2026 is set to bring the biggest shift in private renting for a generation and for Leicester landlords, the countdown is on.
The Renters’ Rights Act is due to pass its final stage in early spring, with Section 21 evictions officially ending by 1 May 2026. This landmark change will replace most tenancy types with a single periodic model – bringing tighter controls around possession and rent increases.
So, what does that mean for your Leicester lettings?
If you’re searching for landlord compliance in Leicester in 2026, you’ve come to the right place. We’ve created a clear, localised roadmap to help you get ahead – not just to stay compliant, but to protect your income and portfolio value in a changing legal landscape.
What’s changing for landlords in 2026?
Before we dive into action points, let’s break down the core changes from the Renters’ Rights Act 2026:
Section 21 ‘no-fault’ evictions abolished
From 1 May 2026, landlords will no longer be able to evict tenants without providing a valid legal reason. All evictions will require grounds under Section 8 of the Housing Act.
Assured shorthold tenancies replaced
All new and existing tenancies will shift to a single periodic tenancy model with no fixed end dates and rolling terms from month to month.
Tighter rules on possession
Landlords will need to rely on updated Section 8 grounds to regain possession, such as serious rent arrears, property sale, or landlord moving back in.
New rent increase controls
Rent rises will be limited to once per year, with a two-month notice period. Tenants will have more power to challenge unfair increases.
Bidding wars banned
Letting agents and landlords will be prohibited from encouraging rent bidding, a practice that’s become increasingly common in high-demand areas.
Why does this matter for Leicester landlords?
Leicester sits at the heart of the East Midlands rental market, with strong tenant demand, a growing student population, and excellent rental yields. But as with any hotspot, it also brings pressure on compliance.
From Clarendon Park to Westcotes, landlords who don’t get ahead of the new rules risk:
- Delays regaining possession, especially if you rely on Section 21 notices currently
- Falling foul of rent-setting limits, particularly in competitive areas
- Confusion over tenancy agreements, especially if managing multiple properties
- Increased legal costs, if disputes arise and processes aren’t followed properly
That’s where we come in.
Your 2026 landlord compliance roadmap
Here’s how to prepare your Leicester property portfolio before the 1 May 2026 deadline.
Review your tenancy types
If you currently use fixed-term assured shorthold tenancies, these will automatically convert to periodic tenancies under the new rules. That means no fixed end date and no automatic repossession when the term ends.
What to do:
- Audit your tenancy agreements with a lettings expert
- Identify which tenancies are due to expire before or after May
- Decide whether to renew early or allow them to roll into periodic status
This is a great time to align your tenancy strategy with your long-term goals whether you’re looking to hold, sell, or remortgage a property.
Understand the new possession grounds
Without Section 21, landlords must use Section 8 possession notices with one of the updated legal grounds.
Some of the key grounds include:
- Rent arrears of at least two months
- Repeated late payments
- Serious anti-social behaviour
- Wanting to sell the property
- Wanting to move into the property (only after at least six months)
Each ground comes with specific rules, evidence requirements, and notice periods so it’s vital to know where you stand.
A property management partner like Barkers can ensure your documentation is accurate, legally sound, and served correctly.
Prepare for more regulated rent increases
The new model limits rent reviews to once per 12 months, with a minimum two months’ notice. Tenants can also challenge increases through the tribunal if they believe them to be unfair.
Tips to stay compliant:
- Schedule rent reviews in advance, ideally at the same time each year
- Document all communications around rent changes
- Benchmark local rates, especially as Leicester’s average rents continue to rise
Our property management team in the East Midlands can help you calculate fair, evidence-backed increases while maintaining good relationships with tenants.
Say goodbye to bidding wars
From May 2026, it will be illegal to encourage tenants to offer higher rent to secure a property. This means:
- No accepting offers above the listed rent
- No inviting counter-offers from multiple tenants
- No advertising properties with “starting from” rent amounts
In a city like Leicester, where demand often outpaces supply, this rule may feel like a blow. But with smart marketing, fair pricing, and the right support, you can still let quickly – and legally.
At Barkers, we’re adjusting our listings and tenant processes to reflect this now, so landlords don’t get caught out.
Bonus tip: Don’t forget local licensing
While national legislation changes are in the spotlight, don’t forget about local landlord licensing in Leicester.
Areas including parts of West End, Spinney Hills, and Stoneygate fall under additional or selective licensing schemes, depending on property type.
You’ll need to make sure:
- All properties meet current licensing requirements
- Gas safety, electrical safety, and EPC certificates are up to date
- Fire safety measures and amenity standards comply with HMO rules where applicable
Licensing non-compliance could lead to penalties of up to £30,000 or even banning orders. It’s not worth the risk.
How Barkers helps Leicester landlords stay ahead
With reforms coming thick and fast, it’s more important than ever to have a local expert on your side.
Barkers landlord services are built around one principle: you shouldn’t have to become a legal expert to protect your investment.
Here’s what we offer:
- January 2026 compliance audits – a full review of your tenancies, notices, rent increases, and legal docs
- Tenant communication – we’ll handle rent updates, agreement renewals, and notices for you
- End-to-end property management – from maintenance to inspections and rent collection
- Regular legal updates – so you know what’s changing and when
We also provide advice tailored to your portfolio – whether you own one terrace near Victoria Park or 20 flats across the Golden Mile.
Find out more about how we support landlords in Leicester and across the East Midlands:
The benefit of acting early
Don’t wait until May to start preparing. January is the ideal time to get ahead, because:
- Tenants are more responsive post-Christmas
- You’ll have time to adjust tenancy models before they change automatically
- You can review rents without the stress of upcoming restrictions
- You’ll avoid last-minute legal headaches or rushed decisions
And perhaps most importantly your portfolio will be future-proofed, allowing you to plan with confidence.
Let’s build your 2026 landlord plan
The next few months will define your success for years to come. A proactive approach now can save you stress, disputes, and lost income later.
At Barkers Leicester, we’re ready to help.
Start with a January compliance check – it’s simple, no-obligation, and tailored to your properties.
Book your free valuation today
Or speak to our team about full property management in the East Midlands, designed for landlords who want peace of mind and steady returns, whatever the law throws their way.
Because managing your rental shouldn’t feel like navigating a legal maze. With Barkers, it’s personal, professional, and prepared. Contact us
