The Renters’ Rights Act: What It Means for Buy to Let Investors in 2026

The Renters’ Rights Act changed how private renting works in England from 1 May 2026. Section 21 “no fault” evictions are abolished. Every tenancy is now an assured periodic tenancy with no fixed end date. Rent can be increased only once a year, through a formal notice.

For investors, buy to let still works under the new rules. The difference is that returns now depend more on choosing a property that tenants want to stay in, and on planning your exit before you buy.

This guide covers England only. Scotland and Wales have their own rental laws.

What has changed for landlords?

The main changes that apply from 1 May 2026 are:

Area	What the rules say now
Tenancy type	Existing and new assured shorthold tenancies became assured periodic tenancies. They roll on, usually monthly, with no end date.
Ending a tenancy	Section 21 is abolished. A landlord needs a legal ground under section 8 and, if the tenant stays, a court order.
Selling or moving in	These grounds cannot be used in the first 12 months of a tenancy. In many cases the notice period is 4 months.
Rent arrears	A court must grant possession on the arrears ground only where at least 3 months’ rent is owed.
Rent increases	Once a year at most, using the section 13 process with at least 2 months’ notice. Tenants can challenge an increase above the open market rent.
Advertising and bidding	Properties must show an asking rent. Landlords cannot encourage bidding or accept offers above the advertised rent.
Rent before signing	Landlords cannot ask for or accept rent before the tenancy agreement is signed.
Pets	Tenants can ask to keep a pet, and a landlord can refuse only with a valid reason.
Discrimination	Landlords cannot refuse tenants because they receive benefits or have children.
Tenant notice	Tenants can leave by giving at least 2 months’ notice in writing.

Landlords with an existing written tenancy had to give tenants the government’s Renters’ Rights Act Information Sheet by 31 May 2026.

Enforcement is also tougher. Councils have new investigatory powers, and the maximum rent repayment order has doubled from one year’s rent to two.

What is still to come?

The Act is being introduced in phases:

From 1 May 2026: the tenancy reforms above.
From late 2026: a Private Rented Sector Database, where landlords will need to register.
Expected 2028: compulsory membership of a new Private Rented Sector Landlord Ombudsman.
Not yet confirmed: the Decent Homes Standard and Awaab’s Law for private rentals. The government has proposed 2035 or 2037 for the Decent Homes Standard, subject to consultation.

When you compare opportunities, it is worth asking how a property will meet these later requirements as well as today’s.

What does this mean for your returns?

The Act does not cap rents or ban buy to let. It changes where the risk sits.

Tenant turnover matters more

Without fixed terms, a tenant can leave with 2 months’ notice at any point. Each move out can mean a void period, cleaning, marketing and letting fees.

The properties that hold their returns are the ones tenants want to stay in. That usually means a good location, sensible layouts, reliable management and a building that is well run.

Rent reviews follow the market

Rent can rise once a year, in line with the open market. A tenant can challenge an increase they believe is above market rent.

When you model a purchase, base your rental assumptions on evidence of local achieved rents rather than optimistic projections. Our guide to what makes a good rental yield explains how to check the numbers behind a headline yield.

Selling takes more planning

You cannot use the selling ground in the first 12 months of a tenancy, and in many cases you must give 4 months’ notice. If you want flexibility to sell, build that timing into your plans.

Another option is selling with the tenant in place to another investor, as the tenancy simply continues.

Management standards matter more

Getting the paperwork, deposit protection and rent increase process right now has more weight. For example, a court will only grant possession if the deposit rules have been followed. A good letting and management agent becomes part of the investment, not an extra.

Is buy to let still worth it under the Renters’ Rights Act?

It can be, if the numbers work on realistic assumptions. Before buying, check:

Tenant demand: who will rent the property, and how long they are likely to stay.
Net yield: the return after service charges, ground rent, management fees, insurance and an allowance for voids.
Total cash needed: the deposit, stamp duty and fees. Our guide to stamp duty on buy to let covers the 5% surcharge on additional properties.
Management: who will find tenants, handle rent reviews and keep you compliant.
Exit plan: whether you would sell with the tenant in place or with vacant possession, and how long that could take.
Future standards: how the property is likely to meet the database, ombudsman and Decent Homes requirements.

How Aspen Woolf can help

Aspen Woolf sources investment property in UK developments for investors in the UK and overseas. You can browse current properties and compare location, tenant profile and the costs behind each yield.

After you buy, the Aspen Woolf Care Team can help you arrange letting and management through partner agents in each city. It can also help with resale when you decide to sell.

Aspen Woolf does not provide legal advice. For specific questions about a tenancy, speak to a letting agent or a solicitor who specialises in residential property.

Speak to an Aspen Woolf advisor about current opportunities.

Frequently asked questions

Can I still have a 12 month tenancy?

No. In England, new and existing assured tenancies are now periodic, so the agreement cannot have an end date. Tenants can leave with at least 2 months’ notice.

Can I evict a tenant to sell the property?

Yes, using the selling ground under section 8, but not in the first 12 months of the tenancy. In many cases the notice period is 4 months, and a court order is needed if the tenant does not leave.