Introduction
The Renters’ Rights Act represents one of the most significant changes to the private rented sector in recent years, reshaping the relationship between landlords and tenants.
With the majority of provisions due to come into force from 1st May 2026, landlords and managing agents should now be considering how these changes will impact their portfolios.
At Innes England, while we primarily manage commercial property, we also oversee circa 150 residential units across a range of client holdings. As a result, we are increasingly seeing the operational impact these changes will have, particularly for landlords with residential elements within wider portfolios.
We spoke with Lauren Hutchinson, senior associate in the Dispute Resolution team at Lodders Solicitors, to understand what the Renters’ Rights Act means in practice and what landlords should be doing now.
Q&A: Legal Insight from Lodders Solicitors
Q: The Renters’ Rights Act is a significant change for the sector. From your perspective, what should landlords be most aware of?
Lodders: The abolition of the Section 21 “no fault notices” is one of the most significant changes for the sector. Section 8 grounds have been strengthened to assist landlords in obtaining possession of their properties, however, a landlord must have a ground to rely upon. There are now 30 grounds to use, a mixture of mandatory and discretionary, which include situations where the tenant is at fault, for example breach of the tenancy agreement or rent arrears, and also covers situations where the landlord is intending to sell the property or re-develop.
Landlords will need to plan ahead when seeking possession of a property, allowing enough time to serve the appropriate notices and, if required, obtain a court possession order.
Q: Beyond the legislation itself, where do you see the biggest practical impact for landlords and managing agents?
Lodders: The changes are happening automatically and there is no way around them. Landlords and managing agents will need to ensure they are keeping on top of rent reviews, given that these can now only be undertaken every 12 months irrelevant of what your tenancy agreement says.
In addition, the new Private Rented Sector Database will add another layer of protection for landlords, agents, and tenants. All landlords of assured and regulated tenancies must register themselves and their properties on the database when it goes live. The database will provide one place for landlords to access and upload documents in relation to properties. Whilst at first it is likely to be onerous on landlords, with time this should ease the burden of having to locate paperwork and prove certain documents have been provided to tenants.
Q: Where are landlords most at risk if they don’t prepare ahead of implementation?
Lodders: The Local Authority will have enforcement powers to issue civil penalties for any breach of the new legislation. These penalties are up to £7,000 for an initial or minor non-compliance, or up to £40,000 for serious, persistent, or repeat non-compliance. It is imperative that landlords understand their new obligations to avoid running the risk of being on the receiving end of a fine.
To explore the practical implications of these changes, we also spoke with Grace Conisbee, Property & Asset Management Associate Director at Innes England.
From an Asset Management Perspective
From our perspective, this is not just a legal change. It’s an operational one.
The removal of Section 21 reduces flexibility and increases the importance of forward planning, particularly where future use, disposal or repositioning of an asset is being considered.
For landlords with sublet residential properties, there is an additional layer of complexity. Consideration should be given to any overriding commercial lease terms, including protected leases and statutory rights, and how these may impact the ability to regain possession.
For portfolios that include residential elements within wider commercial holdings, this reinforces the need for a more structured and proactive approach to management.
Q: Are there any common misconceptions or areas where landlords may be underestimating the impact of the Act?
Innes England: A common misconception is that the changes are purely procedural, focused on the removal of Section 21 and no-fault eviction.
In reality, the impact is far broader. The legislation fundamentally alters risk, control and asset liquidity. The ability to regain possession becomes more uncertain, with greater reliance on the courts, increasing both time and cost. This, in turn, reduces flexibility across portfolios.
The wider implication is a shift in how assets are managed and valued. Exit strategies, valuation assumptions and cashflow risk will all need to be considered more carefully, not just day-to-day tenancy management.
The potential impact on asset valuation is also often underestimated. While demand for residential assets remains strong, increased regulation is likely to lead to higher operating costs and reduced landlord control.
Combined with the move to periodic tenancies and increased scrutiny on rent increases, this may impact investor appetite and lead to softening yields for certain asset types.
Q: What practical steps should landlords be taking now to ensure they are prepared?
Innes England: Landlords should begin by reviewing their current tenancy agreements and management processes to ensure they align with the upcoming changes.
It is also important to identify any potential risk areas within their portfolio and seek advice where necessary to ensure compliance ahead of implementation.
We would also recommend taking a proactive approach to reviewing how your portfolio is managed day-to-day.
This includes strengthening internal processes, ensuring clear audit trails, and preparing for a more structured approach to tenant management.
Final Thoughts
The Renters’ Rights Act is not simply a legislative update. It represents a shift in how residential property is managed.
For landlords and asset managers, those who prepare early will be best placed to adapt, remain compliant, and protect long-term value.
Next Steps
If you would like to discuss how the Renters’ Rights Act may impact your portfolio, please contact:
Grace Conisbee
Property & Asset Management Associate Director
gconisbee@innes-england.com
www.innes-england.com
For specialist legal advice, Lodders Solicitors can also support with any queries relating to the legislation. Please contact:
Lauren Hutchinson
Senior Associate in Lodders’ Dispute Resolution team
lauren.hutchinson@lodders.co.uk
www.lodders.co.uk/all-expertise/dispute-resolution/property-and-land-litigation/
Disclaimer
This blog is provided for general information purposes only and does not constitute legal or professional advice. It includes legal insight provided by Lodders Solicitors.
While care has been taken to ensure the information is accurate at the time of publication, no representation or warranty is given as to its completeness or accuracy.
Specific advice should be sought in relation to individual circumstances. Legal advice should be obtained from a qualified solicitor. Innes England accepts no liability for any loss arising from reliance on this information.