Renters’ Rights Act 2025 – Supported Housing Providers focus: preparing for change

The Renters’ Right Act 2025 received Royal assent on 27 October 2025.Whilst key reforms are due to take effect from 1 May 2026 in the Private Rented Sector, those landlords in the Social Rented Sector should also be considering carefully what is coming down the track and what steps they can take to ensure the transition is as smooth as possible when applicable reforms come into force in 2027.

Supported Housing Providers (“SHPs”) will see some of the most significant changes to their daily operations given that they will no longer be able to rely on so-called “no-fault” s21 Housing Act 1988 notices to recover vacant possession as necessary without having to attend a court hearing from 1 May 2026 (unless they are a registered provider of social housing and the rent is charged at less than market rent – i.e. a low-cost tenancy).

Instead, SHPs will need to follow the route under s8 Housing Act 1988 and satisfy a judge, at a hearing, that they are entitled to an order of possession by satisfying one or more of the grounds listed within Schedule 2 Housing Act 1988. The Renters’ Rights Act introduces several new grounds which are being introduced specifically for SHPs including the following: 

SHPs will of course also be able to rely upon the existing grounds set out in Schedule 2 Housing Act 1988 which include grounds relating to rent arrears, anti-social behaviour and the deterioration of the property. 

SHPs will need to think differently about how they manage their housing stock as well as re-framing the way they go about recovering possession where necessary. 

The need to persuade a judge that a particular ground has been made out or satisfied and, in some cases, that an order of possession is reasonable will place a greater evidential burden on SHPs. 

Careful thought will need to be given to the drafting of tenancy agreements, existing policies and procedures to demonstrate when, for example, the landlord will consider a tenant to be not engaging with support or where support is deemed to have ended in order to justify the decision to take steps to end the tenancy. 

Commentary – Billy Edwell of Avenues London 

Possession notices, served under s21 Housing Act 1988, have been widely used to regain possession of a property by SHPs where a Section 8 notice could technically have been relied upon. 

This has largely been because the s21 process is quicker, more straightforward, carries significantly less legal risk for landlords and is more cost-effective. As a result, it has become the preferred method for possession over the more involved route under s8 Housing Act 1988. 

The removal of the s21 Housing Act 1988 route is likely to increase the workload of SHP staff and slow down the possession process for us.

It is important to acknowledge that we do not take a decision to serve a possession notice lightly. Serving notice results in a loss of rental income with the landlord remaining liable for overheads such as mortgage payments, repairs and other associated costs. From a purely commercial perspective, it is rarely in a landlord’s best interest to seek possession without a legitimate and necessary reason. 

In the sector I work in, possession is often pursued because the tenancy or service is no longer meeting the tenant’s needs. This may be due to a tenant being unwilling or unable to engage with support, displaying persistent antisocial behaviour, or presenting risks to themselves or others. In such cases, the longer an individual remains in accommodation that is unsuitable for them, the more likely the situation is to deteriorate, increasing the risk for all parties involved.

There are further concerns in relation to changes to the rent arrears grounds. The extension of the serious arrears threshold by an additional month, combined with the doubling of the notice period, will lead to higher levels of financial exposure for us as a landlord. These changes are likely to result in increased arrears losses and higher legal costs. Whilst discretionary grounds remain available, they carry greater uncertainty and risk, particularly where outcomes are dependent on judicial discretion. Many landlords may struggle to absorb these additional costs, and there is a real risk that this will contribute to a further contraction of the private rented sector.

If court processes were significantly improved to meet the increased demand created by the Renters’ Rights Act, the removal of the s21 route could be positive. A streamlined system with reduced waiting times could improve fairness while still allowing landlords to take timely action. However, there is considerable concern across the sector that court capacity will not improve and that delays will worsen, resulting in prolonged periods of rent loss, increased risk, and additional pressures on housing providers left carrying the can.

Practical Preparation for Providers

Time really is of the essence in terms of preparing for these changes. SHPs should ensure that they are:

• Reviewing their current occupancy agreement to ensure it is fit for purpose and contains what is required moving forward. 
• Being clear on what information they need to provide to existing tenants before 31 May 2026.

We are also working with a number of SHPs to review the basis on which they let their homes – including the use of licence agreements (which are not being impacted by the changes in legislation). Some providers have recently been challenged on the wording of such agreements – when needing to recover possession – and discovering that the individual may in fact be a tenant. This can be easily resolved with advice and input from us, but the quicker the better. 

SHPs will also need to consider the wording of any support agreements or plans to ensure that these reflect these changes and complement the future reliance on the new grounds for possession. 

It is also an ideal time for SHPs to review existing management agreements and service level agreements so that they are clear on what their duties and responsibilities are, and where amendments may need to be made ahead.

Build a stronger understanding of the sector — follow our Housing page.