..So if a 6 year "no fault eviction" / "security of tenure" applies to small landlords - and presuming there's no way of "contracting out" of this, that would seem to make it extremely unattractive to a small landlord who, say was going overseas to work for 2 or 3 years as they'd potentially not be able to ragain possession of their property upon their return until the 6 years is up? - i.e. Even if they had agreed a shorter period with the renter at the outset - the renter could simply change their mind and hang on through the balance of the 6 years?
Surely there'll be a better way to do this if two parties had agreed a set term at the outset - or does this new setup override any such agreement?
It should be OK. You can still evict the tenant when you come back after 3 years away but you cannot get back to market rent as you would be availing of the no fault eviction process which I believe is moving a family member back in, selling the property etc.
Tenancies of unlimited duration to be enhanced by introduction of rolling-six year tenancies of minimum duration for smaller landlords (three or fewer tenancies) with restricted grounds for ending a tenancy.
Smaller landlords (three or fewer tenancies) will only be able to terminate a tenancy during the six-year tenancy in limited circumstances:
- Where they face hardship, which will be defined in legislation (e.g. separation/homelessness/emigrant returning from abroad/bankruptcy);
- They require the dwelling for an immediate family member (parent/child/spouse).
- Smaller landlords (three or fewer tenancies) will only be able to terminate a tenancy during the six-year tenancy in limited circumstances:
- Where they face hardship, which will be defined in legislation (e.g. separation/homelessness/emigrant returning from abroad/bankruptcy);
- They require the dwelling for an immediate family member (parent/child/spouse).
- At the end of each six-year tenancy, a smaller landlord will have the right to terminate a tenancy due to:
- Intention to sell;
- Renovation of the property;
- Require property for family member
- Change of use.
All Landlords who have entered into a new tenancy arrangement on or after March 1st 2026 will have the right to reset rent where the rent is below market at the end of each six-year tenancy, unless a ‘no fault eviction’ occurs.
I think it works as follows:Or is it just that the rent can be reset after 6 years?
That is my reading of itSo I am a smaller landlord with 1 apartment rented out at below market rate, the current tenant is with me for the last 3-4 years; if I get a new tenant after 1st Mar 2026, I will be able to reset the rent to market rate (good for me) but have to sign a 6 year tenancy (fair enough, good for tenant) but I will not be able to sell the property for 6 years (assuming the new tenant wishes to stay), have I that correct? Would be bad for me!
Perhaps you could own two properties and your spouse the other two properties. Transfer of assets between spouses are tax-free.We own 4 rental properties, so I guess we will be classed as a large landlord, and so it seems as though we will be restricted with what we can do with the properties unless the tenants leave voluntarily.
but I will not be able to sell the property for 6 years (assuming the new tenant wishes to stay), have I that correct?
All landlords will be able to sell a property with tenant in-situ at any time.
Except that the option to vacate and sell is now gone. You can only sell with tenant in situ which will depress the price if you are below market rent. This is my readingMy understanding is (and I may be wrong in this) is that all the old rules around rent increases, evictions etc. apply to existing tenancies
That is not my reading, I think those options will remain available with tenancies created pre- 1 March 2026. The new rules only apply to post March 2026 tenancies. I think that has to be the case, otherwise they are making changes retrospectively. I am 100% open to correction though, I may have the wrong end of the stick.Except that the option to vacate and sell is now gone. You can only sell with tenant in situ which will depress the price if you are below market rent. This is my reading
I suspect they will join up 'connected parties'. They do that in tax and company law where splitting like that could be used to avoid a particular rule.Then you are both small landlords
I suspect that they are 100% permanent and forever now!RPZ were initially temporary. Is there a timeframe for this new version?
That is now my understanding as well. So as a 'large' landlord (ie. owner of 4 properties), I don't need to worry about any of the existing tenancies as the current rules will continue to apply. If one of them ever to decides to leave voluntarily (unlikely for a while), I then need to weigh up whether I begin a new tenancy (which will come with the new 'large' landlord restrictions that will mean I can't ever do a no fault eviction) or take it off the rental market altogether.My understanding is (and I may be wrong in this) is that all the old rules around rent increases, evictions etc. apply to existing tenancies. The new rules only apply to tenancies created after 1 March 2026. So when an existing tenant leaves, landlords will face a choice; sell up or re-let subject to the new rules. Alternatively, if it is an existing tenancy you will still be able to evict to sell or move a family member in.