Compliance & Legal
Renters' Rights Act 2026: A Practical Guide for London Landlords Who Feel Stuck
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Since 1 May 2026, landlords in England can no longer use Section 21 "no-fault" evictions. Every tenancy is now open-ended, rent can rise only once a year, and selling a tenanted home means 4 months' notice plus a 12-month ban on re-letting if the sale falls through. London landlords now have four realistic options: stay and professionalise, sell, lease to a guaranteed rent operator, or switch to professionally managed short and medium-term lets. The right one depends on whether your property is empty or tenanted, what your mortgage and lease allow, and whether you want certainty or maximum income.
If you've been reading landlord forums since May, you'll know the mood. Landlords aren't mainly worried about bad tenants. They're worried about the paperwork, the fines, the loss of flexibility, and the feeling that one wrong form could cost them thousands.
This guide is deliberately practical. It sets out what actually changed, what landlords are really struggling with, and the options still open to you, including where Consensus Estate can help and where it can't.
What changed for landlords on 1 May 2026
The Renters' Rights Act 2025 is the biggest reform of private renting in England since 1988. These are the rules that matter most day to day:
| Rule | Before 1 May 2026 | Now |
|---|---|---|
| Ending a tenancy | Section 21: 2 months' notice, no reason needed | Section 21 abolished. You need a legal ground under Section 8. |
| Tenancy length | Fixed-term ASTs (e.g. 12 months) | Open-ended rolling tenancies. The tenant can leave on 2 months' notice. |
| Selling or moving in | Serve Section 21 | Not in the first 12 months of a tenancy. 4 months' notice. No re-letting for 12 months if you used the selling ground. |
| Rent arrears (Ground 8) | 2 months' arrears | 3 months' arrears, with 4 weeks' notice |
| Rent increases | Rent review clauses, agreed rises | Once a year only, via Section 13 notice (Form 4A). Tenants can challenge at tribunal. |
| Upfront rent | Often 6–12 months accepted | Maximum 1 month in advance |
| Tenant information | How to Rent guide | Government information sheet. Fines of up to £7,000. |
| Coming next | — | Landlord database from 15 December 2026 (fines of up to £40,000). Landlord Ombudsman expected in 2028. |
The Act covers assured tenancies, which means homes let to individuals as their main home. It does not cover genuine holiday lets or lets to a company. That distinction is central to the options below.
What landlords are actually struggling with
We read through landlord discussions on UK property forums such as OpenRent Community, MoneySavingExpert and Property118 from January to September 2026. The same five frustrations come up again and again.
1. "I want to sell, but the process scares me"
Selling a tenanted home now means waiting out the first 12 months of the tenancy and then giving 4 months' notice. The biggest trap is that once you serve notice to sell, you can't re-let for 12 months. If the sale falls through, the property can sit empty with no income. Even the National Residential Landlords Association (NRLA) advises treating that notice as a one-way door.
2. "One wrong form and I'm fined"
One landlord's letting agent never sent tenants the government information sheet, which carries a fine of up to £7,000. Another couldn't find the date of an informal rent rise from 2019, which the new Form 4A now asks for. Other rent notices have failed on technicalities as small as a weekly figure written as monthly.
3. "I can't adjust the rent when costs change"
One landlord's tenants asked for a washer-dryer. She was happy to install it but wanted to cover the extra electricity. The once-a-year rule means her only choices are to end the tenancy by agreement and start again, or wait.
4. "Nobody agrees on what the rules mean"
When does the 12-month clock start if sharers change? Do you re-serve deposit paperwork when a fixed term converts? Is a lodger covered? Experienced landlords give opposite answers, and there's no case law yet.
5. "I'm just going to get out"
Some landlords have sold, some at a discount, even as demand keeps rising. Propertymark reported 7 applicants for every available rental in March 2026. The demand is there, but many landlords no longer want to be the ones managing it.
The pattern is clear. The Act didn't make property a bad asset. It made self-managing a tenancy harder, slower and riskier.
Want to know what your property could earn?
Your four realistic options in 2026
There's no single right answer. Here's how the four options compare.
| Stay and self-manage | Sell | Guaranteed rent | Managed short and medium lets | |
|---|---|---|---|---|
| How it works | Keep letting on the new rolling tenancies | Sell with vacant possession or with the tenant in place | A company leases your property and pays you a fixed rent every month | An operator runs your property on Airbnb, Booking.com and corporate channels for a commission |
| Income | Market rent, reviewed once a year | One-off capital, no more income | Fixed, paid even when the property is empty | Variable, with more upside |
| Void risk | Yours | None after sale | The operator's | Yours (shared through performance) |
| Paperwork under the new Act | All yours | Notices, then the sale | Your lease is with a company, not an assured tenant | Guests aren't long-term tenants |
| Getting the property back | Only on legal grounds, with 4 months' notice or more | Not applicable | At the end of the agreed lease term | At the end of the agreed management term |
| Best for | Hands-on landlords with reliable tenants | Landlords who want out for good | Landlords who want certainty and no hassle | Landlords who want maximum returns with professional help |
| Watch-outs | The fines regime, the database, and possession delays | 12-month re-let ban, slower sales, capital gains tax | Choose a trustworthy operator, and get lender and freeholder consent | London's 90-night rule, and lender and freeholder consent |
The key point for options 3 and 4: a lease to a company is not an assured tenancy. The rolling-tenancy rules and Section 8 grounds apply to tenancies granted to individuals as their home. They don't apply to the business-to-business agreement between you and a guaranteed rent operator. Your term, your rent and your exit date are what the contract says. Always have your solicitor review any agreement, ours included.
