This article is the second in a series of articles about the Renters’ Rights Act 2025. To read the first article, click here.
There has been widespread coverage regarding the effect of the Renters’ Rights Act 2025 (RRA 2025) on new and existing tenancies. Of particular concern to many landlords is the abolition of Assured Shorthold Tenancies (ASTs) with their no fault, fast track, eviction process and the conversion of existing ASTs to assured periodic tenancies.
There are, however, a number of tenancies that will not be caught by the RRA 2025 measures, because they are not tenancies which are governed by the Housing Act 1988 (HA 1988). It is only assured tenancies under the HA 1988 which are affected by the RRA 2025.
What is an assured tenancy?
Section 1 HA 1988 set out the basic requirements to create an assured tenancy:
- The dwellinghouse must be let as a separate dwelling; and
- The tenant or, if there are joint tenants, each of the joint tenants, must be individuals; and
- The tenant, or if there are joint tenants, at least one of them must occupy the dwellinghouse as his or her only or principal home.
Seemingly straightforward, but the HA 1988 also incorporates a list of tenancies which cannot be assured tenancies. There is a long list in Schedule 1, including local authority tenancies, resident landlord tenancies, business tenancies, licensed premises and holiday lets.
Many of the exemptions are unlikely to affect rural landowners but there a few key exemptions which could bring a tenancy outside of the RRA 2025 assured periodic tenancy regime.
Certain fixed term tenancies
The RRA 2025 has added two new categories of tenancy which will not be assured tenancies. These are set out in the new 3D and 3E of Schedule 1 HA 1988 and are:
- Fixed term tenancies of more than 21 years from date of grant; and
- Fixed term tenancies of 21 years or less, but more than 7 years from the date of grant. This only applies to tenancies entered into a) before the RRA 2025 was passed on 27 October 2025, b) between 27 October and 27 December 2025 or c) after that period but under a contract entered into before the end of that period.
This means that certain existing fixed term tenancies described above fall outside the HA 1988 and will become common law residential tenancies from the commencement date of the RRA 2025 on 1 May 2026, continuing as such until the expiry of the term.
Landlords should be aware though, that if the tenant stays in occupation at the end of the fixed term and if none of the exceptions in Schedule 1 HA 1988 apply at that stage then a new assured tenancy, with different security of tenure rights, is likely to arise. If this is not desired, then landlords should take action without delay to recover possession.
Tenancies of agricultural land
Under paragraph 6 Schedule 1 HA 1988, a tenancy cannot be an assured tenancy if “agricultural land” exceeding two acres, is let together with the dwelling house.
The definition of “agricultural land” for this category is extremely convoluted and is different from the definitions used in agricultural legislation. Consequently, rural landlords hoping to rely on this exemption should tread carefully. Where land is merely being let as gardens or amenity land, alongside the dwelling house, there is scope for a tenant to argue that the arrangement does not fall within this category and therefore that they have AST (or an assured periodic tenancy from 1 May 2026). If a tenant does seek to argue this, landlords should be aware of the possible costs of defending a claim (even if ultimately unsuccessful). Alternatively, if the “agricultural land” is used for the purposes of a business, an FBT is likely to arise instead.
Tenancies of agricultural holdings
The exemption for tenancies of agricultural land should not be confused with the exemption for agricultural holdings. Where a tenancy includes a dwelling house and is either governed by the Agricultural Holdings Act 1986 or is an FBT and is occupied by the person responsible for the holding, that tenancy can never be an assured tenancy.
Tenancies with high, low or minimal rent
The following tenancies will always be exempt:
- where the annual rent is more than £100,000 per annum;
- where no rent is paid;
- where the annual rent is £1,000 or less in Greater London or £250 or less elsewhere.
This is unlikely to catch many tenancies – but some tenancies with very high or low rents may be common law tenancies. Arrangements below the minimum rent threshold could take effect as assured agricultural occupancies if granted to an agricultural worker.
Service occupiers
Whilst not mentioned in Schedule 1 HA 1988, it is worth remembering that service occupancies will remain a useful mechanism to provide accommodation for rural workers, such as gamekeepers and housekeepers. This housing arrangement is not caught by the RRA 2025 because it is a licence and not a tenancy. However, to be a service occupancy there must be a genuine need for the employee to live in a dwelling owned by the employer for the better performance of their duties. For further information about service occupancies and for an explanation as to why they should never be used for agricultural workers see “Renters’ Rights Act – Navigating accommodation for rural workers“.
Conclusion
Much of the focus of the changes brought in by the RRA 2025 has been about assured tenancies. But some tenancies can never be assured tenancies. Those that are excluded will instead be governed by other statutory regimes or common law.
Rural landlords may well wish to keep tenancies outside of the RRA 2025 where possible to avoid the increased security of tenure it offers tenants. However, landlords will need to be sure of their position when seeking to rely on one of the Schedule 1 exceptions; if they get it wrong and find they have an unplanned assured periodic tenancy, it could be a costly mistake.
