What luxury property landlords should know now the Renters’ Rights Act has passed

Yes – ASTs will be abolished.

An Assured shorthold Tenancy (AST) is either fixed term, with a set start and end date, or a periodic tenancy which has no end date and rolls on automatically.

These types of tenancy agreements will be abolished under the new RRA, and all tenancies will become Assured Periodic Tenancies, therefore a rolling agreement which may continue indefinitely until either the landlord or tenant gives proper notice to end it.

There will no longer be a minimum term and rent periods are capped at one month. Tenants will be able to terminate the agreement with two months’ notice, which could mean that landlords will not know how long tenants will stay in their property, opening up the possibility of the property standing empty for periods whilst new tenants are found.

No. Under the new RRA ‘no-fault’ evictions will be abolished.

Currently Section 21 of the Housing Act 1988 in England provides a legal route for landlords to end an assured shorthold tenancy and regain possession without having to provide a reason for eviction.

From May 2026 eviction must rely on revised Section 8 grounds, meaning landlords will need to document and justify possession requests more rigorously.

For luxury properties, this increases the importance of maintaining impeccable records such as rental payments, tenant behavior, correspondence and repairs to support any future possession case.

From May 2026, rent can be increased only once per year via a statutory process (Section 13), rather than relying on contractual review clauses.

• A landlord must provide at least two months’ notice of any increase, double the time period currently required.
• Tenants will have the right to challenge increases at a First-tier Tribunal, which could delay implementation.
• For a premium property, this could mean more negotiation, and a need to justify market-level increases with strong benchmarking and evidence.

Yes, the RRA introduces clearer rules to curb rent escalation practices:

• For new assured periodic tenancies, landlords can request no more than one month’s rent in advance.
• A fixed rent must be advertised, and landlords are prohibited from inviting or accepting offers above the advertised price, referred to as “rental bidding wars”.

This may constrain cash flow strategies and require a rethink on the structuring of rent in advance or deposits for high-end properties.

The RRA gives more backing to tenants with pets.

It will mean that tenants, although not applicants, have the right to request permission to have a pet and that landlords can only refuse with a valid reason, within a 28-day decision window.

The Act will also mean that landlords cannot completely ban tenants who are on benefits or have children. Landlords can however continue to consider affordability, looking at a potential tenant’s income to determine that they can cover the rent. Both these changes come into effect in Phase 1st, May 2026.

Yes, there will be a shift from what is currently handled in court towards local councils who will be able to enforce civil penalties against landlords who evict tenants illegally. From 27th December 2025, local authorities will gain enhanced investigatory powers such as demanding information or entering premises, under the new Act.

Civil penalties for serious non-compliance will increase, with maximum fines rising significantly under the RRA and repeat or serious breaches could lead to rent-repayment orders or further sanctions.

For luxury homes, this further underlines the importance of ensuring all health, safety, and regulatory compliance is proactively managed.

Phase 2 is due to be introduced late 2026 and will initiate a Private Rented Sector (PRS) database where all landlords in England must register themselves and their properties. A registration fee will apply, and registration must be done before advertising or letting a property.

Also to be introduced is a Landlord Ombudsman for dispute resolution. This service will be free for tenants to use. The service aims to provide a fair, impartial, and binding resolution for tenant complaints, without the need for court action.

The Ombudsman can legally instruct landlords to apologise for poor practice, provide information, undertake works, or pay compensation to remedy a situation and will also offer landlords guidance, tools, and training on handling complaints early, with the goal of fostering a more professional and transparent sector.

Detailed timelines and secondary legislation for Phase 3 are yet to be confirmed but there will be an extension of Awaab’s Law.

Currently applicable to social housing providers, the RRA looks at extending Awaab’s Law to the private rental sector. This will mean the imposing of strict new timelines for landlords to investigate, and fix reported serious health hazards.

The shift to periodic tenancies plus limits on advance rent will require landlords to re-forecast income and build buffers for potential vacancy periods.

Even if existing ASTs convert automatically, by the end May 2026 existing tenants will need to be provided with a government ‘information sheet’ which is due to be published online in March 2026.

Joining the PRS database and participating in ombudsman processes will be mandatory so prepare to integrate these into your compliance infrastructure for the coming year.

And finally, tenants of high-end properties expect clarity, premium service, and consistency so transparent, well-documented rent reviews and possession processes will be essential.