At Horizon Lets we are committed to keeping our landlords ahead of legislative change. With the Renters Rights Act coming into force on 01 May 2026 the way residential tenancies operate across England will change significantly.
The most notable shift is the removal of Assured Shorthold Tenancies (ASTs) the foundation of the private rented sector for decades originally introduced under the Housing Act 1988.
Below we explain what’s changing and how landlords can prepare.
The end of ASTs – what replaces them?
When the new legislation takes effect all existing Assured Shorthold Tenancies will automatically convert into Assured Periodic Tenancies.
This means fixed terms will effectively disappear creating rolling tenancies with no defined end date.
You’re likely to be affected if your tenancy currently involves:
- Exclusive occupation of a property or room
- Annual rent between £250 and £100,000
- Individual tenants (not companies)
- The property being the tenant’s main residence
- The landlord not living in the same property
Unless stated otherwise these rules apply to all assured tenancies in England.
What periodic tenancies will mean in practice
Once ASTs are phased out:
- Tenancies will no longer have fixed terms or expiry dates
- Break clauses and renewal clauses will be unenforceable
- The tenancy cycle will follow the rent period (usually monthly)
- Tenants can leave at any time with two months’ notice
- During the first 12 months, landlords cannot regain possession to sell or move back in
- Tenants who comply with their agreement will benefit from stronger security in the first year
For many landlords this represents a major operational and planning change particularly around possession and portfolio flexibility.
Changes to rent payments
Where rent was previously collected quarterly bi-annually or annually payments must move to monthly instalmentscalculated on a pro-rata basis. This will standardise cash flow expectations and simplify tenant budgeting.
Written agreements will become mandatory
For new tenancies
From 01 May 2026 landlords must provide every new tenant with a written tenancy agreement before the tenancy begins.
This document must include prescribed terms and information set out by the Government.
For existing tenancies
If you already have a written agreement in place you won’t need to reissue a full contract. Instead you must provide tenants with a Government information leaflet explaining the new rules within one month of commencement.
If the current tenancy is verbal a full written statement of terms will be required.
Deposit protection remains unchanged
Deposit protection rules continue to apply exactly as before.
Deposits must still be secured within an approved scheme and failure to comply may restrict your ability to regain possession (except in cases such as anti-social behaviour).
How landlords should prepare now
Although further detail is expected early preparation will help you avoid disruption. We recommend:
- Reviewing tenancy agreements and removing clauses that will become invalid
- Familiarising yourself with Section 8 possession grounds
- Updating internal procedures for managing periodic tenancies
- Communicating clearly with tenants about the upcoming changes
- Ensuring all deposits are fully compliant and correctly registered
Need guidance?
These reforms represent the biggest structural change to the private rented sector in a generation. If you’re unsure how the new framework will affect your portfolio the Horizon Lets team is here to help. We’re already supporting landlords with agreement reviews, compliance checks and transition planning to ensure everything is ready for 1st May 2026.
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