Search and find what you need faster.

The Renters’ Rights Act 2026 – Key Changes and Practical Impact

Posted on: May 14th, 2026 by Ella Darnell

Introduction:

The Renters’ Rights Act 2026 (RRA), which came into force from 1 May 2026, introduces significant reform to the private rental sector in England. It’s core objective is to rebalance the landlord – tenant relationship by improving security, fairness and transparency for the tenant, while also preserving landlords’ ability to regain possession where justified.

The RRA applies to both existing and new tenancies and establishes a new, standardised framework for residential letting. This article summarises the key changes introduced as a result of the RRA, together with the practical advantages and disadvantages for both landlords and tenants.

High Level Changes

Section 21 Notices:

A Section 21 notice is a mechanism under the Housing Act 1988 which allows a landlord to recover possession of a property at the end of an assured shorthold tenancy without needing to establish any fault on the part of the tenant.

Section 21 notices have now been abolished; landlords must now rely on statutory grounds under Section 8 of the Housing Act 1988 to regain possession of their rented Property. This ends the ability for landlords to apply a “no-fault” eviction, significantly increasing tenant security.

End of Fixed-Term Tenancies:

Assured Shorthold Tenancies (ASTs) have been abolished and replaced with rolling periodic tenancies (typically monthly).

Tenancies now continue indefinitely unless terminated in accordance with Section 8 grounds as mentioned above.

Tenants may end a tenancy by giving two months’ notice.

Restrictions on Rent Increases:

Landlords are limited to increasing rent once a year, following the statutory Section 13 process. Any rent increases must reflect the open market rate (the price if the property was to be newly advertised).

Tenants can then challenge this increase at tribunals if they believe it does not reflect the open market rate before the new rent starts. Landlords cannot then use a “no-fault” eviction under S21 to evict any tenants who challenge a rent increase.

Financial and Letting Restrictions:

Rent in advance is capped at one month, and requests for large upfront payments are banned.

Rental bidding wars have been prohibited, meaning landlords and agents must not encourage or accept offers above the advertised rent.

Anti-Discrimination Measures:

Landlords must not discriminate against prospective tenants on the basis of their receiving benefits or having children under the age of 18. However, landlords may still select tenants based on legitimate criteria, provided these are applied lawfully.

Blanket bans on “Pets”:

Tenants have a right to request a pet; Landlords must consider requests reasonably and cannot impose blanket bans.

Regulatory Changes:

Introduction of:

  • Private Landlord Ombudsman for dispute resolution – A new independent body established to provide tenants and landlords with a quicker, low-cost forum for resolving disputes without the need to go to court.
  • Private Rented Sector database – A central register requiring landlords to record details of their properties and compliance, aimed at increasing transparency, accountability and regulatory oversight within the private rental sector.

These are expected to be rolled out later this year.

Advantages and Disadvantages

From a Tenant Perspective:

Pros:

  • Greater security – Tenants cannot be evicted without a valid legal reason, reducing the risk of sudden homelessness.
  • Increased flexibility – Rolling tenancies allow tenants to leave at any time with 2 months’ notice, rather than being tied to fixed terms.
  • Protection against unfair rent practices – Caps on frequency of rent increases and tribunal rights enhance affordability and transparency.
  • Improved Access to Housing – Ban on discrimination, rent in advance being capped, and bidding wars lowers the barriers to access the rental market.
  • Improved living conditions and rights – Future reforms with the introduction of the Private Landlord Ombudsman and Property Rented Sector Database, aims to raise housing standards and accountability for landlords.

Cons:

  • Potential reduced supply of rented housing – Early market responses suggest some landlords (specifically those with a smaller portfolio) may exit the market, reducing rental availability.
  • Possible upward pressure on rent – Reduced supply combined with additional constraints on landlords could lead to increased rent cost.
  • Reduced predictability in long-term pricing – although increases are limited annually, there is no overall rent increase cap.

