Guaranteed Rent: What the Renters’ Rights Act Means for Landlords and Agents

Guaranteed Rent: What the Renters’ Rights Act Means for Landlords and Agents

The Renters’ Rights Act is now moving from headlines to implementation. The government has confirmed that the first phase of changes will take effect on 1 May 2026, with further phases planned for late 2026 and beyond. For landlords and agents, this marks one of the most significant shifts in how the private rented sector operates.

This blog sets out the key changes, what they mean in practice, and why many landlords are already looking at options like guaranteed rent to create stability as the new rules bed in.

Phase One: The Immediate Changes Coming in May 2026

Section 21 abolished

“No-fault” evictions will go. All possession claims will need to rely on prescribed grounds, and evidence will matter more than ever.

Impact: Agents and landlords should expect longer timelines for possession and more steps in the process.

Fixed-term assured tenancies replaced with periodic tenancies

Every tenancy will become periodic rolling month to month. Fixed end dates will disappear, and tenants can give notice to leave at any point.

Impact: Landlords lose the certainty of a fixed end date. Agents will need clear procedures around notice, renewals, rent changes, and compliance follow-ups, as the old cycle of annual renewals will not apply in the same way.

Limits on rent increases and rent in advance

Rent reviews will face stricter rules, and the ability to ask for multiple months’ rent upfront will be gone. A prescribed legal notice (Section 13) will need to be served to seek increases from tenants.

Impact: With no annual or fixed date to naturally discuss rent increases, Landlords will need to ensure the correct legal process is followed to seek a rent increase. Tenants will have the ability to dispute.

Bidding wars will be banned

Properties will need to be marketed with a single, clear asking rent and offers cannot be encouraged above that level.

Impact: This curbs competitive letting practices in high-demand areas. Agents will need to review scripts, marketing materials, and internal processes to stay compliant, and landlords will not be able to accept offers above the asking price.

Blanket bans on tenants with children or those on benefits will end

Adverts, application forms, and internal screening need updating.

Impact: Agents and landlords should expect more open applicant pools and will need to ensure decision-making is fair and based on individual circumstances, not blanket rules. This will need to be explained to landlords to avoid breaking the law.

Tenants will have the right to request pets

Refusals will need valid reasoning, and landlords may be expected to consider pet clauses or pet-related insurance.

Impact: Unless there is a genuine reason for concern, a landlord will not be able to reject a pet.

Phase Two and Three: What We Know So Far

Phase two is scheduled for late 2026, with a third phase to follow with no stated date. While the detail is limited, the government has signalled further reforms around enforcement, court processes, and property standards.

Agents and landlords should expect more administrative requirements and the need to update processes at least twice more over the next two years.

Rent Your Property to the Council: What These Changes Mean for Your Strategy

The move to periodic tenancies and stricter rules around possession will push many landlords to reassess how they operate.

If you rent your property to the council via a Guaranteed Rent scheme like Apex Housing Solutions, the impact will be different. Councils will continue to operate longer-term placements, and demand is expected to increase as more private landlords step back from the open market.

However, landlords working with councils still face the same regulatory framework and the same compliance demands.

This is where guaranteed rent arrangements offer a practical alternative.

Guaranteed Rent: A Stable Option in a More Regulated Market

With fixed terms disappearing in the traditional PRS, guaranteed rent remains one of the few routes that still offers:

• Fixed-term agreements: Even as the wider market moves to periodic tenancies, guaranteed rent allows landlords to secure multi-year contracts offering clarity on income, occupancy, and timelines.

• No voids, no arrears: Payments are made regardless of occupancy. In a sector where rent increases will be restricted and applicants become harder to filter, this stability becomes far more valuable.

• Free full management: Apex covers inspections, compliance checks, tenant liaison, maintenance reporting, and day-to-day issues. This removes the pressure on agents and landlords who now need to operate within a more tightly controlled compliance environment.

• No advertising, no bidding, no renewals: Guaranteed rent sidesteps several of the new complications entirely. There’s no marketing, no rent negotiations, and no cycles of renewals to manage.

• A predictable, compliant, hands-off solution: As regulations increase and enforcement becomes stricter, many landlords will want simplicity and predictability. Guaranteed rent provides both.

Final Thoughts

The Renters’ Rights Act represents a fundamental reshaping of the rental market. The coming months will involve new guidance, new documentation, and new processes for every agent and landlord. While the sector adapts, guaranteed rent offers a practical buffer - fixed terms, stable income, and a management structure that absorbs much of the upcoming complexity.

If you'd like to discuss how guaranteed rent could support your portfolio during these changes, our team is happy to talk.

Apex Housing Solutions📧 info@apexhousingsolutions.co.uk📞 020 3150 0740