What Happens to My Tenancy Agreement After May 2026?

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Sigita Gailiusaite
Tenancy Act 2026

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The Renters’ Rights Bill is bringing one of the most significant shifts to landlord-tenant law in years. From May 2026, the way tenancies start, renew, and end will change for every landlord in England.

If you’re wondering what this means for your existing tenancy agreements, this guide breaks it down in plain English, what’s changing, your rights, and how to prepare now.


The Key Change: All Tenancies Become Periodic

From May 2026, all new and existing tenancies will move to periodic agreements (month-to-month).

There will be no more fixed-term contracts in the way landlords are used to.

What this means for you:

  • Fixed terms will no longer “lock” tenants in for 6 or 12 months
  • Tenants can leave with two months’ notice at any time
  • You’ll need to plan for more flexible move-out patterns
  • Cash flow planning becomes more important
  • The certainty of a 12-month fixed term disappears

For many landlords, this is the most significant practical adjustment.


What Happens to Your Current Fixed-Term Tenancy?

If you have tenants with a fixed-term tenancy on 1 May 2026, that contract will automatically convert to a periodic tenancy once the fixed term ends.

Example:

Your tenancy runs from September 2025 to September 2026.

When September 2026 arrives, it will become periodic rather than a fixed-term renewal.

You don’t need to re-issue a new agreement unless you want to update the terms. The law transitions it for you.

If your fixed term ends before May 2026:

The tenancy continues as a periodic tenancy under the new rules from May. You won’t need to issue anything new — the updated notice rules will apply automatically.


Section 21 Is Abolished: What Replaces It?

From May 2026, landlords can no longer use Section 21 (no-fault eviction) to end any tenancy, whether it started before or after that date.

To regain possession, you must use specific Section 8 grounds with proper evidence and notice periods.

The Main Section 8 Grounds You Can Use

Ground 1: Landlord or Family Moving In

You (or a close family member) need to move into the property.

  • Notice period: 2 months minimum
  • Restriction: Cannot be used within the first 12 months of the tenancy
  • Requirement: Must be a genuine intention (tenants can challenge if suspicious)

Ground 1A: Selling the Property

You intend to sell the property with vacant possession.

  • Notice period: 2 months minimum
  • Restriction: Cannot be used within the first 12 months
  • Requirement: Must provide evidence of sale intention

Ground 6: Major Refurbishment

You need to carry out substantial works that require vacant possession.

  • Notice period: 2 months minimum
  • Requirement: Evidence of planned works and why vacant possession is necessary

Ground 8: Serious Rent Arrears

Tenant owes at least 2 months’ rent (or 8 weeks if paid weekly).

  • This is mandatory; if proven, the court must grant possession
  • Most straightforward ground if rent arrears are documented

Ground 14: Antisocial Behaviour

Tenant or their visitors have caused a nuisance, engaged in illegal activity, or committed a serious breach of tenancy terms.

  • Requirement: Evidence (witness statements, police reports, neighbour complaints)

Ground 17: False Information

Tenant provided false or misleading information to obtain the tenancy.

  • Requirement: Evidence of the false information and its materiality

What’s Different About Section 8?

Unlike Section 21 (which was automatic), Section 8 requires:

  • A specific legal reason from the approved grounds list
  • Evidence to support your claim (documented, dated, credible)
  • Proper notice periods (typically 2 months)
  • Court proceedings if the tenant doesn’t leave voluntarily

You cannot end a tenancy simply because you “want to” or prefer a different tenant. There must be a legitimate, provable ground.


What This Means for Landlord Control

You Lose

  • The ability to end tenancies without giving a reason
  • The automatic “reset” every 6 or 12 months when fixed terms ended
  • The flexibility to change tenants between fixed periods for strategic reasons

You Keep

  • The right to possession for legitimate reasons (moving in, selling, major refurbishment)
  • The right to evict for rent arrears, damage, or antisocial behaviour
  • The right to increase rent annually to market rates
  • The right to enforce tenancy terms and maintain property standards

The Reality

Most landlords running professional lettings rarely use Section 21 anyway. Good tenancies continue naturally. Problem tenancies can still be ended; you need proper grounds and documentation.

The challenge: Removing tenants who are technically compliant but problematic (always late but not in arrears, low-level issues, poor property care that doesn’t breach terms) becomes much harder.


Will Tenants Still Need to Give Notice?

Yes. Under the new rules, tenants must give two months’ notice to leave.

This applies to all periodic tenancies from May 2026 onwards.

However, because tenants can leave at any time during a periodic tenancy (not just at the end of a fixed term), landlords should prepare for more variable move-out patterns and potential void periods.


Rent Increases After May 2026

Landlords can still increase rent, but the process has clear limits:

The rules:

  • Rent increases are limited to once per year
  • Must give proper notice (typically 1 month for periodic tenancies)
  • The tenant can challenge the increase at the tribunal if it exceeds the market rate.
  • Cannot use rent increases as a backdoor eviction tactic

What this means: You can increase rent to genuine market rates annually, but you cannot price tenants out deliberately to force them to leave. Tribunals will assess whether increases are reasonable.


What You Should Do Now (Before May 2026)

1. Review Your Current Tenancies

Ask yourself:

  • Are your current tenants reliable, compliant, and taking care of the property?
  • Would you be happy for these tenancies to continue long-term?
  • Are there any problem tenants you need to address?

Critical: If you have problem tenants now, address them before May 2026 while Section 21 is still available. After May, you’ll need specific Section 8 grounds and evidence.

