How the Renters’ Rights Act will affect landowners and tenants
24th February, 2026
The Renters’ Rights Act coming into force on 1 May 2026 represents the biggest overhaul of residential tenancy law in decades. For landowners who provide accommodation to agricultural workers, it introduces a number of important changes that will affect tenancy arrangements, possession rights, and obligations for rural landowners.
The Act primarily affects residential properties but can indirectly affect farming businesses and Estates who let residential property alongside their farming operations.
Assured Agricultural Occupants (AAOs)
From 1 May 2026, tenants who are full-time agricultural workers will generally be considered Assured Agricultural Occupants (AAOs), unless the landlord formally opts out. This status provides tenants with certain statutory protections, and some grounds for possession such as needing the property for an incoming worker, are restricted while the tenancy remains an AAO.
Landowners can opt out by providing a prescribed written statement confirming the tenancy is an assured tenancy instead. Existing AAOs must receive this statement within a month of 1 May 2026.
To comply with the new rules on Assured Agricultural Occupiers, landlords must follow certain procedures and ensure tenancy arrangements are properly documented:
- New tenancies starting after 1 May 2026 require the statement before the tenancy begins.
- Clear tenancy agreements and employment contracts are crucial to ensure that the link between housing and employment is properly documented.
End of assured shorthold tenancies
One of the most notable changes is the removal of assured shorthold tenancies and “no-fault” evictions. Once the Act is in force, landlords will no longer be able to regain possession simply by serving notice at the end of a fixed term. Instead, possession will only be possible where a specific statutory ground applies.
For landowners, this increases the importance of ensuring that any residential letting to a worker is properly documented and clearly linked to the employment where appropriate.
Possession when employment ends
The Act retains grounds for possession where a property is let in connection with employment. This is particularly relevant for agricultural workers who live in farm-owned accommodation as part of their role.
However, these grounds are more prescriptive and require landlords to meet clear criteria. Specifically:
- Genuine need for the property: The landlord must show that the property is genuinely required for another worker. It isn’t enough to say it might be needed; there must be a demonstrable, real requirement.
- Connection to employment: The tenancy must have been clearly linked to the worker’s employment from the start. This usually means there is evidence in the tenancy agreement, employment contract, or other documentation showing the property was provided as part of the job.
Rent increases and property standards
The Act also affects how and when rent can be increased, limiting rises to once per year and requiring increases to be reasonable and in line with market rent. In addition, there is a greater focus on property standards, including fitness for habitation.
For older farm properties, this may mean investment is needed to ensure accommodation meets the required standard.
What landowners should do now
While the Act is designed to provide greater security for tenants, it recognises the practical realities of employment-linked housing, provided the correct legal framework is in place.
With implementation not until 1 May 2026, landowners have time to review existing housing arrangements, tenancy documentation, and employment contracts and to be proactive and organised where residential housing forms part of their wider estate.
Ward Hadaway’s agriculture, rural business and estates lawyers have a wealth of experience in this area and work with clients including individuals, small to large family businesses, owner-occupier farms, tenants and estates. If you have any questions about the upcoming changes brought about by the Renters’ Rights Act might affect you, please get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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