The most significant overhaul of England’s rental market in a generation came into force on Thursday 1 May 2026. The Renters’ Rights Act — first introduced as a Bill under the previous Conservative government and substantially redrafted and passed by Labour in autumn 2025 — abolishes Section 21 “no-fault” evictions, ends rental bidding wars, caps in-tenancy rent rises and introduces a new Decent Homes Standard for the private rented sector. London, where roughly 30% of households now rent privately, is the market most affected.
Section 21 abolished
The single most consequential change is the end of Section 21. Until 30 April, a landlord could give a tenant two months’ notice to vacate a property without giving any reason. From 1 May, that mechanism is gone. Landlords seeking to recover possession must now use one of the strengthened Section 8 grounds, including selling the property, moving in themselves or a close family member, or where the tenant is in serious rent arrears. New mandatory grounds and notice periods apply, and many cases will now require a court hearing.
For tenants, the practical impact is greater security of tenure. Fixed-term assured shorthold tenancies are replaced by open-ended periodic tenancies from day one, which the tenant can end with two months’ notice but which the landlord can end only with a valid statutory ground. Deposit rules, right-to-rent checks and other compliance regimes carry over largely unchanged.
Bidding wars banned, rent rises capped
Equally significant — particularly in London, where average rents in some inner boroughs exceeded £2,500 a month at the start of 2026 — is the end of rental bidding. From 1 May, landlords and letting agents must publish an asking rent and may not accept offers above it. The aim is to stop the practice of advertising a low headline rent and then encouraging applicants to bid each other up — a phenomenon repeatedly documented in Hackney, Lambeth, Wandsworth and Tower Hamlets in the post-pandemic years.
In-tenancy rent increases are now capped to once per year and must be benchmarked against open-market rents for similar properties. Tenants who consider a proposed rise excessive can challenge it at the First-tier Tribunal, which is the only body that can now lawfully impose a higher figure. The tribunal process has been streamlined, but the early weeks are expected to produce a backlog as test cases work through.
What landlords are doing
The London rental market has spent the past 18 months adjusting in advance of the Act. According to ONS data, average UK private rents rose 3.5% in the year to February 2026, well below the double-digit increases seen in 2023 and 2024. Some landlords have exited the market: net mortgage data shows the buy-to-let segment has shrunk by around 4% over the past 12 months. Others have professionalised, registering for the new database, upgrading EPCs to meet looming energy standards and shifting toward longer-term, higher-quality lettings.
Industry bodies, including Propertymark and the National Residential Landlords Association, broadly accept the reforms but warn that court capacity will determine whether the new system functions in practice. Possession claims that previously took eight to 12 weeks under Section 21 may take six months or more under the new Section 8 framework if courts are not adequately resourced.
Practical advice for tenants
Tenants in existing tenancies do not need to take action — their tenancy converts automatically to the new periodic form on 1 May. New tenancies signed from 1 May will use the new statutory model. Tenants asked to pay above an advertised rent should refuse and report the agent or landlord; offering, soliciting or accepting bids is now a civil offence carrying fines of up to £7,000 from local authority enforcement teams.
The London Renters Union and Citizens Advice London both report a sharp uptick in queries since the start of April, particularly around rent increase notices and possession grounds. Both organisations are running free advice clinics across London boroughs through May and June. Tenants in dispute should always get the agreed position in writing before vacating a property.
— Sarah Mitchell, London Capital Post
