The Renters’ Rights Act — What’s Changing for Landlords and Letting Agents?

April 30, 2026

The Renters' Rights Act 2025 — What Letting Agents Need to Know About Property Inventories

We have published a full letting agent guide to the Renters' Rights Act and property inventories — including a breakdown of all 8 key changes and what they mean for documentation.

The Renters' Rights Act came into force on 1 May 2026 — the biggest reform to the private rented sector in a generation. For letting agents, the stakes around documentation, evidence and compliance have never been higher. A professional AIIC-accredited inventory report is no longer just best practice. It is essential.

  • Section 21 abolished — possession now requires solid evidence
  • Deposit disputes harder to win without watertight inventory reports
  • New possession grounds mean clearer documentation at every stage
  • AIIC-accredited reports accepted by TDS, DPS and MyDeposits

What Has Changed Under the Renters' Rights Act?

What the Renters' Rights Act 2025 Means for Letting Agents

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and came into full effect on 1 May 2026. It represents the most significant overhaul of the private rented sector since the late 1980s — affecting every letting agent, landlord and property manager operating in England.

Here is a clear breakdown of the key changes and what they mean in practice.

1. Section 21 'No-Fault' Evictions Abolished

Landlords and letting agents can no longer use Section 21 to regain possession of a property. All evictions must now be based on specific, legally valid grounds — known as possession grounds.

What this means for inventories: If a landlord needs to pursue possession under grounds such as property damage (Ground 13), deterioration of furniture (Ground 15) or breach of tenancy (Ground 12), they will need a professional, AIIC-accredited inventory report as evidence. Without one, possession claims are significantly harder to sustain in court.

2. All Tenancies Become Periodic

From 1 May 2026, Assured Shorthold Tenancies (ASTs) no longer exist. All existing ASTs have automatically converted to periodic tenancies — rolling monthly or weekly depending on rent cycles. Fixed terms have fallen away even where they had not expired.

What this means for inventories: With no fixed end date, the check-out process is now triggered at any point. Letting agents need a complete, professional inventory on file at all times — not just at the start of long-term tenancies.

3. Rent Increases Limited to Once Per Year

Rent can only be increased once every 12 months through a formal process. Landlords and agents must follow the correct procedure or the increase is invalid.

What this means for inventories: While this does not directly affect inventories, it increases the importance of mid-term inspections — giving agents documented evidence of property condition during longer tenancy periods where rent review may become contentious.

4. Strengthened Possession Grounds

While Section 21 is abolished, the Act has reformed and expanded Section 8 possession grounds, including:

  • Ground 8: Serious rent arrears threshold increased from two to three months
  • Ground 12: Breaches of the tenancy agreement
  • Ground 13: Damage or neglect of the property
  • Ground 14: Anti-social behaviour
  • Ground 15: Deterioration of landlord-provided furniture
  • New ground: Landlord wishing to sell or move into the property

What this means for inventories: Grounds 12, 13 and 15 all depend on documented evidence of the property's original condition versus its current state. A professional check-in inventory and check-out report are the cornerstone of any successful claim under these grounds.

5. New Private Rented Sector Landlord Ombudsman

All private landlords in England must join a new PRS Landlord Ombudsman scheme. Letting agents acting on behalf of landlords must ensure their clients are registered.

What this means for inventories: The Ombudsman will handle tenant complaints — including deposit disputes. Agents with professional, AIIC-standard inventories on file are far better protected against complaints.

6. PRS Property Database

A new national database of private rented properties is being established. Landlords must register their properties — and letting agents acting on their behalf share responsibility for compliance.

What this means for inventories: Accurate property records are now part of a broader compliance framework. Professional inventory reports, stored and delivered digitally, contribute to a clean paper trail for each property on the database.

7. Ban on Rental Discrimination

From 1 May 2026, landlords and agents are prohibited from blanket bans on renting to tenants with children or those claiming benefits. All prospective tenants must be assessed on individual merit.

What this means for inventories: A more diverse tenant pool increases the importance of consistent, objective property condition records at the start of every tenancy — regardless of tenant profile.

8. Awaab's Law Extended to Private Rented Sector

Awaab's Law — originally applied to social housing — is being extended to private rentals. It requires landlords to investigate and fix hazards such as damp and mould within fixed timeframes.

What this means for inventories: Mid-term inspections become even more important as a proactive tool for identifying and documenting property condition issues before they escalate into legal or regulatory problems.

Why Inventory Reports Are More Critical Than Ever

Why the Renters' Rights Act Makes Professional Inventories Essential

The abolition of Section 21 fundamentally changes the risk landscape for letting agents. Previously, a landlord could regain possession without having to prove fault. Now, every possession claim must be evidenced — and the quality of your documentation determines the outcome.

A professional AIIC-accredited inventory report does three things that are now legally critical:

  • Documents the property's condition at the start of tenancy — creating the baseline against which all future claims are measured
  • Provides timestamped photographic evidence — admissible in possession proceedings and deposit dispute resolution
  • Protects the letting agent — independent, impartial reports produced by a third party carry significantly more weight than agent-produced or landlord-produced records

Letting agents who rely on informal check-in notes or landlord-completed inventories are now exposed. The Ombudsman, deposit schemes and courts will expect professional-standard documentation.

How InventoryFlex Helps Letting Agents Comply

How InventoryFlex Supports Letting Agents Under the New Legislation

InventoryFlex is London's only AIIC award-winning inventory company — trusted by Foxtons, Winkworth, Romans & Partners and 100+ letting agencies across London. We provide the documentation letting agents need to operate confidently under the Renters' Rights Act.
Inventory & Check-In Reports: A complete room-by-room record of the property's condition at the start of tenancy — with hundreds of timestamped photographs and a signed tenant handover. The foundation of any possession claim or deposit dispute. From £120, delivered within 24 hours.
Check-Out Reports: At the end of tenancy, our clerk compares the property's current condition directly against the original inventory. Every change, area of damage or cleaning issue is documented — giving agents the evidence needed for fair, defensible deposit deductions under TDS, DPS and MyDeposits. From £100.
Mid-Term Inspections: A scheduled visit during the tenancy to check property condition, identify any issues early, and produce a written report. Essential for longer tenancies under the new periodic regime — and for Awaab's Law compliance. From £65.

Why Choose InventoryFlex

Why Letting Agents Choose InventoryFlex

  • AIIC Newcomer Award 2025 — London's only award-winning inventory company
  • 15,000+ inspections completed — consistent quality across every property type and borough
  • 24-hour guaranteed report delivery — emailed to your team, the landlord and the tenant simultaneously
  • Reports accepted by all major deposit schemes — TDS, DPS and MyDeposits
  • Same-week appointment availability across all London boroughs
  • Dedicated agent account — one point of contact, streamlined booking for multiple properties
  • Independent, unbiased reports — produced by AIIC-accredited clerks with no financial interest in the outcome

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