Horizon Scanning 2026: Legal and Regulatory changes affecting social landlords

1.      The Rent Standard 2026

One of the most immediate changes is the new Rent Standard issued by the Regulator of Social Housing.

From 1 April 2026, all social landlords (local authorities and private registered providers) must follow a new rent-setting framework.

Key points:

• Annual rent increases for social and affordable homes will be capped at the Consumer Price Index (CPI) + 1%

• Landlords will have limited flexibility to increase rents for homes currently below the “formula rent”

The return to a 10-year rent settlement is designed to give landlords greater certainty, helping them plan long-term investment in repairs, maintenance and new homes while keeping rents aligned with local incomes.

2.      The Renters’ Rights Act 2025

Although much of the Act focuses on the private rented sector, it signals a wider shift toward stronger tenant protections that will impact on social housing later this year.

Key reforms include:

• The end of section 21 “no fault” evictions

• The removal of Assured Shorthold Tenancies, replaced with periodic tenancies

• Updated statutory grounds for possession, requiring landlords to rely on clear, evidence-based reasons

• Stronger tenant rights, including protections relating to pets, discrimination and rent increases

Later stages of the Act introduce a national landlord database and a Private Rented Sector Landlord Ombudsman. While these currently apply to private landlords, similar measures could be introduced for social housing in the future.

3.      New local authority investigatory powers

From 27 December 2025, local authorities gained new investigation and enforcement powers under the Renters Rights Act.

These include powers to

• Enter residential and business properties

• Seize documentation related to potential offences

Although these powers are primarily aimed at private landlords, social landlords may experience increased oversight where responsibilities overlap.

4.      The next phase of Awaab’s law

Since October 2025, social landlords have been required to meet strict timescales for investigating and addressing emergency hazards (excluding overcrowding) and serious damp and mould issues.

From October 2026, the second phase of Awaab’s Law will expand these requirements to cover additional serious hazards, including:

• Excess cold and excess heat

• Falls (for example on stairs or between levels)

• Structural collapse and explosions

• Fire and electrical hazards

• Domestic hygiene and food safety risks

This marks a further step toward stricter safety standards and faster response times in social housing.

5.      Housing Benefit and Universal Credit Changes

 Local Housing Allowance (LHA) rates, due to take effect in April 2026, were announced on 30th January 2026 and were increased to reflect updated rental market data.

Higher LHA rates may improve affordability for some tenants, particularly those in temporary accommodation or higher-rent social housing products.

6.      Leasehold and Commonhold Reform Bill

The draft Bill proposes significant reforms to leasehold arrangements, with further progress expected later in 2026.

Proposed changes include:

• Stronger rights for leaseholders

• Restrictions on ground rents

• Simpler and cheaper processes for buying the freehold

Although the Bill may change before becoming law, housing associations that manage leasehold properties should begin preparing for:

• Revised service charge rules

• Possible limits on cost recovery

• Greater transparency requirements

Conclusion

For social landlords, 2026 will be a year of adjustment and preparation. The direction of travel is clear:

• Greater regulatory oversight

• Stronger tenant rights

• Increased enforcement powers

• Higher expectations around safety and service standards

Early planning and clear communication will be key to managing these changes effectively and maintaining compliance in a rapidly evolving legal landscape.