How Will the Renters Reform Bill Affect Farmer Landlords?

25th Apr 2025

Author: Mark Turner Michael Bracegirdle

In recent years, many farmers have diversified their businesses in response to the changing agricultural landscape. A popular option has been converting unused farm buildings into residential accommodation. While many of these properties are used for short-term holiday lets, others — subject to planning consent — have been rented under Assured Shorthold Tenancies (ASTs).

With the Renters Reform Bill 2025 expected to become law this summer — and coming into effect possibly as soon as October— farmers in England who act as landlords are right to ask how the legislation may affect them.

As many farmers are already adapting to the loss of the Basic Payment Scheme, the abrupt withdrawal of some environmental schemes, and significant reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) from Inheritance Tax, having clarity on the position regarding their tenant is vital.

What the Renters Reform Bill 2025 means for farmers

The Renters Reform Bill 2025 introduces several key reforms to the private rented sector in England. These are designed to improve transparency and balance the rights of both tenants and landlords.

Perhaps the most headline-grabbing change is the abolition of Section 21 ‘no fault’ evictions. While this may initially seem restrictive, it is important to note that landlords will still be able to regain possession of their property through an expanded and strengthened Section 8 process.

The new grounds for possession include:

• Persistent rent arrears
• Serious anti-social behaviour
• Genuine need for the landlord or a close family member to move in — a provision that may be especially relevant in farming families

The previous Conservative government had proposed to introduce similar changes, but their bill was shelved when the election was called. Notably, their proposal included a safeguard that the abolition of Section 21 evictions would not take effect until the Lord Chancellor had confirmed that sufficient additional resources had been allocated to the court system. This was intended to address the expected rise in Section 8 possession claims requiring judicial time. However, the current Renters Reform Bill includes no such safeguard. As a result, in practice, an already overburdened and under-resourced court system will almost certainly take even longer than it currently does to process Section 8 claims — a point that landlords, including farmer landlords, should be mindful of when planning their rental arrangements.

Assured Shorthold Tenancy changes in 2025

The proposed changes to Assured Shorthold Tenancies (ASTs) will introduce more standardised tenancy agreements, making responsibilities clearer for both parties. This should reduce the risk of disputes and help landlords protect their investments.

The reforms also promote responsible letting. There will be:

• Greater support for landlords managing difficult tenants
• Improved tenant screening processes
• Faster resolution of rent arrears or property damage issues
• Stronger mediation routes before court action is necessary

The government is also expected to offer guidance and incentives, such as grants and tax reliefs, to improve the quality and sustainability of private rented homes.

Why this matters to you

As a farmer landlord, these changes may offer more protection than you expect. In fact, the new system is designed to ensure that landlords who act fairly and responsibly will be better supported by law.

Whether you let a single converted barn or multiple properties on your land, it is important to review your existing tenancy agreements and ensure that you are prepared for the changes the Renters Reform Bill 2025 will bring.

If you are contemplating seeking possession of residential property, you may wish to consider doing so sooner rather than later, before the section 21 process – which is typically dealt with purely on paper and without the need for a hearing – is abolished later this year.

Steps to take now

1. Review your current tenancy agreements
   Make sure any ASTs are up to date, legally compliant, and ready for the incoming changes.
2. Check your grounds for possession
   Understand how the new Section 8 grounds apply to your properties — especially if you may need to reclaim property for family use or in cases of rent arrears.
3. Refresh your tenant screening process
   Review how you assess potential tenants. Strong referencing and clear expectations at the start of a tenancy will be even more important.
4. Get familiar with standardised tenancy terms
   The Bill aims to introduce consistent and transparent agreements — make sure you are ready to use the new formats when they are published.
5. Assess the condition of your let properties
   Now is a good time to inspect and plan for repairs or improvements. Financial support may be available via grants or tax incentives.
6. Prepare for dispute resolution reforms
   Know your options for resolving issues without going to court. The new rules encourage mediation and quicker outcomes for landlords and tenants.
7. Talk to a legal adviser
   Get personalised advice on how the reforms could affect your situation, especially if you are planning to let more property or manage succession within your family.

How can Butcher & Barlow help?

At Butcher & Barlow, our Property Teams offer advice and support on:

• Letting and managing ASTs
• Planning and development of rural property
• Dispute resolution and property recovery
• Reviewing tenancy agreements ahead of legislative change

We understand that the farming community is facing significant shifts — from policy changes to succession planning. Our goal is to help you manage your property portfolio with confidence and clarity.

Contact Mike Bracegirdle or Mark Turner on 01606 334 309 for an initial, no-obligation conversation.

 

The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.