Hannah Seton, a director in Savills rural management team in Oxford and a specialist in residential portfolio management, discusses the key provisions of the new law that rural landlords should be aware of.

After more than 400 days in Parliament, the Renters’ Rights Act finally gained Royal Assent at the end of October and has now officially become law.

The Act, which aims to rebalance the relationship between landlords and tenants, spells the end of Assured Shorthold Tenancies, also known as ASTs – the most common type of agreement if you rent to private individuals.

Its introduction marks the most significant change within the rental sector since the Housing Act 1988. The first set of changes will take effect from December 27 with the wider changes taking effect from May 1, 2026. The changes impact decisions rural landlords may be making now, yet many are still unsure or unaware of key details. So what do landlords need to know?

No more fixed tenancies

Tenancies will run month to month until either the tenant serves notice, or the landlord meets one of the grounds for regaining possession. These include if the landlord (or their family) wants to move into the property, or they want to sell it. Other reasons include rental arrears or antisocial behaviour.

Grounds for possession will change

The mandatory grounds for possession have been expanded with specific timescales for each ground. Some of the grounds will be able to be used at any point during the tenancy with others protecting the  tenants for the first 12 months of any new tenancy.

During this time landlords will not be allowed to move back into their property or attempt to sell it, unless they sell to another landlord who will take over the tenancy.

No more advanced payments

Tenants will no longer be allowed to make advance rent payments, including any shortfall payments. If rent is currently paid more than one month in advance, tenants will be able to continue with that advance payment schedule for the duration of their tenancy.

It’s only when a new tenancy is agreed that advance payments will not be allowed. If the tenant is unable to prove affordability to pay monthly they will still have the option of a private guarantor.

Agreement first

The Act also prohibits landlords and agents from accepting any offer to pay rent before the tenancy is entered into. This means that the agreement needs to be executed before any payment is taken. Once the tenancy is entered into, and the tenant chooses to pay more than a month in advance, the landlord can accept the advance rent, but the tenancy agreement cannot require the tenant to pay this way and an agent or landlord cannot demand this.

Rent increases in line with market

Rents can only increase once a year – with any rise in line with local market conditions. If the tenant accepts, they will start paying from the next rent due date after the anniversary. If a tenant believes the increase is unfair they can appeal.

However, they must do this before the start date of the proposed new rent. For new tenancies, offers above the advertised rental price cannot be accepted.

The above points cover the key provisions but there are other changes brought in by the Act. For example, there will be a new private rented sector landlord ombudsman for tenants’ complaints, while all landlords must register on a Private Rented Sector database.

Also, under the Act, requests for pets cannot be unreasonably refused, and properties must be in a reasonable state of repair.

There is more change to come, with the Government currently consulting on proposals to improve the energy efficiency of privately rented homes. It is important for rural landlords to prepare for both these potential changes sooner rather than later.

Our advice is to act now in reviewing residential portfolios and, where necessary, to seek professional advice.

Contact: hseton@savills.com or 01865 269 165.

Read more at https://www.savills.co.uk/landing-pages/understanding-the-renters–rights-act.aspx.

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