Renters’ Rights Act 2025: Why s.106 Agreements Need a Second Look

From 1 May 2026, the Renters’ Rights Act 2025 (RRA) will fundamentally change the residential letting landscape in England. Fixed term Assured Shorthold Tenancies (ASTs) and section 21 “no fault” evictions will be abolished, replaced by a single model of open ended assured periodic tenancies (APTs).

The Government has been clear that section 106 agreements remain essential for delivering affordable and social housing, and the Act preserves existing s106 obligations entered into before commencement. Any references to ASTs in those agreements will automatically convert to APTs. While this may just seem like an innocuous administrative change, in practice, this transition creates real planning and delivery risk.

Where the risk lies

While the legislation preserves legal effect, it cannot fix drafting that was built around an AST lifecycle. Many section 106 agreements — particularly for BTR, PRS and co living schemes — contain obligations that assume: fixed tenancy terms, predictable expiry dates, rent resets at the start of each new tenancy, or nomination, review or eligibility checks tied to “end of term” events.

Examples include:

• letting requirements linked to minimum or maximum fixed terms,
• nomination rights triggered by tenancy expiry,
• rent review mechanisms tied to defined tenancy expiries, and
• eligibility checks only carried out “on renewal”.

In the months ahead, there is a real risk of schemes being left with planning obligations that are technically alive but commercially awkward, operationally inefficient or difficult to evidence.

Practical steps to take now

For developers, investors and operators, there are some clear actions to consider:

1. Audit existing section 106 agreements: Identify obligations that are fundamentally tied to an AST structure and assess whether they still operate as intended under an assured periodic tenancy model. Consider which of these obligations can still be complied with as drafted (i.e. “unless otherwise agreed” provisions exist) or require a deed of variation. This review should involve legal, RP, and commercial teams.
2. Engage early with LPAs: Local planning authorities retain discretion under section 106A to vary obligations and are being encouraged by Government to use this discretion flexibly where necessary to maintain delivery. We would anticipate that LPAs will be looking to work collaboratively to align existing section 106 agreements with the RRA.
3. Rethink triggers and cycles: Where obligations were tied to tenancy expiry, consider replacing these with predictable, APT compatible concepts, for example, triggers could be tied to annual “review dates” (12 months from tenancy start date), "new letting events" (based on a grant of a new tenancy or lawful vacation followed by reletting), or "vacancy windows".
4. Monitoring and reporting requirements: Consider what information and documentation will be required to discharge or comply with the condition based on an APT approach. This may require changes to the definitions and contents of the relevant reports specified in the section 106 agreement which are now obsolete.
5. Coordinate with Registered Providers and management teams to ensure compliance with the RRA and amended section 106 obligations (e.g. rent-setting timetables, possession pathways etc).
6. Future proof new agreements: New section 106 agreements should be drafted so that they are compatible with an APT structure from the outset.

Final thought

The Renters’ Rights Act is not just a housing management and rights issue — it is a direct planning and asset management issue — and one that is far easier to address now than after the new regime is live.

Schemes which have been based on cyclical tenancies are most at risk of being left with planning obligations which either can't or are difficult to comply with. With 1 May approaching, now is the time to try and hedge off any potential post-May compliance issues!