The Renters’ Rights Act 2025 and community-led housing

Does the Renters' Rights Act apply to your community land trust, housing co-operative or cohousing group?

While headlines have focused on the impact of the Act on private landlords and tenants, the implicationsfor the community-led housing sector have largely gone undiscussed.

The Act, which came into force for private landlords on 1 May 2026, introduces significant changes to the law governing assured tenancies and assured shorthold tenancies. One of its most widely publicised reforms is the abolition of so-called "no fault" evictions, giving greater security to tenants and limiting the circumstances in which landlords can recover possession of their properties.

However, the extent to which the new regime affects community-led housing organisations will depend on the legal structure they use and the type of occupancy arrangements they grant.

Housing co-operatives

For fully mutual housing co-operatives, the position remains largely unchanged. Tenancies granted by fully mutual co-ops fall outside the assured tenancy regime under the Housing Act 1988 and are therefore not affected by the reforms introduced by the Act.

The position may be different for co-operatives that are not fully mutual. Where some occupiers are not members of the co-op, and the co-op grants assured or assured shorthold tenancies, those tenancies are likely to fall within the scope of the new legislation. Such organisations should therefore consider whether any of their existing tenancy arrangements are affected.

Cohousing groups

Many cohousing communities operate through the grant of long leases. In most cases, these leases will have terms exceeding 21 years and will therefore fall outside the scope of the Act.  That said, assumptions can be risky. Groups should take the opportunity to review their occupancy arrangements and confirm the term of each lease. While long leases remain unaffected, shorter leases may be caught by the new regime and could require closer consideration.

Community land trusts

The position for community land trusts that provide homes through long leases of more than 21 years are unlikely to be affected by the reforms.  However, where a CLT grants shorter or periodic tenancies instead of long leases, those tenancies are likely to be subject to the new rules. Trustees and directors may therefore wish to review their housing arrangements to understand whether any changes to their policies or procedures will be required.

Don't overlook subletting arrangements

One area that organisations and residents may easily overlook is subletting.  Even where a co-op, cohousing group or CLT falls outside the scope of the Act, a subletting arrangement may not. If a member or tenant grants a sublease for a term of less than 21 years, that sublease is to be subject to the reforms introduced by the Act.

For organisations that permit subletting, this is an area worth reviewing carefully to ensure both the organisation and individual residents understand their rights and responsibilities under the new legislation.

A different picture from the private rented sector

Much of the debate around the Renters' Rights Act has focused on the impact on traditional private landlords.  For many co-operatives, cohousing groups and CLTs the impact may be limited, particularly where homes are occupied under long leases. However, organisations that grant shorter or periodic tenancies, or whose members sublet their homes, may find that the reforms have a direct effect  on them.

Taking the time to review occupancy arrangements now will help ensure that organisations are well placed to navigate the new regime with confidence.

If you would like to discuss any aspect of this article further, please contact the CLH team on 0113 244 6100.

You can also keep up to date by following Wrigleys Solicitors on LinkedIn.

The information in this article is necessarily of a general nature. The law stated is correct at the date (stated above) this article was first posted to our website.

Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors.