Landlord Legislation to Keep an Eye On
Commencing duties as a landlord is a daunting task. There is a bewildering amount of legislation and best practices to keep up with. We know that keeping up with so many rules and regulations can feel overwhelming, so here is a clear guide to help you stay compliant, avoid nasty surprises, and stay one step ahead.
The Renters’ Rights Act 2025 (Effective 1 May 2026)
The single biggest change to the private rented sector is now confirmed. The Act abolishes the current tenancy system and creates a new one, with the major provisions taking effect on 1 May 2026 for both new and existing tenancies.
Ending Section 21: The infamous “no-fault” evictions are abolished from 1 May 2026. Landlords will need a valid, legally specified reason to regain possession (using the updated Section 8 grounds).
Periodic Tenancies: All Assured Shorthold Tenancies (ASTs) will convert to periodic tenancies (rolling contracts). Fixed terms will no longer be possible.
Rent Increases: Rent can only be increased once per year (with two months' notice), and tenants gain a simplified process to challenge rent increases they feel are unfair.
New Grounds for Possession: Updated Section 8 rules introduce new mandatory grounds, such as if the landlord wishes to sell the property or move in a close family member (though these cannot be used in the first year of the tenancy).
Tenant Fees Act
The Tenant Fees Act makes renting fairer for tenants by banning most additional charges. Landlords and letting agents cannot bill tenants for things like referencing, inventories, contract changes, renewals, or check-out.
Permitted Payments: Rent, tenancy deposits (capped by law), holding deposits (capped at one week’s rent), and reasonable charges for lost keys, late rent, or tenant-caused damage.
The Risk: Unlawful fees can result in significant fines, so it is crucial to follow the rules precisely.
MEES and EPC Standards (Forward Planning)
Rental properties must meet minimum energy efficiency standards. While the current minimum is an EPC rating of at least E, forward thinking landlords are preparing for future changes:
Proposed C Rating: The government plans for all new tenancies to require an EPC rating of C or better from 2028, and all existing tenancies by 2030.
Action for 2026: The government is planning to update the way EPC performance is measured in 2026. Landlords with properties rated D or below should start planning energy efficiency upgrades now to spread the cost and avoid a rush later.
Client Money Protection Schemes (CMPS)
All letting agents must be part of a government-approved Client Money Protection scheme. This protects rent, deposits, and maintenance funds.
For Compliance: If you use a managing agent, make sure they are covered-non-compliance can result in heavy financial penalties. We take pride in being fully transparent about our CMPS compliance.
Electrical Safety Standards
Landlords are legally required to ensure their property’s electrical installations are safe. This includes obtaining an Electrical Installation Condition Report (EICR) from a qualified professional and renewing it at least every 5 years.
Compliance: Copies of the report must be shared with tenants. Failure to comply can result in substantial fines.
Future Compliance (Late 2026 and Beyond)
The Renters’ Rights Act includes two key elements that will be rolled out after the May 2026 commencement date:
Decent Homes Standard: This will be extended to the private rented sector, requiring properties to meet clear quality and safety standards.
Private Rented Sector Database & Ombudsman: A national register for landlords and an Ombudsman service for dispute resolution are set to be introduced from late 2026.
Final Thoughts
Legislation for landlords is constantly evolving, and keeping on top of it is essential for protecting your investment and staying compliant. By understanding the rules, landlords can stay ahead of the game and avoid costly penalties. We take pride in keeping our landlords fully prepared for this new era of letting.
Comprehensive insurance, professional advice, and proactive property management are the best ways to make sure your rental business continues to thrive.
Would you like me to add a quick checklist at the end (something like "5 things every landlord should do now to stay compliant"), so readers walk away with a simple action plan?