Renters Rights Act: 5 Unintended Consequences & How Greater Manchester Landlords Can Mitigate Them

You can’t have missed the headlines, so we can all now mark our calendars:

1st May 2026.

This is the date when many of the Renters Rights Act (RRA) provisions will become legally effective across the UK, including Greater Manchester and wider North-West England. Below are five major changes to focus on, their intended and unintended consequences, and what landlords and property investors can do to protect their income, time, compliance, and cash flow to plan for in the next 30-60 days.

1. Removal of fixed-term tenancies

ASTs with 6-month minimum terms (or longer) will disappear.

Intended consequence:
To empower tenants to decide their length of stay, giving two months’ notice from day one.

Unintended consequence:
Higher voids and increased tenant-find costs. A typical tenant changeover—once marketing, viewings, referencing, compliance, cleaning, maintenance, onboarding and lost rent due to a void period are included—can cost 4–8 weeks’ rent. In theory, this churn could happen multiple times a year.

Mitigation:
Most tenants don’t want to move every two months. Strengthen tenant referencing, affordability checks, and lifestyle assessments to identify longer-term renters.

2. Removal of Section 21 notices

“No-fault evictions” will be abolished.

Intended consequence:
Give tenants greater security and confidence to report repairs without fear of eviction.

Unintended consequence:
Possession claims move entirely to the already overstretched court system. Recently, regaining possession (arrears, anti-social behaviour, refusal to vacate) can take 9–12+ months, considering notice periods, court delays, bailiff booking, and re-letting lag.

Mitigation:
Tighten referencing, financial checks, use guarantors, and consider rent protection insurance with legal cover. Maintain clear documentation, arrears records, and communications.

3. Removal of advance rent payments

Landlords and agents will not be able to request more than one month’s rent in advance for monthly tenancies.

Intended consequence:
Reduce upfront barriers to tenant renting.

Unintended consequence:
Removes a useful tool to support borderline applicants such as students, zero-hours workers, self-employed renters, adverse-credit-affected applicants, or those relocating frequently.

Mitigation:
Lean more heavily on robust referencing, consider asking for guarantors, and adopt insurance-backed risk tools rather than advance rent.

4. Removal of contractual rent review clauses

Rent can only be increased once per year via Section 13, using the prescribed Form 4. Tenants may appeal to the tribunal.

Intended consequence:
Standardise rent increases, providing fairness and consistency.

Unintended consequence:
The tribunal backlog is 8–9 months, rent increases cannot be backdated, and increases can only occur 12 months after the last one. Landlords may effectively review rents every 18–20 months, reducing income during inflationary periods or higher interest rates.

Mitigation:
Maintain regular tenant communication, gather recent market comparables, explain the costs associated with maintaining a compliant rental property, and contrast with the cost of moving for the tenant. Avoid aggressive rent rises that may trigger needless tribunal appeals or tenant turnover.

5. Outlawing tenant discrimination

Blanket bans (e.g., “No pets”, “No children”, “No benefits”) will be unlawful.

Intended consequence:
Provide fair and equal access to rental housing regardless of personal circumstances.

Unintended consequence:
Conflicts may arise with mortgage conditions and insurance requirements. Fears about fines and penalties may push some landlords out of the market, reducing supply and pushing rents up.

Mitigation:
Move away from blanket rules and towards a risk-weighted tenant assessment. Many long-term, stable tenants are on benefits and/or have pets and children. Affordability and stability are not exclusively tied to job type. Lenders and insurers will need to change their terms to comply with the Act.

Sources & External References:

How Zest Property Management Helps Landlords Navigate the RRA

A. Increased Rental Yield in Manchester and North-West England

HMOs across Greater Manchester and surrounding areas typically offer double-digit gross yields, outperforming many single-lets and BTL properties. HMOs inherently reduce risk linked to some RRA changes (e.g., pets/children) and, with 4-8 rental units per property, maintain strong occupancy levels when managed well.

B. Reduced Compliance Risk with HMO Specialists

HMO regulation across the UK—and especially Greater Manchester—is long-established and predictable compared with the wider private rental sector landscape, catching up under the RRA. We help landlords upgrade from single-let to HMO models and maintain full compliance with our largest concentration across Manchester, Salford, Bolton, Bury, Oldham, Stockport, Trafford, Rochdale, Tameside, and Wigan with Mandatory HMO licensing, Additional Licensing, Selective Licensing schemes and Article 4.

C. More Time Freedom & Peace of Mind as You Choose

We understand and value your property investment returns, your time, and your lifestyle choices…and so do you. Our Bronze, Silver and Gold management options—including guaranteed rent—remove void risk, reduce admin, and give you more time for family, travel, or other projects.

Actions for You (Next 30-60 Days)

1. Renters Rights Act Readiness

Download our free RRA Readiness Checklist to assess your properties, regulations and compliance obligations, and portfolio risk.

2. Property & Portfolio Review

Whether considering switching from self-managing or seeking how to counter RRA and improve rental returns, book a no-obligation consultation with our Greater Manchester HMO team. We set aside 3 slots per week to discuss RRA readiness, compliance, regulations and licensing, HMOs, yield improvement, and guaranteed rent options to assist local landlords.

 

The NRLA warned that landlords would need at least six months to prepare for the Renters Rights Act. At the time of writing, we’re already well into that preparation window.

Act now to stay ahead, protect your investment and avoid the pain.
📩 Email: info@zestpropertymanagement.co.uk
📞 Call: +44 (0) 161 401 9378
🌐 Visit: https://www.zestpropertymanagement.co.uk/for-landlords/