The Renters’ Rights Bill was finally granted Royal Assent on 27 October 2025. The new Act includes the only House of Lords amendment to be accepted by the Commons, namely one that relates to agricultural tenancies, something that should interest farmers who let residential properties as part of their diversification strategy.
Although the government has promised to give landlords time to prepare for the changes, they have not published a timeline for implementation. The smart money appears to be on spring 2026 for the implementation of key elements such as removing ‘no-fault’ evictions. However, this can only be a guess, and without the benefit of a crystal ball this could be sooner or later.
The main changes affecting rural landlords
The successful House of Lords’ amendment related to the new Ground 5A that enables a landlord to recover possession of a property for the housing of “qualifying” agricultural workers. The amendment expands the new Ground 5A so that landlords will also be able to reclaim the property for a self-employed worker providing their contract is for a minimum of six months, a move which is more in tune with the realities of agricultural employment.
Landlords can also re-possess the property if it is needed either to house them or close family members, or if the property is to be sold, providing the tenant is afforded the correct notice. If a tenant farmer on an AHA tenancy or FBT is required to give up their tenancy with vacant possession, and their employment ends, then Ground 5A may also allow for repossession of any dwelling that they reside in on a tenancy agreement. However, it is important to note that the Grounds for re-possession as framed in the Act will not apply to tenants under an AHA or FBT tenancy; these types of tenancies remain untouched by the Act.
The main provisions of the Act
The ending of no-fault evictions (Section 21) has dominated the headlines, but there are several other elements that landlords need to be aware of, specifically the nature of the tenancies, rents, and enhanced regulation, including:
Grounds for possession: Landlords can regain possession of their property on mandatory grounds, such as rent arrears, severe criminal behaviour, redevelopment, or if the landlord or a family member wishes to live in the property (for instance returning from abroad) or sell it. Discretionary grounds for possession include persistent rent arrears, deterioration of the property caused by a tenant, a tenant making a false statement, or breaching their tenancy agreement.
End to ASTs: fixed-term tenancies will be abolished. Instead, tenancies will operate on a rolling monthly basis with no end date. Tenants need to give two months’ notice to terminate the agreement.
Rents: Landlords must give tenants notice of their intention to increase the rent. Such increases can only happen annually and must be in line with the market rate. Tenants will have the legal right to challenge ‘unreasonable rent increases’ via the First-tier Tribunal. Inviting tenants to bid above the published rent will be prohibited.
Tenant rights: A landlord can only refuse a tenant’s request to keep a pet on ‘reasonable grounds’ and cannot automatically refuse tenants with children or who are on benefits. A Private Rented Sector Landlord Ombudsman will be appointed to help resolve tenant complaints if landlords have not dealt with them adequately.
Good homes standards: All tenancies will be subject to the Decent Homes Standard. Landlords will be required to deal with serious repair issues quickly under ‘Awaab’s Law’, to prevent harms arising from, say, damp and mould.
What landlords must prepare for
Landlords must be on top of their administration. Importantly, both they and their properties must be registered on a new database with civil penalties attached if they don’t, including monetary fines from their local authority if they market or let their property before registration. All their compliance records will need to be uploaded to this database. They will also be required to join the Ombudsman tenant redress scheme for which a fee is payable. More generally, landlords should keep detailed records of their tenancies, review their tenancy agreements to reflect how the new notice requirements might apply, their pet policy, and rent and deposit clauses, and make sure the property is in good repair to remain fully compliant with the new rules.
Summary
For rural and farming landlords, complying with the legislation will require more attention to detail given the additional administration and related costs involved. The grounds on which landlords can regain possession of their property are more prescribed than previously, hence the need for meticulous record keeping. There is still a significant amount of detail to be provided but the government has committed to providing a full suite of guidance for both landlords and tenants to help them navigate the changes. Now more than ever, the landlords will want to make sure that they retain a team of professional advisers, including a managing agent and a solicitor to ensure that they are compliant. In the meantime, please contact a member of our property litigation team if you would like help on what these changes mean for you.
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