Renters’ Rights Act: Key Conveyancing Impacts and Preparation Steps

Overview: what is changing and when

The Renters’ Rights Act received Royal Assent on 27 October 2025, but most provisions were dormant when introduced. The Government has now confirmed that 1 May 2026 is the commencement date for the first phase of the Act’s major reforms. 

From that date, the core reforms for the private rented sector (PRS) in England will take effect and will begin to reshape how tenanted property transactions are handled in practice.

For conveyancers, the practical consequence is that tenanted property work will require more rigorous due diligence, clearer client and lender reporting, and more careful transaction planning, particularly where vacant possession is required or where rent levels and compliance history are central to value and lender appetite.

Phase one changes from 1 May 2026

Abolition of ASTs and fixed terms

Assured shorthold tenancies will be abolished. Fixed-term tenancies will cease to exist and all existing ASTs will automatically convert into open-ended periodic assured tenancies, continuing on a monthly basis. This change removes a familiar “end of term” planning point for landlords and introduces a more open-ended occupation framework across the PRS.

From a conveyancing perspective, this increases the importance of accurately establishing the tenancy position at the outset of the transaction and advising on what the buyer will inherit on completion. For sales with tenants in situ, it will be essential to report that the tenancy will not simply “end” at a fixed date and that possession planning and rental strategy will operate within a more constrained statutory framework.

Practical steps for conveyancers include updating standard enquiries to capture the tenancy start date, nature of the tenancy, and whether there are any side letters or variations that affect occupation terms. Where the arrangement is informal or poorly documented, extra care should be taken to obtain a clear written summary of the agreed terms and to advise on residual uncertainty.

Section 21 abolition and vacant possession risk

From 1 May 2026, section 21 notices can no longer be served. Notices served up to 30 April 2026 remain usable only for a short transitional period. The removal of the “no-fault” route to possession is likely to be the single biggest operational change for landlords and will have a direct impact on transactions that are structured around achieving vacant possession.

In day-to-day conveyancing, this means that any matter requiring vacant possession should be treated as a higher-risk pathway, with more uncertainty around timescales and outcome. Buyers and lenders are likely to demand clearer evidence as to how possession will be obtained and may be less willing to proceed where vacant possession is not realistically achievable within the proposed timetable.

Practical steps include advising early and in writing on the possession risk, building longer lead-in times into transaction planning, and tightening contract drafting around vacant possession. Where vacant possession is essential, conveyancers should consider recommending robust longstop provisions and clear consequences if vacant possession is not achieved.

Rent increases: section 13 only, two months’ notice, stronger tenant challenges

The rent increase framework will change materially. The notice period for rent increases rises from one month to two months, and rent can only be increased via the statutory section 13 procedure. All other methods including informal agreements with the tenant outside section 13 will no longer be permitted. Tenants will also gain stronger rights to challenge rent levels, including the starting rent, allowing the tribunal to consider whether the initial rent was above market level where a challenge is made early in the tenancy.

For conveyancers, this elevates rent-setting compliance to a core due diligence item. Buyers acquiring investment property will want comfort that the current rent and historic increases were implemented lawfully and that the income stream is not vulnerable to challenge. Lenders and valuers may also take a more conservative view of rental growth, given the stricter mechanisms and enhanced challenge rights.

Practical steps include requesting a rent history schedule and evidence supporting each increase, and then clearly flagging any uncertainty or non-standard practice in the report on title. Where evidence is missing or increases appear to have been agreed informally, conveyancers should advise on risk and potential remedial steps before exchange.

Rent bidding ban and limits on rent in advance

Rent bidding will become unlawful, and landlords will be prohibited from taking more than one month’s rent in advance. These restrictions are intended to reduce upward pressure on rents and curb practices that can disadvantage prospective tenants.

In transactional terms, conveyancers should expect investor clients to revisit assumptions around achievable rents and upfront cash flow. For portfolio transactions in particular, historic letting practices may need careful scrutiny, because a buyer may be inheriting operational practices that must change immediately post-completion.

Practical steps include adding targeted enquiries around how rents were agreed at the start of the tenancy and whether advance rent exceeding one month has been taken. Where the seller’s responses indicate non-compliant practices, this should be flagged as both a legal risk and a practical handover issue for the buyer.

Anti-discrimination duties in tenant selection

It will become unlawful to discriminate against tenancy applicants because they have children or receive benefits. This is a change that goes beyond documentation and into operational behaviour, which increases the need for landlord clients to ensure their agents and internal processes align with the law.

