Since 1 May 2026 the Renters' Rights Act has applied in England. For an investor buying a flat to let, the main things have changed: "no-fault" eviction (Section 21) is gone, tenancies are open-ended, and rent can be raised only once a year. What matters now is not only the yield but the rules for dealing with the tenant. We set out what a landlord can and cannot do.
Contents:
- What changed on 1 May 2026
- How to recover the flat: selling or moving in yourself
- Rent and rent increases
- A landlord's obligations
- Tax and yield for a non-resident
- Who buy-to-let suits, and who it does not
- Popular questions
What changed on 1 May 2026
The old system rested on Section 21 — the right to ask a tenant to leave without giving a reason. It has been abolished. All tenancies have moved to an open-ended periodic form: there is no fixed term any more, and a tenant can leave on 2 months' notice. A landlord can now recover the flat only through the Section 8 grounds — with evidence. Trying to evict the old way carries a penalty of up to £7,000.
| Before | Now |
|---|---|
| Eviction with no reason (Section 21) | Only on Section 8 grounds, with evidence |
| Fixed-term tenancy | Open-ended, tenant leaves on 2 months' notice |
| Rent rises by contract clause or bidding | Once a year via Section 13, tenant can challenge |
| Take the flat back to sell or move in at any time | Not before 12 months of tenancy, 4 months' notice |
| Refuse a pet at your own discretion | Cannot refuse without a reasonable ground |
How to recover the flat: selling or moving in yourself
If a landlord wants to sell the flat or move in, Grounds 1 and 1A apply. They are mandatory: if the ground is proven, the court grants possession. But there are two limits. First, they cannot be used in the first 12 months of a tenancy. Second, the tenant gets at least 4 months' notice. So buying a flat with a sitting tenant and quickly clearing it for resale will not work.
The other Section 8 grounds are rent arrears, damage to the property and breach of terms. Here it is as before: you need the facts and the notice period set for that ground.
Rent and rent increases
Rent can now be raised only through Section 13 — once a year and with 2 months' notice. The tenant may challenge the increase at a tribunal, and the tribunal cannot set the rent higher than the landlord proposed. Contract clauses on annual indexation and "bidding" between prospective tenants are banned — any such clause has no legal effect.
For an investor that means predictability instead of flexibility: rent can be moved towards the market level, but gradually and on schedule, not sharply and not whenever it suits.
A landlord's obligations
The reform added duties for a landlord:
- Registration on the government's landlord database and membership of an ombudsman service for tenant disputes.
- The Decent Homes Standard and set timescales to fix dangerous defects such as damp and mould (Awaab's Law).
- You cannot refuse a tenant's request to keep a pet without a reasonable ground.
- You cannot turn away families with children or people on benefits.
Tax and yield for a non-resident
Gross rental yield in London is roughly 3.5–5% a year, higher in the outer boroughs if bought at the right price. That is before costs: management, maintenance and taxes.
A non-resident falls under the Non-Resident Landlord Scheme. By default the agent or the tenant deducts basic-rate tax from the rent and pays it to HMRC. To receive the rent in full and pay the tax yourself, you need HMRC approval (an application on form NRL1). A non-resident files an annual Self Assessment return in any case. Buy-to-let mortgage interest is not fully deducted from rental income — instead a 20% tax credit applies.
The full breakdown of costs at the deal and per year is in the article on the cost of buying for a non-resident.
Who buy-to-let suits, and who it does not
It suits someone entering for the long term and ready for a stronger tenant and a set of duties. Letting in London is still profitable, but the reform has removed the ease: you can no longer evict quickly, raise the rent sharply or sell a flat with a sitting tenant.
It does not suit someone who counted on a flexible exit and frequent rent reviews. All the more so against the correction in prime central London: buying to let now is a strategy for several years, not a quick turnaround.
Popular questions
Can you now evict a tenant in order to sell the flat?
Yes, on Ground 1A, but not before 12 months of the tenancy and with 4 months' notice. Clearing the flat quickly for an urgent sale will not work.
How often can the rent be raised?
Once a year, through Section 13, with 2 months' notice. The tenant can challenge the increase at a tribunal, but it will not be set above the proposed figure.
Does a non-resident landlord have to register anywhere?
Yes. The landlord database and the ombudsman service are compulsory, plus the tax side: the Non-Resident Landlord Scheme and an annual return.
Is letting in London still profitable after the reform?
Gross yield is roughly 3.5–5% a year, higher in the outer boroughs. The reform did not remove the income, but it added duties and took away some of the flexibility.
