Rent to Rent and Subletting in 2026 — Landlord Obligations Under the Renters' Rights Act

Rent to rent is an arrangement in which a head landlord lets a property to an intermediate party who then sublets to residential occupiers. In 2026, the Renters' Rights Act 2025 significantly affects rent-to-rent arrangements — all sub-tenancies from 1 May 2026 must be Periodic Assured Tenancies, and the intermediate landlord bears full RRA 2025 compliance obligations.

What is a rent-to-rent arrangement?

• The head landlord grants a lease or licence to the intermediate party at a fixed monthly rent
• The intermediate landlord (the rent-to-rent operator) sublets the property or rooms to residential tenants
• The intermediate landlord profits from the spread between the guaranteed rent paid to the head landlord and the rent collected from subtenants
• The head landlord receives fixed income and is relieved of direct management responsibilities

Legal requirements for subletting in England in 2026

• Written head landlord consent: Subletting without express written consent is a breach of the headlease. Always obtain consent in writing and check whether the head landlord's mortgage lender must also consent
• Periodic Assured Tenancy required: From 1 May 2026, all new sub-tenancies must be Periodic Assured Tenancies. Fixed-term sub-ASTs are no longer available
• PAT documentation: The intermediate landlord must provide subtenants with a fully RRA 2025-compliant PAT Agreement and the RRA 2025 Information Sheet
• Deposit protection: The intermediate landlord must protect the subtenant's deposit and serve prescribed information within 30 days
• Awaab's Law: The intermediate landlord bears the statutory Awaab's Law obligations to subtenants
• HMO licensing: If the property qualifies as an HMO, the intermediate landlord must obtain all required HMO licences

Risks for head landlords in rent-to-rent arrangements

• Subtenants acquire PAT rights: Subtenants on PATs cannot be evicted without a statutory Section 8 ground — even if the head tenancy ends
• Mortgage consent: Most buy-to-let mortgage conditions prohibit subletting without lender consent. Breach may trigger default clauses
• Selective licensing: The person responsible for managing the property must hold the licence. In a rent-to-rent arrangement, this is typically the intermediate landlord
• Information Sheet liability: Head landlords aware that subtenants have not received the RRA 2025 Information Sheet by 31 May 2026 face potential civil penalty exposure