Newsletter
Preparing for the Renters’ Rights Act: Our Proactive Approach
The government published what it calls a Guide to the Renters' Rights Act on its official website. It runs to a cool 11,200 words, which finally goes live on 1 May 2026. https://www.gov.uk/government/publications/guide-to-the-renters-rights-act/guide-to-the-renters-rights-act
We’ve been actively assessing the implications of the forthcoming Act and identifying practical steps to minimise the impact for landlords and tenants. This includes enhancing Rent Guarantee Insurance options, strengthening our internal compliance processes, and clarifying key obligations as property owners and tenants.
Drawing on our financial services expertise, we operate a rigorous compliance framework, complete with detailed checklists and cross-verification at every stage. This ensures regulatory and contractual requirements are met, giving you peace of mind that your interests are fully protected.
You benefit further from Alternative Estates’ Propertymark Protection (formerly ARLA), which includes:
Trade body oversight
Client Money Protection (CMP)
Annual independent client account audits
These measures, combined with our proactive planning, position you for compliance and resilience under the new legislation with more guidance to follow as the Act takes effect.
Renters' Rights Act 2025
While the Act introduces new obligations for landlords, it also has restrictions on tenants. The headline change remains the abolition of no-fault (Section 21) evictions and no fixed term tenancies, but several key points stand out:
Notice Periods & Tenancy Termination
From 1 May 2026, assured periodic tenancies (APTs) will replace assured shorthold tenancies as the standard agreement for the private rented sector. This change forms a crucial part of compliance with the Renters' Rights Act 2025. Grounds for possession due to arrears: now require 3 months of unpaid rent (up from 2 months) before notice can be served.
Tenant notice: Tenants may end a tenancy at any time with 2 months’ written notice. But the potential issue is that if they intend to buy or let somewhere they could potentially have both mortgage and rent to pay for two months.
Joint tenancies: Notice from one tenant applies to all, reducing flexibility for those wishing to stay unless the landlord agrees.
The UK Government has published the final version of the document, which sets out key changes for tenants ahead of reforms coming into force on 1 May 2026. Letting agents and landlords now have a clear legal duty to provide this document to relevant tenants, with a strict 31 May 2026 deadline and financial penalties for non-compliance. The Information Sheet explains how tenants’ rights and responsibilities will change under the new legislation. It must be issued to existing tenants by 31 May 2026, and failure to comply could result in fines of up to £7,000 per tenancy.
The Renters’ Rights Act Information Sheet 2026
Selling or Re-letting Restrictions
Landlords cannot market for sale or re-let within the first 12 months of a tenancy. A landlord must provide four months' notice if they intend to sell the property to allow time for the tenant to secure a new onward property, if a sale falls through after notice is served, a 12-month restriction applies before the property can be re-let.
Rent Increases
Rent increases are limited to one a year with the tenant having the right to challenge any increase they consider excessive through an independent rent tribunal.
Pets
Landlords must consider requests for pets and cannot refuse outright. A clear and reasonable justification must be provided if declined and tenants can challenge the decision. Landlords can require the tenant to obtain pet insurance.
Treating Tenants Fairly
The Act confirms that landlords must not discriminate against tenants based on number of children or benefit status. We must, however, carry out legitimate checks in order to assess suitability and to ensure affordability criteria which provides fairness and equal opportunity to prospective tenants.
Mandatory Public Register
A national Landlord and Tenant Register will be introduced. This enables authorities to verify landlord details and cross-reference with other agencies helping ensure compliance and proper documentation. Non-compliance penalties: Initial fine: up to £7,000 Repeated breaches or serious offence: up to £40,000 Local authorities and tenants may also seek rent repayment orders.
Decent Homes Standard (DHS)
Whilst not yet law within the private rental sector, the guidance is that properties must be safe, well-maintained, free from serious hazards, damp and mould, and fit for habitation.
Private Rental Sector Landlord Ombudsman
A dedicated ombudsman to help to resolve disputes between tenants and their landlords.
