Your September 2026 newsletter

The PRS saw some interesting developments in August, including a government pledge to increase court capacity ahead of Renters’ Rights Act cases, growing concerns about possession processes, and tougher licensing penalties.

Our data partners are adjusting their methodology this month, so unfortunately, we won’t be able to share the latest rental market performance data. This will be back next month.

Landlords face tougher licensing penalties under Renters’ Rights Act

Landlords are being urged to review their licensing arrangements as councils across England continue to introduce and consult on new schemes, while the Renters’ Rights Act has increased the financial consequences of getting licensing wrong.

Since May 1, 2026, the maximum civil penalty for relevant Housing Act offences has increased from £30,000 to £40,000. Landlords can be liable for these fines when their property operates without a required licence or breaches licence conditions.

The consequences can extend beyond the initial financial penalty. In certain circumstances, landlords and others who manage or control a property can be held liable for an unlicensed property. Failure to obtain a required licence can also result in a Rent Repayment Order, with councils and tenants able to seek repayment of up to two years’ rent.

At the same time, licensing requirements are continuing to develop at local level. Selective licensing schemes can apply to privately rented properties that are not HMOs, while additional licensing can bring smaller HMOs within a council's licensing requirements.

Importantly, these requirements are separate. A property may need both planning permission and a licence, depending on its size, use and location. The Renters’ Rights Act has not removed these existing requirements.

Landlords should also be aware of the forthcoming Register Your Rental Property service, also known as the Private Rented Sector (PRS) Database, which is due to begin rolling out regionally from December 2026. Registration will be compulsory, and the database is intended to give councils better information about rental properties, ownership and safety. However, registration will not automatically replace local licensing schemes.

We advise landlords to check whether their property requires a licence and to track any consultations or new schemes introduced by their local authority. If you need any help with this, reach out to your managing agent, and we’ll be happy to assist you.

With penalties increasing and local requirements continuing to evolve, staying ahead of licensing and compliance could help you avoid costly problems later on.

Government expands court capacity in response to RRA demand

Landlords facing changes brought by the Renters’ Rights Act (RRA) have been reassured that the courts are being expanded to cope with potentially higher demand for possession cases.

In a letter to NRLA Chief Executive Ben Beadle, the Government confirmed it is recruiting 1,000 new judges and tribunal members this year, alongside staff redeployment, as the courts prepare for an expected increase in cases after the end of Section 21 ‘no-fault’ evictions.

For landlords, the changes mean that repossession will generally need to rely on one of the revised statutory grounds. If a tenant does not leave after a valid notice, or challenges the grounds relied upon, the case may need to proceed through the courts.

Progress is also being made towards a more streamlined digital court process. A new centralised hub is being developed, with digital services intended to let landlords and tenants submit documents, respond to claims, and receive updates and outcomes online.

The first stage of the digital changes is expected by the end of 2026, with the Government aiming for full end-to-end digitisation by April/May 2027. However, no specific targets have yet been provided for the overall time taken from making a claim through to repossession.

The message is clear: good record keeping and processes remain essential. As the new possession framework beds in, accurate notices, tenancy records, and supporting evidence could help avoid unnecessary delays if court action becomes necessary.

We will continue to monitor developments and keep you updated as the new court processes are introduced.

Landlords urged to strengthen tenant checks as eviction concerns emerge

Research from our friends at Goodlord has suggested that some landlords are struggling to regain possession of their properties just months after the implementation of the RRA.

Based on responses from almost 250 UK landlords, Goodlord research found that one in four landlords reported challenges regaining possession from problem tenants.

The research also indicated that landlords are responding by becoming more cautious during tenant selection. Two in five landlords said they have introduced more stringent tenant vetting procedures, while 9% said they are investing more in tenant retention to reduce turnover.

The changes are also creating additional administrative and financial pressures. Half of the landlords surveyed said they had experienced an increased compliance burden, while 29% reported higher compliance and insurance costs. Another 25% reported higher letting agent fees, and 10% reported longer void periods between tenancies.

Nishma Parekh, Director of Referencing at Goodlord, said: “These findings point to a market where getting tenant selection right the first time is more critical than ever, given how much harder it has become to reverse a bad match once a tenancy begins.

“Our fraud report made it clear that landlords were already facing a costly problem before the Renters’ Rights Act came in.

“Now that possession is harder to secure when things go awry, the cost of signing the wrong tenants has only gone up. It’s little wonder thorough vetting has become the priority for landlords.

“Against this backdrop, landlords and agents need better referencing tools and clearer guidance to manage risk at the point of application, not just at the point of dispute. If landlords lose confidence in the system, it will have knock-on effects for agents and the tenants they serve.”