AST reform for charities

The new regime to replace ASTs will be introduced from 1 May 2026 and charities should consider the implications now.

Charities with current tenants occupying on Assured Shorthold Tenancies (ASTs) or which may grant new ASTs in the near future need to be aware that the legal regime for ASTs is set to change from 1 May 2026 under the new Renters Reform Act 2025.

The changes in law will end the current AST regime and replace it with a revamped “assured tenancies” regime as the default tenancy regime for the private rented sector.

Highlights of the new regime include:

• There will be no more fixed term tenancies. All tenancies will be rolling monthly tenancies, which will continue until terminated by a valid notice.

• Tenants will be able to terminate by giving two months’ notice.

• There will be no more s.21 “no-cause” terminations by Landlords. Landlords will only be able to terminate if a statutory ground for termination applies.

• The application of the regime will be broadly similar to the current AST regime, including: the regime does not apply to tenancies granted to companies, the minimum annual rent is £250 outside London or £1000 in London, and maximum annual rent is £100,000. It will not apply to farming tenancies.

• Most existing ASTs will automatically convert to the new regime, but there are transitional arrangements for ASTs with a fixed term over 7 years

• At the time of writing it is still lawful (subject to individual circumstances) to issue a s.21 notice to terminate a current AST

Further guidance

Wrigleys will issue more detailed guidance on some of the changes, particular sectors and scenarios in due course. In broad terms we recommend that charities review any current ASTs, keep abreast of the changes and look out for further updates from Wrigleys, and consider what is in the best interests of the charities and the charities beneficiaries in relation to both current and future residential tenancies. There is speculation that many landlords will terminate now using the s.21 process while they can. That option is open to charities like any other landlord, but as well as being obliged to act in the best interests of their beneficiaries charities also need to be mindful of the risk of reputational damage if they take such action.

If you would like to discuss any aspect of this article further, please contact the charities and social economy 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.