From a Landlord Perspective:

Pros:

  • Clearer and more standardised framework – A single tenancy model simplifies administration and reduces complexity.
  • Defined grounds for possession – Strengthened Section 8 grounds allows recovery of possession in legitimate circumstances.
  • Improved sector regulation – the Ombudsman and database may increase trust and transparency in the market.

Cons:

  • Reduced flexibility in managing tenancies – Loss of Section 21 removes a key tool for regaining possession quickly.
  • Greater reliance on the courts – All evictions now require a legal ground and court process likely increasing time, cost and uncertainty.
  • Increased regulatory burden – New compliance obligations (documentation, rent rules, anti-discrimination) increase administrative requirements.
  • Greater financial risk exposure- Delays in possession (especially in arrears cases) may lead to prolonged loss of income.
  • Reduced certainty due to tenant notice flexibility – Tenants can leave at any time on two months’ notice, giving landlords less certainty over tenancy duration and future rental income.

Overall view:

The Renters’ Rights Act represents a fundamental shift in the balance of power within the private rented sector:

  • It moves away from a contractual, landlord-led system towards a regulated, security-focused model for tenants.
  • The reforms prioritise housing stability and fairness but introduce commercial and practical challenges for landlords.

The long-term success of the regime is likely to depend on:

  • The efficiency of the court system in handling Section 8 claims;
  • Whether rental supply remains stable; and
  • Effective implementation of the ombudsman and regulatory framework.

If you would like to discuss any of these matters in more detail with us, please get in touch with Partner and Head of New Build Sarah Gallagher.

Buying UK Property Using Fiat Currency from the Sale of Crypto Assets: A Practical Guide for Purchasers, Including a Time-Critical Auction Case Study

Posted on: April 13th, 2026 by Ella Darnell

What “crypto‑funded” property purchases usually mean in practice

Although UK property can be acquired with crypto assets in some circumstances, most purchases that are described as “crypto‑funded” are completed in sterling. In practice, buyers typically sell digital assets for sterling using an exchange or broker and then send the monies to their solicitor who pay the deposit and completion monies following an otherwise standard conveyancing process.

This liquidation matters as the process requires the buyer’s side to conduct enhanced KYC, and AML “source” checks prior to the purchase timetable. In essence, the seller’s experience often looks completely ordinary (they receive the agreed purchase price in sterling through the usual channels).

A six-step process to buying property using the proceeds of selling your crypto

Step 1: Convert your crypto into sterling

Most property buyers convert their crypto into sterling via an exchange; for larger amounts, conversions are often staged (e.g., in tranches) to manage volatility, pricing, and execution slippage. Some also use over-the-counter brokers for larger or more controlled conversions.

Practical tip: The conversion stage is frequently where timing pressure starts, because market moves can affect the sterling amount available for deposit/completion.

Step 2 – Transfer the funds to a bank account

Even as banks have become more familiar with crypto over time, not all are equally comfortable receiving substantial funds from crypto exchanges. Larger transfers can trigger queries about the origin of funds as part of standard AML/KYC procedures.

If you are buying with a mortgage, consumer-facing mortgage guidance indicates lenders may accept the proceeds from crypto sales, but often with extensive documentation requirements – and in some cases a preference that funds have been held in a bank account for a period (known as “seasoning”) before being treated as deposit-eligible.

Step 3: The real gating factor: your solicitor’s Source of Funds (and sometimes Source of Wealth) sign‑off

For many buyers, the decisive issue is not whether the property can be bought with crypto-derived wealth, but whether the buyer can find a solicitor able to address the enhanced Source of Funds (and, where relevant, Source of Wealth) requirements in time to complete the purchase within the required timeframe. A solicitor cannot proceed unless they are comfortable the source of funds is legitimate and properly evidenced.

Where wealth originated in crypto, delays often arise even when the funds are entirely legitimate, because often advisors do not have  the expertise to interpret blockchain ledgers, reconcile exchange statements, or make sense of different “crypto wealth” pathways (e.g., long‑term holding, trading activity, and other ecosystem events that crystallise value).

Practical takeaway: Treat Source-of-Funds work like a mission‑critical workstream. If it begins late, it can become the single point that determines whether you complete on time.

