What the Renters' Rights Act means for letting agents

Lettings compliance in the UK is evolving, with Phase 1 of the Renters' Rights Act changes coming into force in May 2026. The update is the most significant reform to the private rented sector in decades, and has created new challenges for letting agents/property managers as well as landlords.

The biggest changes to the Act include the abolition of fixed-term assured shorthold tenancies, new grounds for possession, a new Ombudsman scheme, and a Decent Homes Standard for the private rented sector. The changes aim to improve conditions for the reported 11 million individuals who rent a home in England, and to rectify what the Government describes as “the least affordable, poorest quality and most insecure housing of all tenures,” the private rented sector. 

This article sets out the key obligations letting agents need to apply from the Renters Rights Act so they can ensure compliance and do the right thing by their landlord and tenant clients. It also discusses Right to Rent requirements. 

Note: This article is for informational purposes only and does not constitute legal advice. Always consult GOV.UK guidance, NAEA Propertymark, or a qualified legal adviser for guidance specific to your agency.

What does the Renters' Rights Act mean for letting agents in the UK?

The Renters' Rights Act update ends fixed-term assured shorthold tenancies, abolishes Section 21 "no fault" evictions, and introduces a new and reformed possession grounds under Section 8. It also brings in a Decent Homes Standard for the private rented sector, a new Private Rented Sector Database, and a mandatory PRS Ombudsman (not mandatory until 2028) scheme that landlords and letting agents must join.

The abolition of Section 21 is the single most operationally significant change in the Act, because it changes the way property managers and landlords can legally serve notice. 

Key Renters' Rights Act changes:

• New and existing assured tenancies become periodic from the outset, with no fixed term to rely on. This means tenants are not obliged to remain in a substandard property because of their tenancy agreement. 
• Section 21 evictions are abolished, meaning the process for evicting tenants is now different.
• Possession of premises must be sought using the new mandatory grounds under Section 8.
• A Decent Homes Standard now applies to privately rented homes.
• Landlords must register with the new PRS Ombudsman scheme.
• Landlords will be required to register on the new Private Rented Sector Database as it is rolled out.
• Rules have also changed around rental discrimination, renting with pets and rental bidding.

How will the Renters' Rights Act affect estate agency businesses?

Beyond the legal mechanics, the updated Renters’ Rights Act changes daily operations for any agency with a lettings book. Existing tenancy agreements need reviewing against the new rules, staff need training on the new possession grounds, and client-facing processes need updating so landlords understand what has changed and why.

Communication with landlord clients about the updated Renters’ Rights Act is essential to maintain goodwill and positive relationships at the exact moment where they may be considering exiting the sector. 

Industry insiders note that the updated Act has changed the entire risk profile for letting. The process for increasing rents has changed and landlords must follow the statutory procedure. 

What letting agencies need to do to prepare for the Renters' Rights Act:

1. Audit current tenancy agreements and identify which need updating
2. Train negotiators and property managers on the new Section 8 possession grounds
3. Register with the new PRS Ombudsman scheme ahead of the compliance deadline
4. Brief landlord clients individually on how the changes affect their tenancies
5. Update internal compliance checklists and record-keeping to reflect the new obligations

This is also a good time to review how compliance tasks are tracked across a portfolio, and leverage property-based technology to help streamline management requirements. A residential property management software platform that logs tenancy status, Ombudsman registration, and possession ground documentation in one place can help reduce the risk of missing a step during the transition.

With the pressures of managed rented properties changing, the more you can do to streamline in-house workflows and keep track of documentation and trust accounting in a central location, the better. This is part of the reason why a reliable and up to date estate agency CRM like Rex Software is so important. 

What are the Right to Rent rules for letting agents in the UK?

Right to Rent is separate from the Renters’ Rights Act but is related compliance for letting agents. Landlords and letting agents must check that all tenants have the right to rent in England before a tenancy begins, which involves checking identity documents, recording the check in writing and re-checking where a tenant has a time-limited right to rent.

Digital Right to Rent checks, carried out through an approved identity service provider (IDSP), are faster than manual checks, create an automatic audit trail and reduce the risk of document fraud.

The Right to Rent check process for letting agents and landlords, step by step:

1. Determine the appropriate check: manual, Home Office online, an RtR Digital Verification Service Provider (DVSP) or the Landlord Checking Service where required.
2. Obtain and verify the required documents or digital evidence and confirm they belong to the applicant.
3. Confirm whether the applicant has an unlimited or time-limited Right to Rent.
4. Record the check, including the date and supporting evidence.
5. Schedule a follow-up check if the Right to Rent is time-limited.
6. Retain evidence securely for the tenancy and for one year after it ends.

Note: From 1 October 2026, updated Right to Rent rules expand the use of digital checks and introduce the term Right to Rent Digital Verification Service Provider (RtR DVSP). Letting agents using a DVSP must use a provider registered with the Office for Digital Identities and Attributes (OfDIA) and approved to carry out Right to Rent checks.

What compliance checks do estate agents need to do before listing a property?

This question spans both lettings and sales, and the checks required differ depending on which side of the business is listing the property.

For lettings, agents typically need: a Right to Rent check, a valid gas safety certificate, an EPC rated E or above, an Electrical Installation Condition Report (EICR), working smoke and carbon monoxide detectors, deposit protection within 30 days of receipt, and as of 2026, Renters' Rights Act compliance across tenancy documentation and possession processes.

For sales, agents typically need: AML checks on vendors and buyers, material information disclosure covering Parts A, B and C, a valid EPC, and compliance with the Property Ombudsman code of practice.

Minimise the risk of an expensive problem by taking all necessary steps to remain compliant and keeping relevant documentation close to hand as evidence. 

Keeping track of compliance across an active set of properties under management is where quality, UK-relevant property management software earns its keep. A good real estate technology platform centralises compliance tasks, certificate expiry dates and tenancy records so nothing slips through when priorities are stretched across a busy office.

Lettings compliance under the Renters' Rights Act: What to do next

The Renters' Rights Act is the most significant change to UK letting law in a generation, and it arrives alongside existing obligations around Right to Rent, safety certification and sales-side compliance. 

The new legislation is an opportunity to stand apart from the competition: Agencies that build compliant processes now, rather than waiting for enforcement to catch up with them, will be better placed to serve landlords, avoid penalties and win more managed instructions.

Rex Software's CRM and property management tools help UK estate agencies manage compliance workflows in one place. Book a demonstration today. 

Reminder: This article is for informational purposes only and does not constitute legal advice. For guidance specific to your agency, always consult GOV.UK, NAEA Propertymark, or a qualified legal adviser.