Landlords: are you ready for all tenancies switching to Assured Periodic (APT) from 1 May 2026?
From 1 May 2026, all new and existing Assured Shorthold Tenancies will transition to Assured Periodic Tenancies. This marks the end of fixed terms and Section 21, alongside major reforms to rent increases, possession and compliance. Here is what landlords need to know.
What Landlords Need to Know Ahead of 01 May 2026
The Renters’ Rights Act 2025 represents the most significant reform to the private rented sector since the Housing Act 1988. From 01 May 2026, assured shorthold tenancies will convert to assured periodic tenancies and all new tenancies must begin as periodic from the outset.
This is not a minor adjustment to the way rental property is managed. It changes how possession is regained, how rent is increased, how agreements are structured and how risk must be managed.
Below is a clear overview of the key changes expected under the first phase of implementation and what landlords should be doing now to prepare.
Summary of key changes under the Renters’ Rights Act
All tenancies become periodic
Fixed term assured shorthold tenancies will be abolished. All assured tenancies will operate as periodic tenancies once the Act is in force. Tenants may give two months’ notice, which must expire at the end of a rental period. There will no longer be a fixed term structure to rely upon.
Section 21 is abolished
‘No fault’ evictions will end. Landlords must rely on revised Section 8 grounds to regain possession. Each claim will require a valid legal ground supported by evidence.
Revised and expanded Section 8 grounds
New mandatory and discretionary grounds will include selling the property or moving in personally or via a close family member. In most cases, these grounds cannot be used within the first 12 months of a tenancy and will require a minimum of four months’ notice.
Rent increases limited to once per year
Rent increases will only be permitted via a Section 13 notice, with a minimum of two months’ notice. Tenants will retain the right to challenge increases through the First tier Tribunal.
Rent in advance restrictions
Landlords will not be permitted to require more than one month’s rent in advance once the tenancy agreement is signed.
Ban on rental bidding
Landlords and agents must advertise a clear asking rent and cannot invite or accept offers above that figure.
Strengthened anti discrimination rules
It will be unlawful to refuse tenants solely because they have children or receive benefits. Affordability assessments remain valid, but blanket exclusions will not be permitted.
This article focuses primarily on the first phase of implementation in May 2026. Further measures including the Decent Homes Standard extension, Awaab’s Law, the Private Rented Sector Database, mandatory landlord redress and strengthened enforcement powers will follow as secondary legislation is introduced.
What landlords should be doing now
There is no need to panic. For landlords already working with a proactive, reputable managing agent, much of the operational adjustment will be handled as part of structured management.
Most tenancies still end because tenants choose to move on. The Act continues to provide possession grounds where a landlord wishes to sell or move back into the property. However, the procedural requirements will be stricter.
If you are self managing, or if you have not yet received clear communication from your agent, now is the time to review your position.
Review your portfolio strategy
If you previously relied on fixed terms for certainty, consider how you will manage risk under a periodic structure. Clarify whether your long term objective is hold, refinance, restructure or dispose.
Audit your tenancy documentation
Existing AST templates will not simply roll forward. The Act introduces a requirement for a written statement of terms in a prescribed format. Documentation must be updated in line with forthcoming regulations.
Strengthen record keeping
From May 2026 onwards, possession will rely heavily on evidence, potentially more so than it already does. Rent schedules, inspection reports, communication logs and compliance records will form part of any successful claim.
Implement structured rent review processes
With rent increases limited to once per year via Section 13, landlords must adopt a disciplined annual review cycle.
Check compliance in advance
Deposit protection, safety certification and registration requirements will directly affect your ability to regain possession. Compliance cannot be addressed retrospectively at the point of dispute.
Prepare for database registration and redress membership
The Private Rented Sector Database and Ombudsman scheme are still being finalised. Registration will become mandatory. Early preparation will avoid disruption to marketing or possession proceedings.
Why professional management now carries greater strategic value
The primary legislation has become law which phase one implemented from 1st May 2026, but many operational details will follow through secondary legislation and revised statutory forms. Prescribed documentation, Section 8 forms and database systems are expected to evolve over the coming months.
This is no longer simply about finding a tenant. It is about:
• Choosing an agent with the best marketing to generate maximum interest and give you more, potentially better tenants to choose from
• Choosing an agent with the most proactive tenant qualification and detailed referencing
• Monitoring legislative updates as they are released
• Updating documentation in real time
• Maintaining a clear compliance and audit trail
• Advising on timing and strategy where possession may be required
• Reducing exposure to civil penalties
• Acting as a professional intermediary in disputes
In a more regulated environment, the difference between managing a tenancy and managing risk is becoming more pronounced.
Preparing for May 2026
From 01 May 2026, assured shorthold tenancies will convert to periodic tenancies and Section 21 will no longer be available. Rent increases must follow a formal Section 13 process and possession will rely on evidenced legal grounds.
For landlords who are organised, compliant and proactive, these changes are manageable. However, documentation, record keeping and process will matter more than ever. Now is the time to review your tenancy agreements, compliance systems and portfolio strategy to ensure you are prepared well in advance of implementation.
If you would like a confidential Portfolio Review to assess how the Renters’ Rights Act affects your properties specifically, our lettings team would be pleased to assist.