Step 4: Build a clean evidence pack (so queries do not derail exchange/completion)

To reduce any potential friction, compile a clear “audit trail” showing the pathway from the fiat source of wealth (like an inheritance, or salary) to the purchase of crypto assets, and from where those assets are held, traded or swapped, to those funds being liquidated into sterling and deposited into your bank account. Common components include:

  • “real world” source of wealth documents, like bank statements, completion documents from the sale of a property or documents evidencing money from an estate or trust,
  • exchange or broker statements confirming liquidation/conversion,
  • bank statements showing receipt of the sterling proceeds, and
  • supporting records linking holdings to liquidation (wallet evidence / transaction histories where relevant).

A short, written narrative (“how the assets were acquired, where they were held, and how/when they were sold”) can help your solicitor and bank interpret the documents quickly and reduce repeated follow‑ups.

Step 5: Address tax early (because conversions can trigger liabilities)

In the England and Wales, converting crypto into fiat currency, and even exchanging one crypto asset for another, can trigger a tax position depending on the nature of the activity and your circumstances. Leaving tax and records until late in the process can create avoidable delay close to completion.

Practical tip: Crypto friendly apps like Koinly can assist with tax and accounting affairs and are valuable to help evidence the flow of funds. 

Step 6 – Completion

Once funds are held in sterling and your solicitor is satisfied on source checks, exchange and completion can proceed in the usual way: funds are transferred, formalities are completed, and registration steps follow normal conveyancing practice.

Case study: an auction purchase under a strict “notice to complete” timetable

Below is a real‑world style example (with identifying detail removed) showing how Source‑of‑Funds issues can become existential when the purchase timetable is compressed.

The situation

An individual successfully secured a commercial property at auction intending to fund the purchase using liquidated cryptocurrency investments. A standard auction deposit (10%) was paid.

The problem

His usual solicitors refused to act as they could not fulfil the enhanced due diligence requirements needed to verify the crypto-derived funds to the standard required for a property transaction. Having failed to complete on the contractual completion date and with the final deadline looming, the buyer faced substantial losses: loss of the deposit, loss of the asset, and potential wider reputational and financial consequences associated with a failed completion.

What was done

Lawrence Stephens was instructed with three days left of the Notice to Complete period remaining. A specialist team was instructed to produce a structured Source of Funds report designed to meet conveyancing compliance expectations. The work focused on making the crypto-to-sterling pathway legible and verifiable, including:

  • reconstructing early “on‑ramp” funding (how fiat currency entered the crypto ecosystem),
  • substantiating wallet control and mapping transaction flows, and
  • reconciling exchange records with liquidation history to show how proceeds became banked sterling.

The outcome

With the provenance work documented to a standard that satisfied compliance expectations, the conveyancing process was re‑stabilised and the transaction proceeded to completion within the deadline securing the investment for our client

Why this matters

This example illustrates a key reality of crypto‑funded purchases: the primary obstacle is often not the money itself, but whether professionals involved have the capability to evidence provenance convincingly and quickly – especially where the timetable (as in auctions) does not tolerate delays.

Lawrence Stephens are experts in this area.

Quick checklist to reduce the risk of delay (especially for auctions)

Before you bid / make an offer

  • Start your evidence pack early (exchange statements, wallet records, transaction history exports).
  • Prepare a one‑page “funds narrative” explaining acquisition, holding, liquidation and bank receipts.
  • If mortgage finance is involved, speak to a broker early about crypto‑derived deposits and whether “seasoning” expectations apply in practice.

During the off‑ramp (selling crypto for sterling)

  • For larger sums, consider staged conversions to manage execution and keep records clean.
  • Keep all trade confirmations and transfer receipts in one place to respond fast to questions.

In the run‑up to completion

  • Treat “Source of Funds” queries as urgent and respond with structured documentation quickly; late responses often become the critical path.

Why expectations will likely become more formal over time (UK context)

The UK is moving toward a comprehensive crypto regulatory framework that brings more crypto asset activities within the FCA perimeter, with the full regime expected to commence in October 2027.

