What trustees need to know about the Renters' Rights Act 2025

Do trustees need to worry about the Renters' Rights Act 2025 (the Act), directed as it is at levelling the playing field between landlords and tenants, and taming the runaway buy-to-let investment market? Trustees will be aware that section 21, the so-called 'no fault' eviction, has been abolished, but does that really matter? And even if it does, can anything be done to protect residential property held in trust? Here are some answers.

Why does the Renters' Rights Act 2025 matter for trustees?

Section 21 'no fault' eviction is frequently painted as the tool of heartless landlords, used to evict blameless tenants – as indeed it sometimes was. Few landlords with a rent-paying, law-abiding tenant, however, would seek to evict them for no reason.

The real utility of section 21 lay in the fact that it covered the plethora of situations where a landlord might validly need possession, that weren't covered by the grounds in the Housing Act 1988. Although the grounds for possession have been updated and extended by the Act, there are still some gaping holes and now no section 21.

Some grounds for possession trustees should be aware of, and their limitations, are as follows:

Ground 1 – occupation by family member

This ground provides that a landlord can recover possession if they want the property back so that the landlord, or the landlord's spouse, parent, grandparent, sibling or grandchild, can live in it – and was clearly designed for landlords who are private individuals. The problem for trustees is immediately apparent: houses on the estate will often be let to third parties to generate income until required for occupation by beneficiaries. But where the estate is held in trust, how can that familial relationship be established – especially when neutral professionals are often chosen to be trustees, to ensure that all family members are fairly represented?

There is no simple answer. The Act states, "in the case of joint landlords seeking possession, references to 'the landlord' … are to be read as references to at least one of those joint landlords". On the face of it, therefore, if even just one trustee is a qualifying family member of the person wanting to occupy the property (or one could be appointed as an additional trustee), that may suffice, but care must be taken to ensure that all beneficiaries interests will remain fairly represented.

Where the estate is held by a company, establishing that relationship is more problematic. Commonly, either the company will own everything or it may hold on behalf of further, underlying trusts. There may be opportunities to appoint an additional individual trustee, or declare that the property is held on a further bare trust to get the property into a sufficiently connected family member's name – but advice will need to be tailored to each situation. Any such arrangements must also be scrutinised in the round to ensure they neither disrupt existing tax arrangements nor offend rules about what trustees can do.

Remember too that the tenancy must have begun at least 12 months before this ground is used.

Ground 1A – sale

This ground can be used to regain possession of a property where the landlord wants to sell the property. Again, the tenancy must have begun at least 12 months before the termination date specified in the notice, and the landlord must have a genuine intention to sell.

We do not yet have case law to know for certain, but we must expect that 'intention to sell' will take its ordinary meaning: a tenant is likely to want to see evidence of a firm and settled intention to sell both at the date of the notice and at the date of termination, as well as evidence that selling the property is objectively realistic, such as marketing at an appropriate price.

Trustees seeking to use this ground should start discussions with estate agents early (before or at the same time as serving the notice) and keep records of all correspondence, including discussions of agency terms and arrangements for producing brochures. Assuming the tenancy allows access for them, arranging viewings will also help demonstrate intention to sell. Off-market sales may prove more tricky to document, but keep whatever evidence you can, including correspondence with buying agents and buyers directly.

Remember that once a landlord has obtained possession using this ground, they cannot re-let the property for a further 12 months (under a lease or licence for monetary consideration) after the notice to quit has expired.

Ground 6 – redevelopment

There may be properties on the estate which have been let to the same tenant (often for a long time) and which may be in poor condition. As part of wider estate planning, the intention may be to bring them back in hand, smarten them up and then either put a family member in them or re-let them for a higher rent.

Trustees wanting to rely on this ground must look carefully at the extent of the works they want to carry out. The works must comprise either demolishing or substantially rebuilding the property, or otherwise be so fundamental that it is not reasonable (or safe) to carry them out with the tenant in situ. The ground cannot be used where the tenant will agree a variation of the tenancy (and such a variation is possible), to permit the works to be done without the tenant leaving.

Alternatives to assured tenancies under the Renters' Rights Act 2025

For properties needed to house family members in the future, but which trustees want to let to third parties now, it is worth considering whether arrangements can be structured to avoid the Act in the first place.

Service occupancy agreements can be created for staff, where the strict legal criteria is made out (it is a condition of the employee's employment that they must live in the property, and it is genuinely the case that it is necessary for them to live there) and may work well for properties near the main house.

Common law tenancies, which also fall outside the Act, can be created in a number of ways, including where the property is let for low rent (less than £250 per year, or less than £1,000 in London), no rent or high rent (more than £100,000 per year). They are also created where the property is let to a company, used as a second home or let with two or more acres of agricultural (not garden!) land.

In all cases, trustees should bear in mind that, without section 21 to fall back on, foresight and forward planning are now required to ensure properties are available when needed in the future.

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

© Farrer & Co LLP, July 2026