Tenant demand rises following Renters Rights Act implementation

Tenant demand rises following Renters Rights Act implementation

Tenant demand across England increased in the third quarter of 2026, with over 31% of rental listings already secured by tenants, reflecting resilience in the rental market amid regulatory changes and affordability challenges.

Tenant demand in England strengthened during Q3 2026, reaching 31.1% of all rental listings marked as let agreed, a 1.4% increase from the previous quarter. This level remains broadly consistent with the same period in 2025, down marginally by 0.1%. The data suggests that despite ongoing pressures such as affordability and evolving rental regulations, tenant activity remains robust.

The findings come from LegalforLandlords’ Rental Demand Index, which tracks the proportion of rental listings that have been let agreed across English counties. The index provides insight into how quickly rental properties are being taken up by tenants, offering a useful barometer for landlords and letting agents to assess market activity.

Regional variations highlight diverse tenant appetite

The City of London and West Sussex recorded the highest tenant demand in Q3 2026, with 43.5% of listings secured. Other counties with strong demand included Herefordshire (41.8%), Hertfordshire (41.3%), and Warwickshire (40.1%). In contrast, areas such as Tyne & Wear (18.3%), Nottinghamshire (21.1%), and the East Riding of Yorkshire (24%) saw the lowest demand levels.

These figures underscore significant regional disparities in tenant demand. While London and certain southern counties continue to see high levels of rental activity, some northern and rural areas experience more subdued tenant interest. The variation reflects differing local economic conditions, housing supply constraints, and demographic trends.

Quarterly growth in tenant demand was most pronounced in the City of London, which saw a 13.5% increase. Other urban centres such as Bristol (5.4%), Greater Manchester (4.5%), Merseyside (4.3%), and Greater London (3.9%) also experienced notable rises. Conversely, Rutland (-10.2%), Gloucestershire (-7.8%), and the Isle of Wight (-7.8%) recorded the largest quarterly declines.

Context of the Renters Rights Act and market impact

The Renters Rights Act, implemented earlier in 2026, introduced a series of reforms aimed at improving tenant protections and standardising rental practices. These include enhanced security of tenure, clearer rules on deposits, and strengthened obligations on landlords and letting agents regarding property standards and dispute resolution.

Despite concerns among some landlords about the potential impact of these reforms on rental supply and profitability, the latest data indicates that tenant demand remains resilient. The Act’s implementation may have contributed to increased tenant confidence, encouraging more active engagement in the rental market.

However, the Act has also led to changes in landlord and agent behaviour. There is evidence of more rigorous compliance efforts, improved documentation, and a greater focus on managing deposits and rents effectively. These shifts require landlords and agents to adapt their operational practices to meet new legal standards and tenant expectations.

Practical implications for landlords and letting agents

For landlords, the sustained tenant demand means continued rental income streams and deposit receipts, but also heightened responsibilities to comply with the Renters Rights Act’s provisions. Ensuring that tenancy agreements, deposit handling, and property conditions meet the new legal requirements is essential to avoid disputes and potential penalties.

Letting agents have an opportunity to add value by providing landlords with detailed local market insights and support in navigating the regulatory changes. Agents who can efficiently manage rents, deposits, and compliance documentation will be well positioned to maintain successful tenancies and client relationships.

Given the uneven demand across regions, landlords should consider local market conditions carefully when setting rents and marketing properties. In areas with lower demand, competitive pricing and enhanced property standards may be necessary to attract tenants.

Remaining uncertainties and regulatory watch points

While the Renters Rights Act has brought clarity to many aspects of tenancy law, some areas remain subject to interpretation and future amendment. The government’s ongoing consultations on related issues, such as landlord licensing and property condition enforcement, could lead to further changes.

Landlords and agents should monitor updates from official sources and sector bodies to stay informed of any new obligations or guidance. The evolving regulatory environment underscores the importance of maintaining accurate records and evidence of compliance activities.

Considerations for landlords moving forward

Landlords should review their current tenancy documentation and deposit handling procedures to ensure they align with the Renters Rights Act requirements. Regular property inspections and timely maintenance remain critical to meeting safety and habitability standards.

Engaging with letting agents who understand the nuances of the post-Act market can help landlords optimise rental income and reduce risks. Additionally, landlords should be prepared for regional variations in tenant demand and adjust their portfolio strategies accordingly.

Supporting landlords through compliance and management

The Landlord Association (TLA) offers members access to compliance resources and practical guidance tailored to the changes brought by the Renters Rights Act. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist landlords and letting agents in organising property records, managing rental documents, and recording key compliance actions.

ORBIT’s developing features include tools to help track deposits, rents, and tenancy agreements in line with current legislation. Members can also access up-to-date information on regulatory developments and use TLA’s AI assistant for property management queries. Exploring TLA membership and ORBIT BETA access can support landlords in maintaining compliance and managing their portfolios effectively in this evolving regulatory context.

Looking ahead, landlords who proactively adapt to the Renters Rights Act and regional market conditions will be better placed to sustain tenant demand and meet their legal obligations. Staying informed and organised remains crucial as further reforms may emerge.

Sources: Letting Agent Today