From 1 May 2026, the Renters' Rights Act 2025 ended assured shorthold tenancies and section 21 "no fault" evictions for most private rentals in England. Existing ASTs became assured periodic tenancies. Lettings to companies are one of the exclusions, so a company let can still be granted as a common law tenancy on agreed terms.
When did the Renters' Rights Act come in?
The Act received Royal Assent on 27 October 2025. The government brought it in in phases, and the main tenancy reforms took effect on 1 May 2026.
What changed for landlords on 1 May 2026?
- New assured shorthold tenancies can no longer be created, and existing ones converted to monthly assured periodic tenancies.
- Section 21 notices can no longer be served. Landlords must use section 8 and the revised grounds for possession, several of which now carry longer notice periods.
- Rent can only be increased once a year through the statutory procedure, and tenants can challenge increases at the First-tier Tribunal.
- Adverts must state the rent, and landlords cannot accept offers above it.
- For new tenancies, rent in advance is limited to one month.
- Landlords cannot refuse tenants because they have children or receive benefits, and tenants have a right to request a pet.
Why are company lets treated differently?
The new regime applies to assured tenancies, and a tenancy can only be assured where the tenant is an individual living in the property. A letting to a company is outside that definition, so it sits outside the new periodic tenancy rules. That is why many landlords are looking at guaranteed rent arrangements, where the company is the tenant.
Does that mean company lets have no rules?
No. Property standards, safety certificates, HMO licensing and council enforcement still apply to the property. A company let also has to be a genuine arrangement with a company, not a way of disguising a tenancy to an individual. Get independent legal advice before changing how you let a property.
Where does this leave Midlands landlords?
If you want to keep letting but prefer a commercial agreement with a company, a company let or a guaranteed rent lease is one option. If you want to stay with ordinary tenancies, fully managed lettings can help you meet the new rules.
This guide is general information, not legal advice. The Act applies in England only.