Property investment in the UK is changing, and landlords have a new set of rules to keep up with. Staying compliant helps protect your investment and keeps things running smoothly with your tenants.
The changes may sound demanding at first, but the aim is to make the rental market more stable and easier to navigate for both landlords and tenants.
The Renters’ Rights Act 2025 is now the main driver of the new landlord rules 2026, and its first measures took effect on 1 May 2026. It has already reshaped tenancy agreements, eviction processes and landlord responsibilities across England. The Autumn Budget 2025 has added a second layer of change, with tax rules for landlords shifting from April 2026.
This guide sets out the new landlord rules 2026 in plain terms and explains how a property partner that handles the whole lifecycle, sourcing, building and managing, can help you stay ahead of them.
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025, replacing the earlier Renters (Reform) Bill, which never became law. Its main measures came into force on 1 May 2026, with further changes being introduced in stages. In other words, this is now active legislation, not a proposal.
For landlords, this means the rules around evictions, tenancies, rent increases and property standards have already changed. These aren’t future requirements. They’re already in effect.
Section 21, which allowed landlords to evict tenants without giving a reason, was abolished on 1 May 2026. Since then, landlords have needed a valid legal ground for possession and must use a Section 8 notice to start the eviction process.
The grounds for possession cover situations such as a landlord wanting to sell or move into the property, a tenant falling behind on rent or antisocial behaviour. However, landlords cannot use the selling or moving-in grounds during the first 12 months of a tenancy.
Most grounds for possession require four months’ notice. Rent arrears are treated differently. If a tenant owes at least three months’ rent, the court must grant possession. If they owe less, the court can decide whether the tenancy should continue. Antisocial behaviour also follows a different process, with a shorter notice period and the option to begin court proceedings straight away.
That makes careful tenant selection even more important. Lamont Estates, the lettings and management arm of Prosperity Group, carries out thorough checks on every applicant to reduce the risk of problems later in the tenancy.
A court will only grant possession if the tenant’s deposit was protected in a government-approved scheme and the required information was provided when the deposit was taken. If that didn’t happen, the landlord must have returned the deposit or resolved the issue through the courts.
This rule already existed under the Housing Act 2004, but Section 21 previously gave landlords another route to possession. With Section 21 now abolished, that option is no longer available.
The three approved deposit schemes are still the Deposit Protection Service (DPS), mydeposits and the Tenancy Deposit Scheme (TDS), and landlords still have 30 days from receiving the deposit to protect it. Antisocial behaviour is the only possession ground that is exempt from this requirement.
It’s worth checking your deposit paperwork before you ever need to serve notice. Even if the deposit was protected on time, missing or late prescribed information can still cause problems with a Section 8 claim years later.
All assured shorthold tenancies have now become assured periodic tenancies, and all new tenancies start on a periodic basis. That means there is no fixed end date. Instead, the tenancy continues on a rolling basis, usually month to month.
If your existing written tenancy agreement already includes the required terms, you do not need to replace it with a new one. You do, however, need to make sure your tenant has received the Renters’ Rights Act Information Sheet, which we cover below.
Landlords can now increase the rent only once a year, using a Section 13 notice, and tenants must be given at least two months’ notice. A Section 13 notice is the formal process used to propose a new rent.
There is no fixed cap on how much the rent can increase. However, tenants can challenge an increase they believe is above market level, in which case a tribunal will decide what a fair rent should be. This makes it more important to set the rent carefully from the start. Our guide on how to calculate what rent to charge explains how to base that figure on current market data.
Tenants can now ask to keep a pet, and landlords can only refuse if there is a reasonable reason to do so, such as the property being unsuitable or a superior lease prohibiting pets. A blanket “no pets” rule is no longer enough on its own.
In practice, many landlords are choosing to set clear conditions instead, such as requiring pet insurance or adding a clause that covers any damage caused by the pet.
Every landlord and letting agent should have given tenants a copy of the government’s Renters’ Rights Act Information Sheet by 31 May 2026, including tenants whose tenancy started before 1 May. It can be provided as a paper copy, sent by post, handed over in person or emailed as a PDF.
