The Renters' Rights Act 2025 came into force on 1 May 2026. No-fault evictions are gone, fixed-term tenancy agreements are no longer valid for new lets, and every Manchester landlord now operates under a fundamentally different legal framework. If you haven't reviewed how you let and manage your properties since the Act received Royal Assent last October, now is the time.
What's actually changed
The headline change is the abolition of Section 21. You can no longer end a tenancy without a legally defined reason. From 1 May 2026, possession can only be sought under specific Section 8 grounds — rent arrears, antisocial behaviour, or genuine intent to sell or move back into the property. Evicting a tenant because you've found a higher-paying one is no longer an option.
Alongside this, fixed-term assured shorthold tenancies (ASTs) are finished. Any new tenancy granted from 1 May 2026 must be an assured periodic tenancy — a rolling contract. Tenants can leave with two months' notice; landlords must rely on Section 8 grounds to recover possession. If a landlord tries to issue a fixed-term agreement regardless, it will automatically convert to a periodic tenancy by law.
Rent increases are also now controlled: landlords can only raise rent once per year, must give two months' notice, and can only increase to the prevailing market rate. Tenants have the right to challenge any increase through a First-tier Tribunal. In fast-moving areas like Ancoats and Castlefield, this makes proactive communication with tenants more important than ever.
The compliance checklist
Beyond the tenancy changes, the Act introduces several additional obligations with their own deadlines and penalties:
- Register on the new PRS database — all landlords must list their properties and key compliance details on the new national portal
- Issue the government's Information Sheet — required for all tenants; if your tenancy began before 1 May 2026, you have until 31 May 2026 to issue it
- Awaab's Law — extended to the private rented sector; damp, mould, and serious hazards must be addressed within legally prescribed timeframes
- No bidding wars — you must publish a fixed asking rent and cannot accept offers above it
- Pet requests — tenants now have the right to request a pet; blanket refusals are legally precarious
- No discrimination — refusing tenants because they receive benefits or have children is now explicitly illegal
Non-compliance is not a minor risk. Local authorities have enhanced enforcement powers, and the new PRS Ombudsman gives tenants a low-cost route to challenge landlord conduct outside the courts.
Where Manchester stands
The city enters this new era from a position of genuine strength. ONS figures from March 2026 show average monthly private rents in Manchester at £1,347, up 2.8% year-on-year. Gross rental yields range from 6% to 6.6% across the city, with well-located studios delivering up to 8.4%. Manchester's population is projected to reach 635,000 in 2026, and the city's five-year housing requirement of 21,287 dwellings is being met by net completions of just 3,864 per year. Supply pressure isn't going anywhere.
Demand is equally robust. Industry data shows the average rental property now receives around 25 enquiries per listing, compared to eight pre-pandemic. Manchester agents are seeing viewings fill within hours of a property going live.
"The landlords who will feel this most acutely are those who have relied on Section 21 as a management shortcut. Well-managed properties in sought-after locations are in the strongest possible position."
The practical opportunity
For landlords with good stock in the right areas, the Renters' Rights Act is less of a threat and more of a filter. Landlords who operate professionally — prompt maintenance, compliant documentation, clear communication — will find tenant quality improves and void periods fall. Those cutting corners will exit the market, reducing competition and tightening supply further.
Corporate and relocation tenants are worth highlighting here. Professionals relocating to Manchester for work — including those arriving from overseas for employer-sponsored roles — are among the most reliable tenants a landlord can hold. They are well-referenced, stable, and looking for a properly managed home. This tenant profile is entirely unaffected by the Act's changes, and demand from this segment continues to grow.
The key shift for landlords in 2026 is from passive ownership to active management. The legal environment now requires it — and the financial case for doing it properly has never been stronger.
Frequently asked questions
Can I still use a fixed-term tenancy for a new let?
No. From 1 May 2026, landlords in England cannot grant new fixed-term assured shorthold tenancies. Any new tenancy must be periodic (rolling). If a fixed-term agreement is signed regardless, it will automatically convert to a periodic tenancy by law.
Do I need to do anything about existing tenancies?
Yes. If your tenancy began before 1 May 2026, you must issue the government's official Renters' Rights Act Information Sheet to your tenant by 31 May 2026. You do not need to issue a new tenancy agreement for existing lets.
What grounds can I use to regain possession?
You must use the updated Section 8 grounds: rent arrears of two months or more, persistent late payment, antisocial behaviour, genuine intent to sell the property, or intent to move yourself or a close family member in. For the latter two, the tenant must have been in occupation for at least 12 months and you must give four months' notice.
Does using a letting agent help with compliance?
Significantly. A regulated agent with current compliance knowledge manages documentation, rent review notices, and tenancy structuring within the new framework from the outset. If you're unsure whether your current letting arrangement is fully compliant, an independent review is worthwhile sooner rather than later.