Renters’ Rights Act phase one: A practical guide for letting agents

With Phase one of the Renters’ Rights Act now in force, letting agents must be ready for the significant reshaping of the private rented sector. Read our Renters’ Rights Act phase one: A practical guide for letting agents on everything you need to know. 

These reforms represent a fundamental shift in the system rather than a series of incremental adjustments. They will reshape how tenancies are structured, managed, and ultimately brought to an end. 

Importantly, the new rules apply to all tenancies at the same time, both existing agreements and new lets. This means agents must prepare across their entire portfolio, not just future tenancies. 

Key changes introduced in Phase one

End of Section 21 ‘No-fault’ evictions 

One of the most significant changes is the abolition of Section 21 of the Housing Act 1988. Landlords will no longer be able to regain possession without providing a legally valid reason.  

This removes the ability to issue “no-fault” eviction notices and instead requires landlords to rely on Section 8 possession grounds, which are evidence-based.  

The Government has stated that these grounds will be clarified and strengthened to make sure landlords can still act where there is genuine need.  

Any Section 21 notice served before 1 May 2026 will remain valid until it expires or possession is achieved. 

Fixed term tenancies replaced by assured periodic tenancies 

The Act removes fixed-term tenancies entirely, replacing them with Assured Periodic Tenancies (APTs) as the default. 

Under this model: 

• Tenancies no longer have a fixed end date  

• Rent will typically be paid monthly  

• Tenants can give notice at any time (subject to the required notice period)  

• Landlords can only regain possession using Section 8 grounds  

This shifts tenancy management from a fixed-term cycle to an ongoing process, requiring continuous oversight rather than renewal-based management. 

For letting agents navigating the May 2026 tenancy changes, this means moving away from renewal-driven workflows and towards continuous tenancy oversight and compliance. 

Rent controls and new notice rules 

New rules will apply to rent increases and notices: 

• Rent can only be increased once every 12 months  

• The statutory process must be followed, including formal notice requirements  

• Tenants will have the right to challenge rent increases through the appropriate legal process  

Agents will need to make sure that rent review processes are compliant, clearly documented, and consistently applied. 

New documentation and compliance requirements 

The new framework introduces additional expectations around documentation and transparency. 

Agents and landlords need to: 

• Update tenancy agreements to reflect periodic structures  

• Provide tenants with required information at the start of the tenancy  

• Maintain accurate records to support compliance and, where necessary, possession claims  

Deposit protection remains a central part of this compliance framework, particularly where evidence is required to support Section 8 claims or resolve disputes.

Phase one requirements for landlords

To prepare for the changes introduced under the Renters’ Rights Act, agents should focus on practical, portfolio-wide readiness.

Audit your current tenancies 

Start by reviewing your existing portfolio. 

Agents should: 

• Identify all current Assured Shorthold Tenancies (ASTs)  

• Prepare for their automatic conversion to periodic tenancies  

• Review tenancy terms to ensure they remain appropriate  

This audit will help identify gaps and prioritise the actions needed before implementation. 

Update tenancy agreements 

Tenancy agreements should be reviewed and updated to reflect the new legal structure. 

Key updates include: 

• Removing references to fixed terms and renewals  

• Checking agreements are suitable for rolling periodic tenancies  

• Reviewing clauses relating to rent increases and notice requirements  

Clear, updated agreements will help avoid confusion and support compliance. 

Remove section 21 processes 

Section 21 is no longer available, so existing processes must be updated. 

Agents should: 

• Remove Section 21 notices from all templates and workflows  

• Update CRM systems to reflect Section 8-only possession routes  

• Remove automated communications referencing Section 21 

Train staff on Section 8 and evidence requirements 

Teams must understand: 

• Section 8 possession grounds  

• Required evidence standards  

• How to document tenancy issues consistently  

Without this, possession claims and compliance processes may be weakened. 

Update rent and referencing processes 

Agents should: 

• Align rent increase processes with statutory requirements  

• Strengthen affordability and referencing assessments  

• Remove reliance on upfront rent strategies  

Review deposit compliance processes 

Agents must make sure: 

• All deposits are correctly protected  

• Prescribed information has been served correctly  

• Records are complete and accessible  

Deposit compliance now directly supports possession and dispute outcomes. 

Read our 30-day action plan for agents in our Turtl guide, which outlines the key steps needed to comply with the new reforms. 

To make sure nothing is missed, download and read our full Renters’ Rights Act readiness checklist, which provides a detailed, step-by-step guide on how to comply to these changes. Also, read our article on the Renters’ Rights Act Information Sheet for full guidance and requirements for issuing the information sheet.    

How Phase one will actually affect agents

 End of fixed-term tenancies 

• All tenancies convert to rolling periodic agreements  

• Fixed terms will no longer exist in the private rented sector  

• No “natural end date”, which removes traditional renewal and exit points  

This represents a structural shift away from tenancy cycles and towards continuous occupation models. 