HM Treasury has positioned these reforms as supporting innovation while improving standards around transparency, consumer protection, and resilience—factors that typically increase the formality of documentation and compliance processes across the ecosystem.

Conclusion

For most buyers, “buying property with crypto” in the UK usually means selling crypto for sterling and completing a standard sterling transaction. The true difficulty is often proving the pathway from digital assets to banked funds to the satisfaction of solicitors (and lenders where relevant) and doing so within the transaction timetable.
The auction case study shows how quickly this can become existential when deadlines are tight – and why early preparation and specialist capability can be the difference between completing and forfeiting a deposit

Important: This article is for general information only and does not constitute legal, tax, or financial advice. Crypto transactions and property purchases can create tax and compliance obligations, please ensure that you seek professional advice for your particular circumstances.

If you would like to discuss anything with a member of the Lawrence Stephens team, please contact cryptorealestate@lawstep.co.uk. 

 

 

Leigh Sayliss Contributes to the Chartered Institute of Taxation on High Value Council Tax Surcharge

Posted on: November 27th, 2025 by Ella Darnell

Leigh Sayliss, Director and Head of Tax at Lawrence Stephens, is the chair of the Chartered Institute of Taxation’s Property Taxes Committee.

Following the budget announcement his comments were published here on the 26 November 2025.

Full text below:

New surcharge will add more complexity to property tax system

Commenting on today’s announcement of a high value council tax surcharge in England, Leigh Sayliss, chair of the Chartered Institute of Taxation’s Property Taxes Committee, said:

“This measure adds further complication to the current complex system of property taxation. There are already nine main taxes1 that you have to consider if you own property.

“Council tax is usually levied on the occupier whereas this tax will be payable by owners, including owners holding property indirectly through companies or trust structures, meaning that different people may taxed in relation to the same property.

“No tax is popular with those who have to pay it, and dry tax charges2 such as this tend to be especially unpopular.

“A key question is whether ownership of a valuable property is being treated as a proxy for ability to pay as some who will receive a bill will be ‘asset-rich, cash-poor’ pensioners.

“Just because a house has high value does not mean the owner has significant equity in the property. Longer mortgage terms have become more common. Asset-rich, cash-poor individuals who have built up a deferred mansion tax alongside a mortgage could find themselves stuck when they might have otherwise downsized.  Particular attention will need to be given to deferral arrangements and the interaction with mortgages and lenders’ willingness to lend.

“Using a banding system, similar to that used for the Annual Tax on Enveloped Dwellings (ATED), will reduce the numbers of arguments on the value of properties as there will only be sensitivity where property values are close to a rate boundary.  However, it should be noted that the proposal includes the same ‘double inflationary’ measure that is included in relation to the ATED – each year the rate of the tax will increase by CPI and, as property prices increase, properties will move up into higher rate bands.

“When ATED was introduced, it only affected properties valued in excess of £2m – but then the threshold was reduced to £500k. This raises the question as to whether there is a risk of a similar “scope creep” in relation to this tax, once the principle has been adopted.

“It is welcome that the government has decided to delay the implementation of the charge until 2028, and that there will be consultation on the charge early in 2026 on the details of the reliefs and exemptions, the design of an appeals system, and the deferral and support mechanisms available. From an administrative perspective, a new tax, even if notionally tagged on to council tax, needs time and resource to set up in terms of guidance, collection, appeals process, etc.”

Notes

  1. Council tax, stamp duty land tax (land transaction tax in Wales and land and building transaction tax in Scotland), annual tax on enveloped dwellings, income tax, corporation tax, capital gains tax, inheritance tax, VAT and national insurance.
  2. A tax liability that is payable without any money generated to pay for it.

Swift completion of £5.9million loan secured over prime residential blocks

Posted on: January 20th, 2025 by Hugh Dineen-Lees

In a recent financial transaction, a £5.9 million loan was secured over three multi-unit residential blocks located in London and Hemel Hempstead. This deal involved multiple linked refinancing transactions of the commercial elements, showcasing the complexity and efficiency of the process.

