At Bourne Estate Agents, we are committed to supporting and guiding our landlords through every stage of their property journey. Whether you are a seasoned portfolio landlord with multiple properties across Surrey and Hampshire, or you are considering purchasing your first buy-to-let investment, understanding legislative change is essential to protecting your income and long-term investment.
What Landlords in Surrey & Hampshire Need to Know Before May 2026
Significant reforms to the private rented sector are now confirmed under The Renters’ Rights Act 2025, with core tenancy changes expected to take effect from 1 May 2026.
For landlords across Ash Vale, Alton, Cobham, Farnham, Guildford, Godalming, Petersfield & Woking, these reforms represent the biggest structural shift in lettings legislation for decades. Below, we break down what is changing, what it means in practical terms, and how to prepare.
What Is the Renters’ Rights Act 2025?
The Act introduces major reforms designed to improve transparency, fairness and housing standards within the private rented sector
Initial confirmed changes include:
- Removal of Section 21 “no-fault” evictions
- Replacement of fixed-term ASTs with rolling tenancies
- Updated rent increase rules
Further measures — including a national landlord register and Ombudsman membership — will follow in later stages.
Section 21 Is Being Abolished
One of the most significant changes is the removal of Section 21 evictions.
What this means:
- Landlords can no longer use “no-fault” eviction notices
- Possession will only be granted under approved Section 8 grounds
- Valid reasons include property sale, rent arrears or breach of tenancy
Serving the correct notice, with appropriate evidence, will be critical to avoid costly delays. For landlords in high-demand areas such as Guildford, Farnham and Woking, planning ahead before serving notice will become essential.
All Tenancies Will Become Periodic
Fixed-term ASTs and break clauses will be phased out.
From 2026:
- All tenancies convert to rolling periodic agreements
- Tenants can give two months’ notice
- Landlords must give up to four months’ notice with a valid reason
This fundamentally changes how landlords manage long-term planning and exit strategies.
Ban on Reletting After Sale or Reoccupation Notice
If a landlord serves notice stating they intend to sell or reoccupy the property — and does not proceed — they will be banned from reletting the property for 12 months. This creates significant risk if market conditions change mid-process. Receiving professional advice and guidance before serving notice will be more important than ever.
Rent Increases: One Per Year
The Act introduces stricter rent review rules. Rent may only be increased once per year, with the below criteria:
- Two months’ notice must be given
- Tenants may challenge increases
Clear market evidence and documentation will be essential to justify increases, particularly in competitive rental markets.
Rent Bidding Will Be Illegal
Advertising a property at one price and encouraging higher offers will become unlawful. Marketing must clearly reflect the intended rent to remain compliant. This could therefore impact how properties are listed and negotiated.
Pets: Tenants Gain Stronger Rights
Tenants will gain a formal right to request permission for pets. Landlords must:
- Respond within 28 days
- Provide a valid reason if declining
Blanket pet bans may no longer be acceptable, however, landlords can state that tenants must have pet insurance in place.
Discrimination Rules Tighten Further
Landlords cannot refuse tenants based on:
- Benefits status
- Having children
- Family circumstances
Direct or indirect discrimination will carry enforcement risk.
Rent in Advance Restrictions
Requesting multiple months’ rent upfront will not be permitted. Alternative risk management solutions, such as guarantors, may need to be considered.
New Penalties & Enforcement Powers
Breaches may lead to:
- Fines of up to £40,000
- Rent Repayment Orders covering up to 12 months’ rent
Local authorities will have stronger enforcement powers
Future Phases: What’s Still to Come?
Later stages of the Act include:
1. National Landlord Database & Ombudsman
- Mandatory registration of landlords and properties
- Compulsory membership of a sector Ombudsman
- Letting without registration will attract penalties
2. Decent Homes Standard & Awaab’s Law
- Proactive maintenance requirements
- Strict timeframes for addressing mould and damp
- Significant fines for non-compliance
What This Means for Landlords in Surrey & Hampshire
A more structured, compliance-focused approach to property management will need to be adopted by Landlords operating across:
The shift away from Section 21 alone changes risk exposure significantly. Early preparation and working with professional lettings experts reduces legal and financial risk.
Frequently Asked Questions About the Renters’ Rights Act 2025
When does the Renters’ Rights Act take effect?
Core tenancy reforms are expected to be in place from 1 May 2026
Can landlords still regain possession?
Yes, but only under approved Section 8 grounds such as sale, arrears or breach of tenancy
Can I still use fixed-term agreements?
Fixed terms will be phased out, with tenancies becoming periodic
Can tenants challenge rent increases?
Yes. Rent increases can only occur once per year with two months’ notice, and tenants may challenge them
What are the penalties for non-compliance?
Fines of up to £40,000 and Rent Repayment Orders of up to 12 months’ rent
Why Professional Management Matters More Than Ever
The legislation summary itself notes that there are many nuances to ensure compliance.
With tighter enforcement and higher penalties, fully managed services will provide:
- Legal compliance oversight
- Notice validation
- Documentation and evidence management
- Rent review strategy
- Maintenance compliance
For landlords not currently on a fully managed contract, now may be the right time to review your arrangements and provide yourself with peace of mind.
Preparing for 2026
The Renters’ Rights Act 2025 represents a structural change in how rental property is regulated.
The landlords who are best positioned for a smooth transition will:
Speak to Bourne About Protecting Your Investment
If you own a rental property in Surrey or Hampshire, now is the time to plan ahead.
Whether you are managing one property or an expanding portfolio, our experienced lettings teams across Ash Vale, Alton, Cobham, Farnham, Guildford, Godalming, Woking and Petersfield are here to help you navigate the changes with confidence.
Request a lettings review
Explore our fully managed service
Contact your local Bourne office today
Proactive planning now will help ensure you remain compliant, protected and prepared for May 2026 and beyond.
