Wednesday, 29 April 2026
Hello to all our Preston and Lancashire landlords.
The landscape of the private rental sector is shifting. In exactly two days, on May 1, 2026, the first major phase of the Renters’ Rights Act 2025 comes into full effect. This isn't just another small update; it represents the most significant overhaul of rental law in a generation.
At Reid & Co Property Group, we understand that these changes can feel overwhelming. Our goal is to ensure you remain compliant, protected, and profitable in this new era. Use this guide to understand your new obligations and how to navigate the Preston market with confidence.
The End of Section 21: A New Way to Manage Possession
The most talked-about change is the abolition of Section 21 "no-fault" evictions. From May 1, 2026, you can no longer end a tenancy without providing a specific, legally valid reason.
Instead, all possession claims must move through the Section 8 process. The government has expanded these grounds to ensure landlords can still regain their property when necessary.
Key Possession Grounds in 2026:
- Selling the Property: You can now regain possession if you intend to sell. However, you must provide the tenant with 4 months' notice.
- Moving In: If you or a close family member needs to move into the property, this is a valid ground for possession, also requiring 4 months' notice.
- Rent Arrears: The rules for persistent arrears remain, but the thresholds have been clarified to ensure fairness for both parties.
- Antisocial Behaviour: Eviction processes for serious antisocial behaviour are being streamlined to protect communities.
Action Point: Review your current tenancies. If you were planning to sell or move back into a property in the near future, factor the new 4-month notice periods into your timeline immediately.
Moving to Periodic Tenancies
The concept of a "fixed-term" tenancy is now a thing of the past. All assured shorthold tenancies (ASTs) will automatically convert to periodic tenancies. This means your tenants will be on a rolling month-to-month or week-to-week agreement from the very start.
What this means for your paperwork:
- No New Agreements Needed: Existing fixed-term contracts will transition automatically. You do not need to sign new paperwork for current tenants right now.
- Written Statement of Terms: For any new tenancies starting after May 1, you must provide a "Written Statement of Terms." This document must cover over 20 prescribed items, including repair obligations and pet rights.
- Tenant Notice: Tenants can now end a tenancy at any time by giving you two months' notice. This creates more flexibility for them but requires more proactive management from you to minimize void periods.
Failure to provide the correct Written Statement for new tenancies can lead to significant fines: up to £40,000 in extreme cases. Our property management services are already updated to handle these new requirements for you.
Rent Increases and the Bidding Ban
The 2026 regulations change how you set and increase rent. The era of "bidding wars" is officially over.
- No Rental Bidding: You must advertise a clear asking price for your property. It is now illegal to accept, encourage, or request bids above that advertised price.
- Annual Increases Only: You may only increase rent once per year.
- The Section 13 Process: All rent increases must be managed through the formal Section 13 notice process. Tenants have the right to challenge increases they believe are above the market rate through an independent tribunal.
In Preston, where we have seen rental growth of over 10% in the last year, setting a fair but competitive market rent from day one is more critical than ever.
The Preston Market: Why Lancashire Remains Resilient
Despite these legislative hurdles, Preston remains a fantastic place for property investment. As of April 2026, the local market is performing exceptionally well.
- Strong Yields: City centre properties are still achieving yields of around 6.4%, significantly outperforming many southern regions.
- High Demand: The University of Central Lancashire (UCLan) continues to drive massive demand for quality rental housing. With constrained purpose-built student accommodation, private landlords who offer high-quality homes are seeing very low void periods.
- Stability: Preston is being recognized as a "stability" market. While some areas of the UK are cooling, the North West: and Preston specifically: is benefiting from infrastructure growth and a thriving local economy.
New Rights for Tenants: Pets and Benefits
The Renters’ Rights Act also focuses on tenant inclusivity. You can no longer have a blanket "no pets" or "no DSS" policy.
- Right to Request a Pet: Tenants can formally request to keep a pet. You cannot unreasonably refuse. However, you can require the tenant to take out pet insurance to cover potential damage, giving you extra peace of mind.
- Non-Discrimination: It is now strictly illegal to refuse a tenant simply because they have children or receive benefits.
We recommend focusing on the individual's creditworthiness and references rather than their family status or income source. A professional tenant who happens to have a well-behaved dog is often a more stable, long-term option than a tenant without pets.
Your Immediate Compliance Checklist
To stay on the right side of the law this month, follow these specific steps:
- Deliver the Information Sheet: By May 31, 2026, you must provide every existing tenant with the official government Information Sheet. This explains their new rights. Failure to do this could result in a £7,000 fine.
- Audit Your Documents: Ensure you have copies of all gas safety certificates, EICRs, and EPCs ready. The new National Landlord Database (launching later this year) will require these to be uploaded.
- Check Your Deposits: Confirm that all deposits are protected in a government-approved scheme and that the "Prescribed Information" has been served.
- Review Insurance: If your tenants have pets, check if your current landlord insurance policy covers pet damage or if you need to update your terms.
How Reid & Co Property Group Protects You
Staying compliant is no longer a part-time job. With fines increasing and the legal process for regaining possession becoming more complex, professional management is an investment in your own security.
Our Full Property Management service takes the weight off your shoulders:
- Automated Compliance: We handle the Written Statements, Information Sheets, and Section 13 notices automatically.
- Expert Valuations: We ensure your rent is set at the maximum legal market rate without triggering tribunal challenges.
- Tenant Vetting: Our rigorous process finds reliable tenants who value their homes, reducing the risk of arrears or antisocial behaviour.
- Local Expertise: As a Preston-based team, we know the local streets, the local council requirements, and the local demand better than anyone else.
Meet our dedicated team to discuss how we can transition your portfolio into the 2026 regulatory environment.
Final Thoughts
The Renters’ Rights Act is a major change, but it is not the end of profitable landlording in Lancashire. By being proactive, professional, and prepared, you can continue to provide high-quality housing in a market that desperately needs it.
Don't wait for a fine to land on your doorstep. Take action today to secure your property business for the future.
Need help navigating these changes?
Contact Nick Reid and the team today for a confidential compliance review of your Preston portfolio. Let's make sure you’re ready for May 1st.
