The Renters’ Rights Act and farming businesses: what you need to know

21st May 2026

Author: Rebecca Jepson

The Renters’ Rights Act 2025 has introduced significant changes to how residential tenancies are created, managed and brought to an end. While much of the commentary has focused on the private rented sector more generally, these changes have important implications for farmers and rural landlords, particularly where housing is provided to workers or forms part of a wider rural property portfolio.

In this blog, Rebecca Jepson explains how these changes affect rural landlords and what farming businesses should be considering following the changes of 1st May 2026, following which most residential tenancies fall within a revised legal framework that places greater emphasis on structure, compliance and tenant security.

The end of assured shorthold tenancies

One of the most important changes is the removal of assured shorthold tenancies. These are replaced with periodic tenancies, meaning there is no longer a fixed term that automatically comes to an end.

Alongside this, the Act removes so-called “no fault” evictions under section 21 of the Housing Act 1988.

In practical terms:

• tenancies do not end automatically after a set period
• landlords must rely on specific legal grounds to recover possession
• the process for regaining possession is more structured and, in many cases, slower

For farming businesses, this reduces flexibility, particularly where accommodation is needed for incoming workers.

These changes affect tenancies that were already in place on 1^st May 2026, not just those that are entered into after this date. Moreover, additional requirements under the new legislation have already arisen in respect of such pre-existing arrangements. For example, an information sheet must be provided to all tenants of the new periodic tenancies by 31 May as per the new legislation.

Regaining possession under the Renters’ Rights Act: a more structured process

The ability to recover possession remains, but it is now more tightly controlled.

Landlords must rely on the statutory grounds set out in section 8 of the Housing Act 1988, including circumstances where a property is required for another employee.

However:

• the correct ground must be identified and evidenced
• notice requirements must be followed precisely
• timescales are longer and less predictable

This creates a greater need for forward planning where housing is linked to employment or operational requirements.

Increased importance of documentation

The Act places a stronger emphasis on compliance and documentation.

Landlords are expected to:

• provide written tenancy agreements
• issue prescribed information at the outset
• comply with updated notice requirements

For farming businesses that have historically relied on informal arrangements, this represents a clear shift in approach and an additional administrative burden.

Failure to comply with these requirements can affect the ability to regain possession and may expose landlords to significant penalties.

Local authorities can bypass the courts to issue civil penalties as an alternative to prosecution. Fines for minor or first breaches can be up to £7,000 for lower-level offenses, such as failing to provide required tenancy information sheets to tenants. For more serious or repeated offenses, fines can be up to £40,000, including unlawful evictions, ignoring statutory improvement notices, breaching electrical safety standards, or re-letting a property during the restricted 12-month period after using specific possession grounds.

It is also worth noting that local authorities will going forwards be able to retain the revenue generated by imposing these fines, so the expectation is that they will be more proactive in checking compliance than has historically been the case.

Agricultural workers and security of tenure

A key area of risk lies in how occupiers are classified.

Depending on the circumstances, individuals occupying farm accommodation may fall within regimes that provide enhanced protection, including:

• assured tenancies
• assured agricultural occupancies

These classifications can arise if the correct structure and documentation are not in place from the outset.

The consequence is that an occupier may gain a higher level of security of tenure than intended, making it more difficult to recover possession in the future.

Impact on farm cottages and tied accommodation

Many farming businesses rely on residential property as part of their operational model. This includes:

• housing for farm workers
• cottages linked to specific roles
• properties used as part of wider diversification

The changes introduced by the Renters’ Rights Act mean that these arrangements now sit within a more regulated framework.

In particular:

• occupation linked to employment must be clearly documented
• the basis of occupation must be carefully defined
• exit strategies should be considered at the outset, not at the point possession is required

This reflects a move away from flexibility towards a more formal structure.

A shift in balance for rural landlords

The overall direction of the legislation is to increase tenant security and strengthen compliance obligations for landlords.

For rural landowners, this results in:

• reduced flexibility in managing residential property
• increased reliance on statutory procedures
• greater administrative and legal oversight

While these changes apply across the private rented sector, their impact on farming businesses is often more immediate due to the link between housing and operational needs.

Practical steps for farming businesses

In light of these changes, it is sensible for farmers and landowners to review their current arrangements.

This should include:

• reviewing any residential occupation on the farm
• identifying any informal or undocumented arrangements
• ensuring tenancy structures reflect the intended level of control
• considering how and when possession may be required in future

Early action can reduce the risk of unintended consequences later.

How Butcher & Barlow can help

The Renters’ Rights Act represents a shift towards a more structured and regulated approach to residential tenancies. For farming businesses, the key issue is ensuring that existing and future arrangements are aligned with this framework.

At Butcher & Barlow, we regularly advise farmers and rural landowners on how these types of arrangements work in practice, helping to ensure they are both compliant and suited to the realities of running a farming business.

If you are reviewing your current arrangements or planning ahead, taking advice early can help avoid issues further down the line.  If you would like to review your current arrangements or discuss how these changes affect your business, we are here to help.

Contact the team on 01606 334309 or email agriculture@butcher-barlow.co.uk

FAQs: Renters’ Rights Act and farming businesses

Q: Does the Renters’ Rights Act apply to farm cottages?
A: Yes. The Renters’ Rights Act applies to most residential tenancies, including farm cottages, unless a specific exemption applies. Where a property is occupied as a home, it is likely to fall within the new framework.

Q: Can farmers still regain possession of tied accommodation?
A: Yes, but the process has changed. Farmers must now rely on specific statutory grounds, such as needing the property for another worker, and follow the correct legal procedure. This is generally more structured and can take longer than under previous rules.

Q: Do farm workers have greater rights under the new rules?
A: In some cases, yes. Occupiers may gain increased security of tenure, particularly if arrangements are not properly documented. This makes it important to ensure the correct type of agreement is in place from the outset.

Q: What happens to existing tenancies?
A: Most existing assured shorthold tenancies will transition into the new periodic tenancy system. Landlords should review these arrangements to ensure they remain compliant under the updated rules.

Q; What should farmers do now?
A: It is sensible to review all residential occupation on the farm, particularly where arrangements are informal or linked to employment. Taking steps now can help avoid complications later.

Q; Will the Renters’ Rights Act make it harder to manage farm properties?
A: The Act introduces more regulation and less flexibility, particularly around possession and tenancy structure. However, with the right approach and planning, property arrangements can still support the needs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.