Important updates to the Renters Rights Act for Agriculture.
The new Renters’ Rights Act, which came into force in May 2026, introduces significant changes to residential tenancy law and could have major implications for farming businesses that provide accommodation to employees.
One of the biggest changes is the abolition of Section 21 “no-fault” evictions. Assured Shorthold Tenancies (ASTs) have effectively been replaced by ‘periodic tenancies’, meaning landlords now need a specific legal ground to regain possession of a property. For farms providing tied accommodation, this increases the importance of having correctly structured occupancy arrangements in place.
A key issue for agriculture is the distinction between a genuine “service occupancy” and a tenancy. Service occupancy exists when an employee must live on the property to perform their role properly, such as a herdsperson required on-site for livestock care. However, where accommodation is viewed as a benefit of employment, stronger tenant protections may apply.
Importantly, the legislation now places greater emphasis on providing tenants with written information. Landlords are required to provide existing tenants with the government’s “Renters’ Rights Act Information Sheet 2026” (click here to download the sheet) and ensure occupiers have clear written details of their arrangements. Where no formal written agreement exists, landlords should urgently seek advice and provide documentation setting out the key terms of occupation.
For farming businesses, this is particularly important because many historic accommodation arrangements have been handled informally through verbal agreements or outdated tenancy documents. Farms should now review all cottages, caravans, retired worker accommodation, and employee housing arrangements to ensure they remain legally compliant.
The new legislation also highlights the need for clear occupancy agreements, properly drafted employment contracts, and accurate records relating to rent and accommodation deductions.
Ultimately, accommodation on farms can no longer be treated as an informal arrangement. It is now a significant legal, HR, and business risk area that requires careful management and, in many cases, specialist rural legal advice.
Discover more from REAL Success
Subscribe to get the latest posts sent to your email.
