As we move through May 2026, the UK’s private rented sector is entering what the government has called a “new chapter”.
With the Renters’ Rights Act (RRA) now in full effect as of May 1st, many property owners are finding themselves at a crossroads, navigating the most significant overhaul of tenancy laws in over thirty years.
At We Stay, we understand that these changes, from the abolition of Section 21 “no-fault” evictions to the mandatory shift toward rolling periodic tenancies, can feel like a lot to take on. However, this shift also presents a unique opportunity to explore the award-winning world of luxury short-stay lettings, where flexibility, higher returns, and peace of mind go hand in hand.
The Changing Landscape of Long-Term Letting and Property Rentals
The new legislation has introduced several hurdles for traditional long-let landlords.
Key changes that all private landlords and tenants in the UK should be aware of include:
The End of Fixed Terms:
All new tenancies are now assured periodic tenancies, meaning tenants can stay indefinitely until they choose to leave (with two months’ notice) or a specific legal “possession ground” is met. This means if you previously let properties with fixed-term tenancies (12 months, 49 months, etc), you’ll need to reassess how you’re advertising your properties and take this into account. It can mean more stable tenants in the long-let market, with tenants staying longer in properties or leaving unsuitable properties rather than remaining and potentially causing damage during their contract. However, it also means many tenancies that were once primarily long-let may not see more short-term tenancies.
Abolition of Section 21:
Landlords can no longer regain possession of their property without a specific, proven reason, such as selling or moving back into the home. This is another step to put more power in the hands of tenants and create more stable and reliable housing solutions for renters.
Stricter Rent Controls:
Rent increases are now limited to once a year, and tenants have greater powers to challenge these via a tribunal. Once again, this is a move to create more stability for renters as well as help to ease cost-of-living increases in a difficult financial time for many. For landlords who are seeing bills increase and rely on income from their properties
For many owners, these new rules mean less control over their assets and a significant increase in administrative burdens. It can be a daunting piece of news to receive and may cause anxiety for new landlords navigating increasingly difficult waters; however, it presents a unique opportunity to actually stand out and craft a new strategy to succeed long-term.
Why Short Stays are the Smart Alternative for Rental Properties
While the long-let sector becomes increasingly regulated, the luxury short-stay market remains a vibrant and flexible alternative. At We Stay, we specialise in short-let properties, helping landlords position holiday rentals for exceptional results and see returns on their investments. Here is why savvy landlords are transitioning their portfolios to our curated collection:
Legislative Freedom and Control Crucially
Short-let guests do not acquire the same tenancy rights or security of tenure as long-term renters. They stay only for the duration booked and must adhere to your specific house rules. This provides you with greater control over your property, removing the risk of lengthy possession processes. Your asset, your belongings, your furniture, your property – it all remains in your hands.
Significantly Higher Returns
For the right property in a prime location (like our award-winning spots in the Cotswolds and Leicestershire), short stays can significantly outperform traditional tenancies. By using expert-led dynamic pricing, we manage rates in real-time to match demand and seasonality, maximising your yield. One of our properties, Campden Barn, saw a 42% increase in annual revenue after joining the We Stay portfolio. With our We Stay Market mapping and Analysis, we ensure that only properties with the right demand profile are recommended.
Additionally, We Stay luxury holiday rental landlords can set their own pricing and utilise dynamic pricing for maximum effect. With the Renters’ Rights Act coming into law on May 1st, landlords are now only able to raise rental prices once a year, meaning returns can stagnate as if interest rates rise, your costs and outgoings rise, and you’re unable to increase your income to cover these expenses.
Unrivalled Flexibility
With a short-stay model, you aren’t locked into a years-long agreement. You can monetise your home for a few nights or several months, while still retaining the option for personal use or the freedom to sell without the 12-month re-letting restriction that now applies to long-lets. With the introduction of the Renters’ Rights Act, if you were to privately let your properties to long-term tenants, you’d have little control over your property if you wanted it returned to you quickly, with landlords having the legal responsibility to provide three months’ notice to tenants, and an end to ‘no-fault’ evictions.
A Fully Hands-Off Investment
We know that managing a high-end holiday home is a full-time job. We Stay offers a seamless, end-to-end management service. From bespoke interior design and professional photography to guest communication and meticulous housekeeping, we maintain show-home standards, so you don’t have to. We also handle all compliance, legal, and safety requirements, providing a secure and professionally managed alternative.
Join an Award-Winning Portfolio
At We Stay, we don’t just manage properties; we elevate them into exclusive, award-winning retreats. Our homes, such as the “Self-Catering Accommodation of the Year” Marsh Mallow Cottage, thrive because of our local expertise and global reach through exclusive partnerships with Marriott Bonvoy and Plum Guide
Let your property with We Stay
If you are feeling the pressure of the new Renters’ Rights Act and want to explore how your property could thrive in the luxury short-stay market, we are here to help. We can help you navigate the new regulations and help you continue to grow your business and reap the benefits.
Ready to see what you could be earning? Contact us today for a complimentary property consultation and appraisal. You can get in touch at sasha@westaygroup.com or head to this link to book your property consultation.
Let us take care of the details while you enjoy the rewards of a truly exceptional investment.
