Update – 8 May 2026
The government has issued guidance for shared owners who are renting out their home, which can be found on the government website. Following the new guidance, we would like to draw shared owners’ attention to a few key points:
Exemption for Shared Owners intending to relet
The Renters Rights Act restricts landlords from renting out their property for 12 months after they have issued a Section 8 notice to a previous tenant using Ground 1A (selling). The Act also includes a targeted exemption for shared owners who have faced challenges when selling their homes, including where there have been building safety remediation issues.
The following conditions, set out in the information note, must be met by the shared owner for the exemption to apply:
- Tell anyone in writing who you are planning to rent to, before you agree the tenancy, that you are a shared owner and that the prohibition from letting or marketing the property within the 12 month restricted period may not apply to a subsequent letting or grant of a licence of the property. To do this, you can use Template notice 1 (ODT, 12.6 KB).
- Tell your shared ownership provider in writing before the end of the possession notice period (meaning the date specified in any notice served under section 8 of the Housing Act 1988) that you intend to sell.
- Before attempting to market your property for let or letting the property, either get a RICS valuation to sell your home or advertise your home for sale (for example, through an estate agent).
If you already have a subletting tenant before 1 May 2026, you may still be able to use the exemption. To do this, you must follow the requirement set out in point 1 above for your existing tenant(s) by 31 May 2026. You can use the Template notice 2 (ODT, 12.5 KB). You must also follow points 2 and 3 above.
Changes to length of permissions to sublet
The Shared Ownership model leases made available by Homes England contain a clause that prohibits a sub-letting arrangement being made by the leaseholder. This is to protect the use of public funds and to ensure that applicants are not entering Shared Ownership potentially for commercial gain.
Our subletting policy, however, sets out the circumstances under which we grant permission to sublet for a limited period where a genuine need for sub-letting has arisen.
The new guidance clarifies that landlords can issue a notice using either Grounds 1(moving in) or 1A(selling) within the first 12 months of the tenancy, as long as the notice does not expire during this period. As a result, we have shortened the standard permission length from 16 months to 12 months and 1 day. Extensions and longer permissions can still be considered on request.
Notice period for providers to end a sub-letting permission
Our updated policy commits us to providing shared owners with at least 6 months’ notice where a sub-letting permission is coming to an end. Such an amount of time will allow both the shared owner to consider whether they wish to request an extension to the sub-letting arrangement, and for us to respond accordingly. This 6-month minimum timescale will also allow the shared owner sufficient time to commence a 4-month section 8 notice if required. Permission will not be withdrawn in a way that means the shared owner cannot adhere to the 12-month minimum before the selling or moving in grounds can be used for a new tenancy.
This applies to:
- permissions that start on or after 1 May 2026
- existing permissions that are due to come to an end on or after 1 December 2026
As such, resident with permissions granted prior to 1 May will not be in breach of their lease if they do not contact us to extend or request new permission. This can be considered at the point where we notify the shared owner that their subletting tenancy must end.
Originally published 23 February 2026
Currently, some shared ownership residents hold permission from us to sublet part or all of 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 using MyAccount 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.
