The Tenants Bill of Rights 2026 and beyond: A practical guide for small landlords

If you own one or two rental properties—perhaps a buy-to-let property bought as a long-term investment, or a family home inherited from a parent—the Tenants’ Rights Act 2025 affects you.

It is the most significant change to the private sector in more than three decades.

The law came into effect on 1 May 2026 and has reshaped how landlords work, how rents are paid, and how landlords search for property.

This guide is written for landlords who do not have large portfolios or in-house legal teams. It goes over what’s happening, what you need to do this month, and what’s coming up in the next 12 to 18 months—all in plain English. This is not legal advice: You should seek it from a professional. But hopefully it will give some pointers on where to start.

Here’s what we discuss:

Employers’ Bill of Rights: What’s changing, in a nutshell

This law applies in England and affects most assured tenants (ASTs) in the private rented sector.

About 11 million renters and about 2 million homeowners fall under its scope.

Here are some important things you should know:

• From 1 May 2026, fixed-term ASTs are being replaced by fixed-term tenancies—continuing agreements that continue from month to month until the landlord gives notice to move or the tenant gives two months’ notice to leave.
• Section 21 “no-fault” evictions are abolished. For their properties, landlords are using Section 8 with modified and extended residences, including new reasons including the sale of the property and the landlord going back.
• Rent can be increased once a year with at least two months’ written notice, and tenants can challenge the increase through the Court of First Instance.
• Any ads created by landlords must list a clear asking rent, and accepting offers above that amount—known as rental bidding—is prohibited.
• Landlords cannot ask for more than one month’s rent in advance at the start of a new property.

The most stressful task for landlords with existing tenants is the Information Sheet.

The government has produced an official document outlining the new rules for employers, and a copy must be given to every existing employer before 31 May 2026.

Failure to do so may result in a local authority financial penalty.

You can deliver it digitally—email is fine—or on paper, whichever suits your employer. Keep a record of when and how you sent it.

One note about emailing: You must attach a PDF. It is not allowed to provide a PDF link (for example, simply linking to a government website).

If your existing plan is voice-only, you cannot use the Information Sheet. Instead you need to provide a written statement of the essential terms of the accommodation. Government guidance on this is published on GOV.UK.

For new leases signed on or after May 1, 2026, the Information Sheet does not apply.

Instead, mandatory written information about the accommodation must be included in, or provided as part of, the rental agreement before it is signed. Updated template agreements that include this information are available from homeowners associations and conveyancing services.

Another deadline to note: if you gave a Section 21 notice before 1 May 2026, the court action must start on 31 July 2026 to remain effective. After that date, only Section 8 routes are open.

Employers’ Bill of Rights: What comes next

Beyond the May 2026 launch, many other changes are planned.

A new Private Sector Tenant Landlord database will be rolled out gradually from late 2026, requiring landlords to register and providing tenants and councils with a means of verifying properties and ownership.

A Private Rented Sector Ombudsman will be introduced to deal with tenants’ complaints outside the court system, providing a quick, cost-effective solution for both parties.

The Government has also announced that the Decent Homes Standard will be implemented on par with the private sector, along with changes to the Home Health and Safety Rating System (HHSRS) to make it easier for landlords and councils to use.

Anti-discrimination provisions mean that landlords and agents cannot refuse tenants because they have children or receive benefits.

There is one more limitation to understand now: if you give notice of your availability for the reason of selling the property, you cannot re-let the home for 12 months afterwards. This is designed to keep the world real, and has a real strategic impact when considering sales.

Existing requirements still apply: secured deposits, a valid EPC, a gas safety certificate, and an electrical safety report are all still required, and councils will have stronger enforcement powers under the new framework.

Another thing to keep on your radar: Tax Digitization

Alongside the Employers’ Rights Act, there is a similar change to be aware of—the Digitization of Income Tax.

HMRC’s new digital tax system went live on 6 April 2026 for landlords and sole traders with an income of over £50,000.

From 6 April 2027 the limit drops to £30,000, and from 6 April 2028 it drops to £20,000 again. Eligible income is your total rent (before expenses), plus any self-employment income. In jointly owned properties, only your share of the rent counts towards the threshold.

For many owners of one or two properties, the £30,000 and £20,000 limits are likely to be relevant.

A single property selling for £1,700 a month is already generating over £20,000 in gross rent, so a large number of small landlords will be brought in by 2028.

If you’re downsizing, you’ll need to keep digital records using MTD-compatible software and submit quarterly updates of any businesses you run and your rental income, as well as one Year-End Self-Assessment return.

Landlords who manage property through a limited company are not affected—the companies report under Corporation Tax instead.

While you’re reviewing your Tenant’s Bill of Rights paperwork, it’s also a good time to review your bookkeeping. Talk to your accountant about which limit applies to you, and start looking for homeowner-friendly accounting software early.

Voluntary registration is already open, giving you time to test the process before it becomes mandatory, regardless of your income level.

Three ways to take small home owners

Here’s what you should be doing today.

1. Revise your papers now, not later. Replace any old AST templates with new certified templates for periodic hires, prepare Information Sheet submissions, and create a simple compliance checklist that you can reuse for all future hires.
2. Create important dates. Put 31 May 2026 (the Fact Sheet deadline), 31 July 2026 (the current Section 21 court deadline), and your tenants’ rent review anniversaries on your calendar now. Rent increases occur once a year, so each property needs its anniversary date carefully tracked.
3. Invest in the relationship with your employer. Most disputes that reach the tribunal or courts begin as minor misunderstandings. A landlord who communicates clearly, responds quickly to repair requests, and gives proper notice of rent updates is less likely to face challenges. The new framework really rewards good performance.

Final thoughts

The Tenants’ Bill of Rights represents a real change in the way the rental sector operates, but for landlords who already manage their properties professionally and communicate well with tenants, much of it will feel like formalization of good practice rather than chaos.

Combined with the parallel release of Making Tax Digital, this is a useful time to pause and organize your systems. Tackle it in small steps over the next few weeks, lean on your accountant or whatever landlord association you belong to, and you’ll be well set up for years to come.

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