Enforcement is about to become much tougher

Local councils now have far more power than many owners realise. Since 27 December 2025, they have been able to require information in writing, set deadlines, demand documents from people connected with the property over the previous 12 months, and use powers of entry in relation to business premises and, in some cases, residential premises too. Councils can also inspect with notice, and in some situations can apply for a warrant. The Act also strengthens enforcement by expanding civil penalties and requiring councils to report on enforcement activity.

That matters because enforcement is no longer something owners can assume will only happen after a major complaint. Government has made it very clear that
councils are expected to use these powers, and the implementation roadmap saysthe new investigatory powers were brought in early specifically to help councils crack down on rogue practice before the main tenancy reforms take effect.

Why owners should take this seriously now

Councils can already use Council Tax, Housing Benefit and tenancy deposit information to help identify whether a property is being rented, whether there may be too many people living there, and whether an HMO licence may be required. That means weak compliance is much easier to spot than it used to be.

In practical terms, owners should expect core compliance to come under the spotlight first: property condition, safety, paperwork, and whether the property should lawfully be let at all. Energy performance is an obvious example. In England and Wales, privately rented homes generally need to meet EPC E or above, unless a valid exemption applies, so a sub-E rating without an exemption is already an enforcement risk before you even get into the new tenancy rules.

And once an enforcement officer is looking at a property, the question is not simply whether you meant to do the right thing. The question is whether you can prove you did the right thing.

I was recently speaking to a lovely owner who genuinely looks after his property and receives glowing feedback from his residents. But historically the gas safety certificate had been left at the property by the contractor, and the owner had simply paid the invoice. The problem is obvious: if that owner ever needed to prove service, there was no reliable audit trail. That is exactly the sort of issue that can become very expensive very quickly.

Civil penalties can arrive through the post

A lot of owners still imagine enforcement as a court prosecution. In reality, many cases will begin with a civil penalty. Under the new framework, initial or minor non-compliance can attract a civil penalty of up to £7,000, while serious, continuing or repeat non-compliance can lead to penalties of up to £40,000 or prosecution. Local authorities can also issue multiple penalties for continued and repeat breaches.

That is why record keeping now matters every bit as much as good intentions. A missed certificate, weak evidence of service, an invalid process, or a compliance gap that has been quietly tolerated for years could now lead to a penalty that lands like a parking ticket through the post, but on a very different scale.

Rent repayment orders could become a £28,800 problem

The second major issue is rent repayment orders. When the Renters’ Rights Act comes into effect from 1 May, rent repayment orders become much more serious. They are being extended to cover more offences, they can apply to superior landlords and company directors in some cases, the maximum amount doubles from 12 months’ rent to 24 months’ rent, and the time limit for bringing a claim also extends from 12 months to 24 months. Where an owner has already been subject to enforcement action for a relevant offence and commits it again, the maximum award must be ordered.

Using £1,200 per calendar month as a simple local example, a maximum rent repayment order could be £28,800. That is just under £30,000 on one property, before legal costs, lost time and stress are taken into account. That is why this matters so much. From 1 May, getting the detail wrong could cost an owner not hundreds, but tens of thousands of pounds.

There are no more fixed terms

Another major shift is that fixed terms are effectively going. On or after 1 May 2026, tenancy agreements can no longer have a set end date, and existing tenancies automatically become rolling assured periodic tenancies. If a tenancy had an end date, that date will no longer apply after the change.

That means the early months of a tenancy matter even more than before. If the home is not clean, safe and properly prepared, or the experience for the resident is poor, there is no longer a fixed term quietly holding the arrangement together. A resident can end the tenancy by giving two months’ notice in writing, aligned with the rent date or the day before.

We do not think this will be a problem for well-run homes. At Maxine Lester, the average tenancy we are seeing is 48 months. Good homes, well prepared and well managed, still keep good residents. But this change does mean owners need to focus more than ever on presentation, preparation and resident experience from day one.

Section 21 is going

From 1 May 2026, Section 21 goes. Owners will no longer be able to use a no-fault Section 21 route for assured tenancies under the new system.

If you already have a Section 21 notice running now, there is a deadline. In most cases, court proceedings must be started by the earlier of six months from service or 31 July 2026. After that, you will not usually be able to rely on that notice.

