Renters’ Rights Act: How the first wave of reforms are reshaping the rental market

In May 2026, the UK private rented sector entered a new era. The first phase of the Renters’ Rights Act 2025 came into force on 1 May 2026, introducing the most significant reform to renting in England in a generation.

So, what has changed so far, how is the market responding, and what should businesses and landlords be preparing for next?

What landlords may experience

Longer possession timelines

Landlords can no longer use Section 21, but many landlords will have sent their tenant a Section 21 notice before the 1st May deadline to take advantage of the Section 21 process. Consequently, the courts will see an influx of claims being issued by the 31st July deadline, which is likely to impact how quickly possession claims under the reformed process will be processed.
With Section 21 removed, possession must use Section 8 grounds to evict their tenants, which includes both fault grounds e.g. rent arrears and necessity grounds e.g. where a landlord or close family member intends to live at the property. The impact of the changes typically means:

This shift places greater importance on being able to evidence why a landlord is reletting on a particular ground for possession.

Increased exposure to rent arrears risk

The process has not changed, but some of the time periods involved have increased. For example, a tenant must owe three months’ arrears before a court has to make an order for possession, which has increased from two months previously required. Also, the notice period for possession claims based on rent arrears has increased from two to four weeks.
The impact of longer notice periods will result in increased rent arrears. Also, with the aftermath of the Section 21 claims being sent to court, this is likely to cause delays in the court system which again, may lead to increased rent arrears whilst court hearings are delayed due to over-burdened courts.
This is why many landlords are reviewing how they protect their income and cash flow in a more regulated environment.

Greater focus on compliance and record-keeping

The new regime places a stronger emphasis on:

Even minor errors in record keeping can delay legal action or result in landlords being fined by the relevant local authority.

Why legal and rent protection matters more than ever

With the reforms now in force, the key risk for landlords isn’t just tenant behaviour, it’s how long issues take to resolve.

For example:

This is where a combination of legal expenses cover and rent protection solutions plays a critical role, helping landlords manage both the legal journey and the financial impact.

Looking ahead

The May reforms are only the first phase of a multi-stage rollout.

Late 2026: new infrastructure and oversight

The next wave is expected to introduce:

These measures aim to improve transparency, accountability, and enforcement.

The Renters’ Rights Act represents a long-term shift rather than a short-term adjustment. Over the coming months, landlords can expect:

For landlords who adapt early, by strengthening processes and putting the right support in place, the changes can be managed effectively.

How ARAG can support landlords

At ARAG, we recognise that these reforms change both the risks landlords face and the support they need.

Our solutions are designed to help landlords

Customers are likely to be reviewing their approach in light of the Renters’ Rights Act, so now is the time to ensure they have the right protection and support in place. Speak to ARAG about how our legal expenses solutions can help your customers navigate the new landscape with confidence.