What did the Renters' Rights Act change on 1 May 2026?
The Renters' Rights Act 2025 received Royal Assent on 27 October 2025. Its main tenancy reforms came into force on 1 May 2026 for new and existing tenancies in England. The headline changes are:
- section 21 no-fault evictions are abolished;
- most private tenancies are now assured periodic tenancies, with no fixed term;
- rent can be increased only once a year, through a section 13 notice;
- no rent can be taken before the tenancy agreement is signed, and advance rent is capped;
- bidding above the asking rent is banned;
- blanket bans on tenants with children or on benefits are unlawful;
- pet requests must be answered and cannot be refused unreasonably;
- penalties for licensing offences have risen, and rent repayment orders have been extended.
For HMO landlords, who usually have more tenancies per house than other landlords, each of these changes is multiplied across every room. The government's guide to the Act gives an overview.
How do periodic tenancies work for HMO room lets?
Since 1 May 2026, a room let to an individual as their only or main home is normally an assured periodic tenancy. There is no fixed term. The tenancy runs from period to period until the tenant gives notice or the landlord recovers possession on a statutory ground.
What this means for an HMO:
- Tenants can leave on 2 months' notice at any time, so rooms can come free at any point in the year.
- Section 21 is gone. To recover possession, a landlord must rely on a ground in Schedule 2 to the Housing Act 1988 and serve the right notice.
- Each room is its own tenancy, with its own start date, rent and paperwork.
- Joint tenancies of a whole house also become periodic, and the whole group's position needs thinking through when one sharer wants to leave.
For student houses, the Act created a specific possession ground. See our guide to student HMOs and Ground 4A.
What are the new rules on rent increases and rent in advance?
Rent increases. Rent can go up only once a year, and only by serving a section 13 notice giving at least 2 months' notice. The tenant can challenge the increase at the First-tier Tribunal. The government plans to move first-stage challenges to the Valuation Office in future. Rent review clauses in tenancy agreements no longer work as a way to raise rent.
Rent in advance. Nothing can be taken before the tenancy agreement is signed. Between signing and the start date, you can ask for no more than one month's rent, or 28 days' rent for tenants who pay more often. Clauses requiring rent in advance cannot be enforced once the tenancy starts. The penalty is up to £5,000, or up to £30,000 for a repeat breach. GOV.UK has published guidance on rent in advance.
Bidding. Landlords and agents must publish an asking rent and cannot seek or accept offers above it. In an HMO, set and advertise a rent for each room before you take enquiries.
What do the discrimination, pet and paperwork rules mean for HMOs?
- Children and benefits. Refusing tenants because they have children or receive benefits is banned. That covers blanket bans in adverts, refusing viewings and refusing a tenancy. Room size limits and the licence's maximum occupancy still apply, so assess each applicant against the room on offer.
- Pets. You must answer a tenant's request to keep a pet within 28 days, and you cannot refuse unreasonably. In a shared house, consider the other occupiers and the communal areas when you decide, and record your reasons.
- Written statement of terms. Every new tenancy needs a written statement of its terms.
- Information Sheet. Existing tenants had to receive the government's Renters' Rights Act Information Sheet by 31 May 2026, with fines of up to £7,000 for failing to do so. If any tenant in your HMO did not receive it, act now.
Letting agents are directly liable for breaches of the bidding, rent in advance and discrimination rules, with penalties of up to £7,000.
How can HMO landlords get possession now?
With section 21 gone, possession depends on the grounds in Schedule 2 to the Housing Act 1988, each with its own notice period and conditions. Points that matter for HMOs:
- Selling or moving in. Grounds 1 and 1A, for a landlord moving in or selling, cannot be used in the first 12 months of a tenancy and need 4 months' notice.
- Student lets. Ground 4A lets a landlord recover an HMO let to full-time students for the next academic year, if all its conditions are met. It needs 4 months' notice.
- Misuse of grounds. Misusing possession grounds is now an offence, and it can lead to a rent repayment order.
- Rent arrears and behaviour. These grounds remain, with their own notice periods and conditions.
Before serving any notice, check which ground applies and its current notice period. GOV.UK guidance on repossessing a privately rented property after 1 May 2026 sets out the process. Take legal advice on any contested case.
What are the new penalties and rent repayment order rules?
From 1 May 2026:
- the maximum civil penalty for licensing offences, breaches of the HMO management regulations, improvement notices and overcrowding notices rose from £30,000 to £40,000;
- tenants and councils have 2 years after an offence to apply for a rent repayment order, up from 12 months;
- an order can cover up to 2 years' rent, up from 12 months;
- repeat offenders must normally pay the maximum, and unlicensed HMO offences count as the same offence for that rule;
- councils no longer have to give 24 hours' notice before entering a private rented property.
Where an offence runs across 1 May 2026, the old rules apply to the period before that date and the new rules to the period after.
Are owners exposed if someone else runs the HMO?
Yes, more than before. The Act targets criminal rent-to-rent arrangements by reaching further up the letting chain:
- the HMO and selective licensing offences now cover anyone who controls or manages the property and any superior landlord, such as an owner who has leased the house to an operator;
- rent repayment orders can be made against superior landlords, not only the person who received the rent;
- orders can be made against company directors and officers where the offence was committed with their consent or connivance or, for specified offences, through their neglect.
A superior landlord has a defence if they did not know, and had no reason to know, that the property was an HMO, or if they took all reasonably practicable steps. If you lease your house to a guaranteed rent operator, check the licensing position yourself and keep records of what you checked. Our guide to HMO guaranteed rent covers this in more detail.
What changes are still to come for HMO landlords?
Several further changes are announced or scheduled but not yet in force:
- PRS Database. The new Register your rental property service is due to open on 15 December 2026, starting in the West Midlands, subject to Parliament approving the regulations. The draft regulations were laid on 9 September 2026 and have not yet been approved. The rollout is then due to move region by region, with the East Midlands in early 2027, and all landlords are due to be registered by 14 November 2027. Once it applies, unregistered landlords face penalties and will not be able to get a possession order on most grounds.
- Landlord Ombudsman. Mandatory membership of a new PRS Landlord Ombudsman is expected in 2028.
- Awaab's Law. It has applied to social housing since 27 October 2025. A consultation on extending it to private tenancies runs from 9 October to 18 December 2026. No start date has been set for private renting.
- Decent Homes Standard. A January 2026 policy statement sets the standard to apply to private rented homes from 2035. Regulations still have to be made.
- EPC C. The minimum is EPC E now. The government has confirmed as policy that private tenancies must meet EPC C or equivalent by 1 October 2030, with a cost cap of £10,000 per property, but legislation is still needed.
Dates for pending changes can move. We keep these guides under review, and our HMO management service tracks each change for the houses we manage.
Sources
- GOV.UK: Implementing the Renters' Rights Act 2025, our roadmap
- GOV.UK: Guide to the Renters' Rights Act
- GOV.UK: Asking for rent in advance, guidance for local authorities
- GOV.UK: The Renters' Rights Act Information Sheet 2026
- GOV.UK: Repossessing your privately rented property after 1 May 2026
- GOV.UK: Stronger protections and greater confidence for renters (9 September 2026)
- Renters' Rights Act 2025, section 105
- GOV.UK: Extending Awaab's Law to private rented tenancies and to licences
This guide explains the rules in England as we understood them in October 2026. It is general information, not legal or financial advice. Check with your council and take professional advice for your own situation.