Anna Christou represented YBS Commercial Mortgages, while Paul Marsh acted for the Borrower. The transaction was completed within an impressive nine working days from the issuance of the Offer, highlighting the dedication and expertise of the teams involved.

A special mention goes to Katie Peck and Amy Bristow, at YBS Commercial Mortgages, whose pivotal role ensured the smooth and timely completion of this significant transaction.

This achievement underscores the importance of collaboration and precision in high-stakes financial dealings, setting a benchmark for future transactions.

Residential Real Estate market update: navigating the current UK housing market

Posted on: August 9th, 2024 by Yvonne Uzoka

The Bank of England (the ‘BoE’) Monetary Policy Committee’s recent decision to cut interest rates to 5% and the anticipated government taxation regime announcement in October 2024 are likely to affect both the wider UK housing and Prime Central London (‘PCL’) markets. In this market update our Residential Real Estate team take a look at the possible effects.

Impact on Swap Rates and the UK housing market

Let’s dive in. The UK housing market continues to show robust price growth. Earlier analysts’ predictions of an expected 1.8% rise in housing prices in July 2024, prices have been surpassed by actual increases of 2.1%. This unexpected growth reflects strong pent-up demand as borrowing conditions improve. In anticipation of the BoE’s interest rate cuts, several mortgage lenders, such as HSBC, NatWest and Nationwide, have recently reduced their mortgage rates boosting approvals to around 60,000 per month.

Following the BoE’s decision, five-year swap rates fell to 3.6%, the lowest since February 2024. This is under the crucial 4% threshold and experts are predicting rates will stabilise around 3.25% above pre-pandemic levels.

Why does this matter? The current trends suggest that lenders expect long-term interest rate reductions, making 5 to 10 year fixed mortgages the most cost-effective options. This indicates that lenders are keen to secure borrowers at these lower rates, which are predicted to drop over the next few years – a positive signal for the housing market.

Overall, there is cautious optimism. While house prices are rising steadily, borrowing conditions are improving and no dramatic drops in rates are expected.

The contrasting trends in PCL: signs of recovery?

In the wake of 20+ months of economic fluctuations and high interest rates, the UK property market has shown a mix of different trends. In the broader market Q2 of 2024 saw a 22% increase over the previous quarter for properties valued between £3-15 million. However, during the same time period, PCL prices were falling, with valuations dipping slightly. The trend of increasing average discounts has continued for the seventh consecutive month after three years of declines. This suggests that PCL may be influenced by other factors and the recent interest rate reductions may have a limited effect.

Despite the ratio of available stock to monthly sales at 25:3 in Q1,2024 to 22:6 in Q2, 2024, supply remains high, with an above long-term average of 20. Consequently, sellers must maintain realistic expectations regarding property prices, especially as the market broadens and buyers are presented with more options.

Key takeaway:

  • Demand is rising, but price drops in PCL are likely to continue as supply remains high.

The Government’s taxation updates and potential impacts

Lastly, we address the central government’s upcoming taxation regime, due to be announced in October, and its potential impact on the housing market. The Labour Government’s mandate is pro-growth, with an expectation of coming into effect by 6 April 2025. However, the practical implementation remains uncertain.

They aim to boost public service investment and stimulate the economy without raising income tax, national insurance, or corporation tax, which constitute about 80% of tax revenue. Proposed changes include:

  • Taxation of non-UK domiciled individuals – individuals with 10 consecutive years of non-residence will be exempt on their foreign income and gains received in the first 4 years of residence in the UK. It is irrelevant whether the income and gains are remitted to the UK;
  • Introduction of VAT on private school fees;
  • Abolition of furnished holiday lets (FHL) regime;
  • Adjustments to taxation on carried interest; and
  • Changes to transfer of assets abroad.

It is unclear if the government can achieve growth with these mechanisms or if they will backtrack on promises. As such, borrowers, lenders, and property owners should stay vigilant in the coming months.

At Lawrence Stephens we are dedicated to helping our clients navigate these changes. If you have any questions or need assistance, please do not hesitate to contact our specialised Residential Real Estate team.

