Corporate Let vs Individual Tenancy | What Companies Need to Know
A practical guide for companies arranging London accommodation for relocated staff, covering corporate lets, individual tenancies, deposit protection, advance rent and the Renters' Rights Act 2025.
Read More...
How Have Rents Changed in Your Area This Year?
While London's overall rent growth has been moderating, there are significant differences between areas. Here we look at the latest data for the key neighbourhoods where Japanese expatriates tend to live.
Read More...
Major Reform Affecting Tenancy Agreements, Renewals and Terminations in the UK
The Renters’ Rights Act is being introduced in stages toward 2026, and in day-to-day rental practice we are already seeing situations where the traditional approach no longer applies.
Read More...
When arranging accommodation for relocated staff in London, one of the first decisions is whether to hold the tenancy as a company or in the employee's name. This article sets out the key differences between a corporate let and an individual tenancy, and covers recent legislative changes that affect how advance rent can be handled.
Legislative update — Renters' Rights Act 2025
From 1 May 2026, new individual tenancies will be governed as Assured Periodic Tenancies (APT) rather than Assured Shorthold Tenancies (AST). This article uses the term AST throughout for clarity, but the new framework applies to all tenancies signed on or after that date.
A corporate let is an arrangement in which the company itself is the named tenant, and the employee occupies the property as a licensee. An individual tenancy — governed in England by the Housing Act 1988 as an Assured Shorthold Tenancy — places the employee directly in the role of tenant.
The two structures carry different legal obligations, protections, and practical implications.
| Item | Corporate Let | Individual Tenancy (AST) |
|---|---|---|
| Legal framework | Common Law Tenancy | Housing Act 1988 |
| Contract party | Company | Individual employee |
| Occupant changes | Permitted, for example staff rotation | Not permitted as a rule |
| Deposit protection | Not required | Mandatory government-approved scheme |
| Consumer protection | Does not apply | Applies |
| Rent increase challenges | Legally difficult | Statutory protections available |
Note
Corporate lets fall outside the scope of the Housing Act 1988, which applies only to individuals (s.1). An AST cannot be used where the tenant is a company.
Staff continuity
The company retains the tenancy when an employee is rotated or repatriated, avoiding the need to renegotiate a new agreement each time.
Clear expense treatment
Rent paid directly by the company can be managed as a business expense, separate from employee payroll.
Landlord confidence
Some landlords view established corporate tenants as lower credit risk, which can support access to higher-quality properties.
No consumer protection
Protections available under consumer contract legislation do not extend to corporate tenants.
Limited rent challenge rights
Companies have no statutory mechanism to contest rent increases equivalent to that available to individual tenants. Renewal terms depend entirely on what is negotiated in the contract.
Bespoke contract required
Standard AST forms cannot be used for corporate lets. Landlords or agents will typically produce their own agreement, which warrants careful review.
Deposit protection does not apply
The statutory deposit protection obligation under the Housing Act 2004 covers individual tenancies only. Deposit return terms for corporate lets should be clearly defined in the contract.
The Renters' Rights Act 2025 received Royal Assent on 27 October 2025. Its main provisions take effect from 1 May 2026 and significantly restrict the practice of requiring multiple months' rent in advance under individual tenancies.
| Stage | Timing | Rule |
|---|---|---|
| ① Before signing | Before the contract is signed | Landlords and agents may not request or accept any advance rent. Even if the tenant offers, it cannot be accepted. |
| ② After signing, before move-in | Between signing and the move-in date | Landlords may request a maximum of one month's rent in advance. Contract clauses requiring 3, 6 or 12 months upfront are void. |
| ③ After move-in | Tenant's own initiative only | A tenant may voluntarily offer to pay more than one month in advance. Landlords may accept, but must not request, suggest or encourage it. |
Requiring advance rent as a substitute for a UK-based guarantor — a common arrangement for internationally mobile employees — will no longer be permissible under individual tenancies from 1 May 2026. Landlords and agents who continue the practice face fines of up to £5,000 under the Tenant Fees Act 2019.
The restriction applies only to individual tenancies. Corporate lets remain outside the scope of the Act, and the advance rent rules do not apply to them.
The new advance rent rules:
Kens Estate works with companies managing staff relocations in London, handling both corporate let arrangements and individual tenancies. Services include:
For enquiries about current or upcoming relocations, please get in touch.
020 4506 0270 | 218 Great Portland Street, London W1W 5QP | kensestate.com
This article is intended as general information for companies and individuals arranging rental accommodation in London. It does not constitute legal advice. Tenancy law and regulatory guidance may change, and the appropriate contract structure depends on the specific circumstances of each case. For legal interpretation or contract drafting, please seek advice from a qualified legal professional.
gov.uk/deposit-protection-schemes-and-landlordsgov.uk/government/publications/how-to-rentcitizensadvice.org.uk/housing/starting-to-rent-from-a-private-landlord/using-a-guarantor/pinsentmasons.commoneyhelper.org.uk