The Local Government Association (LGA) supports the introduction of the Renters’ Rights Act 2025 and its ambition to create a simpler, fairer, and more secure tenancy system.
Councils are responsible for managing approximately 1.6 million homes and play a central role both as social landlords and as housing authorities with statutory homelessness duties.
The Local Government Association (LGA) supports the introduction of the Renters’ Rights Act 2025 and its ambition to create a simpler, fairer, and more secure tenancy system. We have long called for improvements in tenant security in the private rented sector and recognise the importance of aligning the social housing regulatory framework with these reforms.
Key messages
- The LGA supports the overall objective of creating a simpler, more secure tenancy system and recognises the need to update the Tenure Standard to align with the Renters’ Rights Act 2025.
- However, there is a need for greater clarity from the Regulator on the ongoing role of introductory and flexible (fixed-term) tenancies.
- The proposals risk weakening councils’ ability to manage tenancies effectively, without corresponding changes to the financial framework of the Housing Revenue Account (HRA).
- The Government should ensure changes are coordinated with other reforms and that the full financial and operational impacts on councils are recognised and fully funded through new burdens.
Response to questions
In which capacity are you completing these questions?
Landlord representative group
If responding on behalf of an organisation, please specify which organisation
Local Government Association
Do you agree that the citation, commencement, application and interpretation section of the proposed Direction at Annex B is clear, aligns with the wider legislative and regulatory framework, and supports consistent application of the Direction?
Partially agree
The LGA agrees that this section is clear and broadly aligned with the wider legislative and regulatory framework, including the Housing and Regeneration Act 2008 and the changes introduced through the Renters’ Rights Act 2025.
However, while the legal framing is clear, we note that clarity at this level does not translate into clarity in operational application, particularly in relation to tenancy types. Further guidance will be required to ensure consistent interpretation in practice.
Do you agree that social housing stock owned by local authorities should be in scope of the Direction on tenure, irrespective of whether it is held in a Housing Revenue Account?
Yes.
The LGA agrees in principle that the Direction should apply consistently across all local authority social housing stock.
However, we have concerns about the financial implications of this approach:
- The majority of local authority stock is held within Housing Revenue Accounts (HRAs), which are ringfenced and funded through rental income.
- The consultation proposes assessing new burdens only for stock outside the HRA, which creates inconsistency.
As highlighted in previous LGA submissions, councils face significant financial pressures within HRAs. Reduced use of introductory or flexible tenancies may lead to increased costs associated with tenancy failure, which will be borne directly within HRAs without the ability to offset those costs. The Government’s Impact Assessment does not provide a robust assessment of impacts on local authority landlords or the Housing Revenue Account, as it is primarily focused on the private rented sector.
We therefore recommend:
- Applying the New Burdens Doctrine consistently across all local authority stock, including HRA-held homes.
- Providing a clear assessment of the financial and operational impacts on HRAs, which are not currently reflected in the consultation.
Do you agree the requirements in the proposed Direction (Annex B) which set out matters that Registered Providers should consider (among other factors) when granting tenancies are clear and appropriate?
No.
The LGA does not consider the requirements to be sufficiently clear for local authority landlords.
While the Direction appropriately shifts toward an outcomes-based approach, it:
- removes clarity on tenancy types
- does not provide sufficient guidance on how to apply the principle of offering the 'most secure tenancy suitable' in practice.
In particular, there is a lack of clarity on whether, and in what circumstances, councils are expected to continue using introductory and flexible tenancies.
Council landlords operate in a different context to landlords in the private rented sector. They must manage tenancies for households with more complex needs, balance tenancy sustainment with tenancy enforcement responsibilities, and fulfil statutory homelessness duties, often housing households other landlords may not accept. In this context, introductory and flexible tenancies are important tools for councils to:
- assess tenancy sustainment risk
- address anti-social behaviour and rent arrears early
- allocate stock effectively in response to changing need.
Without explicit guidance, councils may reduce use of these tools due to regulatory uncertainty, rather than policy intent.
The LGA recommends that the Regulator:
- provides clear guidance on when the use of less secure tenancies is consistent with the requirement to provide 'the most secure tenancy suitable.'
- sets out the evidence required to demonstrate compliance
- includes worked examples or case studies.
Do you agree with the proposed requirements for Registered Providers in relation to tenants finding alternative accommodation before a tenancy ends or where it is necessary for a tenant to move due to redevelopment or other works?
Yes
The LGA supports the intention to ensure that tenants are treated fairly and supported to secure suitable alternative accommodation, particularly in cases involving redevelopment or major works.
However, successful implementation will depend on:
- local housing market conditions, including availability of suitable alternative homes
- capacity within the social housing sector and wider system.
For local authorities, this requirement interacts with statutory homelessness duties and existing pressures on temporary accommodation.
The LGA recommends that:
- expectations are applied with sufficient flexibility to reflect local supply constraints
- government recognises the resource implications for councils, particularly where alternative accommodation must be facilitated
Do you agree that the proposals support an outcome-based approach?
Yes.
The LGA agrees that the proposals support a shift toward a more outcomes-based approach, which aligns with the wider direction of social housing regulation.
An outcomes-based framework has the benefit of:
- allowing providers to respond to local needs and circumstances~
- focusing on tenant experience and fairness, rather than compliance with prescribed tenancy types.
However, this approach will only be effective if supported by clear regulatory guidance and a shared understanding of what constitutes compliance.
Without this, there is a risk of inconsistent interpretation across providers, and reduced use of legitimate tenancy management tools due to uncertainty.
The LGA therefore recommends that the outcomes-based approach is complemented by practical guidance and examples for local authority landlords.
Additional comments
The Renters’ Rights Act will remove fixed-term assured tenancies for private registered providers (PRPs), including the 'starter tenancy model.' PRPs use these tenancies to manage risk during the initial probationary period, and the removal of this tool may lead to increased risk aversion amongst PRPs, including tighter affordability and referencing criteria.
This would have direct implications for councils, who rely on PRPs to accept nominations and are ultimately responsible for housing households in greatest need.
The LGA recommends:
- monitoring of PRP nominations acceptance rates following implementation
- consideration of whether alternative 'probationary' mechanisms can be recognised within the regulatory framework
- engagement with the sector to ensure nominations systems continue to function effectively.
Contact
Priya Thethi
Policy Adviser – Housing (quality and standards)
Mobile: 07464 652600
Email: [email protected]