Emma Cocker comments on challenging bad references from previous employers in The Telegraph

Posted on: July 5th, 2024 by Natasha Cox

Emma Cocker, Senior Associate in the Employment team, comments on whether an employer can give a bad reference, and how employees can challenge a bad reference from a previous employer.

Emma’s comments were published in The Telegraph, 5 July 2024.

“An employer can give a negative reference, but it must be factual. Employers owe the subject of a reference a duty to take reasonable care to ensure the information it contains is true, accurate and fair. The reference must not give a misleading impression. If a referee gives a reference which is misleading, they may be liable for negligence, either to the new employer or the employee.

“In addition, if a referee knowingly includes false information with the intention that the recipient will rely on it, the referee will be liable to the recipient for a civil claim of deceit.

“It is difficult for employees to challenge a bad reference, unless they can demonstrate that the information was inaccurate, discriminatory or was given in retaliation for raising allegations of discrimination or whistleblowing. In practice, most employees will only become aware of a bad reference once a job offer has been withdrawn. At that stage, it is highly unlikely a prospective employer could be convinced to offer a role again, as the seeds of doubt will have already been sown.

“The only real option is for the employee to take legal advice to see whether they have a claim against the referee. If an employee does become aware of a bad reference before it has been shared with a prospective employer, they should try to discuss the reasons for the negative content with their new employer as soon as possible.

“Protecting your reputation is simple: be the best employee you can be. Courteous, on time for work and reliable – these are all behaviours employers hold in high regard. If there are circumstances which might affect your ability to comply with expected norms, such as being a parent or carer, or having a disability, discuss these with your employer as soon as possible so they are aware of any mitigating circumstances.

“There is a common misconception that employers are obliged to provide references. However, with the exception of regulated industries such as financial services, this is not the case. In reality, most employers will provide a “factual” reference, outlining the employee’s name, job titles and dates of employment, but they cannot be forced to provide further information.

“Employers are also entitled to include a disclaimer within the reference that limits any liability to the recipient of the reference. References may be given orally or in writing. However it is generally safer to provide basic factual references in writing with no further information given to avoid any liability to the employee or the recipient. If incorrect or misleading information is given, the recipient may allege negligence. Do not be tempted to say things on the phone that you wouldn’t commit to in writing!

“If you are not happy with a reference provided by your ex-employer, the first step is to find out whether the reference has actually been sent to the prospective employer. If not, you may be able to talk to your ex-employer and see whether they might be prepared to change the content. Remember however that they are under a duty to provide accurate information, so they may not be willing to change it. Also consider whether their approach or any of the information they have provided might be discriminatory, such as commenting negatively on high absence levels if you have taken a period of parental leave, or on your performance which has been adversely affected by a disability.

“If you have been given a bad reference because of or after raising concerns about discrimination, or after you have “blown the whistle”, you may have a claim against your ex-employer for victimisation or whistleblowing detriment. It is important to take legal advice at an early stage to assess whether you might have viable claims against the referee. This will be especially important if you have lost a job opportunity because of a negative reference.”  

If you have any questions relating to the above, please contact a member of our Employment team.

Lawrence Stephens advises Blue Shield Capital on £25million facility loan

Posted on: May 17th, 2024 by Yvonne Uzoka

Lawrence Stephens’ Banking team recently advised Blue Shield Capital on a £25m facility loan provided by OakNorth.

The £25m loan will be used to empower Blue Shield to expand its real estate bridging loan portfolio at speed.  Our dedicated Banking team played a crucial role in supporting this deal. Their expertise and commitment ensured a smooth process despite the complexity involved.

The Banking team from Lawrence Stephens was led by Director and Head of Banking  Ajoy Bose-Mallick, with assistance from Senior Associate Ashley Wright and Trainee Solicitor Alex Ruder.

Ajoy commented: “Blue Shield Capital’s recent £25 million loan arrangement marks a significant milestone in our partnership. We’re thrilled to support their growth across various real estate sectors, and we look forward to witnessing their continued success”.