Renting a property to a family member can feel very different from letting it to an unrelated tenant. You may already know the person well, trust them to look after the property, and be willing to offer them a more flexible arrangement. However, being related does not automatically mean that normal landlord and tenant considerations disappear.
For landlords in England, the Renters’ Rights Act 2025 introduced significant changes to the private rented sector from 1 May 2026. The reforms include changes to tenancy arrangements, rent increases, and possession proceedings, meaning landlords need to understand how the new rules could affect a property occupied by a family member.
Whether the Act applies to your particular arrangement depends on the nature of the occupation and the type of tenancy involved. This is why it is important not to assume that an informal family arrangement sits outside the usual rules.
Does the Renters’ Rights Act Apply to Family Members?
In short: yes, in most cases. The fact that your tenant is your child, parent, sibling, or another relative does not exempt the arrangement from tenancy law.
The core factor is the legal status of the arrangement:
- Assured Periodic Tenancies: Assured Shorthold Tenancies (ASTs) have been replaced by assured periodic tenancies.
- No ‘No Fault’ Evictions: Section 21 notices are no longer available. Landlords must rely on statutory grounds for possession and follow formal procedures, regardless of family ties.
- Main Residence & Rent: If your relative pays rent and uses the property as their main home, the arrangement may constitute an assured tenancy, depending on the circumstances.
The reforms also updated the possession rules when landlords want to move their family into a property. Ground 1 allows a landlord to seek possession where they, or certain close family members, require the property as their only or principal home.
The legislation specifies which family relationships are covered. Ground 1 cannot generally be used during the first 12 months of a new tenancy. The landlord must also follow the correct notice and possession process. However, a landlord cannot simply ask an existing non-family tenant to leave informally; the strict statutory Ground 1 process must be followed.
Does It Matter If You Charge a Family Member Rent?
The financial arrangement plays a major role in determining legal status. Charging full market rent, a reduced rate, or no rent at all creates very different scenarios.
A formal rental arrangement where the occupier pays rent to live in the property is different from simply allowing a relative to stay in a property without creating a tenancy.
This is one reason why landlords should avoid relying on informal assumptions. If you are charging rent and the property is being occupied as your relative’s home, it is sensible to establish exactly what the arrangement is and what responsibilities each party has.
A written tenancy agreement can help provide clarity over rent, repairs, responsibilities, and other terms. It can also help avoid misunderstandings that might otherwise become particularly difficult when the landlord and tenant are family members.
Ashburnham Insurance has previously highlighted the importance of setting up a clear tenancy agreement when renting to relatives, helping to protect both the property and the relationship.
Why Landlord Insurance Still Matters When Letting to Family
Legal responsibilities are only part of the picture. Landlords also need to think about insurance.
It can be tempting to assume that standard home insurance will be sufficient when the person living in the property is a family member. However, the way a property is occupied can affect the type of insurance required.
Landlords should tell their insurer about the actual circumstances of the letting, including who occupies the property and whether rent is being charged. Failing to disclose relevant information could create problems if a claim is subsequently made.
Landlord insurance can provide cover designed around the risks associated with renting out a property. Depending on the policy selected, cover may include buildings insurance, landlords’ contents, property owners’ liability, malicious damage, legal expenses, and rent guarantee.
Ashburnham Insurance provides landlord insurance for properties let to family members and friends, helping landlords arrange cover that reflects the circumstances of the tenancy.
Does Renting to Family Affect Your Landlord Insurance?
It can, which is why landlords should be open with their insurer about who will occupy the property. Some insurers have specific arrangements or underwriting criteria for properties occupied by family members. The fact that the tenant is a relative should not be assumed to be irrelevant.
At Ashburnham Insurance, we understand that landlords can have different reasons for letting to family and friends. Whether you are helping an adult child with housing, allowing a parent to move into a property, or renting an investment property to another relative, the circumstances of the arrangement matter when considering suitable landlord insurance.
The key is to ensure your insurer is aware of the arrangement and that the policy you choose reflects how the property is actually used.
Get Advice Before Letting to a Family Member
The Renters’ Rights Act does not simply stop applying because your tenant happens to be related to you. The legal position depends on the nature of the arrangement, the type of occupation, and the relevant tenancy rules.
With the major changes introduced from 1 May 2026, landlords should make sure they understand their responsibilities before entering into a new arrangement with a family member. This includes considering the tenancy itself, possession rules, and the insurance required for the property.
If you are planning to let a property to a family member or friend, Ashburnham Insurance can help you consider your landlord insurance requirements and find suitable cover for your circumstances. Call us now on FREEPHONE 0800 1696137 to find out more.