Renters Rights Act and schools – hurry up and wait

Although the Renters' Rights Act (Act) received Royal Assent on 27 October, it is (largely) not yet in force – but we do now have an Implementation Roadmap setting out the phased introduction. This is an increasingly common trend in legislation and means that those affected must keep track of a moving picture and plan accordingly. We examine below what schools need to do now and later.

What happens now and next

The Government's Implementation Roadmap was published in November. This useful document confirms that the Act will be brought into force in three phases – and, crucially, that the date on which the new tenancy regime will commence is 1 May 2026. On this date, all new and existing tenancies within scope will take effect as new style tenancies. Fixed terms of less than 21 years will no longer be possible, with all tenancies taking effect as periodic tenancies with a rent period not exceeding one month. The provisions banning contractual rent reviews, rental bidding and being able to ask for more than one month's rent in advance, as well as concerning discrimination will all also come into effect on this date. Last and very much not least, the way in which tenancies can be terminated will change: the last date for serving a section 21 notice is 30 April 2026. From 1 May 2026, landlords cannot serve a notice to quit unless it conforms to one of the updated grounds for possession.

In phase two, landlords will be required to register both themselves and their properties on the private rented sector database (estimated late 2026), and when the ombudsman service is up-and-running, landlords will need to register with that (estimated 2028). Finally, in phase three, which will follow 'later', Awaab's Law and the Decent Homes Standard will be extended to the private rented sector.

How schools are not the same

The Government has made much of its desire to crack down on landlords who unfairly evict tenants; what rights a wrong in one situation may, however, create a problem in another. Where schools own and let accommodation to staff care should be taken to work out which agreements will be caught by the Act, as this will affect how they can be terminated – something that can become incredibly important in a safeguarding situation.

Service occupancy agreements (SOAs)

Many schools let rooms or houses to staff on SOAs. True SOAs are licences and are, as such, outside the scope of the Act; that means that the right to live in the house will terminate automatically when the employment is ended, offering schools maximum flexibility. It also means that if there are safeguarding concerns when a member of staff is dismissed, they can be removed from the site immediately.

For it to be a true SOA it must be the case that; a) there is an express term in the employment contract that an employee must live in the property for the better performance of their duties, and b) it must genuinely be the case that that is required i.e. not a sham.

Hostels

Another common arrangement is for staff to be accommodated in hostels on licences. Again, true licences are outside the scope of the Act and can generally be terminated in accordance with the provisions set out in the agreement (subject to rights under the Protection from Eviction Act 1977 where applicable). Even if there are shared facilities, such as a kitchen, bathroom and living room, however, where the staff have exclusive possession of separate accommodation, even if it is just a bedroom, then that can be sufficient to create a tenancy and bring the arrangement within the scope of the Act.

Where either a purported SOA fails the strict legal test, or a hostel licence turns out to be a tenancy, where less than £250 a year rent is paid (or £1,000 a year in London), the arrangement will still be outside the Act. If more rent that that is paid – or there is a deduction from salary in lieu of rent for more than that sum – then the arrangement is likely to be caught by the Act and can only be terminated in accordance with the provisions of the Act.

How do you terminate a tenancy after 1 May 2026?

Where an agreement is caught by the Act (whether by design or accident) and when schools can no longer use section 21, new Ground 5C is the obvious substitute. To use it the landlord must prove that; 1) the property was let to the tenant in consequence of their employment and 2) either; a) that employment has ended, or b) the occupation was never meant to last the duration of the employment, and the landlord is seeking possession to let to another employee. It is also a prerequisite of serving a valid notice to quit that the landlord and property must be correctly registered on the database and ombudsman, when they are functioning. Where this is the case, the landlord can serve two months' notice on the tenant to get them out. The problem, however, is that a tenant can challenge the notice at court and the landlord/school will need to prove the reasons for eviction meet the legal requirements in court. Even where the school succeeds, this will delay and complicate matters considerably. And where there are safeguarding issues, the delay may prove very difficult to manage indeed.

What to do now (and later)

The key message for schools letting staff accommodation is to review your agreements and work out what will be caught by the Act. Schools may wish to consider terminating agreements that may be caught now (while section 21 can still be used) and re-issuing them on a different basis, such as with no rent, to take the arrangement outside the Act – especially if the aim is to accommodate staff, rather than to generate income.

Where arrangements are caught, the emphasis should be on planning: the Government will publish an 'information sheet' in March 2026, which landlords will need to serve on tenants by 31 May 2026 explaining the new rules. In due course, standard form tenancy agreements will also need rewriting to ensure they do not contain any 'banned' terms, such as rent reviews. Looking further ahead, schools will need to register themselves and relevant properties on the database and join the ombudsman. Make sure your record-keeping and paperwork is up-to-date now, so that it is ready to be registered, when required. Although there will be a lead-in period for compliance, leaving it to the eleventh hour is rarely a good idea. Preparation should start now!

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, December 2025