Farms and estates urged to prepare for sweeping rental law changes

Carter Jonas says these changes could have profound consequences for rural estates
Carter Jonas says these changes could have profound consequences for rural estates

Rural landlords are being urged to review cottages, farmhouses and estate properties following the introduction of sweeping rental reforms under the Renters’ Rights Act, which became law this week.

The legislation represents the biggest shake-up of the private rented sector in decades, bringing major implications for those letting property in the countryside.

Property consultancy Carter Jonas has warned that landlords who fail to understand the new framework risk fines, rent repayment orders, or long-term complications in recovering possession of tenanted homes.

Under the new law, all assured shorthold and fixed-term assured tenancies will automatically convert to open-ended, periodic tenancies, marking the end of fixed-term lets.

The abolition of Section 21 ‘no-fault’ evictions means landlords will now require valid grounds to regain possession — such as selling the property or moving in themselves — while notice periods are being extended and informal arrangements discouraged.

Carter Jonas says these changes could have profound consequences for rural estates that have traditionally relied on flexible tenancy agreements or long-standing informal lets.

In many cases, owners could now find themselves dealing with lifetime occupancy unless they meet one of the prescribed legal grounds for possession.

Transparency will also increase. A new public database of landlords and advertised rents will prevent landlords from accepting offers above the listed rent or engaging in competitive bidding.

Meanwhile, properties that fail to meet the Decent Homes Standard or new requirements under Awaab’s Law — which covers damp, mould, and minimum safety standards — will expose landlords to both financial and reputational risk.

Chris Turner, partner at Carter Jonas, said the reforms marked a major turning point for the sector. “For rural landlords the game has changed,” he said.

“Every tenancy must now be treated as a long-term investment within a new legal framework. Unless you are confident in compliance, enforcement, documentation and asset management, you risk being caught out.”

Turner added that many rural landlords are already taking a strategic view of their portfolios, planning ahead for compliance and the likely costs of upgrading older housing stock.

“We are talking about costs of £30,000 or more on older rural lets to meet proposed insulation, energy performance and safety standards over the next decade,” he said. “The new law doesn’t just raise the bar for new tenancies — it means existing lets must be analysed now.”

Rising rural rents may help soften the financial blow. Properties that once rented for under £1,000 a month are now commanding closer to £1,500, according to Carter Jonas — but the consultancy warns that regulatory compliance will remain the biggest challenge.

The firm is advising landlords to carry out full property audits to assess compliance, review tenancy documentation, and plan exit or possession strategies under the new rules.

Engaging professional property management will be vital, it says, particularly for estates with worker housing, heritage buildings, or complex rural lets.

Turner said: “Every landlord should be auditing their properties and seeking advice now. The bar for professional management has been raised — and ignoring it could prove costly.”

Further guidance from the Department for Levelling Up, Housing and Communities is expected later this year, clarifying how the new regulations will apply to rural and agricultural tenancies.