THE RENTERS’ RIGHTS ACT 2025 — LANDLORD GUIDE

The Renters’ Rights Act Has Changed Your Position. Unless Your Lease Sits Outside It.

If you own rental property in England and it’s let on an AST, the Renters’ Rights Act 2025 has already changed your position.

Section 21 is gone. Fixed terms are gone. You cannot increase rent the way you used to. And you cannot know with certainty when — or whether — you will get your property back.

That is the reality for AST landlords.

If your property is on a corporate lease with Total Housing Solutions, none of that applies to you. This page explains exactly why — legally — and what it means for your income and your exit.

What the Act Actually Changes

The Renters’ Rights Act 2025 received Royal Assent and makes the following changes to private rented sector law in England. Each change applies specifically to Assured Shorthold Tenancies under the Housing Act 1988. The full text of the Act is on legislation.gov.uk.

1. Section 21 abolished

The no-fault eviction route is gone. Previously a landlord could serve a Section 21 notice and recover the property without stating a reason. That option no longer exists. To recover a property under an AST, a landlord must now prove grounds under Section 8 — meaning tribunal, cost, time, and no guaranteed outcome.

2. All ASTs become periodic

Fixed-term ASTs are abolished. From the date the Act takes effect, all assured tenancies in England are periodic from day one. They roll on monthly. There is no agreed end date. A landlord cannot know when — or whether — a tenant will leave without tribunal proceedings.

3. Rent increase restrictions

Landlords may increase rent once per year only. They must use a prescribed Section 13 notice. Tenants have the right to challenge the increase before a Rent Assessment Committee, which may limit or reject the increase. Landlords lose the ability to review rents freely against market rates or their own costs.

4. Strengthened tenant rights

The Act also introduces a Decent Homes Standard for the private rented sector, a new digital PRS Database, and new rules on landlord access and discriminatory refusals to rent. The compliance burden on AST landlords increases substantially.

Why Corporate Leases Are Not Affected

The Housing Act 1988 — the legislation that creates and governs Assured Shorthold Tenancies — applies only when a dwelling is let to an individual (or individuals) as their only or principal home. This is the statutory definition of an AST.

A company cannot have a principal home. A company cannot hold an AST. When a property is leased to Total Housing Group — a company, not an individual — the tenancy created is a company let, not an assured tenancy. The Housing Act 1988 does not apply. The Renters’ Rights Act 2025, which amends the Housing Act 1988, therefore also does not apply.

The legal principle: a lease to a company is a commercial agreement governed by contract law. The courts have confirmed this position consistently. Section 21, periodic conversion, and rent control mechanisms under the Housing Act 1988 have no jurisdiction over it.

This is not a loophole. It is a well-established legal distinction that predates the Housing Act itself. Institutional landlords, large property funds, and local authorities have used corporate letting structures for decades precisely because they sit on a different legal foundation to residential tenancies.

Total Housing Group is the tenant on every lease we take. Your rent is paid by a company with a registered address, accounts, and legal obligations — not by an individual whose rights under the Housing Act override your contract.

What This Means for You in Practice

Your income does not change

The rent agreed in your corporate lease is the rent paid each month for the duration of the lease term. No annual cap. No prescribed notice. No tribunal. The Renters’ Rights Act rent control mechanism does not reach a commercial lease.

Your exit is defined in writing

The lease states a fixed term: 3 to 5 years. At the end of that term, the property returns to you on the agreed basis. No Section 8 grounds required. No tribunal. No rolling uncertainty. Your exit is a date in a contract, not a discretionary process.

Your compliance burden is zero

The PRS Database, Decent Homes Standard obligations, and new landlord access rules created by the Act apply to AST landlords. They do not apply to landlords in a commercial lease arrangement with a company tenant. Your ongoing compliance obligations remain with your corporate lease, not the Housing Act.

The Three Agreement Types

All three structures use corporate leases. The difference is how much involvement you want and how much of the income certainty you want fixed in the contract upfront.

Silver

Introduction to a vetted operator. You manage the lease relationship from there. Appropriate for landlords who want a better operator but are comfortable handling the ongoing relationship.

Gold

Provider sourced and vetted. THS manages the landlord-provider relationship. Monthly reporting. One point of contact. You receive your income without managing anyone.

Platinum

THS takes the corporate lease directly. Rent arrives every month. Fixed for 3 to 5 years. You have no involvement, no calls, no voids. Your income is set regardless of occupancy.

Who This Is Right For

This works well if:

  • ✓  You own 2 or more properties in London or the South East
  • ✓  You want income certainty through the Act’s transition period
  • ✓  You are prepared to commit to a 3 to 5 year term
  • ✓  You currently hold AST tenancies and want to move off them
  • ✓  You want your rent to arrive without ongoing involvement

This probably isn’t right if:

  • ✗  You intend to sell the property within 12 months
  • ✗  You need frequent personal access to the property
  • ✗  You want to self-manage the tenancy relationship
  • ✗  You prefer short-term flexibility to fixed long-term income

Frequently Asked Questions

Is a corporate lease legally secure for me as a landlord?

Yes. Your solicitor will review the agreement before anything is signed. The lease is a commercial contract and your title remains with you throughout. We recommend independent legal advice and actively encourage it — it protects both parties and speeds the process.


Do I lose control of my property?

You do not lose control of your property. You retain full legal title. What you grant is a lease — the right to occupy for an agreed period in exchange for rent. That is what every landlord grants. The difference here is that the tenant is a company, not an individual.


What happens if THS cannot pay the rent?

This is a contractual obligation. Your lease specifies the rent, the payment date, and the remedy if payment is not made. As with any commercial tenant, you have legal recourse through the courts if a default occurs. This is the same protection you have in any commercial lease arrangement — and unlike an AST default, there is no Housing Act to limit your options.


Who occupies the property under a corporate lease?

Total Housing Group sublets or licences the property to approved housing organisations — housing associations, supported living providers, local authority-referred residents, or CIC operators. All occupants are placed by the housing provider, not directly by THS. Your lease agreement is always with Total Housing Group


Can I still sell my property if it’s on a corporate lease?

You can sell a tenanted property. A buyer would take the property subject to the existing lease — the same as any commercial property sale. Some landlords choose to sell at the end of their lease term to retain maximum flexibility. We discuss this at the outset and structure the lease term accordingly.

You’ve seen why the lease structure works. Now find out what your properties are worth on it.

Free assessment. No obligation. Your near-guaranteed rent figure — backed by housing provider funding from local authority contracts, housing benefit, and government care packages — confirmed within 48 hours.

Total Housing Solutions is a trading name of Total Housing Group  ·  220 Wharfedale Road, Winnersh, Wokingham, Berkshire RG41 5TP  ·  Privacy Policy  ·  Cookies

en_USEnglish