Key Changes for Landowners and Farmers Letting Property

The Renters’ Rights Bill is still progressing through Parliament and has not yet become law. The latest stage of debate has seen important amendments made, but the Bill must still gain the support of the Lords and the Commons before it can pass into legislation.

While much of the public focus has been on urban housing, the Bill’s reforms are highly relevant to landowners and farmers who let out residential properties – such as cottages, farmhouses, and converted barns as part of their rural business operations.

One of the most notable proposals is the removal of Section 21, commonly referred to as the ‘no-fault’ eviction route. Section 21, currently allows landlords to regain possession of a property at the end of a fixed-term tenancy without giving a reason.

If the Bill passes, Section 21 will be abolished. This means that all tenancies would become periodic, rolling on a monthly basis with no fixed end date. Tenants would have the right to leave at any time with two months’ notice. Landlords, however, could only end a tenancy by relying on specific grounds for possession set out in the legislation.

A particularly important amendment for agricultural landlords and the farming sector has been added during the Bill’s passage. This amendment would allow agricultural landlords to regain possession of a property if it is genuinely required to house an incoming agricultural worker. Crucially, this includes both employed and self-employed workers.

This change better reflects the realities of modern farming, where vital roles such as self-employed relief milkers, contract shepherds, and share-farming partners are often not directly employed by the landowner. The amendment ensures they can be legally accommodated under these possession grounds, which was not permitted under the Bill’s original wording.

However, it is important to note that this amendment is not guaranteed, and it will only become law when the Bill is finalised.

The Renters’ Rights Bill, if passed in its current form, would also introduce other possible changes which would affect farm lettings:

1. Rent Increases:  This would be limited to once per year, with two months’ notice. Tenants could challenge excessive rises at a tribunal.
2. Registration Requirements: All landlords would have to register their properties on a new national database and join a mandatory Private Rented Sector Ombudsman scheme.
3. Property Standards: All let properties would need to meet the Decent Homes Standard, which could potentially require upgrades to older and or traditional farm dwellings.
4. Pets: Tenants would gain a legal right to request a pet. Landlords would have to consider the request reasonably, however insurance against potential damage could be requested

Although the Renters’ Rights Bill is not yet law, landowners and farmers who let property should prepare for the possibility of these changes. Reviewing existing tenancy agreements, assessing property standards, and considering how to meet new compliance requirements will help businesses remain complaint and resilient.