Renters' Rights Act and Contractor Stays: Q&A (2026)

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Overview

Since 1 May 2026 the rules for renting a home in England have changed more than at any point since 1988. Assured shorthold tenancies have gone, section 21 has gone, and every new tenancy of a home is now open-ended. If you book beds for a work crew, or you let a cottage, lodge, caravan or house to contractors, the question is simple: does any of this apply to a short work stay? Usually it does not, but the reason matters, and so do the cases where it does. This guide answers the questions crew managers and hosts are asking, with a source for each point.

This is general information, not legal advice. If a stay is long, or the facts are unusual, take advice from a solicitor.

Summary

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and most of it took effect in England on 1 May 2026 (Baker McKenzie).
Assured shorthold tenancies were abolished and existing ones became rolling periodic tenancies. Section 21 "no-fault" possession ended (GOV.UK information sheet).
A letting whose purpose is a holiday is not an assured tenancy under Schedule 1 of the Housing Act 1988, and the Act did not remove that exclusion (legislation.gov.uk).

Frequently asked questions

What is the Renters' Rights Act 2025?+

It is the law that reformed private renting in England. It received Royal Assent on 27 October 2025 and most changes took effect on 1 May 2026. It abolished assured shorthold tenancies and fixed-term assured tenancies, converted existing ones into rolling periodic tenancies, and ended section 21 possession, so landlords must now rely on section 8 grounds (Baker McKenzie).

Does the Renters' Rights Act apply to contractor accommodation?+

Only if the arrangement is an assured tenancy. A short work stay in holiday-style accommodation, a booking made by a company, or a room in a property where the host lives normally is not. The Act changes the rules for assured tenancies of homes. It does not turn every overnight stay into a tenancy.

Are holiday lets exempt from the Renters' Rights Act?+

A genuine holiday let is not an assured tenancy in the first place. Schedule 1 of the Housing Act 1988 excludes "a tenancy the purpose of which is to confer on the tenant the right to occupy the dwelling-house for a holiday" (legislation.gov.uk). The new rules attach to assured tenancies, so a real holiday let sits outside them. Courts look at the substance of the arrangement, not the label (BLA).

Is a work stay a "holiday"?+

This is the grey area. A contractor staying for a few nights or weeks while working away from home, keeping their main home elsewhere, is not treated as making the property their home. The risk grows with length and permanence. TeamStay notes that a contractor using a property as their only or main home, with exclusive possession over a long stay, may still have an assured tenancy in substance, and lists the factors that matter: length and purpose of stay, exclusive possession, services provided and the agreement used (TeamStay).

Why are company lets outside the new rules?+

An assured tenancy needs an individual tenant occupying the property as their only or principal home, and a company cannot do that. A let to a limited company is a common law tenancy governed by its contract (RentalReady UK). Baker McKenzie confirms company lets are exempt from the Act's changes (Baker McKenzie).

Can a company let still be challenged?+

Yes. If one individual is really making their home there and the company is only a formality, courts may look past the paperwork. Signs of a genuine company let include the company paying the rent as a business expense, a business reason for the let and the company being able to swap occupiers (RentalReady UK). The Right to Rent check still applies to the person living there.

Does a sole trader count as a company for this purpose?+

Do not assume so. A sole trader is an individual, not a separate legal entity, and RentalReady UK advises taking advice before relying on that structure (RentalReady UK). Self-employed contractors booking for themselves should expect a host to treat the booking on its own facts.

What changed for ordinary tenancies on 1 May 2026?+

Fixed terms ended and tenancies became rolling, usually monthly. Tenants can leave on two months' written notice. Rent can rise only once a year using Form 4A with at least two months' notice, and never above the open market rent. Landlords cannot unreasonably refuse a request to keep a pet (GOV.UK information sheet).

Can a landlord still take rent in advance?+

For an assured tenancy, rent cannot be taken before the agreement is signed, and only the first rent period can be required in advance. Rent periods cannot exceed one month (Mishcon de Reya). These rules attach to assured tenancies. A short holiday or work stay paid up front at booking is a different kind of arrangement, which is one reason the classification matters.

Does the ban on rental bidding stop crews agreeing a price with a host?+

The ban means a landlord cannot accept more than the advertised rent for a tenancy (Mishcon de Reya). It is aimed at the long-let market, where several households were offering over the asking rent for the same home. Agreeing a nightly or weekly rate for a short crew stay, or a host sending an offer in response to a request, is a different transaction. If a long stay is in substance an assured tenancy, though, the tenancy rules follow it.

What are the penalties for getting it wrong?+

Civil penalties are up to £7,000 for a first or minor breach and up to £40,000 for repeated or serious breaches, and some criminal offences carry an unlimited fine (Mishcon de Reya). Misclassifying a tenancy can also make notices invalid and expose a host to unlawful eviction claims (BLA).

What is coming next under the Act?+

A private rented sector database is due to roll out from late 2026 and is expected to be fully working in 2027, and a landlord ombudsman is expected in 2028 (Mishcon de Reya). A Decent Homes Standard for private rentals is also due under the Act (Wikipedia).

Does the Act apply in Scotland and Wales?+

Most of it applies to England only, with some provisions for Wales. One chapter, banning discrimination against tenants with children or on benefits, extends to Scotland (Citylets). In Wales, the Renting Homes (Wales) Act 2016 lists holiday accommodation among arrangements that are not occupation contracts unless the landlord gives notice (legislation.gov.uk).

Do hosts in Scotland need anything else to take crew bookings?+

Yes. Anyone offering a short-term let in Scotland needs a licence from their council, and all hosts had to hold one by 1 July 2024. Holiday caravans on parks covered by a caravan site licence are among the exclusions (Stirling Council). Check with the council where the property is.

Has the tax position for holiday lets changed too?+

Separately from the Act, the furnished holiday lettings tax regime was abolished from 6 April 2025 for income tax and capital gains tax, and from 1 April 2025 for corporation tax. Holiday let income is now taxed like other property income (GOV.UK). That removed one reason to keep a property in the holiday category, which is worth knowing when a host weighs long crew bookings against a standard let.

Is the Act making contractor accommodation harder to find?+

There is no published count yet. TeamStay reports that some landlords are considering corporate or serviced accommodation instead of residential lets, and expects competition for suitable homes near large projects to tighten, so it recommends planning accommodation early in mobilisation (TeamStay). Treat that as an operator's view, not a measured trend.

What should a crew manager put in a booking to keep it clear?+

State that the stay is for work away from home, give firm dates, name the company paying, and keep each worker's main address on file. Say whether you need a weekday pattern or a continuous stay. A clear request also gets better offers: our guide on writing a contractor accommodation request covers bed counts, parking and kitchen needs. You can post a request with your dates and budget at /enquire.

What should a host check before accepting a long crew booking?+

Who the booker is (company or individual), how long the stay is, whether any occupier will treat the property as their main home, and whether your mortgage, insurance and planning position allow the use. RentalReady UK notes many policies assume a standard tenancy, so get written consent first (RentalReady UK). For longer or open-ended stays, take legal advice on the agreement before the crew arrives.

Where can I find contractor accommodation that suits short work stays?+

Search by area at /find/contractor-accommodation, or see our city guides such as contractor accommodation in Leeds. On Offer2Stay, you post what you need and verified hosts send their best offers, so the dates, crew size and booking party are agreed in writing before anyone arrives. Hosts setting rates for crew work may find how to set a floor price useful.

The Renters' Rights Act and Contractor Accommodation: Every Question Answered (2026)

Overview

Summary

Tell hosts what you are looking for

Why this matters for crews and hosts

Sources

Frequently asked questions

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