Agents are encouraged to watch the full webinar recording and review their systems, payment procedures and portfolio data now. Businesses that prepare early will be better placed to manage the transition smoothly and continue delivering compliant services to landlords and tenants.
Renters' Rights Act
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025. The first phase of reforms will take effect on 1 May 2026, marking the most significant shift to tenancy law in a generation. From this date, all existing and new private tenancies in England will move onto the new system.
Written statements and information requirements
From 1 May 2026, all new assured periodic tenancies must include the prescribed Written Statement. This can be incorporated into the tenancy agreement or served as a separate document. The final version is expected from the UK Government in March 2026.
Agents must also provide an Information Sheet to tenants and guarantors whose existing assured shorthold tenancies convert to the new system. This must be issued by 31 May 2026, and agents must be able to prove that it has been served correctly. The Government is due to publish the Information Sheet in March 2026.
If a pre-existing tenancy has no written agreement, the tenant must be given both the Written Statement and the Information Sheet.
Failure to provide the required information on time could result in a Local Authority fine of up to £7,000.
TIP: Proof of service is a key risk area.
Where possible, use systems that provide a clear audit trail, such as electronic signature platforms. If serving by post, consider obtaining a certificate of posting for each letter.
Review your CRM carefully. Ensure it accurately reflects all occupied assured shorthold tenancies, including those currently subject to Section 21 or Section 8 notices. Some systems automatically remove tenancies once notice is served. If this happens, you will need a separate tracking process to ensure no tenant is missed.
Student tenancies and Ground 4A
Student lets require particular attention, especially HMOs.
For student HMOs where a landlord intends to rely on Ground 4A, tenants must receive:
• the Information Leaflet; and
• a separate written notice confirming the landlord’s intention to rely on Ground 4A.
TIP: Categorise your portfolio now.
Clearly distinguish between student HMOs and non-HMO student properties. A simple internal checklist will help ensure the correct steps are followed for each property type. .
Restructuring payments: the three-step approach
The way payments are handled will change. Before the tenancy agreement is fully signed by all parties, agents may only request a holding deposit and a security deposit. Rent cannot be taken before the agreement is executed.
A practical three-step approach is:
• Confirm cleared funds for the holding deposit.
• Confirm cleared funds for the security deposit.
• Once the agreement is signed by all parties, offset the holding deposit and request the balance of the first month’s rent.
If rent is paid before the agreement is executed, it must be returned. Keeping it would be a breach.
TIP: This will require coordination across your team.
Negotiators, administrators and client accounting staff must all understand the revised process. Execution of the agreement creates a binding contract. Ensure landlords have provided all required compliance documents, such as gas safety certificates and EICRs, before signing. Document your updated onboarding process and train all relevant staff. Some agents are adopting a simple internal “traffic light” system to make clear when each payment can and cannot be taken.
Rent increases and Section 13
The Act formalises the rent increase process. Rent may only be increased once every 12 months, and increases must be implemented using the statutory Section 13 notice.
For tenancies that convert on 1 May 2026, the 12-month period does not automatically restart. It continues from the date of the last increase or the tenancy start date, as applicable. However, the notice period for increases will extend from one month to two months.
Tenants will also have easier access to challenge rent increases through the First-tier Tribunal. This makes evidence of market rent more important than ever.
TIP: Agents should:
- Regularly monitor local market data and portal comparables
- Retain clear evidence supporting proposed increases
- Record all rent increase activity in chronological order within their CRM Review deposit levels carefully.
Deposits must remain within the five-week cap (or six weeks if annual rent exceeds £50,000). If deposits are not topped up where required, landlords may not have sufficient funds available at the end of the tenancy. .
Ground 1 and 1A protected periods
The new rules introduce a 12-month protected period during which landlords cannot rely on Ground 1 (landlord occupation) or Ground 1A (sale).
In practice, this means notice can be served from month eight of a new tenancy, as four months’ notice is required.
For new tenancies starting on or after 1 May, this is relatively straightforward. However, for existing assured shorthold tenancies converting to assured periodic tenancies, clarification is still being sought on how the protected period will be calculated.
TIP: Agents should review any current cases where landlords are considering selling or moving back into a property. In some cases, and where legally compliant, serving a Section 21 notice before 1 May may provide greater certainty, subject to court timelines and vacant possession. .
Rent in advance and voluntary payments
From 1 May, agents and landlords cannot require more than one month’s rent in advance. Tenants may still choose to pay additional rent during the tenancy, but this cannot be required.
If voluntary overpayments are accepted, this must be clearly documented as tenant-led. Agents must also consider how funds are held and what happens if the tenant later gives two months’ notice. Any overpaid rent must be refunded.
Each business should decide whether voluntary overpayments will be passed directly to landlords or held and released monthly. In either case, a clear audit trail is essential.
Systems, controls and team readiness
Many existing processes are triggered by fixed-term tenancies. With the move to periodic tenancies, CRM systems must be reviewed to ensure rent review dates, compliance reminders and rent-in-advance triggers are not lost.
Agents should review how the Renters’ Rights Act affects each job role within the business. Negotiators, property managers, administrators and compliance leads will require tailored guidance.
Supporting agents to adapt
We provide practical guidance, webinars and resources to help agents navigate the transition and prepare their businesses with confidence. Propertymark Members—check your communication preferences to ensure you are receiving newsletters and legislative updates to stay informed every step of the way.
The Toolkit breaks down the legislation to help you inform your landlords and tenants. We have four guides covering the key things lettings agents need to know and what they need to think about to adapt, including the student rental market, ten key changes landlords must be aware of, and a quick guide for tenants.
Learn from renowned industry experts who will take you through how the Renters’ Rights legislation will affect landlords and agents. They will provide practical tips, insights and actionable advice on how to adjust to the new regime, covering periodic tenancies, eviction grounds, rent increases, enforcement, and much more.
We've created easy-to-share, bite-sized video explainers for the key elements of the legislation, including periodic tenancies, rent increases, PRS database, Ombudsman, redress, and the Decent Homes Standard. Fantastic to support your communication with landlords and tenants about how the sector will be impacted.
