Key Legislative and Legal Updates for 2026: What Landlords, Investors and Occupiers Need to Know

The year 2026 is shaping up to be one of the most significant periods of legislative change for the UK property sector in decades. With major reforms across residential, leasehold and commercial property law, landlords and occupiers will need to prepare for a markedly different regulatory landscape.

This overview summarises the headline changes expected to take effect in 2026, including the Renters’ Rights Act, the Freehold and Leasehold Reform Act, and the proposed ban on upwards‑only rent reviews in commercial leases.

🏠 1. Renters’ Rights Act (Residential Property)

The Renters’ Rights Act—formerly the Renters (Reform) Bill—represents the most substantial overhaul of the private rented sector since the Housing Act 1988. The legislation is now law, with implementation scheduled for 1 May 2026.

Key Changes

• Abolition of Assured Shorthold Tenancies (ASTs)
  From May 2026, landlords will no longer be able to create new ASTs. Instead, a single system of periodic tenancies will apply to most residential lettings.
• Strengthened tenant security and rights
  The Act aims to create a “fairer, more secure, and higher‑quality” rental sector, with enhanced protections for tenants and clearer grounds for possession.
• Revised possession framework
  Section 21 “no‑fault” evictions are removed, replaced with updated Section 8 grounds.
• New standards for property management and dispute resolution
  The Act introduces a more robust regulatory framework, including improved redress mechanisms and obligations on landlords to meet higher management standards.

These reforms will require landlords to review their tenancy documentation, management processes, and compliance procedures well ahead of the May 2026 deadline.

🏢 2. Freehold and Leasehold Reform Act (Residential Property) 

Leasehold reform has been a long‑running government priority, and 2026 is expected to see the next major phase of change. The draft Leasehold and Commonhold Reform Bill is anticipated to be published during 2026, following years of consultation and political commitment to modernise the system.

Expected Areas of Reform

• Improved enfranchisement rights
  Making it easier and cheaper for leaseholders to extend leases or purchase their freehold.
• Greater transparency and regulation of service charges
  A push towards clearer billing, fairer cost allocation, and stronger rights to challenge unreasonable charges.
• Reinvigoration of commonhold
  The government continues to signal support for commonhold as a long‑term alternative to leasehold, with further legislative steps expected.
• Reform of ground rents and long lease terms
  Additional restrictions on ground rents and simplification of lease extension processes are anticipated.

These changes will have significant implications for freeholders, managing agents, and leaseholders considering enfranchisement.

🏬 3. Proposed Ban on Upwards‑Only Rent Reviews (Commercial Property)

Commercial property is also set for reform. The Law Commission has issued provisional conclusions on modernising the Landlord and Tenant Act 1954, including a proposed ban on upwards‑only rent reviews in new business tenancies.

What This Could Mean

• Shift to open‑market or index‑linked reviews
  Rent reviews may need to reflect market conditions—both up and down—rather than being restricted to upward movement only.
• Greater flexibility for tenants
  The reform aims to create a more balanced negotiating environment, particularly for SMEs.
• Potential impact on investment valuations
  Upwards‑only reviews have historically provided income certainty for investors; removing them may influence yield expectations and lease structuring.

While not yet confirmed, this proposal is gaining traction and could form part of a wider package of 1954 Act reforms expected to progress in 2026.

What This Means for Landlords and Property Professionals

2026 will require proactive preparation across all sectors:

• Residential landlords should review tenancy agreements, possession strategies, and compliance frameworks ahead of the Renters’ Rights Act commencement.
• Freeholders and managing agents should anticipate increased scrutiny of service charges and prepare for enfranchisement reforms.
• Commercial landlords and investors should monitor the progress of 1954 Act reform and consider how lease drafting and valuation models may need to adapt.

James & Sons will continue to monitor legislative developments closely and provide clear, practical guidance as further details emerge.