Preparing for the Future: What Landlords Need to Know Ahead of Phase 1 (May 2026).
At McAteer Property Consultants, we understand that the private rented sector is entering a season of significant evolution. The government has confirmed that Phase 1 of the Renters’ Rights Act (RRA) will take effect on 1st of May 2026.
As a leading consultant in the region, we are dedicated to ensuring our landlords are not just compliant but fully supported. We have already begun updating our internal processes from our dedicated client accounting systems to our tenancy documentation to navigate these reforms seamlessly.
As a new or existing landlord or tenant, here is what you need to know about the upcoming changes:
Phase 1 Reforms: Starting 1st May 2026
The End of Section 21 "No Fault" Evictions.
Effective 1st May, landlords will no longer be able to use Section 21 to regain possession. This is the most substantial shift in the Act, moving all tenancies toward a more transparent, grounds-based system.
Expanded Grounds for Possession
While Section 21 is being abolished, landlords will retain the right to regain possession through updated "Section 8" grounds, including:
- Moving back into the property or moving close family members in.
- The intention to sell the property.
- Requirement for major refurbishment works.
- Note: These grounds will be subject to revised, clearer notice periods.
Shift to Periodic Tenancies
From 1st May, all new tenancy agreements must be periodic by default. Existing Assured Shorthold Tenancies (ASTs) will remain unchanged until this implementation date.
Modernizing Rent Reviews
New regulations will streamline how rent is managed:
- Annual Limits: Rent increases will be restricted to once per year.
- Formal Process: All increases must follow the statutory Section 13 process.
- Ending Bidding Wars: A ban will be introduced on the practice of rental bidding.
- Payment Caps: Rent in advance will be capped at a maximum of one month.
Enhanced Tenant Rights
Tenants will gain strengthened protections, including anti-discrimination measures and a new legal framework regarding the right to request a pet in the property.
The Roadmap: What’s Coming Next
Phase 2 – Expected Late 2026
- PRS Database: The introduction of a new Private Rented Sector Database for improved transparency.
- Landlord Ombudsman: Membership in a mandatory Landlord Ombudsman Scheme will become a requirement.
Phase 3 – Dates to Be Confirmed
- Decent Homes Standard: Extension of quality standards to the private sector.
- Awaab’s Law: Implementation of measures to ensure properties are free from health hazards like damp and mold.
Our Commitment to Your Protection
At McAteer Property Consultants, your peace of mind is our priority. We maintain rigorous Client Money Handling Procedures to ensure your rental income and deposits are protected to the highest industry standards2222.
- Financial Security: All client funds are held in designated, separate client accounts with authorized banks.
- Total Transparency: We maintain detailed records and perform monthly reconciliations reviewed by our principals.
- Strict Oversight: Our team is trained in the latest compliance and accounting rules to manage your portfolio with professional integrity5.
Are you concerned about how these changes might impact your specific portfolio? Contact our expert team today at lettings@mcateerproperty.co.uk for a tailored consultation to ensure your investments remain secure and compliant well ahead of the 2026 deadline.
