Owner guide 7 of 7
The Renters' Rights Act: why landlords are switching to short lets
The biggest change to renting in England for over 30 years arrived on 1 May 2026. If you let a home on a standard rental, here's what the Renters' Rights Act changed, what's still to come, and why more landlords are looking at short lets instead.
What changed on 1 May 2026
The Act applies to standard rentals in England: the assured shorthold tenancy (AST) most landlords used. From 1 May 2026, every new and existing tenancy works under the new rules.
- No more section 21 "no-fault" notices: to end a tenancy you need a legal reason, called a ground
- No more fixed terms: tenancies roll on month to month until someone ends them
- Tenants can leave at any time with two months' notice
- Rent can go up only once a year, with two months' notice, and the tenant can challenge it at a tribunal
- No more than one month's rent in advance, and no bidding wars between tenants
- Tenants can ask to keep a pet, and you must have a good reason to say no
- Fines for breaking the rules now go up to £40,000
Getting your home back is slower
Want to sell, or move back in? You can still get your home back, but it takes planning. You must give four months' notice, the notice can't end in the first 12 months of the tenancy, and you then can't let the home to new tenants for a year. If the tenant won't leave, it goes to court, which can take months more.
More is still to come
Coming next for standard rentals
- Landlord database
- Every landlord in England must register each home they let, with a yearly fee. Opening region by region from late 2026.
- Landlord ombudsman
- Every landlord must join, so tenants can complain about you to an independent service. Expected in 2028.
- Decent Homes Standard
- A legal minimum standard for rented homes. Dates are still to be set after consultation.
Why a short let works differently
These rules are about tenancies: someone renting your home as their only or main home. Short-let guests are different. They stay a set number of nights, for a holiday, a work trip or a contract, and they have a home somewhere else. That's not a tenancy, so the tenancy rules don't apply.
What that means for you
- Your home is yours again at the end of every stay
- Block dates whenever you want to use it yourself
- Decide to sell? Stop taking new bookings: no four-month notice and no court case
- Prices are set night by night to match demand, not once a year
- Every guest is checked and signs a rental agreement, and pays a damage deposit or takes damage protection
Like a letting agent, but for short lets
HOMEHOSTS isn't guaranteed rent or rent-to-rent. We manage your home for you, and our fee is a share of what it earns, so we do well only when it's well booked.
The honest downsides
A short let isn't right for every home, and it's better to know the trade-offs up front.
- Income moves with the seasons, so some months are busier than others
- There are more running costs: cleaning, linen and booking-site fees
- The home needs furnishing to a good standard
- Some areas have planning rules for short lets, and your mortgage and insurance must allow it
We handle the work: listings, pricing, guests, cleaning and maintenance. We check your area's rules and the figures for your address before you decide, so you can compare the two properly.
If your home is in Wales
The Renters' Rights Act covers England. Wales made its own changes on 1 December 2022: tenancies became occupation contracts, and a landlord ending one without a reason must usually give at least six months' notice. Holiday lets in Wales have their own rules too, such as council tax, so we check them for your address.
The bottom line
A standard rental is now a long, hard-to-end commitment with more rules on the way. A well-managed short let keeps you in control of your home, your dates and your prices, and with the right manager it can earn more. The best way to know is to see the numbers for your own home.
Ask for a free valuation: we'll show you what your home could earn as a short let, set against a standard rental, with no obligation.
Find out what your property could earn
Send us the postcode and a few details. We’ll call you with figures we can stand behind, and no pressure either way.