Reduced supply of homes to landlords selling up
2025 saw Westminster enact one of the biggest changes to England’s private rental sector in decades via the Renters’ Rights Act, and it has already triggered a mixed response from those working in the property industry alongside landlords.
One of the biggest changes includes the retirement of section 21 ‘no-fault’ evictions. This is a move that is aimed at protecting tenants from being asked to leave a property without a prescribed reason.
Other changes include all tenancies having no specific fixed end dates being introduced from 1 May 2026, restrictions on rent increases to one review per twelve-month period, and outlawing rental ‘bidding’ wars. Landlords will not be allowed to accept bids higher than the advertised rent, there will also be caps on asking for rent in advance, plus the introduction of the right to retain a pet.
Further down the line there will also be a new Ombudsman, and a new national landlord database being established in 2027, which will strengthen the consumer experience for those who choose to rent their home.
And though some of the changes are being introduced later in the year, some Propertymark regional executives have noticed that landlords are already responding to the incoming provisions that the Renters’ Rights Act has made law.
Megan Eighteen, ARLA Propertymark President and a London-based letting agent, noted that both landlords and tenants are responding to the new law in different ways:
“The Renters’ Rights Act is clearly changing behaviour in our local market. We’ve seen a surprising increase in landlords exploring a sale, often driven by uncertainty around the new regulations. Interestingly, at the same time, more tenants are becoming highly focused on their rights, asking informed questions and actively engaging with what the Act means for them. It’s creating a shift in conversations on both sides of the tenancy.”
Josh Jones, a West Midlands-based ARLA Propertymark regional executive, said “the Renters’ Rights Act has led many landlords with smaller portfolios to reassess the viability and profitability of holding rental property due to increased regulation and higher compliance costs, making them question whether their returns justify their continued investment in the private rental sector.”
He added: “This has reduced the supply of available homes at a time when tenant demand remains strong, resulting in increased competition and upward pressure on rents. Larger and more professional landlords are adapting, but overall, the local market has tightened rather than expanded.”
Pauline Carrera-Silva, an ARLA Propertymark regional executive and letting agent operating in Lancashire and Cumbria, commented: “As we have a lot of agriculture tenancies, concerns have been raised about tenants being able to keep pets, especially on residential tenancies that are located on a working farm.
“As much as farmers love their animals, there is a world of difference between a well-trained working farm dog and a family pet.”
However, Jacqui Courtier, an ARLA Propertymark regional executive and letting agent based in Devon and Somerset, said that “the Act is not a dramatic shift and more od a move towards greater consistency across the sector.”
She added that “the legislation should not be viewed as something to fear for landlords who are already doing the right thing.”
Jasmyne Devereaux, a Propertymark regional executive based in Essex, noticed that the Renters’ Rights Act has produced a mixture of responses from landlords, with those intending to stay in the private rental sector in the long-term not fazed by the new rules, while those who intended to stay in the market in the short-term are selling up.
She added: “In the month of January, in one of my offices, out of the scheduled tenancies ending, 33.33 per cent of those are being sold. The remaining percentage is being relet.
“The sales market remains strong here in Essex, which is giving those landlords wanting to sell an easy decision to make.”
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