If you haven’t sent it yet, do it as soon as possible. Failing to provide the information sheet can create another compliance issue if you later need to seek possession.
The Private Rented Sector (PRS) Database is a new national register for landlords and their rental properties. It is being introduced gradually from late 2026, with nationwide coverage expected during 2027.
Once registration opens in your area, you will need to register both yourself and each property you let. You will then receive a Landlord Registration Number and a separate Property Registration Number for each home.
Failing to register can lead to a civil penalty of up to £7,000 for a first breach, rising to £40,000 for serious or repeated breaches. An unregistered landlord may also be unable to obtain a possession order, except in cases involving antisocial behaviour.
For the months ahead, landlords should make sure they have covered a few key areas:
This is where Prosperity Group can take some of the admin off your plate. Lamont Estates builds these checks into day-to-day property management, so you do not have to keep track of every deadline yourself.
The Decent Homes Standard currently applies to social housing, but the government plans to extend it to private rentals. That change is expected in a later phase and is still subject to consultation. Once introduced, private rental properties will need to meet specific standards for repairs, facilities and energy efficiency.
For investors, it makes sense to think about those standards before a property is built rather than retrofit later. Prosperity Developments focuses on energy-efficient homes designed with future requirements in mind, rather than only meeting today’s minimum standards.
The Renters’ Rights Act is reshaping how you manage tenancies, and the Autumn Budget 2025 has reshaped what you keep from the rent you charge. Two tax changes matter most for landlords right now.
| Change | Who it affects | Rate | When it applies |
|---|---|---|---|
| Dividend tax increase | Landlords who take profit as dividends from a limited company | 10.75% basic rate, 35.75% higher rate | In effect from 6 April 2026 |
| Property income surcharge | Landlords who own property in their own name | 22% basic, 42% higher, 47% additional | From 6 April 2027 |
If you own rental property through a limited company, dividend tax rates increased by two percentage points from 6 April 2026. The basic rate is now 10.75%, while the higher rate is 35.75%.
A limited company can still make sense, particularly when it comes to mortgage interest relief, but the higher dividend tax makes it worth reviewing how you take profits out of the business.
Our team can help you look at what the change means for your own setup. You can also read our full breakdown of the November Budget 2025 changes for landlords.
Keeping up with the new landlord rules 2026 is much simpler when the same group can support your investment from purchase through to day-to-day management.
Because these services sit within the same group, there is less risk of important details being missed between the people who build, manage and maintain the property.
If you are considering growing your portfolio, read our guide to buy-to-let property investment or contact us to discuss your own circumstances.
Oliver Thacker is a Property Investment Consultant at Prosperity Wealth. He built his knowledge of the UK property market in local and national estate agencies before moving into investment, where he works with clients to build income-generating, off-plan buy-to-let portfolios.
The main changes for the new landlord rules 2026 include the end of Section 21 evictions, the move to assured periodic tenancies, limits on how often rent can be increased, new rights for tenants requesting pets and the introduction of the PRS Database. These changes come from the Renters’ Rights Act 2025, alongside new tax rates on dividend and property income announced in the Autumn Budget 2025.
Yes, for two groups of landlords in particular. Landlords who take profit through dividends from a limited company have paid a higher dividend tax rate since 6 April 2026, and landlords who own property personally will move to separate, higher property income tax rates from 6 April 2027.
There is no fixed percentage cap, so a landlord can propose a rent that includes a rise of that size. However, a tenant can challenge any increase they believe is above the open market rent, and a tribunal will decide what the fair market rent is if the two sides cannot agree.
Not always. A landlord usually only needs to repair or replace a washing machine if it was provided as part of the tenancy or is listed in the tenancy agreement. If it breaks through normal wear and tear, the landlord will generally be responsible for dealing with it.
The ban came into effect on 1 May 2026, when the first phase of the Renters’ Rights Act 2025 took effect. It applies to both new and existing tenancies, so any Section 21 notice served after that date is no longer valid.
The PRS Database is the new national register of private landlords and rental properties in England. You do not need to register yet: the rollout begins region by region from late 2026, with national coverage expected through 2027, and exact dates for each area will be confirmed nearer the time.