How this affects agents: 

• Greater reliance on ongoing compliance and accurate tenancy records throughout the tenancy lifecycle  

• Loss of fixed renewal points requires more proactive tenancy management  

• Increased importance of inspections, communication logs, and documentation trails  

• Portfolio management becomes continuous rather than cyclical, requiring longer-term planning of tenancy events  

Agents will need to shift from managing tenancies in “stages” to managing them as ongoing compliance relationships. 

Section 21 abolition and reliance on Section 8 

• It’s no longer possible to use a “no-fault” eviction route

• All possession claims must be based on Section 8 statutory grounds  

This fundamentally changes how possession is approached, moving from notice-based processes to evidence-based justification. 

How this affects agents: 

• Evidence-led tenancy management becomes essential in all cases where possession may be required  

• Strong, consistent record-keeping of rent payments, communications, inspections, and tenancy behaviour is critical  

• Deposit compliance becomes more significant, particularly where evidence is required to support claims or resolve disputes  

• Poor documentation or compliance gaps may weaken or invalidate possession routes  

In practice, agents must assume that every tenancy may require evidential support for possession at any time, making consistent documentation essential. 

Rent rules and upfront payment restrictions 

• Rent increases are limited to once every 12 months   

• All rent increases must follow a formal section 13 statutory process   

• Tenants will have the right to challenge rent increases through the appropriate 

• Rent in advance is capped at a maximum of one month  

• Rental bidding practices will be prohibited   

These changes significantly reshape how rent is set, reviewed, and agreed. 

How this affects agents: 

• Cashflow forecasting and rent collection strategies may need to be restructured  

• Greater reliance on affordability and referencing assessments rather than upfront payments  

• Rent review processes must be formalised, documented, and consistently applied across all tenancies  

• Increased need for clear communication with landlords around income expectations and rental strategy  

Agents must move towards standardised rent processes, reducing flexibility but increasing compliance certainty. 

New tenancy documentation requirements 

• Mandatory written statement of terms required for all tenancies  

• Documentation must clearly set out rent, deposit, and tenant/landlord obligations  

• Government Information Sheet must be issued to tenants by 31 May 2026  

These requirements place greater emphasis on transparency and formalised documentation at the start of every tenancy. 

How this affects agents: 

• Full review and overhaul of tenancy agreement templates will be required  

• Increased risk of penalties where documentation is missing, inaccurate, or not issued on time  

• Stronger need for standardised templates and processes across the business  

• Greater importance of maintaining clear audit trails to evidence compliance  

Agents should make sure that all documentation is not only updated, but also consistently applied and correctly issued across their entire portfolio.

Deposits under the Renters’ Rights Act

Deposit protection remains a core legal requirement under the new regime, but its role becomes more significant as tenancy structures and possession rules change.  

Under Phase one, deposits are not just about compliance. They play a critical role in supporting possession claims, resolving disputes, and protecting landlord interests. 

What remains the same

• Deposit caps remain at five weeks’ rent (or six weeks where annual rent exceeds the threshold)  

• Deposits must still be protected within 30 days of receipt  

• Prescribed information must be served correctly and within the required timeframe  

These core requirements continue to apply across all tenancies and remain the foundation of deposit compliance. 

What has changed

• Deposit compliance becomes more closely linked to possession rights under Section 8   

• Greater reliance on evidence increases the importance of accurate deposit records   

• Increased scrutiny in disputes, particularly as tenancies become longer and fully periodic   

As possession becomes evidence-based, any gaps in deposit protection or documentation may impact an agent’s ability to support landlord claims. 

 New risks for agents 

• Longer tenancies increase the likelihood of wear and tear disputes   

• No fixed end dates mean fewer “natural” check-out points for inspections and condition reviews   

• Poor or inconsistent documentation can weaken deposit claims and dispute outcomes   

• Gaps in compliance may create wider legal and operational risks   

What this means in practice 

Agents must treat deposit compliance as an ongoing process, not a one-time administrative task. 

This includes: 

• Maintaining accurate and accessible deposit records throughout the tenancy   

• Making sure check-in documentation and inventories are robust and detailed   

• Carrying out regular inspections to support condition evidence   

• Keeping clear audit trails to support both disputes and possession claims   

Why this matters

Under the new regime, deposits sit at the centre of compliance, evidence, and risk management. 

Agents who maintain strong deposit processes will be better positioned to: 

• Support landlords in possession claims  

• Achieve fair and defensible dispute outcomes  

• Demonstrate full compliance with legal requirements  

As expectations increase, working with a deposit protection provider that supports clear processes and compliance standards becomes essential. 

What you need to do next 

 Now that you understand the key changes under the Renters’ Rights Act, the focus should shift to practical preparation across your portfolio.

To make sure nothing is missed, download and read our full Renters’ Rights Act readiness checklist, which provides a detailed, step-by-step guide to preparing your agency for the changes.