The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, marks the most significant reform of England’s private rental sector in decades.
While the changes are being introduced gradually, the core provisions will come into force from 1 May 2026 - and they will fundamentally change how long-term residential lettings operate.
For many landlords currently renting on a long-term (AST) basis, these reforms raise an important question:
Is traditional long-term renting still the most flexible and commercially sensible option?
At Staymo, we are already seeing a growing number of landlords transitioning from long lets to professionally managed mid-term and short-term rentals as a direct response to these changes.
What Is Changing Under the Renters’ Rights Act 2025?
1. Section 21 Abolished - What Now?
The abolition of Section 21 no-fault evictions means landlords can no longer regain possession without a valid legal reason.
Landlords must now rely on Section 8, which:
- requires evidence,
- involves stricter grounds,
- and often leads to longer and more expensive legal processes.
Impact:
Less flexibility and greater risk if circumstances change.
2. Fixed-Term Tenancies Abolished
Another major reform is the removal of fixed-term tenancies, replaced by mandatory periodic tenancies.
Tenants can leave with two months’ notice, while landlords have limited exit options.
Fixed-term ASTs will be replaced by open-ended periodic tenancies.
Impact:
Reduced control over tenancy length and exit planning.
3. Ban on Rental Bidding Wars
Landlords and agents will be prohibited from encouraging or accepting offers above the advertised rent.
Impact:
In high-demand areas, landlords lose the ability to optimise rent through market competition.
4. Stricter Anti-Discrimination Rules
It will become unlawful to refuse tenants simply because they:
- receive benefits, or
- have children.
Impact:
More restrictions on tenant selection and risk profiling.
5. Higher Property Standards & Faster Enforcement
The Act introduces:
- the Decent Homes Standard (DHS) for the private rented sector,
- and Awaab’s Law, requiring urgent remediation of health hazards such as damp and mould.
Impact:
Increased compliance costs and faster enforcement timelines.
6. New Landlord Database & Ombudsman
All private landlords will be required to:
- register on a national digital landlord database, and
- fall under a new Private Rented Sector Ombudsman.
Impact:
Greater oversight, reporting obligations, and regulatory exposure.
Why Many Landlords Are Rethinking Long-Term Lets
The Renters’ Rights Act 2025 significantly reduces flexibility in the long-term rental model:
- harder exits
- limited pricing flexibility
- higher compliance burden
- increased legal exposure
As a result, many landlords are now exploring alternatives that sit outside traditional AST frameworks.
Mid-Term Letting: A Strategic Alternative
Professionally managed mid-term (1–6 months) offers a compelling alternative:
Greater Flexibility
- No open-ended tenancies
- Clear start and end dates
- Easier exit planning
Strong Demand
Mid-term demand is growing rapidly from:
- corporate relocations
- project-based professionals
- visiting medical staff
- families between house moves
Reduced Regulatory Exposure
- Not subject to AST periodic tenancy rules
- Different legal framework than traditional long lets
- Greater operational control
Optimised Returns (When Managed Properly)
With the right pricing, demand analysis and operational setup, many landlords achieve:
- comparable or higher net income
- with more control and transparency
Is Long-Term Letting Still Worth It in 2026?
For some landlords, long-term letting will remain suitable.
For many others, the regulatory balance has shifted.
If you’re currently letting on a long-term basis - or planning to re-let a property in 2026 - this is the right moment to reassess your strategy.
Speak to Staymo to understand a flexible, compliant alternative to traditional long-term letting under the new Renters’ Rights Act.
The rules are changing. Your strategy should too.
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