Understanding the Renters’ Rights Act: Implications for Rural Lettings

This reform is not designed to penalise responsible landlords. Rather, it aims to raise standards and tackle rogue practices that have undermined tenant security and housing quality. For rural estates that already operate with professionalism and care, the changes may be less disruptive, but they will still require thoughtful adaptation. 

Jess Waddington, a Partner in our Rural Consultancy team, offers reassurance to rural landlords navigating these reforms. “A lot of the rural landlords we work with are property owners who want tenants who are going to stay for the long term, to make their house their home and to be part of the community.” she explains. “While the removal of Section 21 may feel like a loss of control, the existing and intended legislation has possession grounds which can be utilised, however the process is harder than a ‘no-fault’ section 21 service. My advice to rural landlords is to think calmly and rationally and not to rush into decisions before the full detail of implementation and secondary legislation is clear. Practical and intelligent advice will be key in ensuring landlords are not put at risk by the changes” 

One of the most significant changes is the end of Assured Shorthold Tenancies (ASTs).  

• All new tenancies will now be periodic from the outset, removing fixed terms and requiring landlords to use a Section 8 notice to state grounds to regain possession.  

• Section 21 ‘no fault’ evictions will be abolished, meaning landlords must now rely on specific, legally defined reasons to end a tenancy, known as mandatory and discretionary grounds. These include selling the property, moving in a close family member, ending a tenancy due to needing the property for an agricultural worker, extensive redevelopment of the property, addressing rent arrears, anti-social behaviour, or breach of tenancy terms. 

• The prescribed grounds for possession will be updated to include mandatory grounds if a landlord wants to sell, where 4 months’ notice (after an initial 12 months of occupation) is required. The mandatory and discretionary grounds will be added to allow for houses to be taken back to occupy agricultural workers, or where the employment of the tenant by the landlord has ended. Note that the level of rent arrears is before notice can be served is increasing from 2 to 3 months.  

For rural estates, this shift may reduce flexibility around housing tied to employment, seasonal work, or succession planning. However, the legislation does include provisions that support estate requirements, such as: 

• The ability to regain possession to house an agricultural worker or a close relative. 

• Rent periods will be limited to monthly or less, and tenants must pay on the due date, unless they opt to pay earlier. Landlords can no longer accept blocks of rent in advance (ie annually or quarterly).  

• Tenants will be able to serve 2 months’ notice (or less if agreed otherwise) in writing to end their tenancy from the start of their tenancy. The notice period must end on the last day of the tenancy period. Currently this is one month’s notice, so the increase to two months’ will give landlords’ more time to find a replacement tenant, or to consider their options.  If one tenant gives notice to leave, they are binding all tenants to that notice.

Advertising and discrimination rules have also been tightened. Landlords must not advertise a rent that they do not intend to accept. Bidding above the advertised amount is now prohibited. Additionally, landlords cannot discriminate against tenants with children or those receiving benefits. Whilst these discrimination points are not new, all of these changes will require rural landlords to review their marketing practices and ensure compliance with fair housing standards. 

Tenants will also have the right to request a pet, and landlords will not be able to unreasonably refuse such a request unless the superior landlord prohibits pets or there are valid reasons for refusal. In rural contexts, this could be particularly relevant. For example, on sporting estates, where the presence of pets may interfere with game management or conservation activities, a refusal could be considered reasonable. Landlords will need to assess each request carefully and document their reasoning to remain compliant. 

The Act introduces several new compliance requirements. Landlords must register with a government-approved redress scheme before marketing a property and list their properties on a new Private Rented Sector (PRS) database. We are yet to see the detail of this and is expected via secondary legislation. Written tenancy agreements will be mandatory for all tenancies, and the Decent Homes Standard, previously applied only to social housing, will now extend to the private rented sector. Awaab’s Law, introduced following a high-profile case of housing-related illness, sets strict timeframes for investigating and repairing health-related issues. 

Local authorities will have strengthened enforcement powers regarding the PRS database, including fines of up to £7,000 for minor non-compliance and up to £40,000 for repeat offences. Rent repayment orders have been extended to 24 months, and liability may extend to superior landlords and company directors. These measures underscore the importance of robust property management and legal compliance. 

If you own or manage residential property on a rural estate or farm, now is the time to review your tenancy arrangements and prepare for the upcoming changes, especially considering other compliance obligations and expected energy performance changes.

With expert property management, compliance guidance, and a trusted network of contractors, we’re here to help rural landowners, ensuring your rural assets remain secure, compliant, and profitable, even as the regulatory landscape evolves.  

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