## Government admits no impact assessment on rental supply effects

The UK government has acknowledged that it has not carried out an impact assessment regarding the effect of abolishing fixed-term tenancies under the Renters’ Rights Act on the supply of rental properties. This admission was made in response to a written parliamentary question from Liberal Democrat MP Dr Roz Savage, who sought clarity on how removing fixed-term tenancies might influence landlord certainty, tenant displacement, and overall rental market supply.

Housing Minister Matthew Pennycook confirmed that no specific assessment has been undertaken to evaluate these impacts. Instead, the government refers to a broader impact assessment linked to the Renters’ Rights Act, which suggests that replacing fixed-term tenancies with periodic tenancies will reduce voluntary tenant moves, as tenants will no longer need to plan moves around fixed-term end dates.

## Concerns over abolition of fixed-term tenancies

The existing impact assessment highlights data from the English Housing Survey, noting that approximately 6.3% of tenants who moved in the previous year cited the end of a fixed term as their sole reason for moving. The government interprets these as voluntary moves linked solely to fixed-term tenancy structures, which may have limited tenants’ ability to commit to another 12-month term.

However, industry experts have expressed serious concerns about the practical consequences of abolishing fixed-term tenancies. Sophie Lang, ARLA Propertymark’s regional executive for Cornwall, told Property118 that the student rental market, in particular, relies heavily on fixed-term contracts aligned with academic calendars. She explained: “The student rental market runs in a very set cycle. We know when the term times are and when the year ends. It was very easy to have a fixed-term tenancy, which gave everyone peace of mind that they had their housing sorted.”

Lang added that removing fixed-term tenancies will introduce uncertainty for both landlords and tenants, as fixed terms currently provide a degree of protection and predictability. Supporting this view, a survey by agency software firm Alto found that over a third (34%) of letting agents believe ending fixed-term contracts could severely disrupt the student letting system.

## Lack of assessment on landlord sales and tenant displacement

Dr Savage also questioned whether the Renters’ Rights Act might influence the frequency of tenant displacement caused by landlords selling properties, and whether it could lead to repeated forced moves for tenants who comply with tenancy terms. Again, Minister Pennycook confirmed no assessment has been conducted on these issues.

The government’s impact assessment anticipates only a small number of landlords will exit the market due to the reforms. It states: “There is a risk that costs from the legislation may result in some landlords leaving the sector. This is difficult to estimate precisely, though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value.”

The assessment also references similar reforms in Scotland, such as the abolition of section 21 and the 2019 Tenant Fees Act, noting that available evidence does not suggest these have negatively impacted supply. However, this contrasts with a study by the Scottish Association of Landlords, which revealed a reduction of 22,000 rental properties in Scotland within a single year, attributed to government policies and anti-landlord sentiment.

Further, a survey by the National Residential Landlords Association (NRLA) found that 41% of landlords intend to sell properties within the next 12 months, while only 6% plan to purchase new ones, indicating potential contraction in rental supply.

## What this means for landlords and agents

The absence of a thorough impact assessment leaves landlords and letting agents without clear guidance on how these legislative changes will affect their businesses and the wider rental market. The abolition of fixed-term tenancies may increase uncertainty around tenancy durations and property availability, particularly in sectors like student housing that depend on predictable tenancy cycles.

Landlords considering selling properties may face additional challenges, as the reforms could influence tenant displacement patterns and market dynamics, though the precise effects remain unquantified. Agents and landlords should monitor developments closely and prepare for potential shifts in tenant behaviour and rental supply.

Suggested internal link anchors
– Renters’ Rights Act
– fixed-term tenancies
– student rental market
– landlord property sales
– tenant displacement
– rental supply impact
– ARLA Propertymark
– National Residential Landlords Association
– Scottish Association of Landlords
– periodic tenancies
– Tenant Fees Act
– section 21 abolition

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/