(Updated 6 May 2026)

How Will The Renters’ Rights Bill Affect My Finances?

How Will The Renters' Rights Bill Affect My Finances?

As of Friday 1st May 2026, the Renters’ Rights Bill has now come into force, with new rules designed to improve the current private renting system. 

If you pay rent, keep reading to find out how this could affect you and your finances.

What is the Renters’ Rights Bill?

The Renters’ Rights Bill promises to improve the experience of private renting by giving tenants new rights and introducing new rules for private landlords.

One of the main changes is an end to Section 21 no-fault evictions, giving renters greater security, allowing them stay in their homes for longer and avoid the risk of homelessness.

What is a No-Fault Eviction & How is it Changing?

A no-fault eviction, or Section 21 notice, allows a landlord to end a private tenancy without needing to provide a reason. But after 1st May 2026, a landlord can no longer give their tenant a section 21 notice – even if the tenancy agreement says they can.

Instead, they will need a valid legal reason to evict you. These reasons are called ‘grounds for possession’, which can include, but are not limited to:

  • Not paying rent on time.
  • You, or others living with you/visiting you, committing antisocial behaviour in or near the property.
  • You, or others living with you, not caring for the property properly.
  • Your tenancy was only for certain purposes, e.g. it was tied to your employment, or was temporary/supported accommodation.

If your landlord intends to sell the property, or they/their family member wants to move into it, you cannot be required to leave under these grounds for the first 12 months of a tenancy. Read the UK Government’s Renters’ Rights Bill Information Sheet for more information.

What Else is Changing?

After 1st May 2026:

  • Fixed Term Tenancies: It will not be possible for assured tenancy agreements to have a fixed term or a set end date. All tenancies will automatically become rolling (usually monthly, unless the agreement sets out a shorter period, e.g. weekly or fortnightly) tenancies, which are sometimes known as ‘periodic tenancies’. If the tenancy had an end date, it will no longer apply. It will only end if the tenant or landlord decide to end it together, the tenant ends it by giving notice, or the landlord ends it with a valid legal reason.
  • The name of Assured Shorthold Tenancies: Some tenancy agreements might be called an ‘Assured Shorthold Tenancy’, but from now on, this will now be known as an ‘Assured Periodic Tenancy’ instead. Your tenancy will not end because of this change.
  • Increasing Rent: ‘Rent review clauses’ (terms in a tenancy agreement that allow the landlord to increase rent) cannot be used for new rent increases. Now, landlords can only increase rent once a year via Section 13 of the Housing Act 1988. They will need to give tenants written notice of the proposed rent increase at least 2 months before it would take effect, using a document called ‘Form A4’. Any increase must be no higher than the open market rent – if it is, tenants can challenge this at the First-tier Tribunal.
  • Ending a Tenancy As a Renter: Tenants can end their agreement at any time by giving their landlord at least 2 months’ notice (shorter notice periods can be agreed upon as long as other tenants named on the tenancy also agree) in writing (e.g. by letter or email). But the tenancy must end on a day when the rent is due or the day before rent is due.
  • Keeping a Pet: Tenants have the right to request to keep a pet and landlords must consider each request on a case-by-case basis. If the landlord refuses, they must have a valid reason and inform you of this in writing. Tenants can challenge the landlord’s decision in court.
  • If you are a Full-Time Student: If you rent from a private landlord, they may be able to evict you using possession ground A4 (applies when the tenancy aligns with the academic year). They can do this at the end of the academic year, but must give you 4 months’ notice ending between 1st June and 30th September. Your landlord can only use this ground if they have previously notified you in writing (by 31st May 2026, in most cases) that they may use it. If your landlord wants to evict you at the end of the 2025/26 academic year, they can serve you a notice seeking possession between 1st May and 30th July (inclusive), but will need to give this to you with at least 2 months’ notice.

How Will the Renters’ Rights Bill Impact My Finances?

But, how does all of this affect your finances? 

  • Stronger protection against ‘backdoor evictions’ – Tenants will be able to appeal excessive, above-market rents which are purely designed to force them out. However, landlords will still be able to increase rents, as long as they are within market prices, and an independent tribunal will make a judgment on this if needed.
  • The Decent Homes Standard will be applied to the private rented sector – Renters will be offered safer, better-value homes.
  • The end of rental bidding – Landlords and agents will be required to publish the asking rent price for the property and it will be illegal to ask for, or accept, offers made above this rate.
  • Stronger rent repayment orders – Rent repayment orders will be extended to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.

Get Confidential Rent Debt Help

Since rent is a priority debt, if you fail to keep up with your repayments, your landlord can take legal action against you, leading to rent arrears and potentially eviction. But the good news is, you don’t need to struggle alone.

Our friendly and knowledgeable debt advisers have helped over 48,000 people deal with debt. So, if you’re behind on your repayments and you need rent arrears help, you’re worried about the Renters’ Rights Bill and its stronger rent repayment orders, or you simply need rent debt help in general – we offer a wide range of debt solutions, as well as free* and confidential debt advice, to help you get back on your feet.

If all you need is some debt advice, this won’t affect your credit score. Our Online Debt Advice (ODA) tool is available any time, day or night. Free and easy-to-use, our online tool can help you instantly weigh up the debt solutions available to you, all without having to pick up the phone.

Alternatively, if you would prefer to speak to someone, contact us to talk to one of our approachable and experienced debt advisers, who can offer you free, confidential debt advice specific to your circumstances.

Debt Solutions We Offer:

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Angel Advance provides online debt advice to get you back on track and make your finances more manageable.

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