Regulated tenancy

A regulated tenancy is a private residential tenancy created before 15 January 1989 and governed by the Rent Act 1977. Regulated tenancies fall into two forms: a protected tenancy, which is the original contractual agreement between landlord and tenant; and a statutory tenancy, which arises automatically when the contractual tenancy ends but the tenant remains in occupation, giving them a personal right to continue living in the property. No new regulated tenancies can be created. All private residential tenancies created on or after 15 January 1989 are governed instead by the Housing Act 1988 and, from 1 May 2026, by the Renters' Rights Act 2025 as assured or assured periodic tenancies.

Fair rent and rent increases

The defining financial characteristic of a regulated tenancy is that rent is not set at market rates. Instead, a fair rent is registered by a Rent Officer at the Valuation Office Agency using a statutory formula set out in the Rent Act 1977. The registered fair rent is typically substantially lower than the equivalent market rent for the same property, often by 30–60% depending on location and property age. Once registered, the fair rent cannot be increased except through a fresh application to the Rent Officer, and the maximum frequency for increases is once every two years. The landlord cannot simply serve a Section 13 notice or rely on a contractual rent review clause to increase the rent.

Security of tenure

Regulated tenants have the strongest security of tenure available in English private renting. A landlord can only recover possession through a court order, and the court must be satisfied that one of the cases for possession set out in Schedule 15 to the Rent Act 1977 is established. There are 20 cases in total. Cases 1–10 are discretionary: the court must also consider whether it is reasonable in all the circumstances to grant possession even if the case is technically established. Cases 11–20 are mandatory: if the landlord proves the case and has served the required prior notice, the court must grant possession without further consideration of reasonableness. In practice, landlords dealing with a regulated tenancy who do not have a clear mandatory case are effectively dependent on the tenant choosing to leave voluntarily.

Succession rights

When a regulated tenant dies, the tenancy may pass to a qualifying successor under the succession rules in the Rent Act 1977. A first succession typically passes to the tenant's spouse, civil partner, or cohabiting partner who was living with them at the time of death, the successor inherits a regulated tenancy on the same terms. A second succession may then pass to a qualifying family member (who must have been living in the property for the two years before the first successor's death), but the second successor inherits an assured tenancy rather than a regulated one, meaning the registered fair rent no longer applies and the landlord can charge a market rent and seek possession under the Housing Act 1988 framework. After a second succession, no further succession rights exist.

Capital value and buying at auction

Regulated tenancies are the most significant type of sitting tenant a landlord is likely to encounter when buying at auction or inheriting a portfolio property. Because the tenant has lifetime security of tenure and pays a registered fair rent well below the market level, the property is typically marketed at a significant discount to its vacant possession value, discounts of 20–40% are common, reflecting the loss of rental income, the difficulty of gaining possession, and the uncertainty over timeline. Landlords who purchase property at auction without identifying a regulated tenancy may face severe financial consequences.

Landlords managing a regulated tenancy alongside a modern assured periodic tenancy portfolio can use August to track rent payments, store compliance documents, and maintain a complete record of fair rent registration correspondence, the type of documentation that matters if possession is ever pursued.

The Renters' Rights Act 2025 and regulated tenancies

The Renters' Rights Act 2025, which came into force on 1 May 2026, does not abolish or convert regulated tenancies. Regulated tenants confirmed this explicitly via the Shelter guidance published in early 2026, the 1 May 2026 changes do not affect regulated tenant rights; they remain regulated tenants and retain their Rent Act 1977 protections regardless of whether a new agreement is signed. However, the broader compliance standards that the Act introduced, including fitness for human habitation duties, the PRS Database, and the PRS Ombudsman, apply to regulated tenancies as they do to all private residential lets. Landlords with regulated tenancies must ensure the property meets current safety standards (gas, electrical, fire, EPC minimum Band E) and will be subject to the PRS Database registration requirement when that element of the Act commences.

For a full guide to the legal checks and financial due diligence involved in buying a property with tenants in situ, including what regulated tenancy status means for price, possession options, and mortgage lending, see the August guide to buying a rental property with tenants.

Frequently asked questions

Can a landlord increase rent on a regulated tenancy?

Yes, but only by applying to the Valuation Office Agency for a new fair rent registration. The landlord cannot serve a Section 13 notice, use a rent review clause, or increase rent by agreement. Applications for a new registration can be made no more than once every two years. The registered fair rent is the maximum lawfully recoverable.

What happens to a regulated tenancy when the tenant dies?

If the tenant's spouse, civil partner, or cohabiting partner was living with them, they usually succeed to the tenancy as a regulated tenant on the same terms. A qualifying family member who lived with the original tenant for at least two years may succeed on a second succession, but as an assured tenant rather than a regulated one. After a second succession no further succession rights apply and the tenancy ends on the assured tenant's death.

Does the Renters' Rights Act 2025 convert regulated tenancies to assured periodic tenancies?

No. The Renters' Rights Act 2025 does not affect regulated tenancies. They continue under the Rent Act 1977 framework. The Act's changes, abolition of Section 21, transition to assured periodic tenancies, new possession grounds, apply to tenancies governed by the Housing Act 1988, not to Rent Act tenancies.

Can I sell a property with a regulated tenant in it?

Yes. The property can be sold but the buyer acquires it subject to the tenancy — the tenant's rights are not extinguished by the sale. The buyer steps into the shoes of the seller as landlord. Properties sold with a regulated tenant in place typically command a discount of 20–40% to their vacant possession value.