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Relocating top talent to the United Kingdom is a central component of many multinationals’ business strategies, and a significant portion of global assignees will be renters. Effective May 1, 2026, the UK government will implement changes brought about under the Renters’ Rights Act, which officially became law in late October 2025.
The Act introduces six core areas of change for private rentals throughout England – with one of the most prevalent ones being the elimination of “no-fault” evictions.
For global mobility leaders and HR directors, staying informed about these legislative shifts is essential for maintaining real-time compliance, accurately forecasting relocation costs, and delivering exceptional employee experiences. This guide breaks down the core changes and offers actionable tips to help you integrate them into your global mobility programs.
- The shift to rolling tenancies and flexible departures
Under the new legislation, the traditional fixed-term assured shorthold tenancy will become a thing of the past. Starting May 1, 2026, all new tenancy agreements will automatically become assured periodic tenancies, operating on a rolling weekly or monthly basis without a fixed end date. Tenants will also have the right to end their tenancy at any time by providing two months’ written notice.
Mobility tip: Update your housing policies to leverage this newfound flexibility. The two-month notice period significantly reduces the financial risk of breaking a lease if an employee’s assignment ends prematurely or if they need to be repatriated unexpectedly.
- The abolition of ‘no-fault’ evictions
To provide renters with greater stability, the UK is eliminating Section 21 “no-fault” evictions. Landlords will no longer be permitted to ask a tenant to leave without a legally recognized reason. Instead, they must rely on specific grounds—such as needing to sell the property or move in themselves, or if a tenant is in breach of contract or rental arrears—and must provide a standard notice period of four months in most cases. Crucially, landlords cannot use the sales or moving-in grounds during the first 12 months of a tenancy.
Mobility tip: Ensure you or your relocation management company partners are communicating this enhanced housing security to your relocating employees during their onboarding process. For longer-term renters to know they are protected from sudden evictions will lower their relocation stress and allow them to focus entirely on their new roles.
- Stricter controls on rent increases and advance payments
Budgeting for housing support should become more predictable. The new act restricts landlords to increasing rent only once per year, and entirely prohibits rent hikes during the first year of a new tenancy. Landlords must use a formalized process (Form 4A) and provide two months’ notice for any increase, which tenants can legally challenge if it exceeds market rates for similar properties. Additionally, landlords are prohibited from demanding more than one month’s rent in advance once the agreement is entered into and signed by all parties.
Mobility tip: Consider whether these structured rules can help you with your budget allocations. For example, you can work with your service providers to explore whether you can adjust your policies and systems to disburse housing allowances monthly, as large upfront rent payments will no longer be legally required. Tenants can still voluntarily pay in advance if they choose to do so.
- An end to rental bidding wars
In highly competitive UK housing markets, assignees and relocation agents frequently face pressure to offer above the asking price to secure a home. The Renters’ Rights Act strictly prohibits landlords from accepting or encouraging any offers above the advertised rental price.
Mobility tip: Partner closely with your RMC and destination service providers (DSPs) to ensure your employees are securing properties at fair market value. This protection helps guarantee that your cost estimations remain accurate and can help prevent unexpected budget overruns or exception requests.
- Formalized rights for assignees relocating with pets
Finding pet-friendly accommodation has historically presented potential obstacles for renting transferees. At the same time, we’ve seen a significant increase in the number of people moving with pets over the last several years. The updated legislation gives tenants the statutory right to request to keep a pet in the property. Landlords are legally obligated to consider the request and must provide a justified reason if they choose to refuse it.
Mobility tip: There is an opportunity to enhance employee satisfaction by highlighting this policy change to assignees moving with pets. Work with your relocation consultants to format and submit these requests on behalf of your employees to help streamline their home searches and set them up for success.
- Enhanced protections against discrimination
To foster a more inclusive rental market, landlords will be barred from discriminating against tenants based on protected characteristics under the Equality Act. It will be illegal to refuse a tenancy simply because the applicant has children or receives government-provided benefits.
Mobility tip: You’re most likely already working with partners who regularly audit the members of their supply chain and work exclusively with global networks and local letting agents who strictly adhere to anti-discrimination laws. However, this feature provides an added layer of assurance of equitable treatment for every member of your diverse talent pool.
FAQs
A. The changes apply only to those accommodations secured through standard private rental agreements, so many of the short-term accommodation options used in the corporate context (such as serviced or licensed temporary living units) will not be affected.
For those contacts that are secured through private agreements, one of the biggest impacts is the removal of fixed-term tenancies. An automatic conversion to assured periodic tenancies, or rolling agreements, means that in practical terms, short-term assignees or project workers, for example, are no longer able to enter into multi-month contracts that might align with the expected duration of the assignment. Instead, they will need to handle arrangements on a month-by-month basis. On the plus side, companies and employees have greater flexibility, should the business timeline, project parameters or regional or personal circumstances change.
A. No. Landlords and agents are prohibited from accepting or encouraging offers above the advertised rate. In addition, rent can only be increased once a year, and via formal notice, which should also help with budget predictability.
A. Every landlord and rental property will need to be registered on the Private Rented Sector (PRS) Database, anticipated to be fully in effect later this year. This should help HR and global mobility teams – and the service providers they work with – have an added layer of assurance that the landlords and properties they are contracting with are fully compliant.
Navigating international housing regulations requires a trusted, authentic partner who understands both the legal landscape and your internal HR objectives. By proactively adapting your policies to the 2026 UK Renters’ Rights Act, you can make the most of your budget while taking care of the people driving your business forward. Connect with our dedicated global mobility team today to review your UK housing strategies and ensure your relocation program remains fully compliant and efficient.
