"Today marks a watershed moment for the private rented sector as the Renters' Rights Act comes into force"
- Nathan Emerson - Propertymark
The private rented sector entered a new legal era on 1 May 2026 as the first phase of the Renters' Rights Act 2025 came into force, bringing sweeping changes that affect letting agents, landlords and tenants across England simultaneously.
The most immediate change is the abolition of Section 21. Landlords can no longer remove tenants without a specific legal reason. All possession claims must now be brought under revised Section 8 grounds, requiring clear justification and supporting evidence. For tenants, this marks a significant shift in security of tenure. For agents, it fundamentally changes the way possession cases are prepared and pursued.
Periodic tenancies replace fixed-term agreements
Alongside the end of no-fault evictions, the private rented sector moves fully to a system of rolling periodic tenancies. Fixed-term contracts are gone. Tenants no longer face a fixed end date forcing them to move, and eviction is only possible through defined legal grounds. For agents, the change reshapes how they manage renewals, notice periods and landlord expectations across their entire portfolio.
Rent arrears cases are now subject to revised thresholds. Mandatory possession under Ground 8 requires a minimum of three months' arrears, with a four-week notice period applying across arrears-related grounds. Courts retain discretion in lower-level arrears cases, where possession is not automatic. This more complex enforcement landscape means agents need to carefully assess the strength of each case before taking action.
Evidence, compliance and record-keeping
With possession now entirely dependent on statutory grounds, accurate record-keeping has become more critical than ever. Agents must demonstrate clear compliance with rent arrears processes, tenancy documentation and communication trails. Gaps in evidential support risk delays or dismissed claims, raising the operational stakes for every letting agency.
The Act also introduces immediate restrictions on rent increases, capping them at once per year, and bans rental bidding practices. Strengthened anti-discrimination provisions place additional responsibility on agents to ensure applicant handling is consistent and transparent throughout.
Propertymark has outlined what agents must now have in place: tenancy documentation reflecting the new periodic structure, staff trained on revised possession grounds and procedures, landlords clearly advised on the implications of the new regime, and all cases reviewed against updated legal thresholds.
"Today marks a watershed moment for the private rented sector as the Renters' Rights Act comes into force," said Nathan Emerson, chief executive of Propertymark. "The removal of Section 21 and the move to a fully periodic tenancy system represent one of the most significant structural changes the industry has ever faced."
"This is no longer about preparation; it is about implementation. Agents must now be fully operational within the new legal framework, ensuring every process, communication and decision is compliant from day one."
"While this transition will require adjustment, it also presents an opportunity for a more transparent and consistent lettings system. Propertymark will continue to support agents throughout this change with practical guidance, training and qualifications."
What the changes mean for tenants
For tenants, the practical effect is considerable. No-fault evictions are gone, rent increases are capped, and bidding wars are prohibited. Where possession is disputed, tenants have the right to present their case in court. Landlords and agents must now demonstrate that every step of any possession process is evidence-based and legally grounded.
Emerson noted that agents have a central role to play in making the transition work. "The removal of Section 21 means tenants can no longer be evicted without a specific legal reason, which represents a major shift in security of tenure," he said.
"At the same time, the new system places greater responsibility on landlords and agents to ensure every step of the process is evidence-based and fully compliant with the law.
"This is a complex transition for the sector, but professional, well-trained and qualified letting agents will play a vital role in making sure these changes work effectively in practice."
