Buy-to-let borrowers are being “left in limbo” as lender guidance lags behind the Renters’ Rights Act, according to Nicholas Mendes, mortgage technical manager at John Charcol.

Mendes cautioned that, since the Act was introduced on May 1 2026, the assured short hold tenancy no longer exists in England and Wales, which, he suggested, is causing issues for BTL landlords.

“Every tenancy that was an AST converted automatically to an assured periodic tenancy, fixed terms can no longer be granted, and possession is only available on the statutory grounds in the Housing Act 1988,” he explained.

“For buy-to-let borrowers, and anyone letting under a Consent to Let on an existing residential mortgage, that changes the practical experience of being a landlord.

“A tenant can leave on two months’ notice at any point, income certainty from a fixed term has gone, and regaining possession depends on meeting a specific ground rather than simply waiting out a term.”

Despite this change, Mendes cautioned that some mortgage offers may still describe the old regime as many BTL mortgage conditions and lender guidance were written when an assured short hold tenancy was the standard, and not every lender has caught up yet.

“Lloyds Bank’s own customer-facing BTL guidance still leads with ‘the property should be let on a single assured short-hold tenancy’, with only a brief, easily missed reference further down to ‘such other replacement tenancies as may be prescribed by legislation from time to time.’

“A borrower reading the guide in plain language would have no way of knowing an assured periodic tenancy is what that clause now means in practice.”

However, Mendes specified that this issue is not unique to one lender, instead reflecting an industry that’s updating at different speeds.

“In the meantime, the practical advice for borrowers is straightforward: if your mortgage offer or lender guidance references an assured short hold tenancy or a fixed term, don’t assume you’re in breach,” he advised.

“Ask your broker or the lender directly for written confirmation that a periodic tenancy compliant with the Act satisfies the condition.

“The more borrowers and brokers ask, the faster lenders tend to update their standard terms.”