How does the Renters’ Right effect ……. Tenancy Set-Ups

Tenancy terms

Landlords will be required to provide tenants with a written statement of the tenancy terms in the government-prescribed format.

When the Act is implemented, existing tenants must receive a government-issued summary outlining what is changing within one month. There is no requirement to replace current tenancy agreements but communication and record keeping will be key.

Rent cannot be taken before the tenancy agreement has been signed and executed. A deposit, however, can still be collected in advance.

The end of fixed term tenancies

From 1 May 2026, Assured Shorthold Tenancies (ASTs) will be abolished. All new and existing tenancies will become assured periodic tenancies from the outset.

In practical terms, there will no longer be fixed terms as we know them. Tenancies will continue indefinitely unless ended by the tenant, or by the landlord relying on a valid statutory ground for possession.

Purpose-built student accommodation will fall outside the new system. Exemptions for student lettings apply only to landlords renting licensed HMOs to students.

This marks a significant structural shift in how tenancies operate.

Rent increases

Rent may only be increased once per year using a statutory Section 13 notice, giving two months’ notice and reflecting the true market rate.

In-tenancy rent review clauses and informal agreements to increase rent will no longer be permitted. Tenants will have the right to challenge any increase via the First-Tier Tribunal, which will assess the rent against comparable local evidence.

Rent periods must be monthly (or shorter). Landlords will no longer be able to request multiple months’ rent in advance. For the first rental period, only one month’s rent can be taken.

Accurate pricing at the outset will be more important than ever ensuring your property is competitive, compliant and positioned correctly from day one.