London’s Rental Market Faces Unique Challenges Ahead of Renters’ Rights Act

The Renters’ Rights Act, scheduled to take effect on 1 May 2026, is expected to significantly impact London’s private rented sector, which operates on a scale and complexity unlike any other part of England. Propertymark, speaking to the London Assembly Housing Committee, has emphasised that the success of the legislation will depend not only on the changes in law but also on reforms within the court system and effective enforcement.

Nathan Emerson, CEO of Propertymark, stated: “We support measures to improve standards and provide greater security for renters. However, London’s rental market has distinct characteristics that require careful consideration.” He highlighted factors such as higher demand, a large student population, longer court timelines, and existing licensing schemes as particular challenges for implementing the Act in the capital.

Increased Court Demand and Repossession Claims

One of the key implications of the Renters’ Rights Act is the abolition of Section 21 ‘no-fault’ evictions. This means all possession claims must proceed through the courts, with landlords required to demonstrate specific grounds for repossession. Propertymark’s evidence shows that London already experiences some of the highest levels of repossession claims in England. For example, the London Borough of Barking and Dagenham recorded 878 private landlord repossession claims per 100,000 households, according to the Ministry of Justice.

Propertymark warns that the Ministry of Justice must collaborate with local courts to ensure sufficient capacity to handle the anticipated increase in possession cases. Without adequate court resources, delays could worsen, affecting landlords’ ability to regain possession where justified and potentially disrupting the rental market.

Student Housing and Rent Payment Changes

London’s substantial student population, exceeding 400,000 university students including many international students, adds further complexity. The Renters’ Rights Act introduces Ground 4A, which allows landlords of Houses in Multiple Occupation (HMOs) with three or more tenants to regain possession at the end of the academic year. However, Propertymark points out that this ground does not cover smaller student properties, potentially leading to a student housing crisis in London.

Additionally, the Act prohibits landlords and agents from accepting large sums of rent in advance. This change is expected to impact students significantly, as many prefer to pay rent upfront when their student loans are disbursed. Sophie Lang, ARLA Propertymark regional executive for Cornwall, previously warned that banning rent in advance could disadvantage students financially.

Complex Licensing and the Role of Letting Agents

London’s private rented sector is further complicated by extensive selective licensing schemes, with 28 of the capital’s 32 boroughs currently operating such schemes. Many London landlords are based overseas and depend on letting agents to manage their properties. Propertymark calls for early engagement with landlords and agents and streamlined processes to facilitate smooth registration and ongoing compliance under the new legislation.

The organisation recommends an education-led approach to encourage compliance among landlords and agents, combined with targeted enforcement against criminal landlords. It also urges the Greater London Authority and London Councils to develop a consistent approach to compliance across boroughs, support professional qualifications and standards for letting agents, and provide updated homelessness guidance following the removal of Section 21.

Planning for a Balanced Transition

Nathan Emerson concluded: “London’s rental market is complex and fast-moving. By recognising the capital’s specific pressures and planning accordingly, policymakers can help ensure the reforms deliver improved standards and security without unintended disruption. We stand ready to work with the London Assembly and boroughs to support a smooth and balanced transition.”

The Renters’ Rights Act represents a significant shift in landlord and tenant law, particularly in London, where the private rented sector’s scale and diversity require careful management to maintain rental supply and protect all parties involved.

Suggested internal link anchors

• Renters’ Rights Act
• London private rented sector
• Section 21 eviction
• repossession claims
• student housing crisis
• selective licensing schemes
• letting agents
• landlord compliance
• court reforms
• rental supply

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/