Note: This article was first published by Charity Finance on 1 June 2026
The Renters’ Rights Act signals a major shift in England’s private rented sector. Emma‑Jane Dalley, Stan Campbell and Matthew Stokes from DAC Beachcroft explore what the new regime means for charity landlords, and the steps organisations should be taking now to adapt to a fundamentally changed rental landscape.
The substantive Phase 1 provisions of the Renters’ Rights Act 2025 (RRA) came into force on 1 May 2026, with the new legislation set to have significant implications for charities that are residential landlords and those which support beneficiaries who are tenants.
Charities with housing stock must review tenancy documentation and possession procedures. They should consider whether they are granting private rented sector (PRS) tenancies, managing supported accommodation, holding shared ownership stock or operating as registered providers within the social housing framework. It remains the case that registered charities will continue to need to comply with the procedures under Part 7 of the Charities Act 2011 in relation to the disposal of any property.
Phase 1 reforms apply to charities acting as private landlords in the PRS. By contrast, the initial tenancy reform package does not apply in the same way, or on the same timetable, to private registered providers of social housing. The RRA also does not apply to local authority secure tenancies.
The Government's roadmap for reform
In November 2025 the Ministry of Housing, Communities and Local Government set out its roadmap:
- Phase 1, from 1 May 2026, introduced the core tenancy reforms
- Phase 2, expected later in 2026, will introduce the Private Rented Sector Database and the Private Rented Sector Landlord Ombudsman
- Phase 3, following consultation and secondary legislation, is expected to extend the Decent Homes Standard and Awaab’s Law into the PRS
Where charities stand now
Many commentators have focused on the changes that took effect on 1 May. However the core tenancy reform measures do not apply to private registered providers immediately in the same way as they do to private landlords. These changes will only apply from October 2027, giving private registered providers further time to prepare.
The position is different for charity landlords operating in the PRS, for whom the changes are immediate.
Phase 1: First wave of reform
No more assured shorthold tenancies
Phase 1 introduces a number of key changes. From 1 May it will no longer be possible to create new assured shorthold tenancies and all assured shorthold tenancies will automatically become assured tenancies.
University-owned accommodation let to students is treated differently, but caution is required where universities work with third-party providers or who have mixed portfolios.
Charities that are registered providers and hold shared ownership portfolios will also be aware that shared ownership leases have been removed from the assured tenancy regime under the RRA.
Grounds for recovering possession
Charities acting as private landlords can no longer recover possession through section 21 “no fault” notices, which may make recovery of charitable property more difficult in certain situations. Charity landlords will need to satisfy the new amended grounds for possession which will be more tightly controlled. Grounds may include where a charity landlord wishes to recover possession for their own occupation, sell or redevelop the property, where the tenant is in serious rent arrears (three months or more), or on the grounds of serious antisocial or criminal behaviour by the tenant.
The reforms also build in stronger protections for tenants, including a protected period at the start of the tenancy during which a landlord cannot recover possession simply because it wishes to sell the property or recover it for its own use. This may impact on charities that receive legacy property and wish to sell with vacant possession to maximise value.
There are additional or amended grounds which are relevant in specialist contexts and may be particularly important for charities whose housing model is linked to care, homelessness, support, education or employment objectives, and in relation to which charities will require more specialist advice.
Generally, possession claims will require much closer attention to evidence, timing and statutory notice requirements.
By contrast, tenants are generally entitled to end an assured periodic tenancy by giving at least two months’ notice unless they agree otherwise.
Written statements and tenancy information
Landlords must provide tenants with a written statement containing prescribed information before a tenancy is entered into. For charities, this means reviewing tenancy packs, onboarding processes and agent instructions to ensure the mandatory information is given in the right form and at the right time.
Charities receiving legacy property, or being transferred property as part of a merger that is let, should check that this mandatory information has been provided.
Rent increases and payment rules
The RRA imposes a clearer statutory framework for rent increases. In broad terms, rent under an assured periodic tenancy can be increased only through the statutory route, no more than once in any 12-month period, and only to a level that reflects market rent. The RRA also limits the use of rent in advance.
For private registered providers of social housing, annual rent limits remain tied to the Regulator of Social Housing’s Rent Standard rather than the new private-sector model.
Additional tenant rights
While for the vast majority of charities which let property in furtherance of their charitable purposes, the focus has always been on assisting rather than discriminating against vulnerable individuals. Changes in tenants' rights may impact on charities that let property as part of their investment portfolio. Landlords must not discriminate against prospective or existing tenants simply because they receive benefits or have children. Charities should therefore review lettings criteria to ensure they remain lawful and proportionate.
Phase 2: Digital transformation
PRS Database and landlord redress
From Phase 2, charities operating as private rented sector landlords will need to engage with the new Private Rented Sector (PRS) Database - scheduled to launch in late 2026 - and, where required, the new landlord redress regime. Once the system is live, landlords may be unable to market property lawfully, and may face restrictions on enforcement unless the required entries are in place.
Phase 3: Raising standards
Property standards and later reform
Many registered providers of social housing will already be familiar with the Decent Homes Standard and Awaab’s Law. For private landlords, however, Phase 3 is likely to bring a more demanding regulatory environment focused on condition, safety, damp and mould, and responsiveness to repair issues.
Charities with private rented stock would therefore be well advised to assess property condition, complaint handling and repair response systems now rather than waiting for the final commencement date. Some charities with investment properties may decide to divest in property in favour of other more passive investments.
The RRA bring in changes for charities that they should adequately prepare for. Those changes are more immediate for PRS landlords and some charities will require specialist advice, particularly when it comes to recovering possession.
