The new regime to replace ASTs will be introduced from 1 May 2026 and charities should consider the implications now.
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The new regime to replace ASTs will be introduced from 1 May
2026 and charities should consider the implications now.
Charities with current tenants occupying on Assured Shorthold
Tenancies (ASTs) or which may grant new ASTs in the near future
need to be aware that the legal regime for ASTs is set to change
from 1 May 2026 under the new Renters Rights Act 2025.
The changes in law will end the current AST regime and replace
it with a revamped “assured tenancies” regime as the
default tenancy regime for the private rented sector.
Highlights of the new regime include:
There will be no more fixed term tenancies. All tenancies will
be rolling monthly tenancies, which will continue until terminated
by a valid notice.
Tenants will be able to terminate by giving two months’
notice.
There will be no more s.21 “no-cause” terminations
by Landlords. Landlords will only be able to terminate if a
statutory ground for termination applies.
The application of the regime will be broadly similar to the
current AST regime, including: the regime does not apply to
tenancies granted to companies, the minimum annual rent is
£250 outside London or £1000 in London, and maximum
annual rent is £100,000. It will not apply to farming
tenancies.
Most existing ASTs will automatically convert to the new regime,
but there are transitional arrangements for ASTs with a fixed term
over 7 years
At the time of writing it is still lawful (subject to individual
circumstances) to issue a s.21 notice to terminate a current
AST
Further guidance
Wrigleys will issue more detailed guidance on some of the
changes, particular sectors and scenarios in due course. In broad
terms we recommend that charities review any current ASTs, keep
abreast of the changes and look out for further updates from
Wrigleys, and consider what is in the best interests of the
charities and the charities beneficiaries in relation to both
current and future residential tenancies. There is speculation that
many landlords will terminate now using the s.21 process while they
can. That option is open to charities like any other landlord, but
as well as being obliged to act in the best interests of their
beneficiaries charities also need to be mindful of the risk of
reputational damage if they take such action.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.