When 'Licence to Occupy' Meets No-Fault's End, the £16bn MEES Bill, and the BLO Ruling
THIS WEEK
A week dominated by the approaching Renters' Rights Act commencement date — now less than a month away — and a simultaneous government consultation that signals where the regulatory standard is heading next. Elsewhere, the full cost of new energy efficiency requirements lands, building safety liability expands, and the RSH updates its rent guidance.
1. Renters' Rights Act Goes Live 1 May as Government Consults on 2027 Tenancy Standard Overhaul
The Renters' Rights Act 2025 Phase 1 provisions take effect on 1 May 2026, abolishing assured shorthold tenancies, converting all existing ASTs into open-ended periodic assured tenancies, and removing section 21 "no-fault" evictions. The Act introduces new supported-accommodation-specific possession grounds with shorter four-week notice periods. Simultaneously, MHCLG has launched a consultation (closing 28 May 2026) on a revised direction to the Regulator of Social Housing, proposing an outcomes-focused tenancy standard ahead of further reforms hitting the social rented sector from October 2027. The proposed direction would replace the existing 2012 order. For supported housing providers, the central question remains whether occupation arrangements structured as "licences to occupy" would in fact be classified as tenancies — a distinction that determines whether the Act's reforms bite. Providers operating long-term schemes should be assessing their tenure position now.
In this week's Deep Dive, we analyse what this two-phase reform means for SEA providers — including the critical licence-versus-tenancy question, the new possession grounds, and a practical tenure audit framework. Paid subscribers also receive a free download of Leonard Payne's full practice paper on the Act's impact on supported exempt accommodation.
Sources: Trowers & Hamlins | Inside Housing
2. Confirmed MEES for Social Rented Sector Expected to Cost £16bn
CIH has welcomed confirmation that Minimum Energy Efficiency Standards will apply to the social rented sector, while Inside Housing reports the finalised standards are expected to cost the sector £16bn. The government has confirmed that the MEES for rented homes will increase to EPC "C", with a single commencement date of 1 October 2030 for both new and existing tenancies. Alongside this, the government is consulting on a £5bn Warm Homes Fund for retrofit loans and green technology. For supported housing providers — many of whom operate older, adapted properties — the combination of mandatory energy efficiency upgrades and the available funding represents both a significant cost burden and a funding opportunity. Providers should begin assessing their stock now.
Deep Dive: What the £16bn MEES bill means for supported housing stock — and how to access the £5bn Warm Homes Fund. Paid subscribers only.
Sources: Inside Housing (MEES cost) | CIH | Inside Housing (Warm Homes Fund)
3. 'Landmark' BLO Ruling Could Extend Building Safety Liability to Parent Companies
Inside Housing reports a significant Building Liability Order ruling that could make parent companies liable for building safety failings by subsidiaries. This is particularly relevant to the supported housing sector, where complex corporate structures — involving property-owning PLCs, registered provider intermediaries, and support-delivering subsidiaries sharing directors — are common. The ruling could expose parent entities that have previously sat behind corporate veils to direct building safety liability. Combined with the Building Safety Regulator setting new 12- and 18-week targets for remediation and Gateway 2 decisions, and a new £62m fire alarm fund to replace costly waking watch arrangements, the building safety compliance landscape is tightening.
Deep Dive: Building Liability Orders, corporate structures, and fire safety — why the supported housing sector should be paying close attention. Paid subscribers only.
Sources: Inside Housing (BLO ruling) | Inside Housing (BSR targets)
4. RSH Updates Rent Guidance and Exemption Procedures for 2026-27
The Regulator of Social Housing has published updated rent guidance effective from 1 April 2026, including new procedures for registered providers to apply for exemptions to the Rent Standard. This is directly relevant to supported housing providers operating specialised supported housing, who may need to seek exemptions where standard rent levels do not cover the higher costs associated with specialist accommodation. DLUHC's rent-setting policy already defines "specialised supported housing" as accommodation offering a high level of support approximating to care home services — providers meeting that definition can claim exemption from the Rent Standard. The updated guidance should clarify the current process for securing and evidencing such exemptions.
Source: Regulator of Social Housing
5. Government Backs £2m Tenant Voice Pilots; MHCLG Recruits Best Value Inspectors
Two items this week pointing to intensifying oversight. The government is funding 20 pilot projects with £2m to boost tenant engagement and strengthen resident voices. Separately, MHCLG is appointing new best value inspectors to carry out inspections where local authorities are failing their statutory duties. Given ongoing concerns about local authority oversight of supported housing and exempt accommodation — and the implementation gap on the Supported Housing (Regulatory Oversight) Act 2023, where practitioners report difficulty even identifying who in their council will handle the new licensing functions — the expansion of inspection capacity could signal increased scrutiny of how councils discharge their housing responsibilities. Providers should also be aware that stronger tenant voice mechanisms may increase resident challenge to occupation terms, service quality, and charges.
Sources: Inside Housing (tenant voice) | LGC (inspectors)