£250 Ground Rent Cap: What Homebuyers Need to Know

Theresa Taylor

February 4, 2026     ∙     2 min read

RRA 2026

From Friday 1st May 2026, major changes to renting law in England have come into force. Introduced by the Ministry of Housing, Communities and Local Government, these changes are being described as the biggest shake-up to the private rental sector in decades.

Whether you’re a tenant or a landlord, here’s what the changes mean:

No more “no-fault” evictions

The most talked-about change is the end of Section 21 evictions.

Until now, landlords could ask tenants to leave without giving a reason. That’s now gone.

What this means:

  • Tenants cannot be asked to leave without a valid legal reason
  • Landlords must rely on specific grounds, such as rent arrears or selling the property
  • Tenants have more security and stability in their homes

For landlords:
You can still recover your property, but you will need a clear, lawful reason to do so.

 

Fixed-term tenancies are gone

Another major shift is the end of fixed-term contracts.

What’s changed:

  • All tenancies are now rolling, either month to month or week to week
  • Existing tenancies automatically converted on 1 May 2026
  • Tenants can usually leave with two months’ notice

Why this matters:

  • Tenants get more flexibility
  • Landlords lose the certainty of fixed end dates

 

Rent increases: tighter rules

Rent can still go up, but there are now stricter limits.

The new rules:

  • Rent can only be increased once per year
  • Proper notice must be given
  • Tenants can challenge increases they think are unfair

There is also a ban on rental bidding wars:

  • Landlords and agents must stick to the advertised rent price
  • Tenants should not be pressured to offer more

 

Limits on upfront payments

Landlords can no longer ask for large amounts of rent in advance.

The rule:

  • Maximum of one month’s rent upfront for new tenancies

This is designed to make renting more accessible, especially for those without large savings.

 

Stronger protection against discrimination

It is now illegal for landlords to refuse tenants simply because they:

  • Receive benefits
  • Have children

This closes a long-criticised gap in the rental market.

 

Pets: a new right to ask

Tenants now have the right to request a pet.

Important detail:

  • Landlords must reasonably consider the request
  • They can still refuse, but must have a valid reason

This moves away from blanket no pets’ policies.

 

How landlords can now regain possession

With Section 21 gone, landlords must use specific legal grounds.

Common examples include:

  • Selling the property
  • Moving in themselves
  • Rent arrears
  • Anti-social behaviour

Remember:
The system has not removed landlords’ rights. It has made them more structured.

 

What’s coming next?

A national landlord register

A new database will allow tenants to check who owns and manages their property.

A new complaints system

An independent ombudsman will handle disputes without needing to go to court.

Better housing standards

Future rules will focus on:

  • Tackling damp and mould
  • Faster repairs
  • Energy efficiency, with a target of EPC C by 2030

 

So, what does this mean overall?

In simple terms:

  • More security as tenants are harder to evict
  • More flexibility with no fixed contracts
  • More fairness with clearer rules on rent and access

From a legal perspective, the changes aim to balance the relationship between landlords and tenants, while placing greater responsibility on landlords to follow the correct processes.

 

From a property law perspective

The Renter’s Right Act will change how the rental market operates day to day.

For tenants, the focus is on stability and fairness.
For landlords, the focus is now on compliance and proper grounds for action.

If you are unsure how the new rules affect your situation, whether you are planning to let a property or are currently renting, our team are here to help with any queries, get in touch today.

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