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Here is what commercial property investors need to know before it does. The Renters' Rights Act 2025 received Royal Assent in October 2025 and comes into force on 1 May 2026. It will fundamentally change the relationship between landlords and tenants across England. For owners of mixed-use freeholds — with residential above commercial — the implications are significant and the time to prepare is now. KEY CHANGES COMING FROM 1 MAY 2026 ABOLISHED No more Section 21 'no-fault' evictions Landlords will no longer be able to remove tenants without a valid legal reason. All evictions will need to proceed via Section 8 grounds, requiring court orders in most cases. CHANGING Fixed-term tenancies will end All new residential tenancies will become rolling periodic agreements. Tenants will be able to end them with 2 months' notice. Landlords will no longer be able to set a fixed end date. VOIDED Contractual rent reviews will be banned Any rent review clause in an existing tenancy agreement will become void. Landlords will only be able to increase rent once per year via the statutory Section 13 process, with 2 months' notice. NEW RIGHT Tenants will be able to challenge rent increases Tenants will be able to apply to the First-tier Tribunal to contest any increase — at no cost to themselves. The new rent will only take effect after the Tribunal rules. RESTRICTED Longer notice required to regain possession Landlords wishing to sell or move into their property will need to give 4 months' notice, and will not be able to use these grounds within the first 12 months of a tenancy. NEW RIGHT Pets cannot be unreasonably refused Landlords will need to consider all pet requests fairly. Any refusal must be made in writing with a reason given, and tenants will have the right to challenge an unreasonable decision in court. BANNED No discrimination against benefit tenants Landlords will no longer be able to refuse to rent to prospective tenants solely because they are in receipt of housing benefit or other welfare payments. RESTRICTED Rent in advance capped at one month Landlords will not be able to request more than one month's rent in advance. Those who currently use advance payments as part of their tenant assessment process will need to find alternative approaches. BANNED Restrictions on rent bidding Landlords and letting agents will be required to publish an asking rent for every property. Prospective tenants may offer up to the advertised amount, but cannot be encouraged to bid above it, and no offer over the asking rent can be accepted. COMING EPC rating C required by 2030 All privately rented homes will need to meet a minimum energy efficiency standard by 2030. Residential units within mixed-use freeholds will be included in this requirement. What this will mean for mixed-use freehold values 4 mo Notice required to sell or move in 12 mo Minimum before possession grounds apply £7,000 Max fine for missing info sheet deadline 2030 EPC rating C deadline for rented homes WHAT FREEHOLD OWNERS SHOULD DO NOW 1 Prepare the government Information Sheet ahead of the 31 May 2026 deadline. Once the Act comes into force, landlords must issue the official PDF — available to download from gov.uk — to every named tenant. It can be sent by email or delivered in person. Failure to comply risks a fine of up to £7,000. 2 Review your tenancy agreements now. Any contractual rent review clauses will become void from 1 May. Check what mechanism you have in place and ensure all future increases will follow the Section 13 process with the correct notice and paperwork. 3 Assess your EPC ratings before 2030 costs catch up with you. Residential units in mixed-use freeholds that do not meet EPC rating C will require investment. Factoring this in now — particularly if you are considering a sale — could make a meaningful difference to your net position. 4 Revisit your exit strategy. The extended notice periods and reformed possession grounds will mean that achieving vacant possession takes considerably longer than it does today. If you are considering selling within the next 2–3 years, early planning will be important. 5 Consider the impact on your asset valuation. The removal of Section 21, restrictions on advance rent and bidding, and the risk of tribunal challenges to rent increases may affect how investors price mixed-use stock going forward. We are happy to discuss what this could mean for your specific property. ⚠ Approaching deadline: Once the Act comes into force on 1 May 2026, landlords will have until 31 May 2026 to issue the official Renters' Rights Act Information Sheet to all existing tenants. Download the PDF from gov.uk and send it by email or deliver it directly to every named tenant. If you own a freehold investment with a residential element and would like to discuss how these changes may affect your asset — or explore your options confidentially before the Act comes into force — we would welcome a conversation. GET IN TOUCH BWP Commercial Property info@bwpcommercial.co.uk COMMERCIAL PROPERTYINVESTMENT You are receiving this because you are a valued BWP contact. Unsubscribe ...