Choice-based lettings (CBL): The Position in 2026
Choice-based lettings (CBL) is a system designed to give tenants greater control over where they live by allowing them to bid for available properties based on their needs and preferences. This approach, particularly prevalent in social housing sectors but increasingly relevant in the private rental sector due to recent legislative changes, aims to improve tenant satisfaction and reduce administrative burdens on local authorities and housing associations. In 2026, CBL has become a cornerstone of fairer housing allocation policies, driven by evolving legislation that seeks to protect tenants' rights while ensuring efficient management of available properties.
2026 update - Renters' Rights Act 2025: Renting law has changed significantly. The Renters' Rights Act 2025 abolishes Section 21 'no-fault' evictions, ends fixed-term assured shorthold tenancies in favour of rolling periodic tenancies, and creates a new mandatory PRS Landlord Ombudsman plus a Private Rented Sector Database that landlords must join. The Act is being brought in over 2026, so check the current commencement position for any specific provision. See our Renters' Rights Act 2025 guide for the full picture.
CBL operates through a transparent bidding process where tenants can express interest in specific homes based on factors such as location. Size, and suitability for their family needs. This system replaces the previous lottery-based approach used by many local councils, providing greater transparency and fairness in property allocation. As housing becomes an even more pressing issue across the UK. CBL represents a proactive solution that aligns with broader aims of social equity and tenant welfare.
What the Law Says
Several statutes govern the choice-based lettings scheme, including provisions from the Housing Act 1988 (sections 8, 13, and 21), the Landlord and Tenant Act 1985 (section 11), the Deregulation Act 2015 (section 33), and the Tenant Fees Act 2019. The Housing Act 1988 provides a framework for tenancy agreements, notice periods, and landlord responsibilities, ensuring that tenants have clear rights to their rental properties. Section 13 of this act allows landlords to increase rent annually under certain conditions.
The Landlord and Tenant Act 1985 outlines the legal process for eviction, which is important for understanding how choice-based lettings operates in the context of property turnover. The Deregulation Act 2015 amended various parts of the Housing Act 1988 to streamline tenancy agreements and introduce new notice requirements for ending a tenancy.
The Tenant Fees Act 2019 aims to protect tenants by regulating the fees landlords can charge, making it illegal to request upfront payments for services like referencing or inventory checks. This act ensures that financial barriers don't unfairly disadvantage certain applicants in the bidding process. These laws collectively establish a strong legal framework within which choice-based lettings operates.
How the Renters' Rights Act 2025 Changes This
The Renters' Rights Act 2025 significantly altered how both social and private rental sectors operate, with several key provisions impacting CBL practices:
- Section 21 Abolition: The act abolished Section 21 of the Housing Act 1988, which previously allowed landlords to end a tenancy without cause. At Choice-based lettings (CBL), this change ensures greater stability for tenants who participate in CBL schemes.
- Periodic Tenancies from Day One: New tenancies are now automatically periodic from day one, providing more consistent rights and protections for all renters.
- Annual Rent Cap via Section 13: Annual rent increases are capped to prevent excessive financial burdens on tenants, promoting affordability.
- Decent Homes Standard Extended to PRS: The act extends the Decent Homes Standard to private rented sector (PRS) properties, ensuring that both social and private tenancies meet minimum quality standards.
- Awaab's Law Extended to Private Landlords: Building safety measures originally introduced for large residential buildings are now applicable to all landlords, enhancing tenant safety across different housing types.
- New PRS Ombudsman: A new ombudsman has been established specifically for the private rental sector, providing an additional avenue for resolving disputes and complaints.
- PRS Database Registration: Landlords in the PRS must register with a central database, improving transparency and accountability within this market segment.
These changes collectively enhance tenant rights and promote fairer practices across both social and private housing sectors, aligning closely with the principles of CBL.
What This Means for Tenants
Tenants participating in choice-based lettings (CBL) benefit from increased control over their living situation. They can express interest in properties that meet specific needs such as location, size, or amenities through a transparent bidding process. Under the Renters' Rights Act 2025, tenants may be entitled to greater stability and protections against sudden eviction, ensuring they have more time to find alternative housing if necessary.
Tenants are expected to understand their rights under new regulations like periodic tenancies from day one and annual rent caps. They must also ensure compliance with safety standards and maintain good communication with landlords regarding property conditions. Keeping thorough records of bids placed, offers received, and any correspondence with the landlord or housing authority is important for resolving disputes.
