Navigating the Renters’ Right Act: Implications for rural landlords and tenants

Although the reforms are often discussed in an urban context, they will also have a material impact on farmers, landowners and rural businesses that let cottages, farmhouses or estate properties. This article outlines the key provisions of the Act and considers how rural landlords and advisers can navigate the new regime in England, with particular reference to agricultural and estate settings.

Overview of the Renters’ Rights Act

The Government’s stated aim is to “transform the experience of private renting” by rebalancing the rights of landlords and tenants and improving housing standards. The most fundamental reform is the abolition of assured shorthold tenancies (ASTs) and section 21 evictions. Once the Act is in force, all new and existing ASTs in England will become open‑ended assured “periodic” tenancies.

Tenants will be able to remain in occupation indefinitely unless the landlord can rely on one of the statutory grounds for possession. To provide a degree of balance, section 8 of the Housing Act 1988 is being expanded from 21 to more than 30 possession grounds, split between mandatory (the Court must order possession) and discretionary categories (the Court may order possession). These include rent arrears, anti‑social behaviour,
breach of tenancy, the landlord’s intention to sell or occupy the property, redevelopment, and circumstances where tied accommodation is required.

Some of the new grounds come with built‑in safeguards. For example, landlords seeking possession in order to sell or move into the property must give at least four months’ notice and cannot rely on those grounds within the first 12 months of a tenancy. The intention is to offer tenants greater security while still allowing landlords to recover possession for genuine, evidenced reasons.

Implementation will be phased. Phase 1 is to begin on 1 May 2026 in England, when section 21 will be abolished, existing ASTs will convert to assured periodic tenancies, and the new possession grounds and notice requirements will apply. Later phases, extending into 2026 and 2027, will introduce a mandatory landlord registration database, a Private Rented Sector Landlord Ombudsman, enhanced enforcement powers for local authorities, and higher property standards, including the Decent Homes Standard and measures to address damp and mould under “Awaab’s Law”. The Government has committed to providing guidance and a lead‑in period to allow landlords time to prepare.

There is now an obligation for all landlords and their agents to provide a hard copy or electronic PDF of The Renters’ Rights Act Information Sheet 2026 to all tenants with wholly or partially written terms by 31 May 2026. Separate rules apply for oral tenancies so take advice as needed.

Position in Wales

Housing law is devolved, and the core reforms apply only in England. Wales has already restructured its rental system through the Renting Homes (Wales) Act 2016, which came into force in 2022. Wales continues to permit “no‑fault” evictions, although with a six‑month notice period and additional conditions.

Some elements of the Renters’ Rights Act will extend to Wales, including the ban on discrimination against tenants with children or those in receipt of benefits (“No DSS”). Other measures, such as the new Ombudsman and property portal, will not apply, as Wales continues to operate its own Rent Smart Wales registration system.

Rural landlords operating across the England–Wales border must therefore be clear which legal regime applies to each property, as the rules and risks differ significantly.

Agricultural tenancies and scope of the Act

The Act does not generally affect traditional agricultural tenancies under the Agricultural Holdings Act 1986 (AHA) or Farm Business Tenancies (FBTs). These remain governed by their own statutory frameworks, and the new residential rules do not override AHA or FBT legislation. An AHA tenant’s lifetime security, or an FBT’s fixed term and termination provisions, remain unchanged.

However, many rural estates and farms also let residential properties under standard housing law. Farm cottages, former farmhouses and converted buildings may be let as part of diversification strategies. Where such properties are let under ASTs, they will convert to assured periodic tenancies and fall squarely within the Act’s scope in England.

Key rural‑specific points include:

• Where a farmhouse is occupied as part of an AHA or FBT, it remains outside the Act. Where it has been separated and let under a residential tenancy, it will be subject to the new regime.

• New mandatory possession grounds have been designed to address agricultural scenarios.

• Ground 2ZA allows possession where a superior tenancy, such as an AHA or FBT, is ending and vacant possession of a sublet dwelling is required.

• Ground 5A allows landlords to recover a property to house a qualifying agricultural worker, including certain self‑employed contractors.

• Ground 5C applies to tied accommodation where the relevant employment has ended.

• These grounds are additional to the other grounds available to a Landlord under the Act. The additional grounds typically require two or four months’ notice and supporting evidence, and in some cases cannot be used in the early stages of a tenancy.

The Act also replaces the previous Form 9 procedure for avoiding assured agricultural occupancies (an AAO). Landlords must now serve a prescribed opt‑out notice before a farm worker is granted a tenancy, ensuring the tenancy is treated as an assured periodic tenancy rather than granting near‑lifetime security.

Where a dwelling is subject to an AAO (i.e. a notice has not been served so that the AAO is treated as an AST or an assured periodic tenancy) the landlord or any incoming buyer of the property will need to rely on the more limited grounds set out in Schedule 2 Housing Act 1988. On a sale, the buyer inherits the landlord’s obligations and cannot regain possession simply to sell or repurpose the property. This can have a significant impact on value and flexibility, making early advice and full disclosure to buyers essential.

The changes brought in by the Act narrow the distinction between an AAO and an assured periodic tenancy, but as the Act creates additional grounds for possession, landlords will likely wish to serve an opt‑out notice prior to the grant assured periodic tenancy.

What is not covered

The Act does not apply to genuine holiday lets or licences that do not amount to residential tenancies. Short‑term holiday accommodation, farm stays and similar arrangements can continue as before. However, any long‑term residential occupation, even in a converted barn or ancillary building, is likely to fall within the Act’s scope if it constitutes a dwelling let as a home.

Conclusion

The Renters’ Rights Act represents a fundamental change to residential letting in England. While aimed primarily at improving conditions in the wider private rented sector, it has significant and often overlooked consequences for rural landlords, estates and farming businesses. Understanding which properties are affected, how possession can be recovered, and how occupation arrangements should be structured will be critical to protecting long‑term flexibility and value.

Early review and proactive advice are essential. With careful planning, rural landlords can adapt to the new framework while continuing to meet both commercial objectives and housing needs.