2. Document Everything

After May 2026, evidence becomes critical for Section 8 possession claims. Start building proper documentation now:

  • Inspection reports: regular, dated, with photos
  • Maintenance records: when issues were reported, response times, and completion dates
  • Communication logs: emails, texts, records of agreements and requests
  • Rent payment history: precise tracking showing on-time vs late payments
  • Compliance certificates: EPC, Gas Safe, EICR, smoke and carbon monoxide alarms

If you ever need to use Section 8, this documentation will be essential to prove your case.

3. Improve Tenant Selection

With tenancies becoming longer-term by default, upfront vetting becomes more critical:

  • Thorough referencing (employment verification, previous landlord, credit checks)
  • Clear move-in condition reports with photos
  • Professional onboarding to set expectations from day one
  • Regular early communication to catch minor issues before they escalate

The goal: Place tenants you’d be comfortable having for 3-5 years, because that’s likely what happens.

4. Review Your Agreements

You can continue using existing agreements after May 2026, but consider updating templates to:

  • Reflect the new periodic system clearly
  • Set clear expectations for inspections and property access
  • Clarify tenant responsibilities more precisely
  • Align with your long-term management approach

It’s not mandatory to rewrite every tenancy, but it’s worth reviewing your documents now.


How This Change Affects Landlord Planning

Removing fixed terms fundamentally changes how landlords think about income and turnover.

1. More Flexible Tenant Movement

You can no longer rely on “tenants staying until the end of the fixed term.” Two months’ notice can come at any time.

2. Quality Management Matters More

When tenants have complete freedom to leave, retention depends on good management, responsive maintenance, and professional service.

3. Cashflow Planning Becomes Critical

With tenants able to give notice at any point, planning around potential void periods becomes essential. Budget for 1-2 months of vacancy risk per year.

4. Compliance Pressure Increases

To serve notice under any Section 8 ground, you must have the compliance documents in order. Missing certificates can invalidate possession claims.

5. Professional Systems Become Valuable

Understanding Section 8 grounds, maintaining evidence trails, and handling tribunal challenges increase the complexity and legal risk significantly.


How Guaranteed Rent Changes the Equation

This is where underwriter-backed guaranteed rent becomes particularly valuable after May 2026.

With guaranteed rent:

  • You don’t deal with individual tenancies: the management company holds the head lease
  • Section 21 abolition doesn’t affect you: your fixed monthly payment is contractually secured, not dependent on tenant occupancy or notice periods.
  • Tenant movement doesn’t impact income: you receive the same amount regardless of voids or turnover.
  • Compliance is handled: EPC, Gas Safe, EICR, inspections, and documentation are managed proactively.
  • Professional possession proceedings, if needed: the management company handles any Section 8 claims, evidence gathering, and court process.
  • You avoid the complexity: no learning Section 8 grounds, no tribunal risks, no void period cashflow gaps.

The model insulates you from the increased complexity, reduced flexibility, and higher legal risk of post-2026 lettings.


Quick Summary: What Changes from May 2026

All tenancies become periodic:

  • No more fixed-term contracts locking tenants in
  • Tenants can give two months’ notice at any time

Section 21 ends:

  • No more no-fault evictions
  • Landlords must use specific Section 8 grounds with evidence

Your existing tenancies:

  • Convert to periodic automatically when fixed terms end
  • You don’t need new agreements (but may want to update templates)

Rent increases:

  • Limited to once per year
  • Must be justifiable at the tribunal
  • Cannot be used to force tenants out

What landlords need:

  • Better documentation and evidence systems
  • Stronger tenant selection processes
  • Professional compliance management
  • Cashflow planning for flexible move-out patterns

Common Questions

Can I still do 12-month contracts after May 2026?

No, unless you qualify for specific exemptions (e.g., student lettings). All standard tenancies become periodic.

What if I need my property back urgently?

You’ll need to use Ground 1 (moving in) or Ground 1A (selling) with 2 months’ notice, and you cannot use these within the first 12 months of the tenancy.

Can I still sell with a tenant in place?

Yes, but if you want vacant possession, you’ll need to serve Ground 1A notice with evidence of sale intention.

Will these changes affect property values?

Possibly. Reduced landlord flexibility may affect yields and investor demand, but the fundamentals of property investment remain intact for professional operators.

Should I exit the rental market?

Only you can answer that. If you cannot or will not adapt to increased documentation, compliance requirements, and reduced flexibility, consider your options carefully. If you’re willing to run lettings professionally (or use professional management), the market remains viable.


Final Thoughts

May 2026 doesn’t make your tenancy agreements disappear, but it fundamentally changes how they work.

The shift is from:

  • Fixed terms and Section 21 flexibility
  • To periodic tenancies and evidence-based Section 8 grounds

Landlords who will thrive post-2026:

  • Treat letting as a professional business with proper systems
  • Invest in quality property standards that attract and retain good tenants
  • Document everything consistently
  • Use professional management where the complexity justifies it

Landlords who will struggle:

  • Those relying on informal arrangements
  • Reactive management without documentation
  • Depending on Section 21 as a safety net

The fundamentals of property investment remain sound, but the execution requirements increase significantly.


Get Ahead of May 2026

Suppose you’re concerned about managing tenancies under the new rules, or you want to understand how underwriter-backed guaranteed rent could simplify your position. In that case, we can walk you through your options.

No pressure. Just a clear explanation of how post-2026 lettings work and what makes sense for your situation.

Book a free landlord consultation:
📞 02085 530645
✉️ info@abcgone.com

Got a question?

Want to discuss something more specific? Contact us, and we will be more than happy to help you.

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