The Renters’ Rights Act: what it means for overseas landlords

What changed on 1 May 2026

The Renters’ Rights Act rewrote the rules for private renting in England. It applies to every tenancy — including those that started before May 2026 — so every landlord with a let property is affected.

• Section 21 “no-fault” evictions have ended. A landlord now needs a legal reason, or ground, to take a property back.
• Fixed-term tenancies have gone. All tenancies are rolling monthly agreements, and tenants can leave with two months’ notice.
• Rent can rise once a year, using the formal Section 13 process (Form 4A) with at least two months’ notice. Rent review clauses in contracts no longer work.
• Rental bidding is banned: landlords and agents must advertise a rent and cannot accept offers above it.
• Rent in advance is limited: nothing can be taken before the tenancy is agreed, and large upfront payments are no longer allowed.
• Tenants can ask to keep a pet, and landlords can only refuse with a good reason. Refusing tenants because they have children or receive benefits is unlawful.

Getting the property back

Landlords can still regain possession, but only on set grounds and with proper notice. The ones overseas investors use most:

• Selling or moving in a family member: not available in the first 12 months of a tenancy, with four months’ notice. After using either ground, the property cannot be re-let or marketed for rent for 12 months.
• Serious rent arrears: the mandatory threshold is now three months’ rent.
• Anti-social behaviour and breaches of the tenancy remain grounds, but must be proven in court if the tenant does not leave.

Why it matters for GCC investors

Two common habits of overseas landlords no longer work. Asking international students or tenants without UK credit history for six or twelve months’ rent upfront is no longer allowed, so referencing, guarantors and rent guarantee insurance now carry that protection. And planning to sell with vacant possession takes longer: allow at least four months’ notice, never within the first year of a tenancy — or sell with the tenant in place, which many investor buyers prefer.

Compliance now carries real penalties. Councils can issue civil penalties of up to £7,000 for a first breach and up to £40,000 for serious or repeated ones, and tenants can claim back up to two years’ rent through a rent repayment order. A landlord database and a private rented sector ombudsman are being introduced in stages, and registration will become compulsory.

How to keep your property profitable

The new rules reward landlords who own good homes and manage them well. Tenants who are happy stay longer, which means fewer empty months and lower re-letting costs — often the biggest drag on returns.

• Buy homes tenants want to stay in: modern, well-managed buildings close to transport, jobs or campus.
• Set the rent at market level from the start and review it once a year through the correct process.
• Use a UK management partner that handles referencing, safety certificates, deposits, notices and the new paperwork.
• Keep a cash reserve for repairs and the occasional void month, and consider rent guarantee insurance.

How BPG helps

We source properties that suit long-term tenants and, through our UK management partners, look after lettings, compliance and rent reviews under the new rules — so your property keeps earning while you are in the Gulf.