Here is the latest legal update and essential landlord checklist in readiness for the new regime. Caution and preparation are the order of the day.
On 1 May, we will see the biggest change to the private rented sector in a generation, arguably two. There is no transition period, AST agreements will cease overnight and welcome the APT (Assured Periodic Tenancy).
Whilst professional landlords should not fear the changes, there is naturally going to be a period of adjustment. Only time will show how the market reacts to some of the nuances of the new regulations.
One thing is for certain: the breach of tenancy legal channels are changing. Processes will be longer across the board for most common tenancy protocols. Any housekeeping on your portfolio should be done now to ensure you enter the new regulations with a tight ship and a well-performing investment book.
No more fixed terms & the end of s.21
As a landlord, your first task is to check if there are any properties that aren't working for you as an investment currently, or whether you may need an exit strategy within the next 12-18 months. Ask yourself: Will I need to sell in 2026? Do I have any rolling arrears or tenancy issues that are causing the property to underperform?
Fixed terms will be no more, with tenancies moving to an indefinite rolling monthly tenancy. A tenant - old or new - will be able to serve two months’ notice from a rent due date at any time. For landlords, notice periods will vary depending on reason for ending the tenancy.
If you do need to act, then note the accelerated possession route is ending. Section 21's will not be able to be served beyond 30 April and must be presented to the courts (should a tenant not leave as instructed) before 31 July.
However, it is anticipated the courts will experience a bottleneck, and many solicitors are already manoeuvring to cease accepting cases beyond Easter. The advice is clear: act now if you wish to retain this option.
Life beyond 1 May will not be a cliff-edge. We are confident that the new protocol will be a simpler way to act under s.8 for grounds for possession, with some of the Deregulation Act administration removed. However, it is a more legal process, likely requiring involvement of solicitors from the outset. It will include a compulsory hearing should a tenant not voluntarily vacate.
The most common use of s.21 outside of rent arrears is due to a requirement to either sell or re-occupy. Both will still be available under the new s.8 notices but only after a 12-month protected period and subject to an increased four-month notice requirement. Review your portfolio now and engage with an agent if a tenancy isn't working for you. WS Residential can outline all your available options so you can undertake your own analysis of what your route forward looks like.
Rent reviews
The good news is that APTs will continue to allow annual rent reviews to market levels, just with a slightly extended two-month prior notice to the tenant. This will only be possible by the statutory s.13 mechanism, so now is the time to review your tenancy agreements. Any pre-agreed future rent increases or clauses index linking rents to CPI or similar indices will become null and void from May.
The main threat to an investor will be the fair rent tribunal process. Tenants have always had a free right of appeal to a tribunal where rent levels were deemed to be unfair. Going forward, this remains the case; however, any initiation of a claim holds the existing rent until the date of the hearing (rather than the proposed increase), with the new rent applying only from the outcome. The award will be the lower of market rent or the requested increase. Expect application volumes to rise, with lead times increasing accordingly.
We advise our landlords to review their portfolio annually against market levels, informed by our managed portfolio data. The same message remains the same: plan now and check rents are right for the accommodation offered, and act where required. The market has been particularly active since COVID, with rents outpacing inflation, so now may be the time to have that review with your dedicated Property Manager.
Pets
The new written statements will provide that consent for a pet must not be unreasonably withheld, and defined timescales for responding must be given in writing. A significant percentage of our tenant base consist of families with household pets - particularly since COVID.
A responsible owner with a well-trained pet can be a positive, giving tenants more enjoyment of the property and encouraging a longer-term occupancy. As a landlord, this again comes down to planning making sure your asking rent allows for any additional wear and tear that might arise, and ensuring fixtures and fittings are suitable for a broad tenant base. It should be noted that, in many situations, it may still be appropriate and reasonable to refuse consent. This may apply where there are safety concerns, third-party restrictions, or higher laws preventing it (freeholder restrictions in leasehold apartment blocks for example).
Areas you could fall unintentionally foul of the law
Landlords are used to legislative changes, and many are confident in their ability to self-manage. However, the law is continually structured to post-penalise. Failure to act correctly at the outset of the tenancy may later prevent you from exercising rights you require at a later date - such as seeking possession via s.8 due to reoccupy, or even due to rent arrears. At the same time, many of the penalties are being enforced by local authorities, with fixed penalties returned directly to council budgets rather than the Treasury. Expect stronger enforcement and limited lenience. Most fines carry penalties of up to £7,000.
Below are just some of the things that, without the correct advice of agent support, could easily lead to non-compliance under the new regulations:
- Collecting rent in advance exceeding the equivalent of one month
- Collecting any rent prior to a tenancy being signed into and a written statement issued
- Serving an invalid or incorrect s.8 notice
- Failing to respond to reports of disrepair or mould growth within set timescales, or lacking written procedures
- Transitional failures, including not issuing updated written statements surrounding the regulation changes to existing tenancies by 31st May
Phases 2 & 3
There will be further changes that follow the act, with implementation dates ranging from late 2026 to 2035. These will be covered in future e-communications, but feel free to reach out to your regular points of contact for further information at any time.
In other news
Aside from the bill, property regulation continues to morph and change as Government progress other elements of legislation.
EPC’s
This has been a topic for a number of years, but the latest update is the release of the 'Warm Homes Plan'. This reignites the drive to have all private rented sector accommodation to a minimum band 'C' with a new backstop date of October 2030.
Exemption can be sought if energy-efficient improvements up to 10% of the property (with a cap at £10,000) have been completed. This includes works from October 2025, so keep a record of any alterations and ensure running maintenance, such as boiler replacements, have energy efficiency in mind. The EPC calculation and algorithm is again being reviewed so be aware that your existing banding may increase or decrease at renewal.
Commonhold and Leasehold Bill reform
The bill reforms the legal framework for commonhold, making it more flexible for modern developments, including mixed-use buildings, and simplifying the process for existing leaseholders who want to convert from leasehold to commonhold.
For new flats, commonhold is intended to become the default tenure, with leasehold only permitted in certain circumstances.
The bill also includes measures changing ground rents for existing leaseholders. The headline announcement is a cap on ground rents at £250 per year, moving to a peppercorn after a 40-year transition period, and the abolition of forfeiture.
We are here to help
Never has the market had so much changing in such a short timescale. WS Residential prides itself on market knowledge and expertise. We are here to guide you through 2026 and beyond, ensuring that your property investment continues to work for you.
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