By : Omar / GlobeVista 

The landscape of the UK private rented sector has undergone its most significant transformation in decades. With the passing of the Renters’ Rights Act in October 2025, the rules governing tenancy agreements have fundamentally shifted. If you are a landlord drafting a contract or a tenant signing one in 2026, relying on outdated templates from 2024 or earlier could leave you legally vulnerable.

This comprehensive guide details everything you need to know about UK rental agreement rules as of January 2026, covering the critical transition period before the full implementation of new laws in May 2026, alongside the enduring standards of the Tenant Fees Act and safety compliance.

1. The New Legal Landscape: The Renters’ Rights Act 2025

To understand rental agreements in 2026, you must first understand the Renters’ Rights Act, which received Royal Assent on October 27, 2025. While we are currently in a transition phase, these laws dictate the future of every tenancy agreement signed today.

The End of Fixed-Term Tenancies

Historically, most UK rental contracts were "Assured Shorthold Tenancies" (ASTs) with a fixed term (usually 6 or 12 months).

 * The Change: The new Act is moving the sector toward a single system of periodic (rolling) tenancies.

 * What This Means: New agreements will no longer have a rigid "end date." Instead, tenants can stay as long as they wish, provided they pay rent and respect the property. They can end the tenancy by giving two months' notice. Landlords can only end the tenancy under specific, valid grounds (see Section 8 below).

The Abolition of Section 21 (No-Fault Evictions)

This is the headline change.

 * Current Status (Jan 1, 2026): We are in the final countdown. Landlords can technically still serve a Section 21 notice until April 30, 2026.

 * From May 1, 2026: Section 21 is abolished entirely. You cannot evict a tenant simply because the fixed term has ended. You must provide a concrete reason (e.g., selling the property, moving family in, or tenant arrears) under the strengthened Section 8 rules.

Rent Review Clauses

 * The Rule: You can no longer include "rent review clauses" that allow arbitrary increases mid-tenancy.

 * The Mechanism: Rent increases will be limited to once per year. Landlords must serve a formal Section 13 notice giving at least two months' warning. This prevents "economic eviction" where rent is hiked suddenly to force a tenant out.

2. Core Components of a Compliant Tenancy Agreement

Despite the reforms, the backbone of a tenancy agreement remains the contract itself. Whether you are a private landlord or using a letting agent, the written agreement must be clear, fair, and legally sound.

Key Details That Must Be Included:

 * Names of All Parties: The full legal names of the landlord and every tenant aged 18 or over.

 * Property Address: The exact address, including flat numbers and postcodes.

 * The Rent: The exact amount, the date it is due (e.g., "the 1st of each month"), and the method of payment.

 * The Term: As of early 2026, if you are signing a fixed term (before the May deadline), clearly state the start and end date. However, be aware this will convert to a periodic tenancy automatically under the new rules.

 * Deposit Information: The amount of the deposit and—crucially—how it will be protected.

 * Service Charges: If the property is a flat, clarify who pays the service charge (usually the landlord) and who pays utilities (usually the tenant).

Unfair Terms (The "Small Print")

The Consumer Rights Act 2015 protects tenants against "unfair terms." You cannot include clauses that:

 * Allow the landlord to enter the property without permission or notice (24 hours' written notice is the legal standard).

 * Force the tenant to pay for professional cleaning at the end of the tenancy (you can only request the property be returned to the same standard as found).

 * impose excessive interest rates on late rent (capped at 3% above the Bank of England base rate).

3. Financial Rules: The Tenant Fees Act (Still in Effect)

The Tenant Fees Act 2019 remains a cornerstone of rental law in England. It strictly limits what landlords can charge tenants. If your rental agreement asks for "admin fees" or "inventory check fees," it is illegal.

Permitted Payments Only:

 * Rent: The agreed monthly sum.

 * Refundable Tenancy Deposit: Capped at 5 weeks’ rent (if annual rent is under £50,000) or 6 weeks’ rent (if over £50,000).

 * Refundable Holding Deposit: Capped at 1 week’s rent. This reserves the property while checks are done. It must be refunded within 15 days or put towards the first month's rent unless the tenant pulls out or lies on their application.

