What does the Renters’ Rights Act mean for renting in retirement?

The Renters’ Rights Act came into effect on the 1st May 2026 and was designed by the Government to ensure the proper protection of those renting in the private rental sector across the country. The new legislation introduces, by law, new rights for private renters and new rules for private landlords.

As landlord to nearly 400 residents across the country, Pegasus Homes welcomes the new legislation; much of what has been announced was already what we were delivering as standard. We pride ourselves on delivering a great service and treating our customers fairly, so seeing some of the practices we were already adopting bought into law, is something we wholeheartedly support.

If you are considering renting in retirement, you may well be wondering - what does the new legislation mean for me? We’re here to break it down for you and help you make the most informed decision about how renting at one of our communities could be the right next step.

What are the main headlines of the legislation?

The legislation has been designed to ensure fairness for private rental tenants, by:

• Abolishing section 21 ‘no fault’ evictions:This revokes the right of a landlord to evict a tenant without a valid reason. Going forward from 1st May, landlords must have a legal reason to evict their tenants, which would include them wanting to sell the property or move in to it themselves.

• Replacing Fixed-Term Tenancies with Assured Period Tenancies: Any tenancy previously called an Assured Shorthold Tenancy will automatically become an Assured Periodic Tenancy instead, and tenants will have to provide a minimum notice of two months as standard. This also gives the tenant security that they can stay for as long as they want in the property.

• Introducing more rules around rent increases: Previously, some tenancy agreements contained rent review clauses, allowing the landlord to increase the rent. After 1st May, landlords can only increase the rent once per year, having provided written notice of the proposed rent increase, at least 2 months before it would take effect.

• Officially mandating a policy against discrimination in renting: For example, after 1st May, landlords may no longer specify or advertise that they are looking for tenants without children (unless any of the planning for the building specifies this). If the landlord does refuse your request, they must inform you of the reason why in full, in writing.

Does any of this differ for those renting in an age-restricted community like Pegasus Homes?

Essentially no - this new legislation aims to protect all renters in all capacities. The exception with a Pegasus Home of course is that our properties are exclusively for those enjoying life over 60. We do have our very own Pets Policy to ensure the safety and wellbeing of all of our residents, but we have many happy Pegasus Pets across the country, including Pumpkin and Mabel!

What does this mean if I am already renting a Pegasus Home?

From the 1st May all tenancies can now be ended by a tenant with two months notice in line with the rent due date. However, our original tenancy agreement prior to this legislation did not contain the ability for us to end any rental agreements through a Section 21 notice, so that element remains unchanged for our residents.

Previously, any rent increases were calculated annually in line with national inflation in the form of the Retail Price Index (RPI) - this will now be changing and rent increases will be tied to market rates. However, to provide reassurance to all of our tenants that rent will not increase excessively, we have made the voluntary decision to cap any potential rent increase at a maximum of 2% above the Consumer Price Index (CPI).

Residents who were tenants before 1st May 2026 will be invited to sign a new agreement to mirror the change in legislation - An Assured Periodic Tenancy, which will provide one monthly rent where previously tenants paid a rent and service charge separately. There are a number of positives to this change and communications will be sent to each resident individually. 

Will this make the process of renting more difficult?

Definitely not! Ultimately these measures have been bought into place to ensure more parity and ease of access to renting. Whilst the majority of the measures we were already adopting at Pegasus Homes, we welcome seeing them bought into law and hopefully boosting the rental sector across the country, as renting becomes a more realistic and attainable option for more people.

How do I know if renting in retirement is the right move for me?

There are many benefits to choosing to rent your home in retirement, from equity release to less maintenance to reduced taxes and fees (such as Stamp Duty). Many of our rental tenants are citing a sense of freedom that comes with renting their Pegasus Home, such as Colin and Jennifer, who made the decision to rent to free up more time to spend with each other. 

Whilst we at Pegasus Homes adopted much of the new legislation prior to it coming into effect, it proves the ever increasing appetite for renting as more and more people, including our residents, see the benefits, which are now officially supported by the Government.

Homes to rent at Pegasus Homes begin at £1,650 per month, with rental properties available at our Latheram House, Steepleton and Wooburn Bales communities. Keep an eye out for our newest rental community, The Regal, launching later this year.