The Renters' Rights Act: what London landlords need to know in 2026

The Renters' Rights Act received Royal Assent on 27 October 2025. Its core provisions come into force from 1 May 2026 — and they represent the most significant shake-up to England's private rental sector in a generation.

For landlords currently operating on traditional long-term tenancies, the question is no longer whether this affects you. It's what you do about it.

What's actually changing

Section 21 is gone. No-fault evictions are abolished. Regaining possession now requires a valid legal ground under Section 8 — with evidence, proper process, and the realistic prospect of a longer, costlier legal timeline if a tenant contests.

Fixed-term tenancies are abolished. All ASTs transition to open-ended periodic tenancies. Tenants can leave on two months' notice. Landlords cannot.

Rental bidding is banned. Landlords and agents are prohibited from soliciting or accepting offers above the advertised rent — removing a lever many London landlords have relied on in competitive markets.

Tenant selection is further restricted. Refusing applicants on the basis of benefit status or having children becomes unlawful. Tenant profiling narrows further.

Higher property standards, faster enforcement. The Decent Homes Standard now applies to the private rented sector. Awaab's Law requires rapid remediation of damp, mould and health hazards — with enforcement timelines tightening considerably.

A national landlord register and new ombudsman. All private landlords must register on a government database and fall under the jurisdiction of a new Private Rented Sector Ombudsman.

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Why landlords are rethinking their strategy

Taken together, these reforms reduce the core appeal of traditional long-let: control, flexibility and exit optionality. What remains is greater compliance cost, less pricing power and a legal framework that favours the tenant in most dispute scenarios.

This isn't alarmism — it's the direction the legislation is deliberately designed to move in.

As a result, a growing number of London landlords are moving toward mid-term letting as a structurally sounder alternative for 2026 and beyond.

Mid-term letting: The alternative worth understanding

Professionally managed mid-term rentals — typically 1 to 6 months — operate outside the AST framework entirely. That distinction matters considerably under the new legislation.

What it offers:

• Clear tenancy start and end dates — no open-ended exposure
• Growing demand from corporate relocations, project professionals, medical staff and families in transition
• No periodic tenancy obligations or Section 21/8 dependency
• Comparable or stronger net income when managed well — with full pricing transparency

This isn't a workaround. It's a different operating model — one that happens to align well with what the new regulatory environment penalises long-let landlords for not having.

Is long-term letting still the right model in 2026?

For some landlords, it will remain suitable. For many others, the regulatory and commercial balance has shifted enough to warrant a serious reassessment.

If you're currently on a long-let, approaching a tenancy renewal, or planning to re-let in 2026 — this is the right moment to review your options with someone who understands both the regulatory picture and the operational alternative.

The rules have changed. Whether your strategy does is up to you.