 * Default Fees: You can only charge for lost keys (reasonable cost only) or rent that is 14+ days late.

 * Changes to the Tenancy: If the tenant requests a change (e.g., adding a partner to the contract), you can charge a maximum of £50 (or reasonable costs if higher, but this must be proven).

Warning: If you take a prohibited payment, you cannot legally evict the tenant using Section 21 (while it still exists) until that money is refunded.

4. Deposits and Protection Schemes

Handling the deposit correctly is one of the most common pitfalls for UK landlords.

The 30-Day Rule

You must place the tenant's deposit into a government-approved Tenancy Deposit Scheme (TDS) within 30 days of receiving it.

Prescribed Information

Simply protecting the money isn't enough. You must also serve the tenant with the "Prescribed Information" within those same 30 days. This includes:

 * Which scheme is being used (DPS, TDS, or mydeposits).

 * The scheme’s contact details.

 * The circumstances under which you might keep some of the deposit.

Failure to Comply: If you are late protecting the deposit or don't serve the info, the tenant can take you to court. The penalty is the return of the full deposit plus up to three times the deposit amount in compensation.

5. Safety and Compliance Documents

A tenancy agreement is not valid in isolation. In 2026, it must be accompanied by a "compliance pack." If these documents aren't served at the start of the tenancy, the agreement may be unenforceable regarding evictions.

Mandatory Documents Checklist:

 * Gas Safety Certificate (CP12): An annual check by a Gas Safe engineer. A copy must be given to the tenant before they move in.

 * Electrical Installation Condition Report (EICR): Mandatory for all rentals. It checks the safety of wiring and sockets and is valid for 5 years.

 * Energy Performance Certificate (EPC): The property must have a rating of 'E' or better. (Note: Keep an eye on new legislation pushing this to 'C' by 2030, which remains a government target).

 * How to Rent Guide: You must provide the latest version of the government’s "How to Rent" checklist.

 * Right to Rent Check: Landlords must check the immigration status of all adult tenants before the tenancy starts. This involves checking passports or share codes.

6. Pets in Rental Properties: The 2026 Shift

For years, "No Pets" was a standard clause in UK rental agreements. This has changed dramatically under the Renters' Rights Act.

 * The New Rule: Tenants now have a statutory right to request to keep a pet.

 * Landlord’s Refusal: A landlord cannot unreasonably refuse a request.

   * Reasonable refusal: The head lease forbids pets (e.g., in a block of flats), or the property is too small for a large dog.

   * Unreasonable refusal: A blanket "no animals" policy without justification.

 * Pet Insurance: To balance this, landlords are now permitted to require tenants to take out pet insurance (or pay a slightly higher deposit/rent to cover potential pet damage), amending the Tenant Fees Act restrictions slightly in this specific context.

7. Repairs and "Fitness for Human Habitation"

Your rental agreement cannot override statutory repair obligations. Under Section 11 of the Landlord and Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018, the landlord is responsible for:

 * The structure and exterior (walls, roof, drains).

 * Gas, electricity, and water installations.

 * Sanitary fittings (toilets, basins).

 * Heating and hot water.

Damp and Mould:

Following "Awaab’s Law," there is zero tolerance for damp and mould in 2026. Landlords must investigate reported damp issues within strict timeframes (often 14 days) and begin repairs shortly after. A clause in a tenancy agreement blaming the tenant for condensation (e.g., "tenant must dry laundry outside") will not protect a landlord if the building's ventilation is structurally inadequate.

8. Ending the Tenancy: The 2026 Transition Protocols

This is the most confusing area for many people right now because two systems are running in parallel until May 1, 2026.

Scenario A: Before May 1, 2026

 * Section 21: You can still issue a Section 21 notice to end an Assured Shorthold Tenancy at the end of the fixed term. You must give at least 2 months' notice.

 * Validity: The notice is only valid if you have protected the deposit, served the gas/EPC/How to Rent guide, and taken no banned fees.

Scenario B: After May 1, 2026

 * Section 21 is Dead: You cannot use "no-fault" grounds.

