The first phase of the Renters' Rights Act (RRA) came into force on 1 May 2026 in England, ending Section 21 no-fault evictions for good. According to Pegasus Insight's Q1 2026 Landlord Trends report, 80% of landlords are concerned about the new legislation - and that concern is already changing how they operate.
What Changed on 1 May 2026
Section 21 - the mechanism that allowed landlords to reclaim a property without stating a reason - is now abolished for all tenancies in England. Landlords must now rely on specific legal grounds to end a tenancy.
Two new grounds apply under the Renters' Rights Act 2025. Ground 1A (mandatory) lets a landlord or close family member move into the property, with 4 months' notice required. Ground 6A (mandatory) allows a landlord to sell, with 2 months' notice required.
All new tenancies are now periodic from day one. Fixed-term assured shorthold tenancies (ASTs) no longer exist for new lets in England. Tenants can give two months' notice to leave at any point.
The possession timeline implication is real. Where a Section 21 notice once offered a relatively predictable route out, landlords must now follow specific grounds. Each ground carries its own notice period and potential for a court challenge. That means longer timelines if a tenant contests proceedings.
What This Means for Your Numbers
Run the numbers on void risk first. Abolishing Section 21 means landlords face longer potential eviction timelines, higher legal costs, and greater uncertainty over when they can take a property back. That uncertainty has a cash flow price.
Pegasus Insight's Q1 2026 data shows 70% of landlords believe the RRA will negatively affect their lettings business. A separate figure: 75% of those planning rent increases say they will raise rents specifically to offset the impact of the reforms.
Here is the counterpoint worth knowing. Pegasus also found the typical renter has already spent more than five years in the same home. Two thirds of tenants plan to stay for another 4.3 years on average. Just 3% of tenants were served an eviction notice in the last 12 months, and only 0.6% contested one.
For your buy-to-let (BTL) mortgage stress test, that data matters. Lenders assess BTL applications partly on income stability and risk. A portfolio of long-term, settled tenants presents lower risk than short, high-turnover lets. Use the stress test calculator to model how changes to void periods affect your interest coverage ratio (ICR) - the key metric lenders use to assess BTL affordability.
What Landlords Should Focus On Now
Shawbrook director of real estate proposition Daryl Norkett put it plainly: get documentation in order, seek guidance where needed, and stay close to further changes ahead of October.
Documentation is not a small point. Your ability to rely on Ground 1A or Ground 6A depends on having the right paperwork from the start of each tenancy. If tenancy agreements, deposit certificates, or compliance records are not current, your grounds for possession may be unenforceable.
From a lending perspective, some lenders may begin to price in longer possession timelines over time - adjusting ICR calculations or requiring larger deposits on certain property types. It is too early to say how widespread that shift will be, but it is worth tracking.
If you hold a portfolio with multiple properties, consider reviewing your portfolio strategy to identify which assets carry the most void or possession risk under the new rules. You may also wish to speak to a specialist BTL broker about how your current structure looks to lenders. The negotiation and finance section covers how lender criteria shifts affect deal structure.
For a broader look at managing compliance and systems across a portfolio, the business and systems guides are a useful starting point.
Key Takeaways
80% of landlords are concerned about the Renters' Rights Act, according to Pegasus Insight's Q1 2026 Landlord Trends data.
Section 21 no-fault evictions are now abolished for all tenancies in England from 1 May 2026.
New Ground 1A (move in) and Ground 6A (sell) replace Section 21, each requiring two months' notice.
The typical tenant already stays for over 5 years - long-term occupancy data may actually support your BTL case with lenders.
Void-period modelling and up-to-date tenancy documentation are now your two most important risk-management tools.
