Whilst the Renters’ Rights Act received Royal Assent, and officially became law, towards the end of 2025, the changes only came into effect on 1 May this year, meaning it’s now a critical consideration for anyone renting or currently buying via shared ownership alongside landlords.
What is the Renters’ Rights Act?
Fundamentally, it’s a new act designed to help promote and strengthen the rights of anyone currently renting, creating a fairer balance between landlords and renters while also raising the overall housing standards in the sector.
The key headlines within the Renters’ Rights Act include:
Changes to ‘no-fault’ evictions
As part of the Renters’ Rights Bill, the concept of Section 21 ‘no-fault’ evictions are being abolished. This means that landlords can no longer evict a tenant without a solid reason, which should generally bring more peace of mind to those renting.
Assured Shorthold Tenancies
Fixed-term assured shorthold tenancies for private tenancies are being converted into assured periodic tenancies, which means they’ll be either rolling weekly or monthly tenancies with no set end date. The idea behind this change is that both tenants and landlords will have more flexibility around changes to individual circumstances.
Changes to rent increases
With the new changes now in effect, rents will only be able to rise once a year and tenants will have the opportunity to challenge any increases that seem unreasonable. This change will also ban ‘bidding wars’ for rental properties, in an effort to reduce the rising affordability pressures in the rental market.
Improvements to minimum standard
In a first for the sector, all private rentals must meet the Decent Homes Standard, which will provide councils with the power to hold landlords accountable if their properties are unsafe or in bad condition.
Discriminatory practices
The final major headline within the Act bans discriminatory practices such as ‘no pets’ or 'no children'. Landlords must now consider every request fairly, which should provide more opportunities for renters who have faced discrimination in the past.
So what does this mean for Shared Owners? For our customers, the entire Act is a critical consideration as it brings changes to Shared Ownership as a whole.
What does the Renters’ Rights Act mean for Shared Ownership?
Overall, the changes are positive for shared owners, providing extra protection against potentially losing your home whilst also generally making it easier to either remortgage or sell.
Here is a breakdown of the various changes and how they impact you as a Shared Owner:
1. Shared Ownership is no longer treated as a tenancy: From 27 December 2025, Shared Ownership leases (over 21 years) are outside the assured tenancy regime. This reinforces Shared Ownership as a home ownership product, governed by leasehold law rather than standard rental rules.
2. Shared owners now have greater security: Homes can no longer be repossessed using mandatory rent-arrears eviction (Ground 8) and disputes are handled through lease enforcement routes (e.g debt recovery, damages or forfeiture), not standard possession grounds.
3. Subletting is still possible but the rules around it have changed: From 1 May 2026, subletting arrangements are now treated as assured periodic tenancies, whilst Section 21 (no-fault) evictions and fixed terms no longer apply. Ending a sublet would now require specific reasoning such as moving back into the home or selling the property.
4. Ending a sublet will take longer: Shared owners will now have to provide at least 4 months’ notice to sub-tenants and possession can’t be regained within the first 12 months of a new subletting tenancy, meaning subletting is generally becoming less flexible.
5. Selling exemptions for shared owners: If a Shared owner sells after subletting, they may be exempt from the usual 12-month ban on re-letting, provided certain criteria are met. This is designed to address the extra complexity that comes with selling a Shared Ownership property. Shared owners who were subletting before May 2026 must inform tenants of their Shared Ownership status by 31 May 2026 to keep access to the selling exemption.
6. Shared owners who sublet are treated as private landlords: if a Shared owner sublets, they must start following private rented sector rules, including issuing a government Renters’ Rights Act Information Sheet and complying with notice, safety and tenancy requirements.
