The Renters’ Rights Act 2026 is set to introduce wide-reaching changes to the private rental sector, with implementation expected from May 2026.
For landlords, this marks a significant shift in how tenancies are structured, managed and reviewed. While much of the conversation has focused on uncertainty, the reality is that the legislation is designed to create a more consistent and transparent framework across the rental market.
Understanding these changes now is key. With the right preparation and support, landlords can remain compliant while continuing to maximise the performance of their investment.
At Northern Group, we are members of Propertymark and keep up to date with their guidance and industry updates to ensure our landlords are fully informed and prepared for what’s ahead.
A Fundamental Change to Tenancy Structures
One of the most significant reforms introduced by the Act is the removal of fixed-term tenancies.
From May 1, 2026, all existing Assured Shorthold Tenancies will automatically convert into Assured Periodic Tenancies, regardless of how much time remains on the agreement. For example, a 12-month tenancy agreed today and due to end in 2027 will still convert into a rolling tenancy from May 2026.
Importantly, landlords are not required to issue new tenancy agreements as part of this transition. Existing agreements will continue to apply, except where any clause conflicts with the new legislation, in which case the Act will override it. Existing tenancies will need to be serve the The Renters’ Rights Act Information Sheet 2026 before May 31st. As part of our management service Northern Group will serve this on your behalf.
For new tenancies created after this date, fixed terms will no longer be permitted. All tenancies must begin as periodic agreements, and tenants will have the right to end the tenancy at any time by providing two months’ notice.
This represents a shift in structure, but not necessarily a loss of stability. In practice, well-managed properties and strong tenant relationships remain the key drivers of long-term occupancy.
Rent Increases Will Follow a Formalised Process
The Act introduces a standardised process for rent increases, removing the ability to rely on informal agreements or clauses written into tenancy contracts.
From May 2026, all rent increases must follow the formal Section 13 process. This means landlords can propose one increase per year, must provide a minimum of two months’ notice, and the increase can only take effect at the start of a new rental period.
Tenants will also have the right to challenge any proposed increase through the First-tier Tribunal before it takes effect. If challenged, the increase is paused, and the Tribunal will determine the appropriate market rent.
Crucially, this assessment is based entirely on objective evidence, including comparable properties, condition, size and location. It does not take into account a landlord’s individual costs or financial pressures.
This makes accurate valuations and strong market evidence more important than ever. Setting the correct rental level is no longer just about maximising return, but about ensuring compliance and avoiding delays.
Changes to Rent in Advance and Tenant Affordability
Another important change is the restriction on rent in advance.
For tenancies starting after May 2026, landlords and agents will no longer be able to require or request multiple months’ rent upfront as a condition of granting a tenancy.
While tenants may still choose to pay in advance voluntarily, this cannot be encouraged or used as a deciding factor between applicants.
This reform is designed to remove barriers for certain tenant groups, but it also shifts greater emphasis onto affordability checks and referencing processes.
Guarantors are expected to play a more significant role, particularly for tenants who may not meet standard affordability criteria or for those relocating from overseas.
Possession and the End of Section 21
The abolition of Section 21 is one of the most widely discussed elements of the Act. From the expected implementation in May 2026, landlords will no longer be able to rely on “no fault” evictions. Instead, possession must be gained through updated Section 8 grounds.
These include clear routes for landlords who wish to:
- Sell their property
- Move into the property themselves or with a family member
Both scenarios require a minimum of four months’ notice and are subject to a protected period at the start of a tenancy. Importantly, valid Section 21 notices issued before implementation are expected to be able to proceed, subject to transitional provisions and time limits for court action.
Addressing Common Landlord Concerns
As the Renters’ Rights Act approaches, many landlords are raising similar concerns. While the changes are significant, much of the uncertainty comes from misunderstanding how the legislation will work in practice.
Will I still be able to regain possession of my property?
Yes. While Section 21 is being removed, landlords will still be able to regain possession through updated Section 8 grounds.
If you intend to sell your property or move into it, you will be able to serve notice using the appropriate ground, with a minimum four-month notice period. These routes are intended to balance landlords’ ability to regain possession with increased tenant security.
What happens if a tenant breaches the tenancy agreement?
Landlords will still be able to take action if a tenant fails to pay rent, damages the property, or breaches the terms of the tenancy.
The key difference is that the process will rely more heavily on clear evidence, correct notice service, and strict compliance with procedure. This makes professional management and thorough record keeping more important than ever.
Will tenants be able to leave whenever they want?
No. Although fixed terms are being removed, tenants will be required to provide a minimum of two months’ notice to end a tenancy under the new periodic system
This ensures landlords have time to prepare for a change in occupancy and re-market the property if needed.
Will I lose control over who I rent to?
No. Landlords will still be able to carry out full referencing, affordability checks and Right to Rent processes.
What is changing is that certain blanket restrictions, such as refusing tenants solely based on family status or receipt of benefits, will be restricted However, decision-making based on affordability and suitability will remain unchanged.
Will I be forced to accept pets?
Not necessarily. Tenants will have the right to request a pet, but landlords can still refuse where there is a reasonable and evidenced justification
This could include the size or suitability of the property, restrictions within a superior lease, or other legitimate factors. The key requirement is that decisions are made fairly and communicated clearly.
What This Means for Landlords in Manchester
While the Act introduces higher standards and more regulation, it is primarily aimed at creating a more consistent and professional rental sector.
For landlords who already operate to a high standard, these changes reinforce best practice rather than fundamentally changing how they manage their properties.
Manchester continues to see strong rental demand, particularly in areas such as Ancoats, the Northern Quarter and the wider city centre.
Properties that are well presented, accurately priced and professionally managed are still letting quickly, often with high levels of tenant interest.
The Renters’ Rights Act is not expected to reduce underlying rental demand. Instead, it places greater importance on:
- Evidence-based valuations
- Strong tenant selection
- Clear and compliant processes
Landlords who adapt to these requirements will continue to be well positioned within the market.
The Role of Professional Property Management
As the regulatory landscape becomes more detailed, the role of a managing agent becomes increasingly important.
At Northern Group, we support landlords through every stage of the lettings process, from initial valuation through to ongoing management and compliance.
By working in line with guidance from Propertymark, we ensure our approach aligns with current legislation and industry standards.
Our focus is on helping landlords:
- Stay compliant
- Reduce risk
- Maximise return on investment
Preparing for May 2026
With the expected implementation date approaching, landlords should begin preparing now. Reviewing your current tenancies, understanding your property’s position in the market, and ensuring your processes are aligned with the new legislation will be key to a smooth transition.
The Renters’ Rights Act represents a major shift for the private rental sector, but it is not a negative one for informed and proactive landlords.
With the right knowledge and support, landlords can continue to operate successfully within a more structured and transparent market.
If you own a property in Manchester and would like guidance on how these changes may affect you, Northern Group is here to help.