How Consensus Estate helps London landlords after the Act
Consensus Estate works with landlords across all 32 London boroughs, and our team brings more than 9 years of short-term rental experience. We offer two models, options 3 and 4 above. Here's how each one answers the problems landlords keep raising:
| Your problem | How we solve it |
|---|---|
| "I can't risk voids or arrears" | Guaranteed Rent: a fixed rent paid every month, whether the property is booked or empty. Voids are our risk, not yours. |
| "I'm scared of the paperwork and fines" | Your agreement is with us, a company, not with an assured tenant. No Form 4A, no Section 8 notices, no tenant information sheets to chase. We run guest vetting, check-ins and day-to-day compliance. |
| "I want to be able to get my property back" | You choose the term: 12 months to 3 years for Guaranteed Rent, from 6 months for Commission Management. The end date is written into the contract. |
| "I might sell in a year or two" | Earn while you hold, without the 4-month notice and 12-month re-let lock that come with selling a tenanted home. Plan your exit around the end of the lease. |
| "I want the rent to keep up with the market" | Commission Management: we price daily based on demand, events and seasonality, for 15% of gross revenue. You keep the upside and get a monthly statement showing every booking and every cost. |
| "I don't want tourists wrecking the place" | We target business travellers, relocating professionals, contractors, insurance stays and medical visitors, with professional cleaning and an inspection after every stay. |
Not sure which model fits? That's what the free assessment is for. Tell us about your property and we'll show you what it could earn under Guaranteed Rent and under Commission Management. If neither makes sense, we'll tell you straight.
Is guaranteed rent right for you? Five honest checks
Guaranteed rent isn't for every property or every landlord. Before you switch, check these five things. We'll go through them with you on the assessment call.
- 1Is the property empty, or will it be soon? If you have a tenant, you can't end their tenancy just to switch to guaranteed rent. You'll need to wait for them to give notice or agree to leave. We can plan the handover so there's no gap in your income.
- 2Does your mortgage allow it? Most buy-to-let lenders need consent before you let to a company or for short stays. Ask your lender first.
- 3Does your lease allow it? Many leasehold flats have clauses about subletting or short lets. Check with your freeholder or managing agent.
- 4Is your insurance right? Standard landlord cover may not include short and medium stays. We'll tell you what's needed before anything is signed.
- 5Do you trust the operator? This matters most. Look for a proper written lease, a clear payment schedule, reporting, references from current landlords, and a company you can actually speak to. Poorly run rent-to-rent deals are why this model has a mixed reputation, and why you should ask any operator, including us, hard questions.
How it works: three steps, no obligation
- 1Free property assessment (15 minutes). Tell us the address, the size and whether it's empty or tenanted. We check demand, likely income and the five points above.
- 2A written proposal. You get figures for Guaranteed Rent (a fixed monthly amount) and for Commission Management (projected net income). Take it to your solicitor, lender and freeholder.
- 3We set up and run it. We handle property setup, photography, listings, pricing, guests, cleaning and maintenance. You get paid monthly, with a clear statement.
Frequently asked questions
What are my options as a landlord after the Renters' Rights Act?
You have four realistic options. You can keep letting and manage the new rules yourself, sell, lease to a guaranteed rent operator for a fixed monthly income, or switch to professionally managed short and medium-term lets. Which one is right depends on whether the property is tenanted, what your mortgage and lease allow, and whether you value certainty or upside.
Can I still sell my rented property in 2026?
Yes. You can sell with the tenant in place, usually to another landlord, or use Ground 1A to get vacant possession. Ground 1A can't be used in the first 12 months of a tenancy, needs 4 months' notice, and stops you re-letting for 12 months if the sale doesn't go through.
Does the Renters' Rights Act apply to guaranteed rent?
The Act's tenancy rules apply to assured tenancies, meaning homes let to individuals. A guaranteed rent agreement is a lease to a company, so it isn't an assured tenancy. The term and the end date are set by your contract. Always have a solicitor review the agreement.
What happens if my property is empty under guaranteed rent?
Nothing changes for you. With Consensus Estate's Guaranteed Rent, you receive the same fixed rent every month whether the property is booked or not.
How much does Consensus Estate charge?
Guaranteed Rent has no commission. You receive a fixed monthly rent on a 12-month to 3-year term. Commission Management costs 15% of gross booking revenue, with cleaning and maintenance deducted from your revenue, on a 6-month minimum term.
Can I switch if I already have a tenant?
Not straight away. Switching models isn't a legal ground for ending a tenancy. The switch happens when the property becomes vacant, for example when your tenant gives notice. We can agree terms in advance so the handover is quick.
Is short-letting legal in London?
Yes, within limits. Whole homes can be let for short stays on up to 90 nights a year without planning permission, and longer stays fall outside that cap. You'll also need consent from your lender and freeholder where it applies.
Stop fighting the paperwork. Let your property work for you.
The Renters' Rights Act changed the rules, not the value of your London property. Demand for well-run homes is higher than ever. The question is who carries the admin, the risk and the voids.
If you'd rather it wasn't you, talk to us. We'll assess your property for free, show you both models side by side, and tell you honestly whether guaranteed rent or managed lets makes sense for you.
Related service
How our guaranteed rent scheme works · get a free rental assessment
Sources
- GOV.UK: Renters' Rights Act overview
- GOV.UK: Notices of possession served after 1 May 2026
- NRLA: Renters' Rights Act hub
- NRLA: Selling under the Renters' Rights Act
- Property118: Propertymark rental supply data, May 2026
- OpenRent Community: Form 4A rent increase thread
- OpenRent Community: Rent increase and facilities thread
- GuestReady: London's 90-night rule explained


