The Renters’ Rights Act (RRA), coming into force on 1 May 2026, will abolish fixed-term Assured Shorthold Tenancies (ASTs) and replace them with a single assured periodic tenancy (APT) for all residential lets. This statutory change raises important questions for landlords with buy-to-let mortgages that currently require tenancies to be ASTs, potentially creating a conflict between new housing law and existing mortgage terms.

This article explains the implications of the RRA for buy-to-let mortgage agreements, clarifies whether landlords will be forced to breach mortgage conditions, and outlines how lenders are expected to respond to the new tenancy regime.

Understanding the Renters’ Rights Act and Its Impact on Tenancies

The Renters’ Rights Act fundamentally changes the tenancy landscape by abolishing fixed-term ASTs from 1 May 2026. Instead, all tenancies will automatically become assured periodic tenancies, which are rolling agreements typically renewed monthly. Existing fixed-term ASTs will convert to periodic tenancies on the commencement date, and landlords will no longer be able to grant new fixed-term ASTs.

Tenants will gain the right to end their tenancy by giving statutory notice, commonly two months, under the new assured periodic tenancy framework. This reform replaces the Housing Act 1988 AST regime with a statutory assured periodic tenancy, which is now the only lawful form of residential tenancy.

Mortgage Terms and the Requirement for ASTs

Many buy-to-let mortgage contracts currently stipulate that the property must be let under an Assured Shorthold Tenancy in accordance with the Housing Act 1988. Lenders have traditionally preferred fixed-term ASTs because they provide a predictable rental income stream and clearer possession rights.

However, with the abolition of fixed-term ASTs by statute, landlords will no longer be able to comply with mortgage terms requiring ASTs, as these tenancies will cease to exist in law. This situation raises concerns about whether landlords will be forced into breaching their mortgage agreements.

Does the Renters’ Rights Act Force Landlords to Breach Mortgage Terms?

Technically, landlords will not be in breach of their mortgage terms due to the statutory override provided by the RRA. When statutory law conflicts with private contracts, the law prevails. Since the RRA prohibits granting fixed-term ASTs, fulfilling mortgage conditions that require them becomes impossible rather than a deliberate breach.

This means landlords offering assured periodic tenancies after 1 May 2026 will be complying with housing law, even if their mortgage contracts have not yet been updated to reflect the change.

How Lenders Are Expected to Respond

Mortgage lenders, including underwriters and legal teams, will need to revise their mortgage terms and acceptable tenancy definitions to accommodate the assured periodic tenancy regime. Industry guidance and mortgage handbook criteria currently tied to ASTs will require updating to align with the new legal framework.

While a unified set of post-RRA mortgage criteria has not yet been published, industry commentary suggests that lenders will:

• Update product terms to accept assured periodic tenancies instead of ASTs.
• Focus underwriting criteria on tenancy stability, rental income security, and possession rights under the new Section 8 regime.
• Potentially adopt stricter serviceability tests, higher rental coverage requirements, or more cautious lending criteria such as increased deposits or lower loan-to-value ratios, reflecting perceived risks associated with periodic tenancies.

Importantly, landlords will not automatically be in breach of their mortgage agreements simply by having periodic tenancies due to the statutory change. Any mortgage condition requiring fixed-term ASTs after 1 May 2026 is likely unenforceable to the extent it conflicts with the law.

Practical Advice for Landlords

From 1 May 2026, landlords should expect all tenancies to be assured periodic tenancies as defined by the RRA. If a mortgage lender’s terms have not yet been updated and still require ASTs, landlords should raise the issue directly with their lender to seek clarification or amendment.

It is advisable for landlords to review their mortgage agreements ahead of the commencement date and maintain open communication with lenders to ensure compliance with both housing law and mortgage conditions.

Looking Ahead: Support for Landlords

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.

This initiative aims to provide landlords with reliable resources and expert support as the rental sector adapts to legislative changes such as the Renters’ Rights Act.