We will keep you fully updated as soon as the Act is enacted, and guidance is finalised. In the meantime, we are regularly checking the criteria and updated guides to ensure compliance for all parties.
Rent Protection & Legal Expenses
We’re excited to introduce a stand-alone Rent Guarantee Insurance option, designed to integrate seamlessly with your existing tenancy agreements and our existing referencing.
While similar cover is often available via landlord buildings policies (e.g., Direct Line), this dedicated product arranged in partnership with Goodlord, offers enhanced protection tailored to our managed properties. It applies to new tenancies and existing tenancies where the tenant has maintained a perfect payment record over the last 12 consecutive months under our management.
After a thorough review of the terms and conditions, we believe this provides the strongest standalone coverage for both current and future tenancies.
Key Benefits:
100% of monthly rent paid until vacant possession is achieved.
No cap on the number of months covered.
Nil excess for claims made within the first 45 days.
Full legal expenses cover, including appeals and representation.
Property damage legal protection for disputes over £1,000+
Up to £1,000 on top of the deposit for damages
90% of rent for up to 6 weeks after vacant possession if re-let through us.
Coverage for squatter eviction and associated costs
Rent Protection Insurance Flyer
Full details and T&Cs: Rent & Legal Expense Protection Policy Wording
Please let us know your choice at your earliest convenience to secure coverage as there is a 60-day initial waiting period. To activate cover, please confirm your preference by emailing accounts@alternativeestates.co.uk with your property address in the subject line and we will forward the declaration to e-sign. Payment options (deducted from your monthly statement): Annual: £320 + VAT = £384 Monthly: £30 + VAT = £36 (£432 annually)
Tenant Protection
We can offer tenants the option to protect their rental payments from loss of income and rental life insurance. This is optional but it provides an opportunity to cover rent and bills if they cannot work due to illness or injury. It provides a tax-free monthly benefit, offers guaranteed premiums, and includes added value services like Wellbeing Support and rehabilitation services.
Key Features of Rental Income Protection
Purpose: Specifically tailored to protect renters, helping them pay rent and essential bills if they are unable to work due to accident or sickness.
Benefits: Pays a regular, tax-free monthly amount.
Support Services: Includes access to mental health support, nurse-based advice and rehabilitation support to help individuals return to work.
Flexibility: If a renter becomes a homeowner, they can switch to a standard income protection plan.
Coverage Options: Part of a broader Rental Protection Plan that can include:
Rental Income Protection: For illness/injury preventing work.
Rental Life Insurance: For premature death.
Rental Life with Critical Illness: For serious illness diagnosis
For more informaiton on this please call us or email enquiries@alternativeestates.co.uk
Company Compliance, Changes & Contacts
We’re pleased to confirm the successful transition from Alternative Estates & Financial Services Ltd to Alternative Estates Sales & Lettings Ltd, effective 2 January 2025. Ownership remains unchanged, but regulatory requirements necessitated separating our Sales & Lettings operations from our Mortgage & Insurance services into two distinct entities.
As part of this transition, we conducted a comprehensive review of every property, including title checks and statement updates, with TDS adjustments where required. Our earlier property health checks (completed in 2021/2022) assessed overall condition, anticipated repairs and upgrades, and provided market valuations for both sales and rental purposes. This was in anticipation of any future EPC regulations to be introduced as well as ensuring an overall snapshot of each property under management.
We maintain a robust inspection regime, combining regular physical visits (documented in writing to both tenants and landlords) with virtual inspections. These checks confirm the presence or absence of repairs, offering vital protection against retrospective claims as well as ensuring landlords maintain their properties.
All tenancy records, including current and historic, are retained for a minimum of 6 years. This includes gas safety certificates, EPCs, EICRs, signed receipt confirmations for initial guides and documentation provided to the tenants, and photographic inventories evidencing pre-tenancy condition.
We take pride in delivering a service that keeps arrears exceptionally low and ensures clear, recorded communication via messages and emails to prevent any misunderstandings.
The past 12 months have been busy with the company changes, and we appreciate your patience if responses have occasionally been delayed as we always aim to resolve issues promptly.
