Major Reforms Coming to the Private Rented Sector
The Government has now confirmed the first phase of significant reforms to the private rented sector (PRS), coming into force on 1 May 2026. These changes will substantially reshape the rights and responsibilities of both landlords and tenants, with the aim of creating a fairer and more stable rental market. They are introducing the reform in phases.
Below is a summary of the key measures introduced in Phase 1:
- Abolition of Section 21 “No Fault” Evictions
From 1 May 2026, landlords will no longer be able to evict tenants using Section 21 notices under the Housing Act 1988, unless the notice has already been served before this date.
This marks one of the most substantial shifts in housing law in decades, strengthening long‑term security for tenants.
- Introduction of Assured Periodic Tenancies
The vast majority of new and existing PRS (Private Rented Sector) tenancies will automatically become Assured Periodic Tenancies.
This means:
- Tenants can remain in the property for as long as they wish, unless served with a valid Section 8 notice.
- Tenants will be able to end the tenancy by giving two months’ notice.
- Reformed Possession Grounds
While Section 21 is being abolished, landlords will still be able to regain possession, but only for valid reasons, such as living in the property themselves or allowing close relatives to live there, selling the property, carrying out major repair works to comply with improvement notices.
Revised Section 8 grounds will also include:
- Stronger powers to evict tenants engaging in anti‑social behaviour
- Easier eviction processes for tenants with serious and persistent rent arrears
These changes aim to balance tenant protections with landlords’ genuine need to resolve problematic situations.
- Rent Increases Limited to Once Per Year
Landlords must follow a revised Section 13 procedure and provide:
- At least two months’ notice of any rent increase
- A maximum of one rent increase per year
- Ban on Rental Bidding and Excessive Rent in Advance
Landlords and agents will be prohibited from:
- Asking for or accepting offers above the advertised rent
- Requesting more than one month’s rent in advance
This is intended to improve fairness and accessibility in the rental market.
- Protection Against Discrimination
It will become illegal for landlords or agents to discriminate against tenants:
- With children
- Who receive benefits
This includes:
- Withholding property information
- Preventing viewings
- Refusing to grant a tenancy
- Pet-Friendly Reforms
Landlords must properly consider all tenant requests to keep pets.
They will have:
- 28 days to respond
- A requirement to provide valid reasons if refusing
- Stronger Enforcement and Rent Repayment Orders
Local councils will see strengthened enforcement powers, including:
- Expanded civil penalties
- A requirement to publish enforcement activity
- Extended rent repayment orders applying to superior landlords
- Increased maximum penalties and higher sanctions for repeat offenders
What This Means for You
These reforms represent a major transformation for the PRS. Whether you are a landlord preparing for compliance, or a tenant wanting to understand your strengthened rights, early awareness is key.
If you have any questions about how these changes may affect your tenancy or your responsibilities as a landlord, please get in touch with our expert Dispute Resolution team by calling 01206574431 or by emailing enquiries@tsplegal.com.