For landlords and tenants, the most significant rental reform updates in a generation are no longer a distant policy discussion. England’s private rented sector is moving away from assured shorthold tenancies and Section 21 notices towards an open-ended tenancy system with clearer standards, tighter rules around rent and stronger routes for resolving disputes.
For landlords in South East London, the practical question is not whether to react, but how to run a compliant, well-documented tenancy that still protects a valuable investment. Good preparation should make the change more manageable, particularly for landlords who would rather not spend evenings dealing with paperwork, repairs and difficult conversations.
Rental reform updates: the changes now in force
The Renters’ Rights Act has brought major changes to renting in England. From 1 May 2026, assured shorthold tenancies have been replaced by assured periodic tenancies. This applies to new tenancies and, importantly, existing qualifying tenancies have moved into the new system too.
A periodic tenancy does not have a fixed end date. Tenants can generally leave by giving two months’ notice, while landlords must rely on a valid legal ground if they need to recover possession. This is the change most people associate with the end of Section 21, often called ‘no-fault’ eviction.
The aim is to give tenants more security. For responsible landlords, it also creates a stronger reason to get the tenancy, property condition, communication and record keeping right from the first viewing onwards. A possession case is much easier to manage when there is a clear paper trail.
Possession is still possible, but the route matters
The end of Section 21 does not mean a landlord can never regain their property. Landlords can use reformed possession grounds where there is a legitimate reason, including serious rent arrears, anti-social behaviour, a breach of tenancy, selling the property or moving in themselves or allowing a close family member to move in.
However, the grounds have specific conditions and notice requirements. In particular, landlords using the selling or moving-in grounds face restrictions at the beginning of a tenancy and may need to give a longer notice period than under the old system. These measures are designed to prevent the new grounds being used as a substitute for an unrestricted Section 21 notice.
This is where professional management becomes valuable. Before serving any notice, landlords should check the precise ground, evidence needed, correct notice period and all relevant tenancy paperwork. A procedural mistake can cause delay and additional cost.
Rent increases and rental bidding
Rent can be reviewed, but the process is more controlled. A landlord may normally propose one increase in a 12-month period through the formal Section 13 process, giving the required notice. The proposed rent must reflect the local market, and the tenant can challenge it through the tribunal if they believe it is above market level.
For landlords, that makes an evidence-based valuation more useful than ever. Comparable lets, property condition, presentation, transport links and demand in the immediate area all matter. In SE18, SE28 and SE2, rents can vary substantially between streets and property types, so broad London averages are rarely enough to support a pricing decision.
Rental bidding has also been prohibited. Letting a property for the advertised rent is now the safer starting point, rather than inviting applicants to offer more. This does not prevent landlords from selecting the most suitable applicant, subject to fair and lawful referencing, but it does mean advertised rents should be realistic from day one.
Landlords should also be mindful of restrictions on excessive rent in advance. Asking for large upfront payments to compensate for concerns about affordability can create compliance issues. Proper affordability checks, guarantor arrangements where appropriate and clear referencing are usually the more sensible route.
Pets, families and fairer access
The reforms strengthen tenants’ ability to request permission to keep a pet. Landlords must consider a written request and cannot refuse unreasonably. They can still assess the property, the type of pet and legitimate concerns such as lease restrictions, overcrowding or a risk of damage.
A blanket ‘no pets’ policy is therefore unlikely to be the best approach. A considered pet policy is more practical: establish what information is needed, respond within the legal timeframe, check the superior lease where relevant and record the decision clearly. In some cases, landlords may request suitable pet damage insurance or rely on tenancy deposit protection rules, but they should not assume every cost can simply be passed on.
The legislation also addresses discriminatory practices affecting renters with children and people receiving benefits. Landlords and agents should review adverts, application processes and instructions to ensure decisions are based on lawful, consistent criteria such as affordability, references and the suitability of the home.
What landlords should do now
The most effective response is to treat reform as an operational review, not a one-off document exercise. Start with every active tenancy. Confirm the tenancy type, rent, deposit protection, prescribed information, gas safety record, electrical safety report, Energy Performance Certificate, smoke and carbon monoxide alarms, repair history and communication records are in order.
Then review how you handle the moments that commonly lead to disputes: rent arrears, repair reports, access requests, complaints, pets and renewals. Under a periodic system, there is no routine fixed-term renewal date to prompt a conversation. Regular, respectful contact and timely maintenance become more significant.
For a landlord considering sale or future occupation of a property, planning also matters. Do not promise vacant possession to a buyer, book a move or rely on a possession timetable until you have taken advice on the appropriate ground and likely timescales. The right to seek possession is not the same as a guaranteed date for vacant possession.
It is also worth checking insurance and mortgage conditions. Some products were written around fixed terms or specific tenancy language. Providers may update their requirements as the market adjusts, and landlords should keep written confirmation of any changes.
The next stages of reform
Not every part of the new framework has arrived at once. Further measures, including the Private Rented Sector Database and a new landlord ombudsman service, are being introduced in stages. The Decent Homes Standard for the private rented sector and wider protections against serious hazards will also raise expectations around property condition.
The direction of travel is clear: landlords will need to show that their homes are safe, properly maintained and professionally managed. That should not be viewed solely as another compliance burden. Well-kept homes attract stronger applicants, reduce avoidable repair disputes and help protect long-term rental value.
The details and commencement dates for later measures can change through regulations, so landlords should avoid relying on old articles or social media summaries. Keep an eye on official announcements, and take tailored legal or property-management advice where a tenancy is complex.
A practical approach for tenants
Tenants should understand that greater security also comes with responsibilities. Pay rent on time, report repairs promptly and in writing, allow reasonable access for safety checks and repairs, and keep records of important conversations. If you wish to leave, check the notice required under your tenancy and give it clearly.
If a landlord proposes a rent increase or serves a possession notice, do not ignore it. Read the paperwork carefully and seek advice early if anything appears unclear. Acting quickly gives both sides more opportunity to resolve an issue before it becomes a formal dispute.
For many landlords, the reforms will reward the approach that already works best: fair rents, thorough referencing, well-maintained homes and calm, documented communication. Hi Residential can help local landlords put those habits into a dependable managed letting service, leaving them with a property investment that is easier to run and a tenancy relationship built to last.
