Written information about the key terms of the tenancy must be outlined clearly
The historic Renters’ Rights Act will come into force in May(Image: Joe Giddens/PA Wire)
The historic Renters’ Rights Act will come into force in May and help improve the lives of 11 million private renters across England. In March, the government published new official documents explaining tenancy changes, which landlords and agents must give legally to their tenants by May 31 2026.
For all new tenancies starting on or after May 1, you must provide written information for your tenant. Certain written information about the key terms of the tenancy such as your name and address, rent amount, due date, deposit amount, repair responsibilities and what bills your tenant must pay should be shared.
This will ensure that tenants and landlords have a clear, written record of the key terms of the tenancy, helping them to understand their rights and responsibilities and assist in avoiding or resolving disputes.
If you have a verbal tenancy agreement with a renter, you will now need to formalise it by giving them a written record explaining the specific terms of the agreement. You must provide this by May 31.
The Renters’ Rights Act makes clear that from May 1, any rises you’re planning to make as a landlord must be a maximum of once every twelve months, with at least two months’ notice, and made formally through Section 13.
From May, landlords must ensure there are no bidding wars. Guidance from the Ministry of Housing, Communities and Local Government said: “You must publish an asking rent in any written advert and not accept an offer above this price i.e. no wording that says ‘or offers above £x’
Further guidance said: “No more than one month’s rent upfront – and you can only accept the rent once all parties have signed the tenancy agreement . There should be no tenant discrimination – you can’t refuse prospective tenants because they have children or receive benefits.”
Advice for landlords said: “Clean up your listings, emails and agent scripts ASAP so you don’t accidentally slip up. And if you’re a bigger landlord, you might have a tenant-facing website so it’s important you also check it’s compliant with the Renters’ Rights Act.”
Chris Norris, Chief Policy Officer at the National Residential Landlords Association, said: “With phase one of the Renters’ Rights Acts implementation set to begin on May 1, now is certainly the time for all landlords to double check that they are prepared for its arrival.”
As a landlord, it’s important to familiarise yourself with the new requirements and take any necessary actions to make sure you comply. If you don’t comply with the law, local councils may impose a civil penalty on you of up to £40,000 or, in some cases, start a criminal prosecution.
New rules on starting and ending tenancies
Section 21 ‘no fault’ evictions will be abolished: you’ll no longer be able to use Section 21 of the Housing Act 1988 to evict your tenants.
Reformed possession grounds will be fairer for both parties:
- you’ll only be able to evict tenants when you have a specific, legally valid reason, otherwise known as a ‘possession ground’
- possession grounds will be extended to make it easier for landlords to evict tenants when they want to sell the property, move into the property or move in members of their family
- the changes will also make it easier to evict tenants who commit anti-social behaviour
Fixed term tenancies will be banned:
- most new and existing tenancies in the private rented sector will become assured periodic tenancies, or ‘rolling tenancies’
- renters will be able to stay in their property until they end the tenancy or until a landlord serves a valid notice to end it or obtains a court/possession order
- Changes to rent and payments
Rent increases limited to once per year:
- you’ll have to follow the new legal process for increasing the rent
- Providing the tenant with notice, detailing the proposed rent increase at least two months before that increase is due to take effect
Rental bidding will be banned:
- you’ll have to include a specific price on any written property advertisement
- you won’t be allowed to ask for, encourage, or accept an offer that’s higher
Requiring large amounts of rent in advance will be banned:
- you’ll only be able to require up to one month’s rent in the period between all parties signing the tenancy and the tenancy starting
- you won’t be able to accept any payment of rent before this period
- once the tenancy’s begun, you won’t be able to require any payment of rent before it’s due