Shared owners may be exempt from 12-month no re-let rule

The government has announced exemptions for shared owners who are subletting under the Renters’ Rights Act.

New government guidance published reveals shared owners may be exempt from the 12-month no-re-let restricted period under the act.

Shared ownership subletting is when someone who owns a share of a property (through a shared ownership scheme) rents out all or part of their home to a tenant, usually with permission from the housing provider or lease terms allowing it.

Six months’ notice sublet coming to an end

The guidance says the landlord should give at least six months’ notice that permission to sublet is coming to an end. 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

If court action is needed to recover possession, shared owners are advised to contact their landlord, and permission to sublet should be extended until the process has concluded.

Qualify for an exemption

The guidance also says that under the Renters’ Rights Act, the 12-month “no re-let” restricted period introduced after using the selling ground (Ground 1A) means landlords cannot normally market or re-let a property for 12 months after regaining possession. Shared owners may be exempt from this rule when using the selling ground.

To qualify for the exemption, the guidance says shared owners must:

• tell prospective tenants in writing, before agreeing a tenancy, that they are a shared owner and that the 12-month restriction may not apply
• tell their shared ownership provider in writing before the end of the possession notice period that they intend to sell
• before marketing or re-letting, either obtain a RICS valuation or advertise the property for sale (for example via an estate agent)

The full guidance can be viewed by clicking here.