Blog: Friday 10th April - Sharpe Pritchard: Renters’ Rights Act 2025: MHCLG consultation on revised social housing tenure for local authorities and social landlords

Gemma Duncan, Partner

Renters’ Rights Act 2025: MHCLG consultation on revised social housing tenure for local authorities and social landlords

The Government’s long awaited Renters’ Rights reforms represent one of the most significant shake-ups of the rented sector in a generation. Designed to strengthen tenant protections and rebalance the relationship between landlords and renters, the changes will also have important implications for local authorities and social housing providers.

MHCLG has launched a consultation on a draft Direction to replace the existing 2012 Tenure Direction proposing a revised tenure standard that the Regulator of Social Housing (RSH) must implement, to align social housing regulation with the Renters’ Rights Act 2025.  This proposed Direction would, for the first time, apply to all local authority housing, including stock held outside the Housing Revenue Account (HRA).

Gemma Duncan explains the implications of the proposed Direction for local authorities.

Social Housing Tenure Standard – Direction to the Regulator of Social Housing

(Consultation published 2 April 2026)

What is this and why is it needed?

The Renters Rights Act 2025 aims to modernise the private rented sector by improving security and standards for tenants, while introducing clearer and more consistent rules for landlords.  From 1^st May 2026 the following key reforms will come into force:-

• abolition of Section 21 ‘no-fault’ evictions, limiting the circumstances in which landlords can gain possession;
• removal of fixed-term assured shorthold tenancies and a move to a standard periodic tenancy model with no fixed end date;
• limitations on rent increases;
• an end to discrimination for those in receipt of benefits, families with children under 18 and those with pets.

To accompany these changes MHCLG has published an Information Sheet which landlords and letting agents are legally obliged to provide to residential tenants by 31 May 2026 and has made available new prescribed forms for tenancy processes which should be used from 01 May 2026.

To align social housing regulation with the reforms being introduced by Renters Rights Act 2025, MHCLG has launched a consultation on a proposed new Direction to the Regulator of Social Housing (RSH) requiring it to set a new Tenure Standard for social housing to replace the 2012 Tenure Direction.

Why it matters for local authorities

• For the first time, the Direction will apply to all local authority social housing, including stock held outside a Housing Revenue Account (HRA).
• The Direction focuses on tenant security, transparency and fairness, while allowing landlords some flexibility in how outcomes are delivered.
• It prepares the regulatory framework for the commencement of tenancy reforms in the social rented sector from October 2027.

Who is in scope?

The proposed Direction applies to all Registered Providers of social housing in England, including:

• Local authority Registered Providers (with and without an HRA)
• Private Registered Providers (e.g. housing associations)

The Direction will apply to low cost rental accommodation only; intermediate rent and low-cost home ownership would remain excluded.

Summary of changes in proposed Direction

Granting tenancies

RSH will be directed to set a standard requiring landlords, so far as possible, to grant tenancies that are compatible with:

• the purpose of the accommodation
• household needs
• community sustainability
• efficient stock use
• legal tenure requirements

Landlords will need to have regard to granting the most secure tenancy suitable, recognising that local authorities may use secure, introductory or fixed term (“flexible”) tenancies under existing legislation.  References to tenancy types that will no longer be available for private registered providers will be removed, e.g. ASTs.

Inclusion of LA non-HRA social housing stock

In January 2026 the government increased the threshold at which a local authority is required to open an HRA from 200 to 1,000 homes, increasing the number of social housing tenants are local authorities but whose home is not held in the HRA.  The proposed Direction would remove the current exclusion for non-HRA accommodation contained in the 2012 Direction.

Transparency and clarity

Landlords will be expected to be clear and transparent with tenants (and prospective tenants) about:

• When and why different tenancy types are used
• The length and review of any fixed term tenancies
• Their approach to tenancy management, eviction prevention, complaints, appeals and succession rights

The Direction moves away from requiring published tenancy policies, instead focusing on outcomes and tenant understanding.

Regeneration and alternative accommodation

Where a move is required (e.g. regeneration or major works), Registered Providers will be expected to:

• Be transparent about advice and assistance available to tenants
• Take all reasonable steps to engage with tenants to identify suitable alternative accommodation before a tenancy ends.

Timing and next steps

• Consultation runs 2 April – 28 May 2026 and responses can be submitted via an online survey http://consult.communities.gov.uk/allocations-and-tenancies/consultation-direction-to-the-rsh-tenure-standard
• Consultation documents can be accessed here http://consult.communities.gov.uk/allocations-and-tenancies/consultation-direction-to-the-rsh-tenure-standard
• Government intends to issue the final Direction by October 2026
• Once issued, RSH must consult on and update its Tenure Standard
• Tenancy reforms for social housing are expected to commence from October 2027.

Practical takeaway for local authorities:

Local authorities should review:

• Whether any housing stock is held outside the HRA
• Current tenancy practices and communications
• Approaches to fixed term tenancies, regeneration moves and tenant engagement

Early alignment will reduce regulatory risk once the revised Tenure Standard is in force.