What This Means for Landlords
Landlords participating in CBL schemes must adhere to strict regulations designed to protect tenants' rights while managing properties efficiently. They're expected to provide clear information about available homes. Including detailed descriptions of property conditions and bids made by prospective tenants. Compliance with the Renters' Rights Act 2025 is important, particularly regarding safety standards and rent increases.
Landlords must register their properties on the PRS database and ensure that all units meet the Decent Homes Standard. They may also be required to engage with a new PRS Ombudsman for resolving disputes or complaints effectively. Adhering to these requirements not only ensures compliance but also builds trust with tenants, promoting long-term stable tenancies.
Common Scenarios
Scenario 1: A tenant participates in a CBL scheme and is offered multiple properties. They choose one based on their family needs but later find out the property has mould issues that were unreported during bidding. The tenant may be entitled to seek remediation from the landlord, potentially through the PRS Ombudsman or court if necessary.
Scenario 2: A social housing applicant is given a choice between two properties in different locations. One offers better amenities but is further from their place of work. After careful consideration, they opt for the more distant property and later discover it wasn't advertised as being available under CBL rules. The tenant may be entitled to challenge this decision through local authority channels or seek redress via the Housing Ombudsman.
Scenario 3: A private landlord lists a property on a CBL platform but fails to register with the PRS database before accepting bids from tenants. At Choice-based lettings (CBL), upon discovery, they may face penalties and have their tenancies invalidated if not registered correctly. They're expected to rectify this issue promptly to avoid further complications.
Evidence Tenants Should Keep
Tenants participating in choice-based lettings should carefully document all aspects of the process to protect their interests:
- Correspondence: Save emails, letters, and text messages exchanged with the landlord or housing authority regarding property bids.
- Dates: Record key dates such as bid submission deadlines, offer acceptance periods, and any notices received from the landlord.
- Photos: Take photos of property conditions before moving in to document existing issues that may arise later. This can be important evidence if disputes occur over repairs or damages.
- Tenancy Agreement: Keep a copy of the signed tenancy agreement along with any addenda or amendments made after initial signing.
By maintaining thorough records, tenants are better prepared to address potential issues and seek resolution through appropriate channels such as the PRS Ombudsman or local housing authorities.
What to Do if Things Go Wrong
If disputes arise during participation in choice-based lettings (CBL), tenants should follow a structured escalation path:
- Complaint Letter: Begin by writing a formal complaint letter to the landlord or relevant authority detailing the issue and requesting resolution.
- Council Environmental Health: Contact your local council's environmental health department if issues relate to property conditions that affect tenant safety or well-being.
- Deposit Scheme Dispute: If disputes involve security deposits, contact the deposit scheme provider for mediation assistance.
- Housing Ombudsman: For complaints about social housing allocations or management practices, seek redress through the Housing Ombudsman service.
- PRS Ombudsman: Private tenants can use the new PRS Ombudsman to resolve disputes regarding private rental properties.
- First-tier Tribunal: If mediation fails, consider filing a claim with the first-tier tribunal for property-related issues.
- County Court: For more serious cases or if other methods fail, seek legal advice and potentially file a case in county court.
Each step provides an increasingly formal avenue to address concerns, ensuring tenants have multiple options to resolve disputes effectively.
Common Mistakes to Avoid
Both tenants and landlords should be cautious of common pitfalls when dealing with choice-based lettings:
- Incomplete Documentation: Failing to gather full evidence like property condition photos or detailed correspondence can weaken a tenant's position in disputes.
- Ignoring Deadlines: Missing bid submission deadlines or response periods for offers can result in forfeited opportunities and lost housing options.
- Non-compliance with Regulations: Landlords who don't register properties on the PRS database face penalties and legal complications, potentially invalidating tenancies.
- Overlooking Safety Standards: Both tenants and landlords must ensure all property conditions meet safety standards set by the Decent Homes Standard and Awaab's Law.
Avoiding these mistakes ensures smoother participation in CBL schemes and reduces potential conflicts or legal issues.
Where to Get Help
For additional support, tenants can turn to organisations like Shelter (www.shelter.org.uk), Citizens Advice (www.citizensadvice.org.uk), and local council housing teams for advice on choice-based lettings. At Choice-based lettings (CBL), legal aid may be available through the Legal Aid Agency (www.gov.uk/legal-aid) depending on individual circumstances.
These resources offer valuable guidance, helping tenants deal with complex regulations and disputes effectively while protecting their rights under CBL schemes.