That makes the next few weeks especially important for any owner who is already mid-process.

How owners will end a tenancy after the Renters’ Right Act comes in on 1 May

After 1 May, possession will be about evidence and process.

Owners will need to use Section 8 grounds instead. The grounds are being expanded and clarified, and the government’s guidance now sets out the full range that can be used from 1 May 2026. If the resident does not leave, the owner will still need to apply to court and prove the ground. Mandatory grounds must be granted if proven; discretionary grounds depend on whether the court considers possession reasonable.

For many owners, the most relevant grounds will be Ground 1 if the owner or a close family member wants to move in, Ground 1A if the owner wants to sell, and the rent arrears grounds if the resident falls behind. Ground 1 and Ground 1A both carry a four-month notice period and cannot be used in the first 12 months of a new tenancy.

For arrears, the important change is that the mandatory threshold rises from two months to three months’ arrears, and the notice period for that mandatory route increases to four weeks. Owners can still use the discretionary arrears grounds where appropriate, including persistent late payment.

There is also a very important anti-abuse rule. If an owner uses the sell or move-in grounds, there are restrictions on re-letting afterwards. That is one more reason why the paperwork and the genuine reason behind the notice must be sound.

Rent increases must now be formal and evidence based

The days of informal rent review chats are, in practice, over.

From 1 May, if an owner wants to increase rent on an assured periodic tenancy, it must be done through the Section 13 process using Form 4A and giving at leasttwo months’ notice. Rent can only be increased once every 12 months, and not in the first year of the tenancy. If the resident believes the proposed rent is above the market level, they can challenge it through the First-tier Tribunal.

So rent reviews will need to be annual, evidence based and properly documented. The benefit of that is clarity. The downside is that informal shortcuts will create risk.

You cannot take large sums upfront or accept bidding wars

Another big operational change is around money.

Under the new rules, an owner or agent cannot ask for, encourage or accept rent before the tenancy agreement has been signed. After the agreement is signed, only the first month’s rent can usually be taken in advance for a monthly tenancy. Owners and agents must also advertise an asking rent and cannot ask for or accept offers above that advertised figure.

This will catch out anyone who has relied on large upfront payments or informal bidding to manage risk. From 1 May, the better answer is stronger referencing, better preparation and a more disciplined letting process.

Discrimination rules are tightening

Owners also need to be careful about how they advertise and how they make decisions.

The Renters’ Rights Act guidance makes clear that it will be unlawful to discriminate against applicants because they receive benefits or have children. That means old wording, old habits and old blanket policies such as “No DSS” or “no children” are no longer safe.

This does not mean owners lose all choice. It means decisions must be based on lawful, objective suitability criteria, not broad assumptions about a type of applicant.

Pets need a proper reason to refuse

Pets are changing too.

From 1 May, residents will be able to ask to keep a pet, and owners will not be ableto unreasonably refuse. Government guidance gives examples of when refusal may be reasonable, such as where the property is too small, another resident has an allergy, the pet is illegal, or the lease does not allow pets. Simply not liking pets, or having had problems with pets in the past, will not usually be enough.

Again, the theme is the same: owners still have rights, but they now need a clear, supportable reason.

Owners have not lost their rights, but they have lost the margin for error

That, for me, is the real message of 1 May.

Owners have not lost their rights. You can still recover possession in the right circumstances. You can still increase rent properly. You can still refuse a pet where there is a genuine reason. You can still protect your investment. What has changed is the margin for error.

The old world allowed a surprising amount of informality. The new world does not. Owners now need better preparation, better records, better compliance and better advice. That is exactly where good management makes all the difference.

At Maxine Lester, we believe owners and residents both deserve expert, honourable and personal support. That has been our approach since 2005, and it is exactly why so many owners ask us to take the hassle, the risk and the uncertainty out of renting.

If you would like to make sure your property is properly prepared for 1 May, or you want us to review your paperwork, compliance and tenancy setup, please get in touch with the Maxine Lester team.

And if you would like a more detailed insight into the changes,  why not watch our helpful video?

WATCH OUR “CALM COUNTDOWN TO THE RENTERS’ RIGHTS ACT” VIDEO SERIES HERE