In my earlier article I referred to the changes affecting landowners and farmers letting residential properties to farm workers and those working in agriculture. The aim of this article is to address the new grounds of possession which arise for opted out tenancies, i.e. those which would have previously been an Assured Shorthold Tenancy but which, following the introduction of the Renters’ Rights Act 2025, is now a periodic assured tenancy. This is separate from Assured Agricultural Occupancies (“AAOs”) or Rent (Agriculture) Act 1976 tenancies.
The Renters’ Right Act 2025 has created new grounds for the termination of a periodic assured tenancy which may assist “opted out” tenancies. These are Grounds 2ZA, 5A, and 5C. It is worth considering each individually.
- Ground 2ZA – this allows for the termination of a residential subtenancy where the Agricultural headlease comes to an end. This is obviously helpful where there is a letting of e.g. a farm cottage to a farm worker employed by a farmer who farms as tenant under a Farm Business Tenancy, an AHA 1986 Tenancy or otherwise.
- Ground 5A – this allows for the termination of the tenancy if the property is required to house an agricultural worker employed by the landlord. This helps where the employment of an agricultural worker has been terminated for one reason or another and the property is required back.
- Ground 5C – this allows for the termination if the accommodation was supplied to the worker due to their employment by the landlord and the worker ceased to be employed by the landlord. This is therefore slightly different to Ground 5A above which demonstrates that Ground 5A covers more than the situation whereby the employee has ceased employment.
As these will all now feature in Grounds 1 – 8 of Schedule 2, Housing Act 1988, they will be mandatory grounds, i.e. grounds on which the Court must award possession if they are made out. Given that Ground 5C is essentially a re-working of the previous Ground 16, (then being a discretionary ground), this is a helpful change.
In addition, Ground 1 of Schedule 2 has been extended and may now be of more assistance to farmers and landowners. Previously, whilst the landlord or his/ her spouse/ civil partner could require the property back for occupation, with effect from 1 May 2026, it may include other family members such that possession may be obtained if the accommodation is required for the landlord’s parent, grandparent, sibling, child or grandchild.
All of the above applies to opted out tenancies. AAOs and Rent (Agriculture) Act 1976 tenancies will remain protected as they were previously.
We advise regularly in relation to these matters and would be happy to discuss any aspects. You can contact Ian Thomas on 01872 307352 or [email protected]