Mixed-Use Property and the Renters’ Rights Act

Changes to Mixed-Use Property

From 1 May 2026, assured shorthold tenancies (ASTs) have been abolished. All existing ASTs, including fixed-term agreements still running will automatically convert to assured periodic tenancies: open-ended, rolling agreements with no fixed end date.

The right of landlords to recover possession by serving a Section 21 “no fault” notice is now removed entirely and a landlord wishing to recover possession must rely on one of the specified grounds set out under Section 8 of the Housing Act 1988, as amended.

The landlord’s ability to bring the tenancy to an end is now tied to proving a specific ground, such as persistent rent arrears, antisocial behaviour, or a genuine intention to sell or occupy the property.

For mixed use properties, a landlord cannot use the commercial arrangements governing one part of a building to sidestep the residential regime applying to another. The commercial element of a mixed-use property is typically governed by the Landlord and Tenant Act 1954, which operates independently from the Renters’ Rights Act.

A landlord cannot, for example, seek to end a residential tenancy on the basis that it is commercially inconvenient, nor can the terms of a commercial lease override the protections of the Renters’ Rights Act. Gaining possession, even where the commercial lease permits it, will not automatically extend to the residential tenancy.

EPC Compliance

For the residential tenancy, the government has confirmed that all private rented properties in England and Wales will be required to meet a minimum EPC rating of C from 1 October 2030.

Commercial properties are currently required to achieve a minimum of Band E under the Minimum Energy Efficiency Standards regime introduced under the Energy Act 2011. The government has signalled its intention to raise this to Band B by 2030, but the precise timeline and compliance windows for non-domestic property have not yet been legislated.

For a mixed-use property owner, the practical implication is that both the residential and commercial elements will require separate EPC assessments and separate compliance planning.

“If you’re unsure how the new changes apply to your property, please do get in touch and a member of our team can advise you”

Janeet Jawanda

Solicitor