Renters’ Rights Act 2026: What Landlords Need to Know About Phase 1 and Phase 2

2026 has brought some of the biggest changes to England’s private rental sector in years.

The first phase of the Renters’ Rights Act came into force on 1 May 2026, changing how tenancies operate and how landlords can regain possession of their properties.

But that wasn't the end of the reforms. Phase 2 begins from late 2026, introducing further changes including the rollout of the new Private Rented Sector Database.

So, several months after Phase 1, what has actually changed and what should landlords be preparing for next?

Phase 1: What changed on 1 May 2026?

Perhaps the most widely discussed change was the abolition of Section 21 “no-fault” evictions.

Landlords can no longer use Section 21 to regain possession without giving a specific reason. Instead, they need to use an appropriate possession ground and follow the required process.

Another significant change was the move towards assured periodic tenancies.

Rather than the traditional fixed-term Assured Shorthold Tenancy structure, most private tenancies now operate on a rolling basis.

Tenants can generally end these tenancies by providing the required notice, while landlords wishing to regain possession must rely on the relevant statutory grounds.

Changes go beyond Section 21

Phase 1 also introduced wider changes affecting how landlords operate.

There are stronger rules around discrimination against prospective tenants who receive benefits or have children.

Tenants can request permission to keep a pet, and landlords must consider those requests appropriately.

Rent increases are also subject to a more structured process, with tenants having mechanisms to challenge increases they believe exceed the market rent.

For landlords, understanding the rules surrounding a tenancy is therefore increasingly important.

Phase 2: What happens next?

From late 2026, the Government plans to begin the regional rollout of the new Private Rented Sector Database.

Private landlords will ultimately be required to register themselves and their properties.

The Government expects the database to contain information about the landlord and property, alongside relevant safety and energy-efficiency information.

Registration will involve an annual fee, although the final amount is expected to be confirmed closer to implementation.

The objective is to create a central system that helps landlords understand and demonstrate their responsibilities while giving tenants greater access to information about rental properties.

Local authorities will also be able to use the system to support enforcement.

For landlords with several properties, keeping accurate and accessible records is likely to become even more important.

What about the new Landlord Ombudsman?

The reforms also provide for a new Private Rented Sector Landlord Ombudsman.

The intention is to give tenants an independent way to resolve complaints when an issue cannot be resolved directly with their landlord.

However, there is an important distinction around timing.

Although development of the Ombudsman forms part of Phase 2, the Government's current roadmap expects mandatory landlord membership to begin in 2028, once the service is ready.

Further details, including the charging structure, are still to be confirmed.

What does all this mean for Buy-to-Let?

The Renters’ Rights Act does not mean Buy-to-Let has suddenly stopped working.

But I believe it reinforces something that landlords should already be doing: treating a rental property as a business investment rather than looking only at the headline rent.

Before purchasing a property, consider the complete picture.

What will the mortgage cost? What rent is realistically achievable? What are the letting, maintenance and insurance costs? What happens during a period without a tenant? What regulatory requirements apply? And does the investment still make sense once everything is included?

A property producing an attractive monthly rent does not automatically make it a suitable investment.

The mortgage is only part of the calculation

Buy-to-Let lenders typically assess applications differently from residential mortgages.

Rental income, loan-to-value, property type, landlord experience and ownership structure can all influence the lenders and products available.

There can also be important differences between purchasing personally and through a limited company.

Portfolio landlords may face additional assessment of their wider property portfolio.

This is why discussing the financing before making an offer can be useful.

Sometimes a property looks attractive until the mortgage and rental calculations are considered properly.

Don't overlook Landlord Insurance

The mortgage isn't the only financial consideration.

Appropriate Landlord Insurance should also form part of the conversation.

Depending on the policy, this can include buildings insurance, landlord contents, property owners' liability, loss of rent, legal expenses and other optional protection.

HMOs, holiday lets, limited company properties and larger portfolios can also have different insurance requirements.

What should landlords do now?

There is no reason to panic about future reforms, but preparation makes sense.

Existing landlords should consider reviewing their tenancy arrangements, compliance documentation, EPC information, relevant safety records and property details.

It is also worth reviewing the financial side.

When does your current mortgage deal finish? Does the property still produce the return you expected? Is your landlord insurance still appropriate? Are you planning another purchase?

For prospective landlords, understanding these issues before buying is becoming increasingly valuable.

Buy-to-Let is becoming more professional

The direction of travel is clear.

The private rental sector is becoming more regulated, structured and professionalised.

That doesn't automatically make property investment unattractive. It does mean that understanding the numbers, financing, responsibilities and risks has become increasingly important.

At Cambs Ely Mortgages, we help first-time landlords, experienced investors, limited companies and portfolio landlords understand their Buy-to-Let mortgage options.

We can also help with Landlord Insurance, allowing the financing and protection of the property to be considered together.

If you're thinking about purchasing another Buy-to-Let, refinancing an existing property or simply want to understand your current mortgage options, get in touch.

Sometimes the best time to discuss the mortgage is before you've found the next property.

Building Blocks for a Brighter Future.

Important Information

This article is for general information only and is correct at the time of writing (18th of September 2026). Implementation of the Renters’ Rights Act is ongoing and requirements and implementation dates may change. Landlords should refer to current Government guidance and obtain appropriate legal and tax advice where required.

The Financial Conduct Authority does not regulate some forms of Buy-to-Let mortgages.

Your property may be repossessed if you do not keep up repayments on your mortgage.