UK landlords will face a fresh layer of compliance oversight from May 2026 as councils gain new powers to penalise unenforceable tenancy clauses under the Renters’ Rights Act 2025. The shift coincides with the end of fixed-term tenancies, leaving buy-to-let investors weighing up both practical and financial implications.
New rules for landlords as fixed terms end in 2026
From 1 May 2026, all new and existing fixed-term tenancies will automatically convert to periodic agreements, removing one of the sector’s core tools for managing void periods and mortgage planning.
In a response to Conservative MP Andrew Rosindell, Housing Minister Matthew Pennycook confirmed that unenforceable clauses themselves will not be treated as criminal offences. Instead, enforcement will be civil – but with potentially costly penalties.
According to Pennycook, landlords must provide a prescribed information pack, including a written summary of the tenancy terms and deposit details. Failure to do so could trigger local authority fines of up to £7,000.
For landlords juggling portfolio admin, tighter mortgage margins, and annualised tenancy turnover, the requirement to supply specific written terms may feel like yet another bureaucratic hoop. But councils are being positioned to take the rules seriously.
Councils gain expanded investigatory powers
The Renters’ Rights Act hands local authorities notable new tools, including:
- the ability to act against unenforceable clauses (e.g., any attempt to require a tenant to sign a fixed term)
- surprise inspections, with or without a warrant
- powers to enter premises where tenancy records are kept
- authority to compel documents from landlords, letting agents, accountants, banks, and prop-tech platforms
This is a significant shift. Councils already face resource constraints, yet they will now be expected to police tenancy paperwork with far greater scrutiny than under the previous regime.
Letting agents say the sector has been heading this way for years. A property manager in Manchester, said councils are “leaning more heavily on compliance as a revenue stream,” noting that average civil penalties for housing offences in Greater Manchester rose 18 per cent year-on-year.
The logical fear is mission creep – particularly if enforcement varies from one authority to another.
Landlord impact
The policy lands at a time when UK rents remain historically high. According to ONS data, private rents were up 7.6 per cent in the year to November 2025, equivalent to around £87 more per month for the average tenancy. Meanwhile, UK Finance figures show around 32,000 buy-to-let mortgages were refinanced in Q4 2025 at higher rates than the expiring deals.
The combination of elevated borrowing costs and new compliance duties may push some landlords to reduce portfolio size or streamline management processes. However, others see opportunity: rising rental demand and constrained supply continue to support yields, particularly in the Midlands and the North West.
Investors now need to ensure that tenancy clauses – once boilerplate – are reviewed for enforceability. Clauses relating to break arrangements, notice periods, or tenant behaviour may need updating to reflect a purely periodic system.
Internal guidance and document packs will also need updating well ahead of the 2026 cut-over to avoid inadvertent fines.
Editor’s view
The government’s latest move is another example of regulatory drift away from contractual freedom and toward council-mediated compliance. Periodic tenancies reshape cash flow planning, while the £7,000 information breach fine places new weight on administrative accuracy. Longer term, the sharper question remains: will councils have the capacity to enforce fairly, or will landlords face inconsistent interpretation across England and Wales?
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 9 January 2026
Sources: ONS rental index; UK Finance mortgage statistics; House of Commons written question (Andrew Rosindell MP); Propertymark market commentary; Renters’ Rights Act 2025.
Related reading: Rental reforms could disrupt tenancy starts, warns leading agent
