A date has finally been announced: 1 May 2026
After years of uncertainty, the Government has confirmed the phased introduction of the Renters' Rights Act 2025, with the first stage commencing on 1 May 2026.
This clarity is welcome as it allows us to move forward confidently and complete the final refinements to our processes.
Read Part 1 and Part 2 before you continue for a better understanding.
As an aside, my paper copy of the Renter's Rights Act arrived in the post from the government press, all 259 pages! Time to pull out the highlighter and sticky notes :)
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Phase 1 - From 1 May 2026
- Abolition of Section 21 Landlords will no longer be able to end tenancies without a reason; all possession routes move to Section 8.
- Introduction of Assured Periodic Tenancies Tenants can remain indefinitely unless they give notice (2 months) or the landlord regains possession using a valid ground.
- Reformed possession grounds Easier possession for: serious persistent rent arrears, anti-social behaviour and genuine owner-occupation and sale grounds
- Rent increases limited to once per year All increases must be served via Section 13 with a minimum of 2 months’ notice.
- Ban on rental bidding and rent-in-advance practices Ensures transparent pricing and removes competitive bidding.
- Unlawful discrimination banned Landlords cannot exclude applicants based on children, benefits, or other protected characteristics.
- Pet requests must be considered reasonably Landlords cannot refuse pets outright without justification.
- Stronger local authority enforcement powers Councils will have increased ability to inspect, request documents, and issue penalties. (These investigatory powers begin 27 December 2025.)
Phase 2 and 3 - What follows
You can read more about the phases in the official Government publication.
In summary, Social Housing is not completely immune because abolition of section 21 and tenancy reforms during Phase 1 will be extended to that section during Phase 2.
Some key point during Phase 2 and 3 includes:
- PRS Landlord Database (mandatory registration + annual fee)
- PRS Ombudsman (landlords must join)
- Decent Homes Standard for the PRS
- Awaab’s Law extended to private rentals (faster responses to damp, mould, and hazards)
- Reform for social housing, including abolishing Section 21 in that sector
These will be rolled out gradually, not all at once.
Timeline
What now?
From an agency perspective, it is very much business as usual. We have known this was coming for a long time now and have been actively preparing for it in terms of our policies, processes and people.
Most of the Act formalises standards that the agency already operates under:
- Transparent rents (no bidding, no negotiation)
- Use of Section 13 for rent reviews
- Strong anti-discrimination practices
- Consistent high compliance, recognised by Local Authorities and independent contractors
- Proactive documentation and audit trails
- Robust referencing and affordability checks, including senior management level vetting of all tenants
As a values driven and compliance focused agency, the announcement of the date is a welcome because it removes uncertainty and allows us to forge ahead with any changes required. It allows us, and you to plan strategically rather than reactively.
From a tenant’s perspective, the Renters’ Rights Act could be argued as a net-positive in terms of protection and transparency. Stronger legal safeguards, clearer rights, greater transparency during the application process, better enforcement, fairer dispute resolution, and improved security of tenure are all welcome developments. While many agents and landlords already operate to this standard, there have unfortunately been far too many who should not be in the sector at all.
However, higher compliance requirements inevitably increase the risk and cost burden on landlords. In practice, this may lead to stricter affordability criteria, greater reliance on guarantors, closer scrutiny of income stability, and more rigorous referencing. None of these responses violate the Act; they are simply predictable market reactions to increased regulatory and financial pressure. As a result, some tenants who may have been accepted before the 2025 market changes may now find it more challenging.
At the same time, the private rented sector is likely to see a reduction in available housing stock, with some reports suggesting that over a third of landlords may exit the market. When combined with insufficient social housing, population growth, and homes not being built quickly enough, both supply-side and demand-side pressures become significant.
Taken together, these factors may contribute to higher rents. Although the Act discourages unfair rent increases, it does not prevent initial asking rents from rising as the market adjusts to the increased costs and risks associated with providing rental homes.
From a landlord’s perspective, the Government’s Impact Assessment suggests that landlords will be better off by approximately £9 per property per year, largely due to fewer tenant moves and therefore fewer letting-related costs. It’s an interesting claim, though the assumptions behind it are certainly open to challenge, so it’s best taken with a pinch of salt.
For landlords with older housing stock, limited ability to reinvest, or properties that have fallen behind on compliance, these reforms may come as a genuine shock to the system. Those who are already operating at break-even or at a loss are likely to feel the impact of the Renters’ Rights Act more sharply which is, in some ways, an intended outcome of the legislation.
If you find yourself in this category or have concerns about how the changes may affect you, please feel free to reach out to our team for support and guidance.
For landlords who have been in a position to prepare for these changes with quality stock and a compliance mind-set, I do not foresee these changes too difficult to adapt to. Using a reputable and accredited agency like us, you benefit from:
- Robust compliance systems already in place
- Tenancy documentation aligned with new requirements
- Structured arrears and ASB management
- Transparent rent reviews
- Strong relationships with local councils
- Proactive inspection readiness
- Full audit trails for every tenancy decision
- Reduced risk of enforcement or penalties
Revised Agency Fees - Effective 1 February 2026
Your loyalty and trust are the foundation of our growth, and the steady stream of landlords joining TNM from other agents shows that our transparent, compliance-led approach stands out.
