The Renters’ Rights Act 2025: what registered providers need to know about shared ownership leases

The Renters’ Rights Act 2025 (RRA) is a major new law that changes how renting works in England. It is the most significant reform to renting since the late 1980s and is part of the government’s plan to give renters stronger rights and improve the quality, safety and fairness of rented homes.

Broadly, the act aims to:

• make renting more secure by ending ‘no‑fault’ evictions;
• replace fixed‑term tenancies with open‑ended ones;
• improve property standards and enforcement; and
• give tenants clearer routes to challenge unfair rent increases.

Most of these reforms apply first to the private rented sector from 1 May 2026 and then later to social housing from 2027. Although the RRA mainly focuses on rented housing, it also makes an important change that affects shared ownership homes; specifically, how registered providers (RPs) can take legal action.

How is shared ownership affected?

Before 27 December 2025, shared ownership leaseholders who had not bought 100% of their home were treated as having an assured tenancy, even though they had a long lease (often 990 or 125 years). This meant RPs were able to use the Section 8 process – the same process used for short-term rented homes – to recover possession if a shared owner broke the terms of their lease, particularly for rent arrears.

The RRA has changed this. As of 27 December 2025, a shared ownership lease can no longer be treated as an assured tenancy. This applies automatically and does not depend on when the lease was granted, as long as the term is over 21 years. It will also apply to fixed term shared ownership leases of between 7- and 21 years that were granted before, or within two months after, 27 October 2025. Shared ownership leases are now instead treated legally as long leases only, just like any other leasehold flat or house. For RPs, this means the familiar Section 8 route disappears. A completely different legal process, forfeiture, must be used instead to recover possession.

What has changed for RPs?

1. Section 8 will no longer apply

As of 27 December 2025, RPs are no longer able to use the Section 8 process to end a shared ownership lease. This is a significant change, as Section 8 has been the main route RPs use to deal with serious breaches such as substantial rent arrears or anti-social behaviour. It is a system designed specifically for rented housing, and most RPs are very familiar with how it works.

Now that Section 8 no longer applies, shared ownership enforcement will move entirely into the legal framework used for long leases. This is a more technical area of law and is usually associated with private leasehold disputes rather than rented housing. RPs will therefore need to rely on the forfeiture process instead, which is a more complex and detailed route with additional procedural steps and considerations.

2. Forfeiture becomes the main route for dealing with serious breaches

Forfeiture is the legal process landlords use to end a long lease when the leaseholder has broken its terms. It can be used for issues such as significant arrears or serious breaches of covenant, but the steps involved are much stricter than the Section 8 process.

The key features are:

• The lease must contain a forfeiture clause. The RRA does not have a provision adding forfeiture clauses to existing long leases which were previously treated as assured tenancies automatically. If the lease does not include a forfeiture clause, the landlord cannot use forfeiture at all.
• Non‑rent breaches require an official ruling first. Before serving a notice to forfeit, the landlord must obtain a formal decision from the tribunal or court confirming the breach, unless the leaseholder admits it. Only then can the landlord send a notice requiring the breach to be put right.
• Rent arrears follow a separate process. A special prescribed notice must be served, followed by the contractual ‘grace period’ stated in the lease. Only after this can forfeiture proceedings be started.
• This structure makes the process slower, more detailed and more evidence‑heavy than Section 8.

Why this matters to RPs

Forfeiture is more technical than the current assured tenancy process, and there are new risks for RPs to manage.

• The risk of ‘waiver’

If a landlord does something that suggests the lease is still continuing, such as accepting a rent payment or continuing to issue rent demands after learning of a breach, the landlord may lose the right to forfeit for that breach. This is known as ‘waiver’.

Some breaches (like rent arrears) are ‘one‑off’ events that cannot be revived if waived. Others (like failing to repair) are ‘continuing’ and arise again each day. RPs will need clear internal procedures so staff do not accidentally waive the right to take action. Particular care should be taken to review automated protocols such as automated rent demands to ensure there is no accidental waiver.

• More time and paperwork

The need for tribunal determinations, longer notice stages and careful evidence gathering means enforcement becomes more resource‑intensive.

• Less certainty in outcomes

Even if the court makes a possession order, leaseholders have strong rights to ask for ‘relief from forfeiture’, meaning the lease can be reinstated if the breach is fixed. This makes outcomes less predictable than the current mandatory grounds under Section 8.

What alternatives are available for RPs?

If forfeiture is not available or appropriate, RPs still have other options, including:

• taking court action simply for the money owed (for example, unpaid rent or service charges);
• applying for a charging order and, in severe cases, an order for sale;
• using bankruptcy routes for serious arrears;
• applying for injunctions in anti‑social behaviour cases;
• seeking damages or specific performance depending on the breach.

These may sometimes be more proportionate than forfeiture, depending on the situation.

Transitional arrangements

The legislation included some transitional protections to ensure a smooth changeover. These now operate as follows:

• any Section 8 notice served before 27 December 2025 remains valid for its full 12‑month lifespan;
• any possession claim issued on the basis of a valid Section 8 notice served before 27 December 2025 continues under the previous assured tenancy rules until the case concludes.

These arrangements mean that some shared ownership cases may still be progressing under the old Section 8 system for a period of time, even though new enforcement action must now follow the long‑lease forfeiture process.

What RPs should start doing now

The change from assured tenancy enforcement to forfeiture is significant. RPs should:

• review shared ownership lease templates to ensure they contain workable forfeiture clauses;
• audit older leases where clauses may vary or be missing;
• update arrears and breach procedures, and ensure staff understand when not to accept or demand rent;
• review automated systems and protocols to ensure there is no potential for accidental waiver;
• revise standard letters so they reflect the new legal process;
• consider training for teams unfamiliar with long lease enforcement;
• communicate clearly with shared owners about how the change affects them.

Conclusion

The RRA is designed to strengthen tenant protections and improve fairness in the renting system. As a side effect of those reforms, shared ownership homes will no longer sit within the assured tenancy framework. RPs now need to follow the forfeiture process, rather than Section 8, to deal with serious breaches of shared ownership leases.

While this shift brings shared ownership in line with the wider leasehold system, it also increases the technical steps RPs must take when issues arise. With the right preparation, updated processes and staff awareness, RPs can navigate the transition confidently and continue to support shared owners effectively.

This article was co-written by Maisie Ayers, associate in the real estate disputes team.