Background: Changes to Housing Duty Discharge

Most councils currently discharge their housing duty by paying the first month’s rent and deposit for tenants they owe a duty to, in return for landlords providing a minimum 12-month assured shorthold tenancy (AST). However, the Renters’ Rights Act 2025, effective from 1 May 2026, abolishes fixed-term tenancies and replaces them with periodic (rolling) assured tenancies. This legislative change alters how councils will fulfil their housing obligations.

From Fixed-Term to Periodic Tenancies

Under the new framework, councils will no longer require landlords to offer fixed 12-month ASTs. Instead, they will secure periodic assured tenancies, which are open-ended agreements allowing tenants to remain until they give notice or the landlord uses a valid Section 8 ground to regain possession. This shift means landlords must be prepared to offer rolling contracts to tenants placed through council housing duty arrangements.

Tenant Protection Period

Despite the move away from fixed terms, tenants will retain a degree of security. For the first 12 months of the tenancy, landlords cannot evict tenants on “no-fault” grounds such as selling the property or moving in themselves. This protection period mirrors the security previously provided by a fixed 12-month contract, ensuring tenants placed by councils have stability during their initial year.

Councils’ Suitability Assessment and Enforcement Powers

Councils remain responsible for conducting thorough suitability assessments before offering accommodation. These assessments consider location, affordability, and the household’s specific needs to ensure the property is appropriate. Additionally, councils gain enhanced regulatory powers to investigate landlords and enforce standards, helping to guarantee that private rented sector properties used to discharge housing duties are safe and decent.

Removal of Re-application Duty

The Act removes the automatic “reapplication duty” that previously required councils to rehouse households who became homeless again within two years of accepting a private rented offer. Instead, councils will reassess each household’s current circumstances before deciding on further assistance, potentially reducing repeated rehousing obligations.

Focus on Homelessness Prevention

With private renters gaining more security through periodic assured tenancies and the 12-month protection period, councils may shift their focus towards early intervention and preventing homelessness. This proactive approach aims to reduce reliance on finding new accommodation for those already evicted, emphasising prevention over reactive rehousing.

Implications for Landlords and Letting Agents

Landlords should prepare for an increase in periodic assured tenancies arranged via councils, replacing the previous fixed 12-month contracts. The 12-month protection period limits landlords’ ability to regain possession on no-fault grounds during the first year, requiring careful consideration of tenancy management and exit strategies. Enhanced council enforcement powers also mean landlords must maintain high property standards to comply with suitability requirements.

Summary

The Renters’ Rights Act 2025 fundamentally changes how councils discharge their housing duties from May 2026. The shift from mandatory fixed-term tenancies to assured periodic tenancies with tenant protections and stronger council enforcement marks a significant development in the private rented sector’s role in housing support.

Suggested internal link anchors

• Renters’ Rights Act 2025
• assured periodic tenancies
• housing duty discharge
• private rented sector standards
• tenant protection period
• council housing assessments
• Section 8 eviction grounds
• homelessness prevention
• landlord regulatory powers
• reapplication duty removal

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/