Renters’ Rights Act: A review of the first six months
Ahead of the Renters’ Rights Act (RRA) coming into force on May 1st, there were many concerns across the industry.
Landlords were probably most worried about the removal of section 21 and fixed-term tenancies, fearing it would be harder and take longer to remove troublesome tenants and regain possession of their properties. Widespread predictions were that huge numbers of landlords would sell up and exit the market, shrinking the supply of rented homes.
And while most of the new laws were introduced to protect tenants, banning bidding wars for new tenancies and restricting rent increases raised the prospect of inflated advertised rents, making accommodation less affordable for tenants.
So, six months in, what’s actually been the impact of the RRA?
Here are five of the key things we’ve noted over the course of the last six months, and our predictions for what’s likely to happen going forward:
1. Some landlords are selling up…but others are still investing
Although some landlords have recently sold their properties, many had reached the end of their planned investment period. For instance, those who started in buy-to-let in the late ‘90s and early 2000s are now around retirement age and always planned to sell – the RRA may have just accelerated their timescale.
And, according to Pegasus Insights, the number of landlords that have sold in the last year is actually lower than the number who said they would. Over the 12 months to June 2026, only 22% sold rental properties, versus the 38% that had expressed an intention to do so.
So, while 9% of landlords say they plan to exit the market in the coming year, that figure may end up being closer to 5% or 6%. And although fewer landlords are buying, strong tenant demand and competitive yields mean rental purchases are still happening. As the RRA rules settle in over time and initial concerns subside, we expect investment in the market to rise again.
2. Rents haven’t been pushed up as much as feared, and rents remain affordable
Zoopla’s data shows that average rental growth in the year to June was 2.1%, while inflation over the same period was 2.6%. However, three-quarters of rental areas have increased by more than that, with more affordable locations seeing annual rises of 5% plus, meaning most landlords’ rental returns have held their value well and rents are rising at a steady and realistic rate.
While this data suggests rents are rising, we are finding the reality is often different. Good landlords with good tenants are agreeing to rents below the advertised rate to secure the best tenant and minimise void periods.
And with average earnings growing at 4% – almost double the growth in the average rent – affordability is actually improving for tenants. This is the third year in a row that earnings have outpaced rents, and Zoopla expects rental inflation to stay between 2% and 3% for the rest of the year.
3. Some tenants are struggling to secure accommodation now that landlords can’t request more than one month’s rent in advance
This has been a particular problem for international students, who used to be able to offer several months’ rent in advance if they couldn’t satisfy all the referencing criteria. And with the loss of section 21, many landlords are less willing to take a risk. However, we’d suggest this can be overcome by tenants offering guarantors, which has long been a common solution for students and other tenants who struggle to satisfy financial referencing checks.
4. The number and length of overlapping tenancies is increasing due to the two-month notice period
When moving to a new property, tenants have always had to accept that they might pay double rent for a short time where their old tenancy and new one overlap. This is because landlords want to keep the gap between tenancies as short as possible and aren’t necessarily willing to wait for their new tenant’s notice period at their previous home to expire.
When the notice period was one month, this overlap was often just one or two weeks’ rent. But now that tenants must give two months’ notice, some face an overlap of five or six weeks, which can be a significant financial hurdle.
However, we’re finding that in most cases, landlords can still secure new tenants fairly quickly and can therefore release outgoing tenants from their obligation to pay rent for the full two-month notice. The key is communication, and if you’re working with a professional agent, they should be able to help the transition for both parties.
5. New pet rules have been a hit with tenants, but there’s still some misunderstanding
Around 50% of tenants either already have a pet or plan to get one in the next year, encouraged by the changes under the RRA. However, many tenants don’t seem to understand the new rules properly.
Rightmove has reported that searches for pet-friendly properties have dropped by more than half since the RRA came into force, yet our own research shows that 93% of landlords have not yet received a tenant’s request to keep a pet.
Some tenants believe they are automatically allowed to have a pet and don’t realise they must seek written permission from their landlord, or that the landlord can refuse where they have a valid objection. As a result, tenants may only disclose a pet after signing their tenancy agreement, or a landlord might discover a pet during a property inspection. That’s why it is important to ask the right questions and fully vet a tenant before agreeing to a tenancy.
Overall, while there have naturally been some teething issues with the implementation of the RRA, there certainly hasn’t been as much disruption as some feared. With every major legal change, there is always an initial transition period while people get used to the new rules, then the market settles.
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