Last updated: September 2026
England’s private rented sector changed substantially on 1 May 2026, when the first major tenancy reforms under the Renters’ Rights Act took effect. For London landlords, the changes make it especially important to compare the stability of long-term letting with the flexibility and revenue potential of professionally managed short and medium-term accommodation.
This guide explains the practical position in 2026 and how the reforms may affect your letting strategy.
What changed on 1 May 2026?
The old Assured Shorthold Tenancy model has been replaced for most private residential tenancies by a system of assured periodic tenancies. Existing qualifying ASTs moved into the new system and new fixed-term ASTs can no longer be created in the usual private rented sector.
Section 21 “no-fault” possession has also been abolished. Landlords who need possession must instead rely on the relevant statutory grounds and follow the required process.
Rent increases
Under the new framework, rent increases for assured periodic tenancies are generally limited to once per year and must follow the statutory procedure. Tenants have mechanisms to challenge proposed increases.
Why this matters to London landlords
Long-term letting still offers important advantages, particularly predictable monthly income and lower operational workload. However, owners who value flexibility may place greater weight on alternatives.
For example, an owner may want to use a property personally, prepare it for sale, carry out refurbishment works or change letting strategy as market conditions evolve. These objectives can be harder to accommodate while a property is occupied under a residential tenancy.
Our Airbnb vs long-term letting guide compares the two approaches in more detail, including income potential, operating costs and owner flexibility.
Does the Renters’ Rights Act make Airbnb the better option?
Not automatically. Short-term letting has a different set of operational and regulatory considerations. The right strategy depends on the property, location, lease, mortgage, insurance and planning position.
In Greater London, entire-home short-term letting is generally limited to 90 nights per calendar year without the relevant planning permission. Owners should also check any leasehold restrictions before accepting short stays. See our guides to the London 90-day rule and leasehold restrictions.
Medium-term accommodation
For some properties, medium-term accommodation can form part of a broader strategy, particularly where demand comes from corporate relocations, project workers, visiting professionals or families between homes. The legal status of any occupation depends on the facts and agreement, so owners should not assume that simply calling a booking “medium term” removes residential-tenancy or lease restrictions.
How to compare your options
Rather than choosing a strategy based on regulation alone, compare the expected net return and practical implications of each model. Consider gross income, management fees, utilities, cleaning, maintenance, tax, availability requirements and the amount of flexibility you need.
If you are considering switching from long-term letting, our Airbnb management service covers pricing, guest communication, housekeeping, maintenance coordination and listing management. You can also request a free property revenue estimate to compare the potential income of your London property.
Key takeaway
The Renters’ Rights reforms have changed the framework for long-term residential letting in England, but they do not mean every landlord should move to Airbnb. For many London owners, the best approach is to compare long-term, medium-term and short-term options property by property, while checking planning, lease, mortgage and insurance requirements.
This article provides general information and is not legal advice. Property owners should obtain professional advice for their individual circumstances.
