What does the Renters’ Rights Act 2025 mean for schools and academy trusts?

The long-awaited Renters’ Rights Act 2025 (RRA) is here. From 1 May 2026, assured shorthold tenancies (ASTs) will end. Here’s what schools and academy trusts need to know.

Who does this apply to?

The Act applies mainly in England, with limited application elsewhere. It’s most relevant for schools and trusts in respect of staff accommodation – the most common use is caretakers’ bungalows, but this is by no means the only example.

Service occupancy or licence to occupy?

A service occupancy is a type of licence to occupy, but only where there’s an employer/employee relationship between the licensor and the licensee. All service occupancies are licences to occupy, but not all licences to occupy are service occupancies – like how all Jacuzzis are hot tubs, but not all hot tubs are Jacuzzis.

To qualify as a service occupancy:

• The accommodation must be owned by the employer – for example, the council, governing body or academy trust
• The employee must live there for the better performance of their duties.

Caretakers living in bungalows usually qualify because there’s a clear link between their role and the benefit of living on site – such as being on hand for leaks, security, power cuts and emergencies.

However, for a Head of IT living on site, there isn’t a sufficient link between their role and occupying the accommodation to be considered a service occupant. Instead, they’d be a service tenant.

Service tenants

There are currently two types of service tenant:

• An assured shorthold tenant – soon to be abolished by the RRA; and
• a common law tenant.

To qualify as an assured shorthold tenant, the tenant must pay annual rent of £250 or more (£1,000 or more in Greater London) and no more than £100,000. If rent is outside these limits, or not paid at all, the tenant will be a common law tenant.

The distinction is key. An employee classed as an assured shorthold tenant has significantly greater statutory protections and, as landlord, a school or trust has additional statutory responsibilities.

The RRA affects ASTs, not common law tenancy agreements, so if an employee falls into the former category, a school or trust will need to take note of the legislative changes.

Assured periodic tenancies: key changes

From 1 May 2026, ASTs will be replaced by assured periodic tenancies (APTs). Any existing AST will automatically become an APT.

Fixed terms will be no more so – staff can’t be tied into accommodation for one academic year only. The tenancy will continue until the tenant gives at least two months’ notice or a school relies on a mandatory or discretionary ground for possession, each with varying conditions and notice periods.

Ground 5C is a mandatory ground that lets a school end a tenancy with two months’ notice, where the accommodation was let as a result of the tenant’s employment if their employment ends or where the tenancy was not meant to last the duration of the employment and the accommodation is needed for a new employee.

Other key points

• The RRA also introduces a written statement (expected later this year) that must be served on a tenant before entering into an APT
• Rent reviews are restricted to occurring no more frequently than once a year, in line with market rent increases, and following service of a specific form of notice which tenants can then challenge in the First-tier Tribunal
• Rent can be demanded no more than monthly in advance
• Landlords must consider tenants’ requests to keep a pet and grant consent where reasonable
• Landlords must join a new digital register (not currently in existence)
• Failure to comply with the Act could give rise to penalties ranging from £7,000 to £40,000 and may include criminal liability.

What should schools and trusts do now?

The key takeaway for schools and academy trusts is to review any staff occupation arrangements. Check each employee’s particular circumstances (regardless of what the agreement may be called) to determine their legal status and make sure you understand your obligations as a landlord.