Farmers who let out residential property have just one month to prepare before the first phase of the Renters' Rights Act comes into force on 1 May.

The Act is one of the most significant overhauls of the private rented sector for decades, with implications for tenancy agreements, rent reviews and regulatory compliance.

Matthew Scott, a director in the Rural team of Strutt & Parker, says: "The new Act does not apply to residential property let under a Farm Business Tenancy (FBT) or an Agricultural Holdings Act (AHA) tenancy, but critically it does cover any residential property on a holding that's sublet under an AST or Assured Tenancy.

"This means where a farm tenant has sublet a cottage - perhaps to a worker or non-agricultural occupier - that subtenancy could become an assured periodic tenancy from 1 May 2026, with the subtenant acquiring enhanced rights.

"It is vital that farmers do not overlook the need to take action, as failure to comply with the new rules could result in a significant fine."

The key immediate requirement is for landlords to provide all existing tenants with a copy of a Government-published Information Sheet which summarises the changes. Where a tenant may be occupying under an unwritten tenancy, a Written Statement of Terms must be issued.

This must be done by 31 May 2026 or could result in a fine of up to £7,000.

The key changes which will apply from 1 May 2026 are:

•           All Assured Shorthold Tenancies (ASTs) convert to periodic agreements with no fixed end date. For tenancies created on or after 1 May, a new tenancy agreement will be required. For existing tenancies, the Information Sheet must be shared by 31 May.

•           Section 21 'no fault' evictions abolished, meaning landlords will need specific legal grounds for regaining possession using a Section 8 notice.

•           Rent rises to be limited to once per year, capped at market levels and only one month's rent in advance will be allowed.

•           Landlords must not unreasonably withhold consent to a request to rent with a pet. It will also be illegal to discriminate against renters who have children or receive benefits.

New compliance obligations are scheduled for later in the year, starting with the rollout of a Private Rented Sector Database.

"It is becoming more important than ever for landlords to stay ahead of the changes to their rights and responsibilities," says Mr Scott.

"Although the Act does provide a mandatory possession ground for a property housing an agricultural worker, the ability to use this depends on how the tenancy was first documented.

"So if you have agricultural tenancies with residential subletting in the mix, now is the time to review."