The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025 and represents one of the most significant reforms to the private rented sector in decades. Although not yet fully in force, the Government is implementing its provisions in phases, allowing landlords – including faith-based organisations and charities providing housing or accommodation as part of their mission – time to prepare.

For many faith-based charities, property plays a crucial role: supporting vulnerable individuals, housing clergy or ministry workers, or fulfilling social justice and community outreach aims. Understanding these changes now will help ensure compliance in a good time with the new changes, protect beneficiaries, and support ethical stewardship.

This article outlines the key timelines, changes, and practical steps your charity should take.

Timetable and key reforms

The Government plans to implement the Act in three phases:

  • Phase 1 – 1 May 2026
  • Phase 2 – Late 2026 onwards
  • Phase 3 – Mid to late 2030s

Below is a summary of the changes that are most relevant to faith-based charities involved in renting property, housing service users, or managing accommodation as part of their charitable work.

Phase 1 changes (up to 1 May 2026 and beyond)

From 27 December 2025: Strengthened Local Authority Powers

Local authorities gained new powers to:

  • Inspect private rented sector (PRS) properties
  • Request documents
  • Access third party data where a breach is suspected

What this means for faith-based charities:

Charities providing supported accommodation or renting homes to staff or beneficiaries should ensure:

  • Property records (EPCs, safety certificates, tenancies and licences) are up to date
  • Houses used for ministry or community purposes meet legal standards

March 2026: government ‘Implementation Sheet’ published

A mandatory tenant information sheet will need to be issued.
This must be provided to tenants by 31 May 2026, with fines of up to £7,000 for non-compliance.

Relevance to faith-based charities:

Even if tenants are clergy, missionaries, staff, volunteers, or service users, the obligation still applies unless the arrangement falls under very specific exemptions. It is safer to assume you must comply unless advised otherwise.

30 April 2026: final day to serve Section 21 notices

Section 21 “no-fault” notices to terminate can now no longer be served. If one had been validly served before 30 April 2026, possession proceedings must now begin by 31 July 2026.

From 1 May 2026: the most significant changes begin

  • Fixed-term Assured Shorthold Tenancies (ASTs) abolished: all tenancies become periodic. Faith-based charities providing accommodation under standard ASTs will move automatically to open-ended periodic tenancies.
  • Section 21 abolished (no fault eviction ends). From this date, charities wishing to recover properties must use specific Section 8 grounds and ensure good supporting documentation.
  • New rules on rent and upfront payments:
    • Rent in advance limited to one month
    • Rent bidding banned
    • Rent increases limited to once per year and only by following a prescribed procedure
  • Anti-discrimination & pets. Strengthened protections apply, including:
    • Prohibitions on excluding tenants with children or benefit recipients
    • Tenants may request pets; refusal must be reasonable and justified

Relevance to faith-based charities:

Where accommodation supports vulnerable groups or involves shared community living, charities should document clear, objective reasons for accepting or declining pets (e.g., safeguarding, allergies, property suitability).

What faith-based charities must do by 31 May 2026

  • Provide all existing tenants with the Government information sheet
  • Issue written terms if none exist
  • HMO (houses in multiple occupation) landlords relying on Ground 4A must serve notice of intention

Phase 2 (late 2026 onwards)

National Property Registration System

A mandatory national database for private rented sector (PRS) properties will be introduced.

Charities will need to register:

  • Property details
  • Occupancy
  • Safety documentation
  • Owner/charity contact information
  • Annual registration fee

This applies whether the charity owns one property or multiple properties.

Phase 3 (mid-late 2030s)

Decent Homes Standard (PRS)

For the first time, minimum standards covering safety, energy efficiency, repair, and habitability will apply to the private rented sector.

Faith-based organisations undertaking social housing, supported living, or community housing projects should plan for long term investment to meet these standards.

What faith-based charities should do now

  • Audit all accommodation:
    • Identify all properties used for staff, clergy, volunteers, or service users
    • Confirm tenancy type and contract status
    • Evaluate whether any s21 routes should be used before April 2026
  • Prepare for periodic tenancies. Consider how your ministry or charitable operations may be affected by tenancies that no longer naturally end.
  • Update your documentation. Review all tenancy/occupancy agreements, focusing on:
    • Rent increase clauses
    • Rent in advance terms
    • Provision for pets
    • Termination clauses
  • Communicate clearly with residents. This is particularly important where beneficiaries may need additional support to understand their rights.
  • Reinforce property inspection & safety compliance. Ensure all ministry housing, supported accommodation, and staff residences are safe and properly documented.
  • Review financial planning. The charity should plan for:
    • Lower upfront rent collection
    • Potentially longer legal processes for possession
    • Future registration fees
    • Long-term property upgrade requirements

Supporting mission through compliance

For many faith-based organisations, providing safe, stable housing is an expression of pastoral care and community service. The changes under the Renters’ Rights Act, while substantial, can also strengthen trust and transparency between charities and the people they support.

If you would like assistance tailoring your tenancy documents, assessing whether your occupancy arrangements fall under charitable exemptions, or ensuring compliance with the Act, we are happy to assist. Please get in touch with Jamie Huard or Janani Puvi.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require further advice.