Implications of the Renters' Rights Act in England for Employee Relocations to the UK.

The UK Government has passed the Renters' Rights Act (the Act) in England, which represents what many feel is the most significant overhaul of the private rented sector in over 30 years.

In this article, we aim to explain some of the key changes and implications for Global Mobility teams and the Home Search services provided to assignees moving into England.

A row of london houses with a To Let board outside

The primary goal of the Act is to provide greater security, stability, and quality for tenants by creating a fairer system.

The Act received Royal Assent on the 27th October 2025, with commencement set for 1st May 2026 for the majority of changes. Phase 2 (from late 2026) focuses on accountability and dispute resolution, including the rollout of a landlord database and ombudsman. Phase 3 will focus on improving housing quality and standards, including a new Decent Homes Standard, which current government proposals suggest will be in force from around the mid-2030s (exact dates subject to consultation).

Overview of Key Changes:

The Act reforms the entire tenancy system for most residential rentals in England:

Periodic Tenancies: The Act abolishes Assured Shorthold Tenancies (ASTs) and fixed-term contracts. All tenancies will become periodic (rolling), meaning tenants can end a tenancy with two months’ notice, with the end date aligned to a rent period.
End of No-Fault Evictions: Landlords will no longer be able to use Section 21 to end a tenancy. They must instead rely on new or strengthened mandatory grounds for possession (e.g., tenant fault, moving in, selling). Landlords retain the right to regain possession of their property when they wish to sell or move themselves or close family members into the property, but they must instead rely on new or strengthened possession grounds (some mandatory, some discretionary), e.g. tenant fault, moving in, or selling.
Rent Increases: Landlords can only increase rent once per year and must provide two months' notice. Tenants can challenge above-market rent increases via a tribunal.
Renting with Pets: Tenants gain a strengthened right to request a pet. Landlords must consider the request and cannot unreasonably refuse it.
Decent Homes Standard: The Decent Homes Standard will apply to the private rented sector, requiring properties to be safe, well-maintained, and free from serious hazards. (Note this is part of phase 3, set for implementation in the mid 2030's).
Banning Rental Bidding: Landlords and agents must publish an asking rent, and it will be illegal to accept offers made above this rate.
Ombudsman & Database: A new mandatory Private Rented Sector Landlord Ombudsman will be introduced to handle tenant complaints impartially. A Private Rented Sector Database will also be established to ensure compliance.

Implications for Employees relocating to the UK.

For assignees moving to the UK who usually secure short to medium-term tenancies, the changes carry both direct and indirect implications.

For assignees moving to England, who typically rent for a medium term, the Renters' Rights Act fundamentally changes the balance of security and flexibility, with most impacts being positive for the employee.

Significantly Increased Flexibility and Control: The abolition of fixed-term contracts in favour of periodic tenancies is a major benefit. Assignees are no longer locked into 12 or 24-month commitments and forced to rely on complex, often contentious, break clauses. Instead, the tenant holds the power to end the tenancy with just two months' notice at any time. This offers maximum flexibility if the assignment timeline shifts or if the employee needs to move quickly for professional or personal reasons.
Enhanced Stability and Protection from Arbitrary Moves: The ban on Section 21 'no-fault' evictions provides significant peace of mind. Assignees will no longer face the risk of being uprooted simply because the landlord decides to regain possession without cause. This stability is reinforced by two key safeguards: a 12-month protected period at the start of the tenancy (during which the landlord cannot use the grounds for selling or moving in) and the extended four months' notice required should the landlord exercise these new legitimate possession grounds.
Clarity and Fairness in the Home Search Process: The ban on rental bidding directly improves the efficiency of the relocation process. The advertised rent is the more accurate, final price, which simplifies budgeting. Crucially, the removal of upward pressure creates a better environment for downward negotiation in slower markets. However, the new restrictions on landlords requiring more than one month’s rent upfront may slightly reduce an assignee’s ability to use a large cash payment (e.g., 6-12 months' rent) as leverage to quickly secure a property when competing with local tenants with established credit histories.
Assured Quality and Simple Recourse: The introduction of the Decent Homes Standard means assignees are guaranteed a property free from serious hazards and in a reasonable state of repair, reducing the likelihood of initial maintenance issues. If problems do arise, the creation of a mandatory, binding Private Rented Sector Ombudsman gives the employee a simple, free route to resolve complaints without fear of eviction, ensuring a higher standard of living.
Easier Pet Ownership: The strengthened right to request a pet significantly improves the quality of life for employees relocating with their families, as landlords must now have a reasonable, explicit reason to refuse the request.

Applicability and Key Exemptions

The Act applies to all residential assured tenancies in England, provided they meet specific criteria:

The tenant must be an individual, not a company.
The tenant must be occupying the property as their only or main home.
The rent must be more than £250 per annum (£1,000 in greater London) and less than £100,000 per annum.
The original term of the tenancy does not exceed 21 years.

The key exemption is Company Lets. If the property is rented via a Company Let, where the employer/company is the official tenant and selects the employee living in the property themselves, the tenancy is not an assured tenancy and the Renters' Rights Act will not apply. Therefore, for assignees, if the tenancy is structured as a Company Let, fixed-term contracts (e.g., 12 or 24 months) and existing termination clauses can continue to be used.

Potential Market Implications

Whilst the changes are generally well-intended to improve protections for Tenants, Global Mobility teams may need to anticipate some knock-on effects

Landlords may favour higher-income, low-risk tenants
Increased compliance rules may push some landlords out of the market, tightening supply
Agents may recalibrate processes which could mean a possible increase in admin requests (ID checks, immigration checks, pet documentation).

At Bournes Relocation Solutions, we will continue to monitor these changes and their impact on our Home Search services and brief our clients accordingly.