Currently, some shared ownership resident hold permission from us to sublet part or all their home. Ahead of tenancy reform changes happening from 1 May 2026, any permission to sublet should be considered withdrawn.
Why has the policy changed?
On 1 May, the Renters Rights Act will come into force for private renters. This means that any fixed term tenants will become assured ‘lifetime’ tenants. Landlords, including shared owners who sublet, will no longer be able to evict a tenant at the end of a fixed term by issuing a Section 21. Instead, private landlords will only be able to end a tenancy by giving their tenant a notice under Section 8 of the Housing Act 1988.
This means that private landlords will need to have a reason for ending a tenancy and will need to use the grounds for possession which apply on or after 1 May 2026. They will need to give evidence to the court to prove the grounds for possession if the tenant does not leave by the end of the notice period.
If we have previously given you permission to sublet, this would have been on condition that a fixed term tenancy was issued to the subtenant. Once fixed term tenancies are abolished, this condition can no longer be met.
Will I no longer be able to sublet?
We have updated our policy so permission to sublet can still be requested under new conditions. However, it is important that any residents currently subletting make a new request to ensure they abide by the terms of their lease. Please contact your local officer if you are currently subletting with our permission.
Our new policy allows for subletting the whole of your property under certain circumstances. If these circumstances apply to you, new permission may be granted under new conditions. These are that the shared owner uses either of the relevant grounds 12 months after the tenancy start date:
- Ground 1 – if you or a family member want to move back in
- Ground 1A – you want to sell
To use most possession grounds, landlords will need to ensure they have complied with deposit protection rules. Further information can be found on the government website: Renting out your property: guidance for landlords and letting agents - Giving notice of possession to tenants before 1 May 2026 - Guidance - GOV.UK
If you do not contact us to request new permission and continue to sublet from 1 May 2026, you will be in breach of your lease. However, we can discuss your options with you should this situation occur.
