Company Lets vs AST: What London Landlords Need to Know in 2026 - Elite Property London

A company let is a lease agreement between a landlord and a limited company, where the company — not an individual — is the named tenant. An AST (Assured Shorthold Tenancy) is the standard tenancy agreement used in England when renting to an individual. Both structures are widely used across London, but they differ significantly in legal protections, rent security, and day-to-day management. With the Renters’ Rights Act coming into force in May 2026, the distinction has never mattered more.

What Is a Company Let?

A company let is a tenancy where the landlord grants a lease to a registered company rather than a private individual. The company then typically provides the property as accommodation for its employees, contractors, or clients. Because the tenant is a corporate entity, company lets fall outside the Housing Act 1988 and are instead governed by common law and the terms of the lease itself.

This distinction is critical in 2026. The Renters’ Rights Act, which receives Royal Assent and takes effect in May 2026, abolishes Section 21 “no-fault” evictions for Assured Shorthold Tenancies. Company lets, however, are entirely unaffected by this legislation. Landlords who lease to a company retain the ability to recover possession of their property in line with the contractual terms agreed in the lease, without the additional constraints now placed on ASTs. Company lets also typically run for fixed terms of one to five years, giving landlords long-term income certainty and reducing the costs and void periods associated with frequent tenant turnover. According to Hamptons’ 2025 Lettings Index, the average void period for a London rental property is 18 days per year — a cost that fixed-term company lets largely eliminate.

What Is an AST?

An Assured Shorthold Tenancy is the default tenancy type in England when a landlord lets a residential property to an individual tenant. ASTs have been the backbone of the private rented sector since the Housing Act 1988, offering a familiar legal framework for both landlords and tenants.

Under an AST, tenants benefit from statutory protections including deposit protection requirements, the right to challenge excessive rent increases, and — from May 2026 — protection from no-fault eviction under the Renters’ Rights Act. Landlords can only regain possession through specific grounds set out in the Act, such as rent arrears, antisocial behaviour, or the landlord’s intention to sell or move back in. The Office for National Statistics reported that 4.6 million households in England were privately renting as of 2024, with the vast majority on ASTs. For landlords, ASTs offer access to the widest possible tenant pool and, in prime London locations, can achieve higher headline rents than corporate lets. However, that wider pool also brings greater variability in tenant quality, payment reliability, and property care.

How Does the Renters’ Rights Act 2026 Change Things?

The Renters’ Rights Act represents the most significant reform to England’s private rented sector in over 30 years. From May 2026, all new and existing ASTs transition to rolling periodic tenancies. Section 21 notices are abolished entirely. Landlords seeking possession must rely on expanded Section 8 grounds, and tenants gain new rights to request pets and challenge rent increases through a tribunal.

For landlords with company lets, none of these changes apply. Because company lets sit outside the Housing Act 1988, they are not subject to the Renters’ Rights Act provisions. The lease terms agreed between landlord and company govern the entire relationship. This regulatory divergence is prompting many London landlords to reconsider their letting strategy. Data from the National Residential Landlords Association (NRLA) 2025 Landlord Survey found that 31% of landlords were considering reducing their portfolio due to increased regulation, while 22% were actively exploring corporate letting arrangements as an alternative to traditional ASTs.

Company Let vs AST: Detailed Comparison

Which Is Better for London Landlords?

The answer depends on your priorities. If you value long-term income certainty, minimal management involvement, and insulation from the Renters’ Rights Act, a company let is the stronger option. If you want to maximise headline rent and retain full control over tenant selection, an AST may suit you better — though you will now operate within a significantly more regulated environment.

Many London landlords are finding that company lets offer the best balance of security and simplicity. With a corporate tenant, the company is contractually responsible for rent payments regardless of whether the property is occupied. The property is maintained to a professional standard, and the landlord avoids the administrative burden of deposit protection, gas safety record service, and the new pet-request process introduced by the Renters’ Rights Act. For landlords with multiple properties, the operational savings compound quickly.

At Elite Property London, we specialise in company lets across 12 London boroughs. Our guaranteed rent scheme ensures landlords receive their rent on time every month, with no void periods and no management hassle. We handle everything from tenant sourcing to ongoing property management, so you can enjoy the benefits of property ownership without the day-to-day stress.

What Should Landlords Do Now?

With the Renters’ Rights Act taking effect in May 2026, now is the time to review your letting strategy. Landlords currently using ASTs should consider whether a company let would better protect their investment. Key questions to ask include:

• Is your property suitable for corporate letting? Properties in well-connected London locations with good transport links tend to perform best.
• What is your risk tolerance? Company lets offer contractual rent certainty; ASTs now carry greater regulatory risk.
• How involved do you want to be? Company lets typically require far less landlord involvement than managing individual tenants under the new AST framework.

Frequently Asked Questions

Is a company let the same as a corporate tenancy?

Yes. The terms “company let” and “corporate tenancy” are used interchangeably. Both refer to a lease where a limited company is the named tenant rather than an individual. The key distinction is that company lets fall outside the Housing Act 1988 and are governed by the contractual terms of the lease.

Can I switch from an AST to a company let?

Yes, but you will need to end the existing AST properly before entering into a new company let agreement. Under the Renters’ Rights Act 2026, you cannot use Section 21 to end an AST, so you would need to rely on mutual agreement with the current tenant or wait for the tenancy to end naturally. A specialist property company like Elite Property London can guide you through the transition.

Are company lets regulated by the Renters’ Rights Act 2026?

No. The Renters’ Rights Act applies to Assured Shorthold Tenancies granted to individuals under the Housing Act 1988. Company lets, where the tenant is a limited company, fall outside this legislation entirely. This means Section 21 abolition, pet-request rights, and rent-increase tribunal provisions do not apply to company lets.

How does Elite Property London’s guaranteed rent scheme work?

We lease your property on a company let basis and pay your rent directly, on the same date each month, regardless of occupancy. We manage the property to a high standard, handle all maintenance and compliance, and return it in excellent condition at the end of the lease. There are no void periods, no management fees, and no surprises. Get in touch to find out how much your property could earn.

Gerda Micke is the Founder and Director of Elite Property London, a corporate lettings specialist operating across 12 London boroughs. For a free, no-obligation property appraisal, contact our team today.