 * Section 8 is King: To evict, you must prove a ground in court.

 * Ground 1 (Owner Occupation): You want to move in (or your close family).

 * Ground 1A (Selling): You intend to sell the property.

 * Ground 8 (Rent Arrears): The tenant owes 2+ months of rent (mandatory eviction).

 * Anti-Social Behaviour: Strengthened grounds to evict nuisance tenants faster.

Notice Periods for Tenants:

Under the new periodic system, tenants will generally need to give 2 months’ notice to leave. This prevents the "revolving door" of tenants leaving with just one month’s warning, giving landlords more security to find replacements.

9. Subletting and HMO Rules

With rising rents, tenants often ask to bring in a lodger or sublet a room.

 * The Agreement: Your contract should explicitly state whether subletting is allowed. Usually, it is "prohibited without the landlord's prior written consent."

 * HMO Warning: If a tenant sublets and brings the total number of occupants to 3 or more people from different households, your property might inadvertently become a House in Multiple Occupation (HMO). This triggers strict licensing and fire safety rules. Always monitor occupancy levels.

10. Summary Checklist for 2026 Agreements

Before you sign on the dotted line, ensure your agreement ticks these boxes:

 * Written & Signed: Verbal agreements are legal but disastrously hard to enforce. Always use a written contract.

 * No Prohibited Fees: Ensure the deposit is capped (5 weeks) and no admin fees are hidden in the text.

 * Pet Clause: Updated to reflect the "cannot unreasonably refuse" rule.

 * Rent Review: Removed or updated to align with the new Section 13 annual limit.

 * Compliance: Ensure the tenant has received the EICR, Gas Safety, EPC, and How to Rent guide before signing.

Q&A: Common Questions on UK Rental Rules

Q1: Can I still ask for 6 months' rent in advance?

 * Answer: As of the Renters' Rights Act implementation (May 1, 2026), landlords will generally be capped at asking for 1 month's rent in advance. However, until that date, it is technically legal to ask for more if the tenant fails referencing, though it is becoming less common and discouraged.

Q2: My tenant wants to paint the walls. Can I say no?

 * Answer: You can say no, but the trend is moving toward "reasonable flexibility." You cannot be forced to allow major structural changes, but refusing permission to hang pictures or paint a wall a neutral colour might be seen as restrictive. If you allow it, get it in writing that they must return the wall to the original colour when they leave.

Q3: What happens if I don’t protect the deposit?

 * Answer: You are in serious trouble. You cannot use a Section 21 notice (while they exist), and the tenant can sue you for up to 3x the deposit amount. This rule is strictly enforced by the courts.

Q4: Can I ban children from my rental property?

 * Answer: No. Blanket bans on children are considered discriminatory and violate the new Renters’ Rights provisions. You can only refuse if the property is physically unsuitable (e.g., a studio flat legally too small for 3 people).

Q5: Is a "break clause" still relevant in 2026?

 * Answer: Break clauses are becoming obsolete. As the system moves to "periodic tenancies," the concept of a fixed term with a break clause at 6 months is disappearing. Tenants will have the right to leave with 2 months' notice at any point, rendering traditional break clauses redundant.

Q6: Does the landlord have to provide furniture?

 * Answer: No. You can rent a property unfurnished, part-furnished, or fully furnished. However, any furniture you do provide (sofas, mattresses) must meet the Furniture and Furnishings (Fire) (Safety) Regulations 1988. Look for the fire safety labels attached to the cushions.

Q7: Who is responsible for the garden?

 * Answer: Unless the agreement says otherwise, the tenant is usually responsible for basic maintenance (mowing the lawn, weeding). The landlord is responsible for trees, fences, and major landscaping. It is best to specify this clearly in the "Special Clauses" section of your agreement.

Q8: Can I evict a tenant to sell the house?

 * Answer: Yes. Under the new regulations (post-May 2026), "Selling the Property" is a valid legal ground (Ground 1A) for eviction using Section 8. You cannot, however, re-let the property for a specific period (likely 12 months) afterwards, to prevent landlords from faking a sale just to evict a tenant.