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For nearly three decades, the Assured Shorthold Tenancy was the landlord’s safety net. It provided certainty: a fixed term, a known end date, and —
crucially — the ability to regain possession of your property via Section 21 without needing to prove fault. That safety net has now been cut.
The Act abolishes Section 21 “no-fault” evictions entirely. From 1 May 2026, all fixed-term ASTs are replaced with Assured Periodic Tenancies — rolling monthly agreements with no end date. If you want your property back, you now need a legal ground under Section 8. And obtaining that ground takes time. A lot of it.
What changes on 1 May 2026: All existing ASTs automatically convert to Assured Periodic Tenancies. No new fixed-term tenancies can be created after this date. Landlords can only raise rent once per year via a formal Section 13 notice — and tenants can challenge this at a rent tribunal. “Rental bidding wars” are banned; landlords must not accept offers above the advertised price.
“The agencies and landlords who succeed won’t be the ones waiting for perfect clarity. They’ll be the ones who’ve
already repositioned.”— Goodlord, State of the Letting Industry 2025
What this means practically: If you want to sell, renovate, or move back into your property, you must now use one of the specified Section 8 grounds — and many require 4–6 months’ notice. The court process, if the tenant contests, runs to a median of 27 weeks. For landlords used to the relative certainty of Section 21, this represents a fundamental change to the risk profile of long-term letting.
The phased rollout: Phase 1 launches 1 May 2026 — the main provisions including Section 21 abolition and the shift to periodic tenancies. Phase 2 introduces a new private rented sector database and a landlord ombudsman, expected later in 2026. Phase 3 brings the new Decent Homes Standard for the private sector.
One important caveat: The Act is specifically targeted at Assured Shorthold Tenancies between landlords and individual residential tenants. Commercial lease structures — including those used in professional short-let and guaranteed rent arrangements with management companies — sit outside many of the Act’s most restrictive provisions. That distinction is becoming increasingly relevant to London landlords evaluating their options.
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