Renters’ Rights Act – FAQs for Insolvency Practitioners and Receivers

When does the Renters’ Rights Act come into force?

The main provisions of the Renters’ Rights Act are due to come into force on Friday (1 May 2026). Some elements, including the Private Rented Sector (PRS) digital database and the Landlord Ombudsman, are expected to be introduced later in 2026, while others will be phased in over a longer period.

What happens to existing assured shorthold tenancies?

All existing assured shorthold tenancies will convert into periodic assured tenancies. Fixed terms will be abolished, and tenancies will continue indefinitely unless terminated by the tenant or via statutory possession grounds pursued by landlords. The section 8 route will require all grounds for possession to be fully supported by evidence and litigated at a hearing; this will inevitably increase time and costs which IPs and receivers should account for. Given the longer holding periods for tenanted residential assets, it would also be wise to adjust asset strategies, cost forecasts, and creditor communications accordingly.

Are rent increases restricted under the new regime?

Yes. Rent increases will be limited to once per year per tenancy, using a statutory process. IPs and receivers will need to be realistic with rental income forecasts, as being overly optimistic may undermine valuations, outcome statements, and lender confidence.

What is happening to Section 21 evictions?

Section 21 evictions will be abolished, subject to transitional provisions. Possession proceedings issued on or after 1 May 2026 will generally need to proceed under Section 8. IPs and receivers may wish to utilise the section 21 procedure now, i.e., before 1 May 2026, to avoid the greater complexity, evidential burden, and uncertainty that will soon be the legal landscape.

What is the Decent Homes Standard and how does it affect private landlords?

The Decent Homes Standard, historically limited to social housing, will apply to the private rented sector by either 2035 or 2037. Properties must be safe, in good repair, and fit for habitation. Non-compliance may affect property value, marketability, and the ability to obtain possession, even during the transitional phase.

What is the Private Rented Sector digital database?

The Act introduces a mandatory PRS digital database, expected to launch in late 2026, requiring landlords to register themselves and their properties. Failure to register may lead to fines, restrictions on marketing, and difficulties obtaining possession. When an IP is appointed as a trustee in bankruptcy, they could become the registerable landlord for the database. However, it is not clear whether the receivers or other insolvency officeholders will need to register personally on the database, but steps will likely need to be taken on appointment to ensure the information on the database is correct. This is a developing area that may require secondary legislation to help bring clarity

What will happen to tenancy deposits?

IPs and receivers should be aware that the rules around protecting a tenancy deposit in an authorised scheme will be extended to all assured tenancies.

What are the key dates to be aware of?

•    1 May 2026 – new tenancy regime and Section 21 abolition

•    Late 2026 – PRS database and Landlord Ombudsman

•    2035–2037 – Decent Homes Standard rollout

What should IPs and receivers be doing now?

Review current cases, update processes, engage with landlords and lenders, and monitor legal developments.