After extensive internal review and benchmarking across Birmingham and surrounding areas, we will be introducing a revised fee structure.
This is driven by:
- Rapidly rising regulatory requirements
- More complex HMO licensing obligations
- Increased fire safety and ongoing AML requirements
- A marked rise in local authority inspections
- Additional administrative and documentation burdens
- Increased contractor costs and technology investments needed to protect your position
We have absorbed rising operational costs for five years, including VAT, inflation, and new compliance burdens.
We have never passed them on to you.
But to maintain our standards and continue protecting you, we must now make adjustments.
Why the Change?
Over the last two years we have:
- Attended local authority inspections on your behalf at no extra cost
- Invested heavily in systems such as CoHo and Credas
- Increased AML and sanctions monitoring (now mandatory)
- Gained Propertymark accreditation
- Doubled our team size to ensure dedicated Single Let & HMO Property Managers
- Provided 24/7 landlord and tenant support
- Bringing in a UK-based client relations assistant - 17 Nov 2025
- Held management fees static despite significant cost pressures
This puts us significantly ahead of most agents, in terms of professionalism, efficiency and capability.
The revised fees ensure we can continue to deliver:
- Rapid response times
- Robust compliance
- Exceptional tenant relations
- High tenant retention (reducing your voids)
- Strong yield optimisation
- Peace of mind in an increasingly complex legal environment
New Fees (VAT included)
- Single Lets: 10% of rent received
- HMOs & Blocks: 10% of rent received
- Lettings & Set-Up Fees: 75% of first month’s rent
- Management PLUS (optional): +2% (12% total of rent received), including rent collection, deposit handling and utilities management
Please note, the fee due is based upon rent received per calendar month. For example a tenant moving out part way through a month will still incur management fees for that full month. For example, an empty room in a HMO for a full month means no management fee for the room for that month.
We’ve carefully compared our new fees against other leading agents in the Birmingham and surrounding areas, and we are confident that we continue to offer a strong value-quality proposition, with unmatched levels of service, transparency, and bespoke management expertise. This includes attendance where possible at all local authority inspections to best represent your interests without extra charge.
New Landlords
For any landlords who have recently joined or will join between 1st September 2025 and 30th January 2026, the agency will honour the existing fee structure upon request until 1st May 2026.
The Value to You
These changes ensure we can:
- Deliver an even more responsive, robust, and legally compliant service
- Protect your property and income from escalating regulatory and reputational risks
- Maximise tenant satisfaction, retention, and yield
And importantly:
We keep our fees simple.
No hidden charges.
No commission or kickbacks for maintenance quotes
No long list of extra fees.
We are a specialist HMO agency with deep expertise in compliance, and we are intentionally selective about the landlords and properties we work with. We only onboard clients where the property, the landlord, and the working relationship allow us to manage safely, legally, and to the high professional standard our agency is recognised for.
In the last six months, we have respectfully stepped away from a number of instructions where, despite our support, it became clear that essential compliance requirements could not be achieved. These decisions were not taken lightly, but they were the right ones. They protected tenants, upheld legal standards, and ultimately sent a clear message to these landlords that unless they changed their approach, they face significant future risk.
We don’t just manage properties; we own and operate our own portfolio, so we understand first-hand the pressures, responsibilities, and expectations that landlords face. This experience shapes our approach and ensures we act not only as managing agents, but as genuine partners in protecting and enhancing your investment.
And finally, to mark the commencement of the Renters’ Rights Act in May, we are launching our annual Tenant Appreciation Prize Draw. This is a positive initiative designed to attract and retain excellent tenants. Each year, one tenant will win £5,000 towards the deposit for their first home. This campaign strengthens tenant loyalty and reduces turnover at no additional cost to landlords.
What others say about the agency
"I have found [TNM] to be very professional in their approach. The staff are extremely supportive and always respond promptly to any queries. They take great pride in their work, ensuring all compliance requirements are up to date and that landlords’ properties remain safe and well-managed." - Adrian Sharp, Fire Consultant, AKS Fire Safety
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"This is one of the best managed HMO I have come across in the area." - Local Authority Inspector A
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"I’ve enjoyed my time there! I’ll certainly be recommending you to anyone looking for a place to live." - Ryan, Tenant
We're here for you
If you have any questions, or would like to review your current property portfolio performance, please don’t hesitate to reach out to me personally.
Thank you again for your ongoing partnership.
TNM - "Always doing the right thing."
Disclaimer: This newsletter is for general information only and does not constitute legal, financial or other professional advice. No representation or warranty is given as to its accuracy or completeness and, to the fullest extent permitted by law, Tu Nguyen Management Limited accepts no liability for any loss arising from reliance on it, including any errors or omissions.