlords should seek independent legal advice on their specific circumstances, particularly regarding possession proceedings and dispute resolution. SunClause does not warrant the completeness or accuracy of this information. Laws and regulations may change. Always refer to the latest statutory instruments and government guidance. In case of conflict between this page and the law, the law prevails.