HMO Landlords: How the Renters’ Rights Act Changes Everything in 2026

January 28, 2026

Short answer: The Renters’ Rights Act 2026 fundamentally changes how HMOs operate in England.
Fixed-term tenancies are ending, eviction rules are tightening, compliance expectations are rising,
and income certainty for HMO landlords is under pressure—especially in cities like Leeds and Bradford.

1. Fixed-Term Tenancies Are Ending – Even for HMOs

Under the Renters’ Rights Act, assured shorthold tenancies (ASTs) are abolished and replaced with
rolling periodic tenancies. This applies to HMOs just as much as single-let properties.

For HMO landlords, this is a major shift. Tenants will be able to leave with as little as
two months’ notice, regardless of when they moved in.

Increased risk of mid-term room vacancies
Higher re-letting and advertising costs
Less alignment with academic or employment cycles

In our experience managing HMOs across West Yorkshire, unpredictable tenant turnover is already
one of the biggest profit killers. The new law amplifies this risk.

2. Section 21 Is Gone – Evictions Become Slower and Riskier

The removal of Section 21 “no-fault” evictions means landlords can only regain possession
using specific Section 8 grounds.

For HMO landlords, this creates challenges when:

A single occupier causes disruption to other tenants
Access is refused for safety checks or repairs
Rent arrears build slowly across multiple rooms

Court delays mean Section 8 cases can take 4–12 months. During that time,
income uncertainty and management stress increase significantly.

3. Higher Compliance Standards for HMOs

HMOs were already heavily regulated, but the Renters’ Rights Act raises the bar further by strengthening:

Property condition enforcement
Response times for repairs (linked to Awaab’s Law)
Tenant rights to challenge unsafe or poorly maintained homes

Local authorities in Leeds and Bradford are expected to increase inspections,
particularly for licensed HMOs with multiple unrelated occupiers.

4. Rent Increases Are More Restricted

Rent increases will be limited to once per year using a formal Section 13 process,
and tenants will have greater power to challenge increases at tribunal.

For HMOs with rising maintenance, utilities, and compliance costs, this creates margin pressure—especially
when rooms become vacant unexpectedly.

5. Why Many HMO Landlords Are Switching to Guaranteed Rent

With rising legal risk and falling income certainty, many HMO landlords are exploring
long-term commercial leasing as an alternative to traditional letting.

When you lease your HMO to Citywide Housing:

You receive guaranteed rent every month
Void periods are removed entirely
Tenant management and compliance sit with the provider
Rent is paid regardless of occupancy

Because this is a commercial lease, the majority of Renters’ Rights Act obligations
do not apply to you as the landlord.

Final Thoughts for HMO Landlords in 2026

The Renters’ Rights Act doesn’t mean HMOs are no longer viable—but it does mean
hands-on, high-risk management is becoming less attractive.

For landlords in Leeds, Bradford, and across West Yorkshire, guaranteed rent through a
supported housing or commercial lease model is quickly becoming the preferred route
to stable, compliant, and stress-free income.

Want to know if your HMO qualifies?
Arrange a free, no-obligation assessment with Citywide Housing and secure your income
before the 2026 changes take full effect.