On 1 May 2026, the first provisions of the Renters’ Rights Act 2025 will come into force, fundamentally changing how residential tenancies operate in England. The reforms take immediate effect and will have a significant impact on landlords operating in the build-to-rent (BTR) sector. As a result, BTR providers are now days away from a new legal framework governing possession, rent increases, discrimination and tenant rights.
Key changes taking effect from 1 May 2026
- No more fixed-term contracts - Fixed-term contracts will become a thing of the past. Landlords won’t be able to enter into fixed-term contracts moving forward, and all existing tenancies will become assured periodic (rolling month-to-month) tenancies.
- Increased tenant flexibility - Tenants will be able to leave the property at any time, provided they give two months’ notice. Naturally, this raises concerns around increased turnover and the associated costs for landlords, although the quality of accommodation in the BTR sector should encourage tenants to stay long-term.
- No more “no fault evictions” - The days of “no fault” evictions and Section 21 notices are over. Landlords will be unable to evict a tenant unless they can satisfy one of the grounds for possession under Schedule 2 of the Housing Act 1988. For more detail on the grounds landlords might be able to rely on, see our previous article here. Note some of the notice periods under the possession grounds have increased.
- Right to request a pet - Tenants will be able to request a pet – this will become an implied term in every assured tenancy, even if the wording currently prohibits pets. Landlords will be unable to unreasonably refuse this request. Although case law is likely to evolve on what is “reasonable”, the only reasons specified in the Act are if it would put the landlord in breach of an agreement with a superior landlord, or if superior landlord consent has been sought but not provided.
- Rent increases - Landlords will only be able to increase rent once every 12 months by serving a formal Section 13 notice with two months’ notice. Tenants will have the ability to apply to the First-tier Tribunal (FTT) to challenge the proposed rent. It is important to note that this annual rent increase only applies to the same tenancy – if a tenant only stays for six months and a new tenant comes in, the landlord can set a new market rate at the start of that new tenancy. The rent review process in the FTT is likely to take three to five months. A previous overview of the process can be found here.
- Illegal to discriminate - It will be illegal for landlords to discriminate against renters who have children or receive benefits (e.g. preventing viewings or refusing to grant a tenancy). Terms in superior leases, mortgage or insurance policies which force landlords to discriminate will have no effect. Local authorities can issue an initial fine of up to £7,000, and a further fine up to £7,000 if the discrimination continues.
- Rental bidding banned - Landlords will be unable to request higher rent than advertised and rental bidding will be banned.
- Limit on rent in advance - Landlords will be unable to request more than one month’s rent in advance.
What comes next (and when)
While the most disruptive reforms take effect on 1 May 2026, further reforms are on the horizon.
From late 2026
- Landlords will be required to register on a new Private Rented Sector (PRS) database, providing prescribed information about themselves and their properties, including gas, electrical and energy performance certificates.
- An annual fee will apply.
- Properties may not be marketed unless both the landlord and the property are registered.
From 2028
- Landlords will be required to join the new PRS Landlord Ombudsman scheme.
- Landlords will be required to fund the service through a charging model, which has not yet been confirmed.
Between 2035 and 2037
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A Decent Homes Standard will be extended to the private rented sector. Given the quality typically associated with BTR schemes, this is expected to have a limited impact in practice
What about BTR properties occupied by students?
While the Renters’ Rights Act 2025 includes some exemptions for student accommodation, these do not apply to BTR properties occupied by students. The same rules apply.
Transitional period
Landlords have a few days left to serve any Section 21 notices. If a landlord serves a Section 21 or Section 8 notice before 1 May 2026, the notice will remain valid until possession proceedings have been concluded. However, possession proceedings must be commenced by 31 July 2026, or the notice will lapse.
Conclusion
The Renters’ Rights Act 2025 represents a major shift for the PRS and will lead to significant changes in how landlords in the BTR space operate. While the changes present new challenges, landlords in the BTR sector may also see them as an opportunity. With concerns about individual landlords leaving the market, BTR providers can step in, scale up, and meet growing demand with professionally managed, high-quality rental units.