Round up of housing law and news: January 2026
Renters' Rights Act
The government has confirmed the Renters' Rights Act will be implemented in phases from 1 May 2026.
Key reforms in phase 1 include the abolishment of section 21 notices, the end of assured shorthold tenancies and new grounds for possession.
Later phases will introduce a landlord database, a private rented sector landlord Ombudsman and improved housing condition standards.
Learn more about the Act
Read the latest articles on the Renters’ Rights Act 2025 at Shelter Legal.
Legislation
New local authority investigatory powers and key definitions under the Renters' Rights Act, and changes to local housing allowance rates.
New local authority investigatory powers and key definitions under the Renters' Rights Act
The first changes from the Renters' Rights Act 2025 came into force on 27 December 2025. From this date, local authorities gained new powers to investigate offences committed by private sector landlords, including to:
enter residential properties
enter business premises
seize documents
Find out more about local authority investigatory powers on Shelter Legal.
Key definitions from the Act were also brought into force from this date, including definitions of a landlord, tenant, and what marketing a property means.
Renters’ Rights Act 2025 (Commencement No.1) Regulations 2025 S.I. 2025/1354
Reassessment of local housing allowance rates
From 30 January 2026, the maximum amounts for housing benefit and the universal credit housing element will increase.
The figures have increased in line with updated rent assessments in each broad rental market area.
Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2026 S.I. 2026/5
Case law
HMO status for hotels used as homelessness accommodation, unlawful eviction and rent repayment orders.
Appeal dismissed after unlawful eviction and harassment of tenants
The High Court held that a landlord acted unlawfully when evicting two assured shorthold tenants. The landlord had served section 21 notices but forced the tenants out without a possession order by disconnecting utilities and preventing re-entry.
The court confirmed findings of unlawful eviction, trespass, property damage and harassment under the Protection from Harassment Act 1997 and upheld damages of more than £150,000 per tenant.
The appeal was dismissed.
WLP Trading & Marketing Ltd v Adham Albalous & Anor [2025] EWHC 3357
Homeless hotel classed as HMO
The Upper Tribunal held that a building used by a local authority to accommodate homeless households met the statutory definition of a house in multiple occupation (HMO) because rooms equipped only with a microwave did not provide the 'cooking facilities' required under section 254(8) Housing Act 2004.
The appeal was dismissed.
Oxford Hotel Investments Limited v Great Yarmouth Borough Council 2025] UKUT 387 (LC)
No rent repayment order for late application
The Upper Tribunal reviewed a decision made by the First-tier Tribunal that it had no jurisdiction to make a rent repayment order where the tenant's had applied one day late.
The decision was upheld.
Stokki & Ors [2026] UKUT 316 (LC)
Mixed use unit treated as a dwelling for service charge protections
The Court of Appeal held that a mixed use lease with ancillary residential use could be defined as a 'dwelling' under section 38 of the Landlord and Tenant Act 1985. This meant the service charge protections applied, even though the premises was intended for office use.
The landlord's appeal was dismissed and the service charge issues were referred to the County Court.
Universal credit appeals for official errors not time limited
The Upper Tribunal held that a claimant was not subject to a time limit of 13 months to seek reconsideration of a decision not to grant the housing element of UC, where the decision was a result of a failure by the decision maker to consider the claimant's evidence.
The Upper Tribunal set aside the decision as the reconsideration had been requested because of an official error. An official error can be reconsidered at any time. The Upper Tribunal referred the case back to the tribunal to reconsider.
GB v The Secretary of State for Work and Pensions. Appeal No. UA-2025-000251-UHC
News and guidance
Funding for independent living adaptions, sentencing guidelines for housing offences and spray foam insulation.
£50 million funding boost for disabled facilities grants
The government has announced an extra £50 million for Disabled Facilities Grants in 2025/2026, bringing total funding to £761 million. Supporting independent living through adaptions like stairlifts, ramps and accessible bathrooms, reducing pressure on the NHS.
Read more at CIH.org.
Consultation on sentencing for housing offences
The Ministry of Justice's Sentencing Council has launched a consultation seeking feedback on proposed sentencing guidelines for housing related offences.
Comments must be submitted by 9 April 2026.
Read more about the consultation at Justice.gov.uk.
Spray foam insulation and mortgage lending
The House of Commons Library has published an update on homeowners who face difficulties selling or remortgaging properties with spray foam insulation. Some lenders are cautious because incorrectly installed spray foam can trap moisture and affect roof structures leading to refusal to lend.
The guidance sets out the types of spray foam, common problems, and the steps homeowners can take to satisfy lenders.
Read more about spray foam insulation and mortgages at Parliament.uk.
Data and trends
Declining living standards in the rented sector, fall in new housing supply and latest figures on affordable homes programme.
More than 4 million homes fail Decent Homes Standard in 2024
More than 4 million homes in England did not meet the Decent Homes Standard in 2024, according to new findings from the English Housing Survey. Key findings include:
15% of all homes were non‑decent, with the private rented sector having the highest proportion at 22%
9% of homes had a Category 1 hazard under the Housing Health and Safety Rating System
damp increased to 5% of all dwellings, up from 4% in previous years
analysis of the forthcoming Decent Homes Standard shows worsening conditions in rented homes between 2019 and 2023
Read the 2024 to 2025 English Housing Survey at Gov.uk.
Housing market data indicates fall in building new homes
The latest housing market data shows a decrease of new housing supply in England. The data shows:
29,620 starts in Q3 2025, this is the same as the previous year
33,020 completed homes, down 9% on the year
UK house prices rose 2.5% in the year to November 2025
Read the full Housing market: Economic indicators report at Parliament.co.uk.
Affordable homes delivery reaches 82,000 starts
The government's Affordable Homes Programme delivered 82,395 new housing starts in England by March 2025, according to the lates annual report. Key findings include:
33,072 affordable homes were completed under the 2021 to 2026 programme
19% of homes were for social rent
39% of homes were for affordable rent
The Affordable Homes Programme annual report 2024 to 2025 at Gov.uk.
Updates from the Renters' Rights Act 2025
10 key changes
Grounds for possession
Rent increases
The monthly round up of legislation, cases, news and data from Housing Matters