Renting a subdivided unit in 2026: check the tenancy rules and BHU status

Ask two separate questions about the flat

Tenancy control for qualifying subdivided-unit tenancies took effect on 2022-01-22. It deals with the tenancy term, renewal rent and certain charges. The Basic Housing Unit, or BHU, regime began on 2026-03-01. It deals with minimum living conditions, registration, recognition and letting of subdivided units in residential buildings. A landlord’s statement that a unit is registered does not show that it has BHU recognition, and a two-year tenancy does not prove the unit meets the BHU standards.

Ask whether Part IVA regulates the tenancy and check its address, landlord and charges. Separately verify grace-period registration for the original flat and BHU recognition for the particular subdivided room. Registration of the flat is not recognition of each room.

Housing Bureau: BHU regime and tenancy control

Estate Agents Authority: subdivided-unit tenancies

BHU grace-period and countdown rules

BHU registration checks and tenancy exceptions

What a regulated tenancy changes

Part IVA ordinarily provides a first 2-year term and entitlement to a second 2-year term, but do not assume every tenant receives an uninterrupted 4 years. If the first term began after 2025-10-03 and the room in a registered flat still lacks recognition on 2029-09-01, the tenancy automatically ends at the countdown start despite unexpired tenure. A first term beginning on or before 2025-10-03 does not automatically end for that reason. Second-term rent increases remain subject to the relevant index change and a 10% cap, not an automatic 10% increase.

When the countdown rule automatically ends the tenancy, the tenant may recover from the operator, as a civil debt, the lower of 3 months of rent and the rent for the remaining term. This is a recoverable legal entitlement, not a guarantee of automatic payment. Keep the agreement, payment records and notices, and consult the Housing Bureau guidance or seek appropriate help if disputed.

Charges for specified communal facilities and services, such as shared water or electricity, must be apportioned. Apart from rent, the deposit, apportioned charges and compensation for loss or damage caused by the tenant’s breach, a landlord may not collect other fees under the regulated-tenancy rules. Ask how each shared charge is calculated, have the amounts or method recorded in writing, and keep payment records. Query any unexplained 'miscellaneous' fee before paying.

Housing Bureau: terms, renewal rent and charges

Estate Agents Authority: regulated-tenancy protections

BHU grace-period and countdown rules

BHU registration checks and tenancy exceptions

How to read BHU status as of 2026-10-09

The initial registration period ends on 2027-02-28. Eligible original flats can register, giving their subdivided rooms a 36-month grace period from 2027-03-01 to 2030-02-28. Registration concerns the original flat; recognition concerns an individual subdivided unit meeting the standards. During the countdown beginning 2029-09-01, no new domestic tenancy may be entered for an unrecognised room in a registered flat. Compare this deadline with the proposed first-term start date.

The offence provisions concerning illegal letting take effect on 2027-03-01, with subsequent enforcement under the transition. The Housing Bureau says the tenant is not criminally liable for a landlord’s letting of an unrecognised unit. Thus, lack of recognition as of 2026-10-09 does not itself make the tenant immediately liable. It remains a practical question: ask whether the unit is recognised, in a grace-period registered flat, or unsupported by status documents, and what works or relocation may be needed later.

Housing Bureau: rollout, registration and grace period

Estate Agents Authority: effective date of offence provisions

BHU grace-period and countdown rules

BHU registration checks and tenancy exceptions

Make the viewing and paperwork agree

Inspect the toilet, windows, ventilation and meters, and record the condition; a viewing does not replace recognition. Match grace-period registration to the original flat address, then separately match recognition evidence to the room. Do not expect a separate flat-registration document for every room. Ask about utilities, receipts and notification of later works or relocation.

• Establish whether Part IVA regulates this tenancy and record both term arrangements.
• Write down the rent, deposit and apportioned service charges separately.
• Check the original flat registration, room recognition, first-term start date and countdown implications separately.
• Check the physical facilities, photograph the condition and retain the signed agreement and receipts.

Housing Bureau: official description of both regimes

BHU grace-period and countdown rules

BHU registration checks and tenancy exceptions