Renters Rights Bill: Key Information for Rural Landowners

The Renters Rights Bill introduces significant changes to the private rented property regime in England, impacting farms and estates that rent out rural residential properties. Understanding these changes is essential for effective estate management and compliance.

When will the law change?

Expected Timeline

Autumn 2025, possibly as early as September/October.

Current Status

The Bill is nearing completion in Parliament, with cross-party support suggesting a swift enactment. Not yet clear if there will be much delay between enactment and commencement. 

What will change?

Abolition of ASTs

Assured Shorthold Tenancies will be replaced by periodic Assured Tenancies, which include certain statutory succession rights for family members.  Existing ASTs will automatically convert into periodic Assured Tenancies.

No-reason termination removed

s21 notice will cease to exist.  Landlords will need to provide statutory grounds for eviction, with many grounds requiring a minimum notice period of four months.

No more fixed term leases

New fixed-term leases of residential property for periods under 21 years will not be valid, except for a limited exception for existing tenancies between 7 and 21 years.

Statutory Rent Review

Rent increases will follow statutory processes, limiting landlords' ability to impose rent hikes or rely on contractual rent review provisions.

Anti-Discrimination Measures

Protection for tenants with children or in receipt of benefits, plus new rights to request consent to keep a pet.

Penalties for Breach

Up to £40,000 in civil penalties for serious or repeat offences, with potential criminal prosecution.

Is there anything estates and farms could do now to clarify their position?

Termination of ASTs is still possible

Landlords are still able to serve no-fault notice now, before the Bill becomes law, even if the notice might expire after the Act is in force (with a limited transition period within which possession claims can be issued under current rules).  Estates and farms currently have an opportunity to consider whether doing so would assist their future estate management or strategic planning needs.

When might termination help meet future needs for the farm or estate?

Termination of existing ASTs won’t improve the landlord’s position vis a vis the terms of the tenancy if the property will simply be relet to a different third-party tenant.  It may be strategically useful if the farm or estate has an alternative need or use for the property, e.g. employee accommodation needs or future non-tenancy arrangements, or if the property is being sold imminently.

Clarify Occupancy Terms

Formalising the terms of an unwritten agreement will give the parties certainty as to the status of their arrangements.  Some may be ASTs (which will automatically convert into Assured Tenancies) whereas other arrangements might fall outside the remit of the Bill such as tenant companies, service occupants and tenants who pay very low or very high rent.

What will a landlord be able to do in future?

Termination Grounds

Landlords can terminate tenancies based on specific grounds, such as rent arrears, property sale intentions, or employment cessation. There are useful new grounds for termination of a residential subtenancy when an AHA or FBT comes to an end.

Mandatory vs. Discretionary Grounds

Some grounds require the Court to order possession if the facts are made out, while others allow Court discretion.

What about new agricultural workers?

New opt-out notices will replace current Form 9.  It will remain very important to serve the appropriate notice to avoid inadvertently giving agricultural workers enhanced rights as Assured Agricultural Occupants.

What next?

Strategic Planning

Urgent assessment of estate and farm residential portfolios and future estate and farm needs should be done now so estates and farms can clarify their positions before the Act becomes law.

Adjust Expectations

Regaining possession of residential properties may take longer and be more involved.

Alastair, Emma or Maddie would be happy to speak with you if you have any queries about how the Renters’ Rights Bill might impact your farm or estate.

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Field Notes is Charles Russell Speechlys’ weekly agricultural law blog, sharing plain-English insight into the legal and policy issues affecting agriculture, agricultural land and rural business life. From hints and tips on avoiding agricultural disputes, pitfalls to keep an eye out when planning for tenancy or family agri-business succession, to the latest agricultural legislative or policy changes and the most interesting farm-related court decisions, Field Notes makes the complex more understandable, always grounded in the realities of life on (and off) the land.

Field Notes comes out every Wednesday. Previous editions of Field Notes:

• Nature-friendly practice or unnatural risk: beavers, natural nuisance and measured duty, the rule in Rylands v Fletcher
• Food Security is National Security: can regenerative agriculture help fortify the UK?
• Through the Looking-Glass: Is the Government's Vision for Farming Coming into Focus?
• Insight from the Great Yorkshire Show: what does the future hold for farmers and landowners in York and North Yorkshire? 
• Adverse possession and estate administration: insights from Nazir v Begum