Rural residential tenancies in England

Residential lettings are a common feature on rural estates and farms. In recent years, assured shorthold tenancies (ASTs) with no-fault eviction rights have been the most common form of tenancy for private rented properties. However, in October 2025, the Renters' Rights Act 2025 received Royal Assent. Once the relevant sections come into force, ASTs will be abolished and most lettings will become assured tenancies, with more restrictive grounds for possession. The Ministry of Housing, Communities and Local Government (MHCLG) has published a timeline, which provides for the relevant provisions to come into force on 1 May 2026.

In a rural context, significant statutory protection continues to be conferred on agricultural workers. When dealing with an occupier who is or was employed in agriculture or with a proposed new letting to an agricultural employee, it is important to consider this statutory overlay.

The protection of agricultural occupiers originates from the Rent (Agriculture) Act 1976 and that Act continues to govern arrangements granted to qualifying agricultural workers which pre-date 15 January 1989. Since 15 January 1989, agricultural workers have been protected by the Housing Act 1988 in the form of assured agricultural occupancies (AAOs).

Although the parties can choose to contract out of the AAO regime, and instead opt for an AST/assured tenancy, this requires formal action to be taken before the worker goes into occupation. This process is often overlooked, leading to the inadvertent creation of AAOs with lifetime security of tenure.

Residential tenancies in Wales

The Renting Homes (Wales) Act 2016 (‘RHWA’) came into effect on 1 December 2022. It introduced a new housing law regime in Wales and marks a very significant change to Welsh housing law. Further details can be found in Other statutory regimes.

This section is maintained by Josie Edwards and Vivienne Williams of Michelmores LLP.

RICS templates: Farm Business Tenancy Agreements