Understanding tenancy agreements in 2026

The private rented sector has undergone significant changes in recent years, particularly following the introduction of the Renters’ Rights Act. As a result, landlords may find that some tenancy arrangements they were familiar with no longer exist or now operate differently.

To help you stay up to date, we’ve put together this guide to the main tenancy types used in England today, along with the key legal changes that could affect how you manage your property and tenancy agreements.

 

What is a tenancy agreement?

A tenancy agreement is a legal contract that sets out the rights and responsibilities of both the landlord and the tenant. It usually covers details such as:

  • The amount of rent payable
  • When rent is due
  • Maintenance responsibilities
  • Any services included within the rent
  • The terms under which the property is occupied

Although tenancy agreements can be verbal, a written agreement is generally recommended as it provides clear evidence of the terms agreed by both parties.

 

How the Renters’ Rights Act changed tenancies

Major reforms introduced in May 2026 altered the way most residential tenancies work in England. Landlords should be aware of several important changes.

Assured Shorthold Tenancies have been replaced

For many years, assured shorthold tenancies (ASTs) were the standard tenancy agreement used across the private rented sector. However, these agreements were abolished in May 2026 and automatically converted to assured periodic tenancies (APTs).

This means landlords can no longer create new ASTs, and all new residential tenancies now begin under a periodic tenancy structure.

Fixed-term tenancies have ended

Traditional six- or twelve-month fixed-term agreements are no longer available. Instead, tenancies continue on a rolling basis with no predetermined end date.

A tenancy can end when:

  • The tenant gives notice
  • Both parties agree to end the tenancy
  • The landlord successfully obtains possession under the legal grounds available

Section 21 notices have been abolished

Landlords can no longer use Section 21 “no-fault” notices to regain possession of a property. Instead, possession must be sought using a valid legal ground under Section 8 of the Housing Act 1988.

The revised grounds are intended to balance tenant security with legitimate landlord needs, including circumstances where a landlord wishes to sell a property, move into it themselves, house close family members, or deal with serious tenant misconduct.

Rent review clauses no longer apply

Many tenancy agreements previously included clauses allowing rent to be increased automatically at specific intervals. These clauses can no longer be relied upon.

Landlords wishing to increase rent must now use the formal Section 13 procedure, provide the appropriate notice, and give tenants at least two months’ warning of any increase.

 

The main tenancy types landlords should know

Assured Periodic Tenancy (APT)

The assured periodic tenancy is now the standard form of residential tenancy in England.

Unlike former AST agreements, there is no fixed end date. The tenancy continues until either the tenant ends it, both parties agree to end it, or the landlord regains possession through the appropriate legal process.

Landlords seeking possession must rely on recognised Section 8 grounds, which include:

  • Significant rent arrears
  • Anti-social behaviour
  • Property redevelopment
  • Sale of the property
  • Occupation by the landlord or certain family members

For most landlords, this is now the tenancy type they will be using.

Former Assured Shorthold Tenancies

While ASTs can no longer be created, landlords may still encounter references to them in older paperwork. Any remaining ASTs automatically converted into assured periodic tenancies when the new legislation took effect.

Excluded Tenancies (lodger agreements)

Different rules apply where a landlord rents out a room within their own home and shares facilities such as a kitchen or bathroom with the occupier. In these circumstances, the occupier is typically considered a lodger rather than a tenant.

Lodgers generally have fewer legal protections than tenants renting self-contained accommodation. For example, landlords may only need to provide reasonable notice to end the arrangement.

This distinction is important because different legal processes apply depending on whether someone is a tenant or a lodger.

Regulated Tenancies

Some landlords may still have tenants occupying properties under regulated tenancies that began before 15th January 1989. These are increasingly rare but remain important because they offer substantial protections to tenants.

In many cases:

  • Tenants have enhanced rights against eviction
  • Family members may have succession rights
  • Rent may be set through the fair rent system rather than by open market conditions

Landlords with regulated tenancies should seek specialist advice before taking any action affecting the tenancy.

Other occupancy arrangements

Not all rental arrangements fall within standard residential tenancy rules.

Company lets

A company let exists where a property is rented to a business rather than an individual. These agreements are generally governed by contract law rather than many of the residential tenancy rules that apply to private tenants.

As a result, some provisions introduced by the Renters’ Rights Act do not apply in the same way.

Occupiers with basic protection

Some occupiers benefit from limited protection from eviction, including those living in accommodation connected to employment, certain student accommodation, or property guardianship arrangements.

While landlords may still require a court order to recover possession, the legal framework differs from standard assured periodic tenancies.

 

What do these changes mean for landlords?

The move to periodic tenancies and the removal of Section 21 have increased the importance of correct procedures and thorough record-keeping.

Landlords now need to ensure that:

  • Tenancy documentation is accurate and up to date
  • Rent increases follow the Section 13 process
  • Any possession action is supported by valid legal grounds and appropriate evidence
  • Their insurance arrangements reflect the type of tenancy they operate

Where possession claims become lengthy, or tenants fall into arrears, legal expenses and rent guarantee cover may help reduce the financial impact, depending on the policy chosen and its terms.

Private residential renting has changed significantly, but understanding the tenancy agreement in place remains one of the most important responsibilities for any landlord. Whether you’re letting a single residential property, taking in a lodger, or managing a more complex arrangement, staying informed about the rules can help you remain compliant, avoid disputes, and protect your investment.


This article is intended as a guide only. Please note that legislation does change, it is always best to check the most up to date guidance on gov.uk. Most landlord insurance policies arranged by Alan Boswell Group also have access to a legal advice helpline where policyholders can seek further advice.

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