Renters Rights Act 2025 And New 2026 Rules: What Landlords Must Do Now

A Significant Shift for Private Landlords

If you own a rental property in England, 2026 has brought a raft of legal changes that affect how you let, manage, and report income from your property. The Renters Rights Act 2025 is now in force, Making Tax Digital for Income Tax is live for higher-earning landlords, and a new national landlord database is on its way. Taken together, these changes mean the days of informal, paperwork-light landlording are firmly behind us.

What the Renters Rights Act 2025 Changes

No More Section 21

Section 21 no longer exists. You cannot serve a no-fault eviction notice on a tenant in England. If you need to recover your property, you must rely on Section 8, which requires you to prove a specific legal ground, for example, rent arrears, breach of tenancy terms, or your intention to sell or move into the property. The grounds have been updated and some carry mandatory or discretionary status. Speak to your solicitor before starting any possession action, as the process is strictly procedural.

All Tenancies Are Now Periodic

Fixed-term assured shorthold tenancies are gone. Every tenancy is now a rolling periodic tenancy from day one. Tenants can end the tenancy by giving two months written notice. This gives tenants greater security but means you can no longer rely on a fixed end date to recover the property. Plan ahead if you anticipate needing possession.

Written Statement of Tenancy Terms

You are now required to provide every tenant with a written statement covering the key terms of their tenancy: the rent, the payment date, any permitted charges, and other prescribed information. This is not simply good practice, it is a legal obligation. Make sure this is issued before or at the point the tenancy starts.

Pet Requests

Tenants now have the right to request permission to keep a pet. You can only refuse on reasonable grounds. If you do not respond within a set timeframe, consent may be treated as granted. You can require the tenant to take out pet damage insurance to protect your property. Check the current timeframes with our team, as they are set in secondary legislation.

Advance Rent and Rental Bidding

You cannot accept or request more than one month's rent in advance. Equally, you cannot invite or accept offers above the advertised rent. This effectively bans rental bidding wars and protects tenants from being priced out by higher-offer competitors. Advertise your property at the price you actually intend to let it for.

Making Tax Digital for Income Tax

From April 2026, landlords with qualifying income over 50,000 pounds (combining rental and self-employment income) are required to use HMRC-approved software and submit quarterly updates of income and expenses to HMRC. Annual self-assessment does not disappear entirely, but it is supplemented by these quarterly reports. If your income is between 30,000 pounds and 50,000 pounds, your MTD for IT start date is April 2027, so now is the time to get your record-keeping in order. Speak to your accountant about which approved software suits your situation.

The Private Rented Sector Database

Registration for the new Private Rented Sector Database opens on 15 December 2026. This is a national register of landlords and their properties. Registration will eventually be compulsory, and letting your property without being registered can result in serious financial penalties, including large fines and restrictions on using certain possession grounds. The database is designed to raise standards across the sector and give tenants more transparency. Mark the December date in your diary and gather your property details in advance so you can register promptly.

Your Compliance Checklist

• Section 21: Remove any Section 21 notices from your templates. Review your grounds for possession under Section 8 with a solicitor.
• Tenancy agreements: Update your agreements to reflect periodic tenancies and remove fixed-term clauses.
• Written statement: Prepare a compliant written statement of key terms and issue it at the start of every tenancy.
• Pet requests: Put a clear written process in place for handling pet requests and responding within the required timeframe.
• Rent advertising: Advertise at your true asking rent and do not collect more than one month in advance.
• MTD for Income Tax: If your qualifying income exceeds 50,000 pounds, confirm you are using approved software and submitting quarterly updates. If below 50,000 pounds, prepare now for April 2027.
• PRS Database: Diarise 15 December 2026 and register your properties as soon as registration opens.

How a Letting Agent Can Help

Keeping on top of this volume of change is time-consuming, and the cost of getting it wrong, whether a failed possession claim or a penalty for non-registration, can be significant. Working with a reputable letting agent means you have professionals who track regulatory changes, maintain compliant documentation, and handle tenant communications on your behalf. At Cooke and Co, our lettings team works with landlords across the local area to reduce compliance risk and protect their investments. Get in touch with our team to talk through how we can help you manage your portfolio with confidence.