For conveyancers, the key issue is risk awareness in investment acquisitions, particularly where a buyer is taking over a managed portfolio. Practices that might previously have been “policy-driven” may now create enforcement exposure, complaints, or reputational damage, and these risks can affect transaction value and lender confidence.

Practical steps include recommending that landlord clients review letting policies and agent instructions ahead of 1 May 2026. In relevant transactions especially portfolios conveyancers should consider raising enquiries about complaints, investigations, and any historic practices that may attract attention under the new regime.

Pets: duty to consider requests and avoid unreasonable refusal

Landlords will be required to consider and respond to pet requests within a specified timeframe, and a request cannot be unreasonably refused. This is likely to change how tenancy agreements and landlord policies are drafted and applied in practice, particularly where blanket “no pets” positions have historically been used.

From a conveyancing perspective, this affects the buyer’s ability to control occupation conditions and may increase dispute risk if policies and documentation are not aligned with statutory requirements. It also reinforces the need for investor clients to adopt compliant management processes rather than relying on rigid prohibitions.

Practical steps include flagging the change in client reports for investor buyers and advising landlord clients to review tenancy templates and management procedures. Where a transaction includes a handover to a new managing agent, this should be included as an operational compliance point in completion planning.

Enforcement: statutory duty for councils, higher penalties, wider rent repayment orders

Local councils will gain a statutory duty to enforce landlord legislation, backed by enhanced investigatory powers, expanded penalties up to £40,000, and a broader application of rent repayment orders. This will increase enforcement activity and sharpen the consequences of non-compliance.

For conveyancers, compliance history becomes a more significant part of transactional risk assessment. A buyer may inherit issues linked to property condition, licensing, or management practices, and lenders may require additional comfort that there is no ongoing regulatory exposure.

Practical steps include expanding enquiries to cover local authority correspondence, notices, penalties, licensing status, and any threatened or actual rent repayment order claims. For higher-risk assets such as HMOs or large portfolios, conveyancers should consider recommending specialist compliance input as part of pre-exchange due diligence.

New tenancy information duties

New tenancy information duties begin from 1 May 2026. For tenancies created on or after that date, landlords must provide a Written Statement of Terms, with further information on required content expected in January 2026. For tenancies created before 1 May 2026, landlords do not need to issue new agreements but must provide a government-published Information Sheet on or before 31 May 2026, expected to be available online in March 2026. Where an existing tenancy was agreed verbally, landlords must also provide a written summary of the main terms by 31 May 2026.

In conveyancing terms, documentary readiness will become a practical constraint on transactions. Sellers may be asked to evidence compliance as part of replies to enquiries, and buyers and lenders may take issue with incomplete records particularly where the tenancy was informal or agent-managed with inconsistent documentation.

Practical steps include adding a specific “information duty compliance” section to your tenanted property checklist and requiring sellers to confirm what has been served and when. Where completion is anticipated shortly after 1 May 2026, conveyancers should address these service obligations early to avoid last-minute delays.

What conveyancers should do now: practical preparation

Conveyancing teams should update tenanted property workflows to reflect that tenancy status, rent setting, and regulatory compliance are now central transactional issues rather than peripheral management points. This includes revising standard enquiries and sale pack requirements, refreshing report-on-title templates to include specific commentary on tenancy conversion and rent compliance, and strengthening vacant possession drafting where relevant.

Firms should also consider issuing short client guidance to landlord sellers and investor buyers now, so expectations are managed well in advance of May 2026. Landlord sellers will need to understand the increased importance of documentary compliance and the reduced ability to “solve” vacant possession through section 21, while buyers will need clear advice on the operational constraints they will inherit and the potential for increased enforcement and rent challenges.

What comes next: phase two and phase three

Phase two will follow later in 2026 and early 2027 and will introduce a national PRS database, with landlord registration being introduced regionally before the database is opened to public access. It will also introduce mandatory membership of a PRS Landlord Ombudsman, again implemented in stages, with mandatory joining expected once the service is ready (the Government expects this to be in 2028).

Phase three will deliver a new Decent Homes Standard for the PRS, with implementation dates to be confirmed following consultation. Alongside this, the Government is developing related reforms including updated Housing Health and Safety Rating System rules, the extension of Awaab’s Law to the PRS, and changes arising from consultations on Minimum Energy Efficiency Standards.